All Forum Posts by: Franklin Romine

What type of properties are thinking on purchasing in the Valley? Price range? Area?

I'm in the process of cash out refinancing 4 properties. 5.2% 10/10 75% LTV. I have 10+ loans. Local bank is requiring 12 month reserves for the 4 properties and 6 months for all other properties. You get to the point where your plan to save for reserves and repairs is more important than growing your portfolio.

Steve E,

I learned a valuable lesson that you should definitely do not disturb the occupant. After the winning bid I was anxious to get the tenant out prior to escrow to give me a quick turn around in the repairs and re-rent. I wired the funds late on a Friday with the recording happening the next Tuesday morning. I woke up feeling good on Saturday, typed up a I'm the owner move out of my property letter and visited the occupant. Presented the letter and the occupant, which was a women tenant standing with a couple children said "well now I'm confused the bank is evicting us and we have a hearing on Monday", her attorney called me later that day and said I trespassed and they he will be postponing the hearing for 30 days. Impatience was going to set me back potentially at least another 30+ days. Tuesday after the recording I visited the tenant again with a $100 gift card to a local grocery store and told her if she moved out in 7 days I will deliver her $500. She agreed, we cleaned up the property and it rented quickly.

Moral of the story is who knows what's going on with occupant, assume nothing and do not jump the gun.

Frank

I've bought three occupied properties through auction.com. Two of them required $500 cash for keys and a signed note that anything left behind belongs to me. Make sure the purchase price factors in these expenses and other unknowns. just because people are living in the property doesnt mean the property is anywhere near liveable.

Run away from that 140k duplex with the low rents. Fresno has alot better deals to offer. I can send you examples.

Frank

Most of my rentals are in Fresno and some in Visalia. I invest in 40-60k homes that rent for $700-900 per month. If your in the area I wouldnt mind showing you my properities and the specific farm areas I look at to give you an idea.
Frank

Jon,

Speaking for sfr rents are fairly flat. My market is the 40-70k homes that rent 700-1,000mo.

Frank

Speaking for central ca not much has change. Not much increase in values and zero vacancy. Its a good market and Im excited to buy more.

Frank

Good article.

Mike true... I plug 50 per month for reserves/repairs. No mgmt fees, i do it for free.