All Forum Posts by: Jay Orlauski

Hi Joseph - according to the Fresno Citywide Development Code - RMX is "Regional Mixed Use" 

RMX Regional Mixed-Use. The RMX district is intended to support regional retail and mixed-use development in large-scale activity centers outside of Downtown, as identified by the General Plan. It accommodates urban-scale mixed-use development that serve residents and businesses of the region at large. Medium-scale retail, housing, office, civic and entertainment uses, and shopping malls with large format or “big-box” retail are allowed, as are supporting uses such as gas stations, hotels, and residential in mixed-use or single-use buildings. Development and design standards will create a pedestrian orientation within centers and along major corridors, with parking located on the side or rear of, or within, major structures.

you can get more detail about it here: 

https://www.fresno.gov/darm/wp-content/uploads/sites/10/2016/11/FresnoCitywideDevelopmentCode.pdf

best of luck and let me know if I can help you with anything in Fresno area

Hi Darek -  turning around a property can go smoothly if you approach it the right way. when I was self managing - I have typically done much of the cleanup on my own such as cleaning and painting    - but often left bigger jobs to the pros. I would say a GC is not necessary  - it's a little overkill if you are just doing basic updates. 

wherever you get the flooring ( and I have some referrals  for you)  - they can install it  - so no need to worry about that.  countertops and cabinets can be installed very nicely by a qualified handyman  - you can bring a couple of them over to look at the job and give you a quote - ( again , I can refer you to a few people)  

From what you are describing - I am fully confident that you can manage the turnaround yourself. It's very similar to calling in a plumber to fix something except you just have a bigger list of things. Also  - feel free to give me a call and I would be happy to walk you through anything you have concerns about and can plug you in to some resources to help get you going.  I recently did exactly what you described about 11 months ago on my own personal unit and it was simply a matter of delegating the right tasks  to the right people. You will pay a much higher premium for a licensed GC  to delegate for you.  Just be sure that your handyman / installers have liability insurance. 

Let me  know how I can be a resource for you

I ALWAYS include management and vacancy when calculating CAP rates which is why realistically you are not going to find anything of quality over on the MLS with over 6% in Fresno - typical buildings here are getting closer to 4.5% to 5.25% - that's also the reason why I never pay attention to the numbers provided by the broker or the seller - I mean sure , I will look at them and run some numbers - have a good laff when I realize they have not included any major expenses and run their property for 4K a year ..lol. but then I look at what the actual expenses are likely to be based on experience and look at the REAL potential for rent and run my numbers based off of that - of course not a lot of properties will show a good cap rate when you do this - but I feel that it is more realistic and I don't have BS anyone when it comes to what a property can generate - I don't have to go back and adjust numbers for things that weren't taken into account initially - keep in mind that most real estate agent don't even own any property much less investment property - try to work with someone who has their own investments and understands the intricacies of income property. As someone posted - the actual priced based on a 6% cap rate will be much less that what is currently on the market - these sellers are seeing SFR prices going through the roof and somehow thinking that it applies to Multifamiles - but a MFR is only going to be worth what you can get out of it and investors are too savvy to pay what they are asking which is why so many of them are just sitting on the market right now and agents are blowing smoke up about their cap rates

Hi Isaac - welcome to the forum. There are many opportunities in real estate and I think it's great that you have decided to put your hat in the ring.  If you would like to meet other investors and network then it is a good idea to start attending local investor meetup groups. You can learn a lot from other experienced investors as well as start to build your buyers lists and  connect with wholesalers, lenders, and contractors - all connection that will be valuable to you when investing in real estate. I've been running a local meetup for the last 3 years, but there are also a few others right here in Fresno that have some great people to connect with. If you have time - maybe we could get together over a cup of coffee the next time that I am in the LA area and talk  about what it's going to take to get you kicked off with real estate investing.  I also have some resources for you to take  a look at if you are deciding to get your license. Feel free to reach out to me - have a happy Thanksgiving!

Hi Bruce - there are a few excellent real estate investors meetup groups right here in Fresno  - if you check out meetup.com you find them easily. Also feel free to PM me and I'll be happy to direct to the one I attend every other week - in fact - there is one happening this week on thursday. 

Hi Joseph - you'll be happy to know that there are a few real estate meetup groups that are already well established here in Fresno - I can't give too many details without them flagging this post - but I will say this - that if you look up REIA meetup groups for Fresno - you will definitely find AT LEAST TWO major groups that meet regularly. I would encourage you to take a look at them and them attend one when you get a chance - there is a meetup happening next Thursday and the subject is "6 Things You Need to Know About Every Deal You Look At" Hope that's helpful - also feel free to reach out to me for anything relating to investing in real estate - I've been investing in Fresno since 2000 and I have built up a network of buyers and sellers - let me know if you'd like to get together for coffee or something. - I'd love to hear more about how you're building your business and who I can connect you to so you can keep growing.

Hi Leah - congrats on choosing to invest in real estate - buying your first investment property is a big step and can be exciting and overwhelming at the same time. I did something similar with my first investment property also - I lived in one side and rented out the other. If you purchase with an FHA loan - then you will be required to live in the property for at least one year before moving out. In most cases, if you buy with a conventional loan then you do not need to live in the property and are free to rent it out immediately, however , if you qualified for the loan with the subject property being a primary residence on your loan application than you must occupy the property for at least one year. Your best bet is to sit down with a loan officer and discuss your plans - they will be able to tell exactly what you can and cannot do - you may also want to consider getting prequalified so you know how much you can buy and what your payments would be - this is especially useful in running your numbers to see if a property will cash flow or not. I'm happy to help connect you to a great lender that I have used for over 17 years right here Fresno if you'd like.

Hi Julie - feel free to reach out to me - I would be happy to help you out. I work with a lot of investors - and if this is really a deal , then there's a good chance that I can connect you with someone who can either provide private financing or partner up with you to help walk you through the deal. I can help you do some comps , run some numbers and figure out repair costs.  One of first things you'll want to know about is what you can sell it for in the area. You typically want to look at houses that have sold within 1/4 mile over the last 3 months  -  those will be your best comps- if none are available then you want to go back a little further in time to see if anything sold and if still nothing , then we can expand the 1/4 mile to a half mile... keep in mind however, the older the sale and the further away it is , the less valuable it is as a comparable- but you need to start somewhere. If this was a buy & hold - then I would also look at what rents the local market can support - but you mentioned this as a flip opportunity. 

Once you know how much you can get for the house - your going to want to find out how much repairs it needs and how much those will cost. This is critical in determining how much to pay for the property. You are also going to want to do a title search to make sure that there are no liens or judgements against the property - it's not necessarily a deal killer if there are you just need to be able to account for them in your calculations.

I would be more than happy to help you out if you if you like -google me and you'll see why I feel like I can help you ( Bigger Pockets doesn't like me talking about my investors meetup group unless I give them some money) 

In my experience - I have tried to be nice and I've heard all the excuses and when it comes down to it - I wish I had started the eviction process sooner. The problem with allowing this behavior is that you are training them on how to treat you and they may be likely to pull the same thing in the future cause as they may think that you are a pushover-   Now they may be long term tenants with a good history of payments and this may be a special situation that they need to get over and obviously that merits a case by case review - but generally speaking   you should start the eviction process as soon as  your state allows - it is always possible to cancel it if they pay and you choose to accept it - but at least you will let them know that non-payment is not an option that you will put up with. The longer this drags out - the more you'll wish you had started sooner. 

thanks Frank! Stop being a stranger - let's connect sometime soon and catch up...