All Forum Posts by: Jay Orlauski

Welcome Rosy - there is a lot of talk going on about downtown Fresno right now and several large projects already under way.  Many believe there is still room for growth as we start creating the infrastructure to make Fresno into a technology hub of the central valley. Fresno is no longer just an agriculture economy -though it is still at the heart of our commerce - we are starting to attract big names like Amazon and Ulta Beauty.  There has been a buying frenzy here as investors have been snapping up everything and rehabbing / repurposing buildings. 

We discussed earlier today that it has taken a long time to rebuild downtown Fresno because for a long time nobody wanted to be there in that space and now the people in my age group are not interested in being there - but the younger generation doesn't hold the same stigmas and see it as an opportunity  to take advantage of wasted space - this also open ups avenues for housing in downtown because it becomes very walk-able as more of the area is developed. So the downtown area starts looking more and more attractive to investors  - I think there is still some great opportunities for capital appreciation downtown.   

I looked up that form - a very interesting side note to it is that it specifically mentions that it must be under contract to sell to a natural person who intends to live there for at least a year after the eviction. Good news for Jason is that since he wants to 'house hack' by living there - this could work in his favor. Also seems to imply than an entity like an LLC would not qualify and thus require a 60 day notice. What's your take on that?

Here is the list fro the form: 

OR 3.

All of the following apply. Your tenancy, if any, in the Premises is terminated 30 days from service of this Notice, or on ________ (whichever is later).

         A.   Landlord has entered into a contract to sell the Premises to a natural person(s);

AND B.Purchaser intends to reside in the Premises for at least one year following the termination of the tenancy in the Premises;

AND C.   Landlord has established an escrow with an escrow company licensed by the Department of Corporations, Department of Insurance or a licensed Real Estate Broker;

AND D.   Escrow was opened 120 or fewer days prior to the delivery of this Notice;

AND E.    Title to the Premises is separately alienable from any other dwelling unit (i.e., it is a single-family unit or condominium);

AND F.     Tenant has not previously been given a notice of termination of tenancy

@Chris Williams - thanks Chris - that's  good to know. I didn't realize that it didn't apply to M2M tenants. I will look into that - 

@Tony Wooldridge - don't give up - it takes a lot of guts to step up and put yourself out there  -we only grow when we step outside of our comfort zone. I get the impression that you met a few people through this process even if you didn't have a big turnout. Cherish those relationships and build on them. It is only flop if you give up -  -  please don't give up - I look forward to seeing your group gain momentum and start growing. -  I wish you all the best !

@Ronda R. - that's happening right now in Fresno  - Downtown revitalization is a big thing in Fresno right now and there are some developers who have some big plans for expansion to take advantage of the new demand. Feel free to reach out to me if you're interested in hearing more about it. 

Hi Kiki - I'd be more than happy to help you out. There are still many good deals to be found in Fresno - you just have to be willing to get creative about how you find them - all the low hanging fruit is gone. If you are willing to do some marketing though - there are some distressed properties that need a white night to save them. Are you looking to invest in SFR or multi-family units? Feel free to call me on the number listed in my profile and let me know what some of your investment objectives are and I will see if we can align them with what's available out here. Some of the places outside of Fresno have plenty of opportunity also - I know that many investors are starting to look outside of the area for deals as the market is getting really tight in Fresno. If you do pick up some rental properties - I have access to some some really great PMs that I can introduce you to when you are ready for it. Give me a call or a text when you have a chance and we can talk a little about how you can grow your portfolio in the Central Valley. Make it a great day!

I just realized that the second set cash flow calcs have the incorrect Cash on Cash calculation because it doesn't take into account that you have been living there there for over a year and so you wouldn't have those startup expenses - the amount you spend in year two will be different than you spend in year one since you wont have closing costs or down payment - that calculator is meant for running the numbers of a purchase - when I send you the file , you can play with numbers all you want to see what it would like after the first year. 

Brandon -  PM me and I will send you the whole thing -  I came up with the expenses by using the following parameters - I always include 5% vacancy, 10% management and some room for capital expenditures  - in this case $2000 / yr.  I've lived in and invested Fresno for 17 yrs now and I'm basing the utilities on my own typical multifamily  bills at $60 / unit and the same with insurance at $75/ unit Fresno. 

As far as cap rates -  51/2 - 6% are closer to the cap rates for residential  around here although you may be able to get  little higher in the c & d class neighborhoods  

Commercial buildings are getting about 7 1/2 % cap rate ( if your buying right now) - those who have owned commercial for a while are probably getting much higher cap rates. 

I hope that helps

Hi Shana  - congrats on thinking longer term and deciding not pay someone else's mortgage! - from what it sounds like - once your  student is done with the unit - you can turn it back around to another college student/s  - you may want to consider something that you can easily rent out to two students at a time - then your student can have a room mate that helps cover the mortgage - if you purchase it near the college then you shouldn't have problem renting it out to other students.  Years from now marketing is going to be a whole new animal and we really can't picture at this moment in time what will be the best way to market this in 4 years - there could be several new technologies that make craigslist outdated  - the key is that if you buy something that can be easily rented to a college student - then you have an exit strategy  if you decide that you don't want to keep the place - it should  be easy to sell to another investor or if the market i down at the time - you can keep renting it for income. 

Closing costs seem a little high ... but otherwise here is what I come up with 

This includes vacancy and expenses but not management because you are living there ...

and after you move out , have raised rents and using management -