All Forum Posts by: Jak Dadi

Hello All,

After making a few investments in East Bay last year and managing them personally this year, I am now ready to make some more investments, preferably outside of the Bay Area for diversification purposes (Japan earthquake is fresh in my mind too). Markets been looked into are Fresno/Clovis, Merced, Stockton and Sacramento. Any other suggestions are welcome. I will hire a property management firm to manage these off-site units. The only thing is I do not know much about the markets except for the research done online. Is there anyone out there who has been actively investing in 4plexes in these markets. For me, the story has to be about cash flow, where breakeven is from 2 units and the other 2 units contribute to positive cash flow. I have a few Section 8 tenants in my existing properties, and it works out perfectly.

I am looking for 4 plexes in clean areas (i.e no gang activity) for ~$140K- $150K financed deals, 2 bed units, approx $700/mo in rent. Not looking for rehab units since I do not have expertise in rehabbing.

A search in the BP Forums did not yield much info so I am assuming that there are not many members who are investing actively in these markets, but I may be completely wrong.

I understand that the above locations have been really hard hit in the meltdown. My realtor recommends I look at properties closer to home in South Bay, but the cap rates are not what I am looking for. I try and limit my loans to 15 years and even with 30 yr loans, the returns on South Bay properties are not appealing.

I would love to hear from seasoned investors who have been investing in hard hit areas such as CV.

Hi All,

I meant with the tenant. He signed the document indicating that the deposit would be kept against lost rent and i refunded the rest of his money....

Not yet found another tenant. Someone did take an application yesterday. Hopefully next week would be a different story. i had received a few calls of candidates interested in looking at the apt, but by that time, i had stopped showing the apt....i will be contacting those callers again. So, I have lost April's rent in this process, but life goes on!!

Thank you Mitch and Aaron...I am meeting them today and have a letter prepared to that effect :-)

Keeping my fingers crossed...

THe receipt simply said "Deposit- April 1, 2011 thru March 30, 2012. :-( When I talked to them on the phone, they indicated that I can keep the entire $500, as long as I return everything else.

I had a potential tenant submit an application on 3/16. We approved their application on 3/19. They indicated they wanted to move in on April 1. We met on 3/23 and they gave a money order of $500 to hold the place. I gave them a receipt. They said that they will pay the balance and first month's rent on April 1st when they move in. On 1st, they indicate that they will sign lease on 4th. On 4th, when I meet them, the gentlemen asks for extended time for security deposit. That was the first he speaks of needing time for deposit. His girl friend would help him with the balance deposit of $200. His rent is $900 and deposit was $1000. I give him the keys and a weeks time for deposit. I have yet to give him the executed copy of the lease since I did not get a chance to make a copy of the lease. On the 6th, he asks for the lease since he wants to start services. Meanwhile I noticed he had not given me copy of proof of income. So, I indicate that I need that, in addition to balance security deposit. I express my concern that if he has trouble with deposit and I have not seen proof of income, how can i be comfy that he can pay rent.
Finally, we decide to call the whole thing off. The question is how do I treat the initial $500. Since I stopped showing the apartment and I lost rental revenue, how much I can keep, for how many days?

Great questions. I do not know the answers as yet. I am not going to rent to her unless the rent source is fool proof. I am meeting with her this week to understand the situation. I am told that if she has a case worker for her income, I can work with that person. More to come!!

I had a lady calling in to enquire about a vacant unit. She is on fixed income (social services), gets child support and does some waitressing on the side for some extra cash. She has 3 small kids living with her. She does not have a good credit history and was evicted a few years ago. She did offer that she can give me the debit card for both the social services and the child support or basically assign for me to get the check directly so it can be applied towards the rent, thereby guaranteering my rent. Is that legal? If yes, how do I do this? What do I need to watch out for here?

Thank you in advance for the responses!! :-) Appreciate the wisdom in the BP forum

The old owner did get a licensed co.(Clark Pest Control) to come and treat the place. I am going to contact them tomorrow and see if they can come back for another look.

Jeff,

My thoughts exactly. I would love to do that, hinted as much, but I guess she does not want to move. Her sis is a tenant in the same fourplex.

I have a tenant who complained to bed bug issues right after we purchased the fourplex. I talked to the seller of the property and he indicated that based on her complaints, he had the unit fumigated in October. He gave me all the backup which also stated that the pest control co. did not spot any bed bugs. She had 30 days to come back if she spotted any bugs, and she did not come back with further complaints. As soon as I got the property in November she has been calling 5-7 times a week that the bugs are back and she has bites all over the body. She is a Section 8 tenant and has been living there for 13 years.
She is 57 and apparently has liver trouble. How do I protect myself in this case? Do I go back and get the place fumigated. Last time, it cost the seller $750 to fumigate the unit. I am also concerned that if she has all those health issues, is it even safe to do this again? Your inputs would be appreciated. I read some articles and posting on BP on this