All Forum Posts by: Francisco Franco

@Marcia Maynard thank you for replying,

Utilities are Water, Elec, and Gas.

I also like the percentage rule. Yes it is tricky and nothing is going to be perfect. 

If say the main house has a family of 4 and the studio has 2 adults, that would be a 60/40 split correct? Or am I wrong?

Franco

Hey BP Family,

I finally purchased my first property and we are excited to meet our goals. The lot has a main 3/2 House with a detached garage and above the garage you guessed it there is a 1x1 Studio. Main house has all appliances in the house, Studio has separate W/D in the garage. We purchased the property already rented and working with the House and ADU occupied. There is only single meters for the property. The previous owner had a system/agreement in place with tenants that I took over and continue to make things easy. Studio paid $60/m extra for Utilities and House paid the rest. The studio lease is up next month and the tenants are leaving, I have the opportunity to make changes and with the main house on a 2 year lease things look good.

That is the plot here is the issue I want to ask all of you for your expert advice: Main house tenant is claiming that $60 all inclusive for studio's utilities is not very fair. They claim they don't use water or turn on their AC that much. They asked me to make it more fair. I am all about being fair and I can see their point. I have no back bills or utility records to make a baseline for what is fair. 

Should I wait a few more months to have bill history to make a baseline decision? Should I do a percentage split instead of a set price, maybe a 60/40%? Or just raise the Studio's Utilities?

I don't want to spend any out of pocket money at this point, so all options have to be based on this.

Thank you for your time and I look forward to reading everyone's experience,

Franco

@David Flores I will. I do know about seller financing, I have only ran across one deal that had that option.

Yes never give up!

@Ernesto Hernandez thanks for reply. 

My end goal is simply cash flow. Multiple streams of income to be able to retire from my day job.

Why is screening and managing tenants in Cali a bad idea?

@Odie Ayaga yes I feel that they are. For investments at least.

Thank you all who have responded and offered your advice and experience, especially David Flores, I feel you are going through what I am, but succeeding.

I would like to ask you a few more questions. I understand what you are doing, but how did you get over the having cash on hand for all the down payments for the investing properties? Even If I went 1-5 hours away and found something I liked, I still run into the FHA loans are only good for non investing properties. I would need to live in them for at least 6 months from what I was told.

I look forward to you reply David and others.

Franco

Dear Bigger Pockets,

I started my RE journey early 2019 with my Wife. I read Rich Dad Poor dad, listen to Rich Dad Radio and BP podcasts. I read books and I go to Meetups, I mingle and listen. It has now been 7 months in the education section, I don't want to be stuck here if you know what I mean. I am ready to make the 1st purchase and I need your help.

I live in Orange County and this is the biggest challenge as I am sure many can relate. I have an Agent and I have my financing steps complete (loan approvals) so far I have a nice conventional FHA loan. There is nothing that makes sense to start in my area, the numbers are not working or barely logical to make the plunge. I am very careful and always risk aware as we all should be. With all of my education up till now I know where to start, but I feel like I can't because of where I live. I have to go out 1.5 hours away to start finding OK deals (we are looking into single family homes with large lots for ADUs to Multiplexes). We want to be able to manage our properties and screen our own tenants. My reason to invest in my area is simply because we can always move in and live in one of our properties in the future and we don't plan on leaving the OC.

We decided on Buy & Hold because we cannot have another 'job' and this makes the most sense. I work full-time M-F and have a side business that takes my nights and weekends time. My Wife is a full-time Asst. Director at an Elementary School and she is home by 7-8pm weekly. Buy & Hold is for us and we are used to having tenants, we have been renting our spare room for 5 years in our town home.

We are looking for advice and help from people that have experienced this and want to share their insights. How to over come the OC...

Thank you BP community,

Francisco