All Forum Posts by: Dillon Brooks

All these are great questions. I didnt know about the lending for these situations. Will definitely look into it to see what the lending standings are for a potential exit strategy.

Thank you guys for your input. Definitely helping me find clarity in making this decision. Got the Architect schedule for next week, going to some moves!

Got it, thank you for your input! 

Thank you Matt. I appreciate the feedback 

Well your not really answering my question. Your kind of just pin pointing different details I have chosen to left out to make things more simple. In my business I always go conservative with my numbers and use estimates, based on the current trend of the market, and worse case scenarios, because markets change, and numbers in my mind are estimated until you are receiving them. These numbers I have shared are conservative in my market area.  How about this. Let me change the questions for you.

 Today how easy it to find a rental property with 100k down that can potentially cash flow 2k a month after expenses outside of California. And if it is difficult, would it still be work looking for that deal, instead of making the move in Cali 

Yes, thank you for typing that out. I was asking more so in general terms not getting to detail but It’s is exactly how the numbers would work the way you typed it. The front house is bigger which is why it would rent more which is where the 2500 came in, estimated rental market value(3bed 2bath).
The way I ran the numbers it seems like the build of the ADU is a good move overall with numbers, but what has me doubtful is California. My city just passed a bunch new laws against landlords and I don't see any positive changes as far as these extreme laws getting better any time soon. So I'm just contemplating on making this move or adapt my strategy to out of state rentals in more landlord friendly places, but the numbers might be worth the headaches in California with this build. So just shot out the questions of opinions if you were in position

Well it’s pretty obvious your not following along. I’m currently house hacking. I’m living in the front. These are the numbers I provided. 2470 is my expenses. I rent the back for 1800. I live in the front and I pay. If I moved it cash flow already, about 1200. If I build this unit it cash flow now with me living in the front and nearly double the income when I move out of the front and rent it out. These are the general numbers. 

I own a duplex, I pay 2470 a month, I rent out the back for 1800, and I live in the front. If I build the ADU I could rent it out for 2k. It would cancel out mortgage and cash flow about 1k. Once I move out the front I can rent out the front for 2500. So, in the beginning I'd cash flow 1k and have no monthly housing cost and when I move, I'd cash flow about 3k after saving for vacancy etc. Or scrap the plan and look into something else outside Cali

I have 100k and live in SoCal. I am in between building an additional unit on my duplex property. This would generate 2k a month which would have me living for free and generating 1k in income a month with current numbers. It would also cash flow 3k once I move out the front.   Or should invest outside of California, do to the extremes regulations they continue to pass in the state and the city. My return may be higher here in this move but the state has me thinking otherwise.

Hello!

In the next year I will have my funds together to start looking for deals out of my area of Southern California. As I explore my core 4 and look into different markets I am contemplating on a couple different places where the entry level is more do able to compound a strategy, and implement the notorious BRRR. Does anyone know of have great wholesales in the Las Vegas/Henderson Area or a places in Texas as well? If anyone else has recommendations to hone in on please share. I have been running deals in Texas so far and want to look into Vegas before I double down on a certain market Thank you!