All Forum Posts by: Garvey Daniels

Does anyone have rental property in Palm Springs, Ca. that could give some advice on rents? I have an 1800sq ft, 3bd/2ba with mountain views, a pool, and near downtown with great tenants that pay on time and look after the place. I did not raise the rent after the first year but was looking to raise it this year (roughly 4-5%). My property manager says the market is over saturated with rentals and some of his other clients are lowering their rents. My online research shows rents are fairly steady for similar properties of the size and location. I don't want to scare off the tenants but need to offset increasing expenses. If you have insight into the Palm Springs rental market, I'd love your feedback. 

I have never bought land before and I’m looking to purchase a piece of undeveloped land. I don’t know how financing land differs from financing a house and would appreciate some insight. Also, what are some pitfalls I should look out for and questions I should ask?

@Steve Hall @Andrew Kroupa

Guys, thank you for your feedback, and Andrew thanks for the article suggestions. 

I hear what both of you were saying and take it to heart. That said, let me rephrase the question a bit different.

The property next to my in-laws has been taken over by the city and put in receivership. The receiver initiated demolition yesterday and expects to be done next Wednesday. They are tearing it down to just the land, leaving nothing behind. We would have to reestablish sewer, water, etc. The property is 10,216sq ft and is located in a desirable tract originally built in the 1970's. I have spoken with the CEO of the receivership and am working with his sales department to understand the price they will offer for the land. Current estimates are around $450,000, but they are waiting on more information before making a final determination. I'm working to be in early to take advantage before it is listed.

I have an architect drawing up plans for a two story single family that can be converted into a two unit. My wife and I plus our two kids would live in the down stairs and rent out the top floor. In addition, we want to build an ADU that we can rent out for additional cash flow. Our proposed house is roughly 3200sq ft with the granny flat at 900sq ft. Though, if the numbers do not pencil out, the granny flat can be a later addition. According to the contractors I've spoken with, to build from the ground up and implement what I am proposing is around the $180-225per sq ft mark. Using an average of $200sq ft for a 3200sq ft property (no granny flat) is $640,000 bringing the total, not factoring in all other costs (closing, insurance, etc.) to $1,090,000. Comps in the area for newly remodeled homes range from $1.2 million to $1.5 (with pool). Rents are generating between $1,100 to $1,600 per bedroom.

As mentioned above, we are thinking of living here and renting out the upstairs. However, sales in the area have been brisk and it may work better as a flip. A big determining unknown right now is the initial price of the land. 

I'm speaking with banks and other lenders about land loans and construction loans, and looking to implement the BRRRR method so often discussed on BP to pay off the loans/investors and provide a return.

Given all this info, I do not have the means to fund a project of this scope on my own. I do have access to people that can. What I do not know is how to determine an accurate return for an investor and how to package it up in a proposal. 

Steve, as an investor do you have examples you could show me of proposals you've received? What are you looking for when someone brings you a deal? I am listening to BP podcasts everyday and learning as much as possible, but given the time constraints, need to gather outside, expert advice. And, yes, I am, also, looking into having someone create the proposal for me.

Guys, thank you again for your time, insight, and forthrightness. It is greatly appreciated.

I have an opportunity to purchase a piece of land next to my in-laws. I want to purchase the land and build a two story single family that could be converted into a two unit at a later date. Plus, we want to put a granny flat in the back. I am having an architect draw up plans and have been speaking with contractors. Unfortunately, we don't have the kind of money it will take to see it through. I have two potential investors that are highly interested, but want to see a proposal first and understand how we plan to make them money and pay them back. Since this is my first time doing anything remotely like this (thank you Bigger Pockets for motivating to bite off way more than I can chew!), I could use some assistance in understanding how to write a proposal and what info I need to include. Any insight and assistance is greatly appreciated.

We are in California. The tenants gave us verbal notice, but not written, of their intent to move roughly 2 months in advance of their intent to vacate the premises at the end of February 2018. We gave them a written notice summarizing their intent to move out and a break down of the damages and what would be withheld from the security deposit on January 8th and a revised notice again on January 22nd. We did not, unfortunately, provide a final notice of all security deposit deductions until 22 days after their move out date. An oversight on our part. This is our first rental property and it was a rookie mistake. The notice on the 22nd breaks down roughly $4000 of the $8,800 owed. Would the notice of intent to withhold provided on the 22nd count as giving notice before the 21 day requirement?

My wife and I are being sued in small claims court by our previous tenant for the return of their full security deposit plus travel costs for the tenant to appear in court. The renters left the house in complete disrepair and the total costs to repair/replace was well above the full security deposit. We did, however, fail to provide a full cost breakdown within the 21 day requirement (missed by one day) even though we listed out all the damage they would be liable for in plenty of time. Does anyone know if the technicality of not meeting the 21 day requirement for providing a full cost breakdown preclude all other terms of the lease agreement? Any insight, help, or suggestions is greatly appreciated.