All Forum Posts by: Eric G.

I have a line of credit on one of my rental properties in California. I used Bank of the West. I called around to a few different banks and they all have their own criteria. Bank of the West had the highest loan to value program of the ones I shopped, which is why I went with them.

I can't speak to the strength of that particular market, but here in CA we would never hold a property for an incoming tenant longer than 30 days. They "really wanted it?" I'd tell them to check back in when their move in date is 30 days out. And I'd continue marketing. Vacancy is one of the biggest expenses to a landlord, and that is priority number one. Sounds like a lazy manager that just wanted to close the book on your property. Again though, I don't know your market or the condition of your property. I also think it's irresponsible for them to allow tenants to store items pre start date. I take a hard stance against that as I don't want the liability. And yes! I get that request on the regular. The answer is always no. But if they want to start the lease earlier and pay for the days they are welcome to. Remember, this is a business not a charity. The untimely response from your manager is also troubling. I'd shop for another one now. My guess is that your current contract has a small cancellation fee, but probably worth just breaking and moving on.

Photos are very important. It's the first thing people see when they search your home online. I bet some people don't even read the description. It boggles my mind when I see homes that are listed with professional agents or property managers, and the photographs are garbage. As agents, it's a crucial part of the job. And it's not even difficult. I can't tell you how many times I see photos that were taken with an iPhone. Of worse, photos that are upside down or sideways in the listing. Oy! If you're going to sell a property, pay the money for a professional photographer. If it's just a rental, amateur photos will do. But I do recommend purchasing a nice wide angle camera. Invest $100-200. It will be worth it. Standard lens cameras will have a hard time picking up smaller rooms.

I would make sure comps for "two on a lot" support your value of $910k. Much of the value of real estate is in the land, so adding another home to the lot won't necessarily make the property worth twice as much. If the comps support it though, great!

At 63 you are probably close to retirement (or maybe semi retirement). You are admittedly nervous about the prospect of taking on more leverage or moving into new markets. And you've stated that additional income wouldn't change your lifestyle. So if you decide to do nothing and stand pat that would be a reasonable choice. If you are going to cash out refi, I'd recommend staying away from out of state properties. Especially if you are targeting 10% return. That would probably put you in some pretty bad markets. But even in decent markets, I would think that if the dreaded Recession hits, those peripheral markets are going to get hit the hardest. If you invest in a strong market like Southern California, it will still dip in a downturn, but the long term demand will help it recover much faster than a locale in the Midwest, for example.

I can't speak specifically to NC, but here in CA all you need is the one page addendum that references the original lease and states any new terms. Anything not addressed will remain as it stands in the original lease.

Fay Chen self sufficiency rules only apply to 3-4 unit FHA loans. A duplex doesn't have to meet it.

Sorry, I didn't fully read your post. I see that you intend to AirBnb it. So this is a buy and hold. I'm from Orange County, so I don't have much knowledge on LA. But when I Googled the address, the Zillow photo that comes up shows bars on the window...it makes me wonder about the demand for short term rentals in the area...

I'm curious what your numbers will be. You're buying for $410k. How are you financing it? How much are you putting into it in renovation? Is this a flip or buy and hold? ARV? How much will each unit rent for?

To address the original poster, I don't necessarily think it is burnout that limits most people. I imagine it is money. Unless you're truly treating real estate as your full time business, real estate for most people is just another piece in their asset puzzle. And if the average is 2.8 properties like one poster mentioned, that is surely being inflated by the professional landlords with tens and hundreds of rentals.