All Forum Posts by: Lenny B.

I just acquired a fourplex in average condition with existing tenants on a month to month basis. The tenants live there for several years and only had one rent increase from $750 to $775 6 months ago. In order to get this property into a cash flow positive territory, I would need to increase rent to about $1100-$1200 level, which is a market rate in this area of Sacramento (which doesn't have rent control)

I was thinking of giving tenants a 60 day notice about a rent increase with the option to stay or vacate. Does it make sense? I don't mind if they vacate, in which case I'll do some upgrades. Rent demand is huge here and I don't expect the units to stay open on the market for more than a few weeks. Thoughts?

thanks in advance.

@Account Closed,  impressive performance on getting to 43 properties. I was wondering if you could share how you financed them. I have 4 duplexes and closing a fourplex, all in Sacramento. Adding my primary residence bay area (with tons of equity) in to the mix gets me to 6 active mortgages. The lender that I work with from US Bank tells me that it would be very hard to get another loan now that I have 6 loans already. What would be the best way to finance next properties? Thanks.

I'd love to get a spreadsheet too. Thank you.

Lenny

@Brent Coombs, thanks for advice. I know about joint venture and syndication, but would rather pull it together on my own.

Hello everyone,

There is an MLS listing for $2.1M 20 unit apartment building in California that seems to have all right numbers (back of the envelop analysis at this point). This is a major metropolitan area that has seen a double digits appreciation and rent growth for the past several years. I can come up with $250K for the deal.

What are the creative financing that I could do for this? I bought 4 duplexes in the area over the past few years. Remodeled them and now they generate $500 per door of cash flow. This would be my first apartment building though... 

Would appreciate advice and leads for lenders.

thanks,

Lenny.

Are you only considering long term rental terms? Are you allowed to turn 1 or more units into vacation rentals?

I am looking for the same. Would appreciate any referrals.

Thank you,

lenny

Hello everyone,

I have a situation where I bought a duplex in California and gave an existing tenant (who lived there for 10 years) a 60 day notice. Tenant has been telling me that he is actively looking for new rent, but come July 1st, he hasn't lined anything up and his 60 days are up. I need to start major remodeling in that unit asap. I'd hate to create problems for the tenant and get into eviction hustle. What are my options?

thanks,

Lenny

@Wes Blackwell, a question for you and others. Back in 2009, when the market crashed and many people lost their homes... I know that home prices dropped, but what happened with rents, vacancy rates and demand for rentals? I would assume that with so many homeowner suddenly becoming renters, the rental market would be strong. I wasn't in REI game at that time, so I don't know what happened in the battleground market as Sacramento. Would love to hear your recollection.

Hello, a year ago i bought a duplex in Sacramento and the termite report said this:

Finding: Evidence of subterranean termite activity noted in the foundation wall of one unit. Possible hidden damage in this area.

Recommendation: Chemically treat the soil at probable entry points for the control of subterranean termites.Remove any termite shelter tubes from accessible area. (Full Treatment using Termidor™) - $1100.

My questions are:

- Should I move forward with the suggested treatment?
- Is the cost of treatment reasonable? Does anyone know someone that could do it for less?

thanks,

Lenny