All Forum Posts by: Edit B.

@Stephen Jones

I would not move into a lower class location even for the cash flow. I would maybe move into same class location but lower class building or building that needs work as renovation is always an option.

Determining cash flow in low class area can be tricky. You have more violence, vandalism, vacancy, calls, turnover, management time… all which amount to hidden $$ and not to mention peace of mind. It’s cool if you’re single and 22-27 I guess but if you have a busy life you don’t have time to manage bs

@Dominic Holt

Thoroughly understanding your market is key. If I like a property and use Zillow to do the rent analysis I would likely not buy anything. Most properties being rented are owned by absentee owners who manage themselves or often use property managers. Property managers don’t like to waste time. They post at market or below market to get it rented quickly. If tenant is paying below market they are much more likely not to complain about issues, that means less work for property managers. I’ve seen this over and over.

It’s very important to know the exact rents you can achieve in that city, neighborhood and street. This way you know exactly what price to come in and when to back down if the prices are unreasonable.

You can buy a duplex for 550-650k in Sacramento, renovate the units for about 50-100k. Rent the units for about 3k each side. One side more than covers the mortgage but of course you are putting more money into the deal and managing large renovations- not for the faint hearted

I have a feeling rents are higher than you think considering overall Oregon rates but I could be wrong

@Gene Hacker Where does this law specify that only single families are included? From what I gather all are included. 

@Jeff M. Definitely sell IMO . The cash flow is nothing. I’m looking at 1500 cash flow by initial purchase post renovation and increasing at a rate of 5-10% a year. I wouldn’t manage a property for less than $1000 cash flow unless appreciation game is another 50-100k annually

I wrote a post on chicago a while back because I didn’t understand how people preferred to invest there considering the unpredictable and high taxes but people made it sound like it’s not a problem at all smh .

@Soung You

We’ve sent out a rent increase notice to tenant and section8 in CA 62 days ago. So far no response from section 8 after multiple attempts by ownership and tenant.

Finally after contacting some random manager there was told it would possibly take another 2 weeks for them to respond. Mind you just no contact whatsoever in between, and new rent is scheduled to start in 2 days. Repeat this scenario each time you need new tenant or rent increase or vacate tenant and that’s what it looks like. In CA you are legally not allowed to disqualify tenant due to section 8 income alone so I disqualify based on the fact that they don’t operate within timeframe of the law

Should also add- if tenant has resisted there for one year or longer and reason is not provided on request to vacate, the notice to vacate is voided and not legitimate

@Kelsey Bailey I second this. Many people here are not from CA so it’s kind of not surprising it took this far down in the thread to get correct info.

In CA if tenant has resided in property for one year or longer you cannot evict without just cause unless it’s a single family property(excluded) or owner lives on one side. And even with just cause you need to(waive last month for ex) pay for one month of their rent or provide them with one month of market rent funds upon move out.

More importantly- what is a just cause? The main ones are below.

- owner performing significant renovations

- tenant breaking lease agreements

- owner moving in

- owner taking property off market for more than a year

@Jim K. I recently found that credit bureaus no longer report civil judgements(as of 2017). So this will not show up on credit. However he can likely put it on the credit himself I would assume?

Or is this something that shows up in background checks?

This is ****ing rediculous.

This is ****ing ridiculous.