All Forum Posts by: David W.

Thank you Rick for your reply. Will call HACLA to verify all details 

@Rick Albert thank you kindly for your response. I am entering escrow tomorrow and although I have reviewed all the various data from this property I am still "inexperienced" and we all know that although a buyer's agent has a fiduciary they are still going to have a monetary agenda so if something might be on the fence they will shine a positive light on it. That is just reality so I was hoping to find an outside thought on the deal. I know that is a lot to ask for but I don't have anyone else that is a real estate pro or has any experience with multi unit analysis. 

1. Property condition. Built in 1963 and requires soft retrofit aprox $100k (getting estimates this Friday). I have to find out with inspector(s) anything else but I was told there is no deferred maintenance and 6 of the 8 units have been remodeled. No roof issues etc. 

2. What was attractive about this property was that 6 of the 8 units are section 8 and all are 100% current. The property is owned by a company that does exclusively section 8 and I have been told their vetting is very thorough. With the socialist prop 33 that might be approved in November then section 8 is all the more attractive. 

3. 6.6% today but we all hope that the crystal ball will lower. I have no prepayment penalties at that rate and at that rate I will be positive cash flowing (not much but enough after expenses, vacancy rate, etc)

4. I would guess that a 3% max annual raise is more realistic because the socialists are tightening their grip on California and pushing for harsh laws to take control of properties etc. 

Does anyone know where I can get some advice? Is there perhaps another forum that might be more active?

I see a tumble weed and a turtle off in the distance crossing the sun scorched sand lonely road in the desert.  

Hello! 

I am going into escrow with a multi unit, two 2 bed + 1 bath, six 1 bed + 1 bath. located in . It has a rent roll of $16,000 per month. Price is $2,030,000. I am putting 33% down, 6.6% mortgage. Renters are all up to date and no missed or late rents. This offer would not seem attractive to middle America because it is not cash flowing as much but I would say this property will conservatively appreciate 5%+ per year. I own 2 sfr in LA and this will be my first step into multi. What do you guys think? 

 Thx Bradley, Nevada, Arizona, Texas are the three I'm looking at. I have a friend who has a ton of property in Bakersfield, Ca so I'm still keeping my eyes on local. Still trying to calibrate my sights on not just the country but get it down to 1-2 cities max! Where in Nevada do you feel has the most growth, economic stability, new tech etc? 

Hi Tim, thx for the book recommendation. I have been very hesitant to pull the trigger anywhere outside of LA. Tbh everyone wants to close a sale and will never say anything negative. I know the truth in LA. There are conflicts of interest with the buying agent wanting to close, the selling agent wanting to close, the property manager wanting new business etc. I'm sure once one gets into a new geographical area and builds the team then it can work but that in itself takes a ton of commitment. Otherwise buying in Socal I'm a drive away I can be hands on. I have saved a LOT of money doing jobs. Just finished doing my own front yard revamp at a rental that was quoted for $8k and I did it for $1k. Not that that is my goal as I'd rather find a trusted team (very hard). 

So where are you investing in out of state now? 

Thank you guys. I do agree that LA has great appreciation. Most of the properties I have seen have CAPs around 3-5% tops in LA. I don't think it is smart to tie up all your equity in one property so that way you can break eve. . If you put 30% down in pretty much all the properties I have analyzed I'm still going to be negative. For example a 2M prop fully rented will still be a negative $4k/mth. Just doesn't make any sense. 

I've had my share of low income experiences to never ever rent in an area where I have to collect my rent with a baseball bat unless a unique section 8 opportunity. 

Do you guys have any advice on how I can narrow my search down or how one goes about finding something that can at least break even? You seaid there are many opportunities but I have yet to find even one single one after months of searching. 

Hello everyone, 

I have lived in Los Angeles since 2007and have no plans of leaving, although the state taxes are brutal. I have one primary residence and a second which is used as an airbnb in LA. For years I have been meaning to get into commercial either multi units or even industrial i.e. warehouses. 

Buying a single family residence was technically easy as I knew what I wanted, where I wanted to live so I just waited for the right time to strike. But researching for an investment property the rabbit hole pulls me in all different directions. 

First I start in LA but then can't find anything that makes sense as its highly competitive strong tenant rental control rights, etc. It is ideal to stay in LA as I am fairly handy and can fix a lot of things in the beginning or at least be present to make sure I don't get taken advantage of as it can easily happen if you don't have an amazing team formed out of city or state. LA will appreciate strong with little to no cash or even negative. 

I then see other cities like Houston/Auston, Tx, Scottsdale, Az, multiple cities in Florida and although I'm sure there are deals that can be found the negative is distance. Unless I dedicate 100% to select a city and spend a lot of time building a team I feel that perhaps I should find something drivable. But then I wonder if I find a property out of state and form an LLC then I could eventually get away from Ca state tax (more of a cpa question).

Is anyone out here that has any thoughts or is an investor with success in or around LA? Thanks for your feedback in advance. 

Hello!

I have been studying tax liens and deeds and would like to take action. Does anyone have any success and experience that I could perhaps as some questions? I would be very grateful!