All Forum Posts by: Eric G.

Still an incomplete link...

Scam! Obviously only a guess, but as a property manager that oversees the marketing of hundreds of properties, I've seen a few things. Here's the most likely scenario: Somebody has a fake ad up, likely with a price that screams too good to be true. When hopeful and gullible people respond, the original poster tells them to swing by the house on a drive by. Sometimes they even tell them to "try the back door, it's open." And then, if the poster is lucky, they are able to get these people to meet them and give them a deposit check. That scenario is real because I've had many people show up to my office expecting keys for a property we didn't rent them. It's sad but true.

Make sure whatever e-platform you use that it has the ability to decline payments and go into "eviction mode." In California, if you start an eviction process and the landlord accepts even $1 you have to start over from scratch. So again, make sure you have the ability to turn off or reject payments.

No longer available.

The debate will continue to burn on in the forum: to LLC or not to LLC. I'm not here to rehash that. During those arguments, however, the pro-LLC camp is adamant about the personal liability protection it offers. I'd love to hear personal stories of members who have been sued? With or without a LLC?

Property manager and landlord here. I agree with your gut: if you have a good tenant that pays on time and doesn't abuse service calls, don't rock the boat. I always start my leases at market rent, but if things are going well, I'm happy to renew at the same rate for years to come. They'll end up with under market rent at some point, but I'd rather have continuity than the stress and cost that comes with a turnover. That said, don't be too hard on yourself. It's doubtful your tenant left simply because of the price increase. It costs money to move, not to mention the hassle. If the rate hike was the reason for the move, he would have put in a counter offer. But more than likely there was something you're not privy to. Tenants leave for all types of reasons: job relocation, growing family, etc.

This 3 unit project is comprised of:

3bed/2bath 1383 sqft (market rent: $2200)
3bed/2bath 1345 sqft (market rent: $2200)
4bed/2bath 1577+ sqft (market rent: $2350)

Units are side by side in a townhome fashion, so nobody on top of each other.
All three units have a 2 car attached garage, laundry hookups, and private back patios.
Located in the highly desirable Sunny Hills school district of Fullerton

This 3 unit building is being sold as one project. Each unit is classified as an individual condo in tax records, and each has it's own APN number.
They are part of a complex with 18 units. However, the HOA that was created decades ago is no longer active.
You have to purchase all 3 units as one project. In order to sell them as separate condos, you will need to create a new HOA. I have an old letter from attorney explaining process.
That cost is included in the calculations below.
Otherwise the condos are in fine condition, and will only need carpet/paint once tenants move out (currently mo-to-mo).

Solid comps in the same school district range from $433k-$450k (with smaller square footage). so if you sell each condo at $450k, total sales price is $1,350,000.

Could also be a great buy and hold. Market rent for all three units is about $2200-$2350 ($6750/month total).
All utilities are billed separately and are tenant responsibility. Very low overhead.
Cap rate of about 5.5%.


Purchase price: $1,080,000 (All cash only, 30 day close)
Closing costs: $0 (2% seller credit included in price)
Paint/Carpet/HOA Formation Costs: $45,000

Total Cash Invested: $1,125,000

Sales price: $1,350,000 ($450,000 avg of each condo)
Closing costs: $47,250 1.5% closing fees, 2% buyer's agent=3.5% (assuming you are a broker)
Net Sales Price: $1,302,750

NET PROFIT: $177,750
CASH ON CASH: 15.8%

Real Property Management is a national franchise so I'm familiar with their California operation. If you pay the $15/month they cover the cost of an uncontested eviction, which is about $800 here in CA. Essentially it's like any other insurance. If you do the math, you'd have to go through an eviction within 4 years to make the insurance a financially smart decision. But like most insurance, it's less about the financial math and more about peace of mind.

Real Property Management is a national franchise so I'm familiar with their California operation. If you pay the $15/month they cover the cost of an uncontested eviction, which is about $800 here in CA. Essentially it's like any other insurance. If you do the math, you'd have to go through an eviction within 4 years to make the insurance a financially smart decision. But like most insurance, it's less about the financial math and more about peace of mind.

Property manager here. My company manages over 500 units in Southern California. We transitioned to Rently last year and it's been a huge success. I had the same reservations that most posters have had, but it turns out all my fears have been unfounded. 

On the positive side, we have more showings and we are leasing properties quicker. I'm sure we lost many prospects in the past when they couldn't coordinate a convenient time to visit with our showing agent. Now they can schedule at their convenience. 

The biggest issue we've had is that prospects have left lights on. My biggest fear going into Rently was similar to posters above: what might people do unsupervised?  Sure, people could use a stolen credit card and steal the fridge. Or squat. But then again, the people that are looking to do those things can do a quick zillow search and see a dozen vacant homes for rent within a mile radius. It's just as easy to find an open window or jimmy a lock. In fact, id think that would be preferable to putting down a credit card on record. 

It's not perfect, and there are some properties it doesn't work for, but I'm here to say I've had a positive experience so far.