All Forum Posts by: Helen W.

Wendy. I think the key is how you are computing the potential gain on the sale of this property ? 75% gain is quiet signficiant, did you take into account the remodelling costs, the selling transaction costs ? How do you come up with the potential sale price? What kind of research ?

Jenkins Ramon

Thank you for the keyword alert blog, a great tool !

@David T

It is good to know there are people that thinks Los Angeles still make sense. I have read in a lot of forums that it is impossible to cash flow in Southern California, so have been contemplating on investing out of state. However, I really like to have my properties close to where I live...

Arjun, K. Thank you for your post. Yes, I understand one year does not make an average cash flow. However, one year actual data is all I have for my properties since I have only started investing recently (late 2011). I do set aside a big chuck of the cash flow as reserve in case I need to deal with major repairs. I do think the cash flow is sustainable. The property is in a pretty good condition, I remodeled after purchase, even if we have a major repair in the future years, I believe I can still cash flow. Josh. Thank you for the info. I can now explain to any future investors who wants to understand Prop 13. Much appreciated

Hi Biggerpocket Community, I have been reading many forums, blogs, and podcasts here in Biggerpocket for a while and love this site. You are all my mentors. BIG THANK YOU to ALL I am in the accounting field and a part-time real estate investor in Los Angeles. I have just turned 30 with a 2 year old and one more baby on the way. I have been investing since end of 2011 and my strategy is buy and hold here in Los Angeles. Since end of 2011, I have acquired 4 SFR properties here in Los Angeles (with one more in escrow now). I manage my own properties and was fortunate with my investments (occupied continuously and cash flowing). My main focus is to continue my SFR buy and hold strategy here in Los Angeles. I am one of the naïve (stupid?) ones that think buying in Los Angeles still make sense. I am aware that it is really more difficult this year to get a good deal here in Southern California, so I am open to opportunities in other state and even other countries. Like many of you here, I love real estate. It is such a power vehicle to generate income stream and at the same time provide quality housing for my tenants. I hope to contribute more to the Biggerpocket community, which has given me so many resources/advices over the past year. Helen W.

Welcome

@Bill Exeter

Thank you for the advice. I will connect with you if I decided to go with the 1031 route.

@Matt Mason

It is interested to read about Article 13A of the Constitution of the State of California. I had no idea the property tax in California is limited to 1% due to Prop 13. I can’t image if we have to pay 3 -4% of property tax in California.

I have decided to list the properties on MLS in the next few months and see what kind of offer I can get from the potential buyers and go from there. I do have an agent license for investment purposes, so might as well put it to good use.

Thank you all again for the advice and input

Hi Matt,

Welcome ! I am also an investor in Los Angeles and ready to diversify my portfolio. I am also currently researching out of state opportunities.

Good luck to you !

Helen W

Hi Josh

Thank you very much for your input. I have considered the tax implication and possibly utilizing the tax deferral vehicle of 1031 exchange. The leases on the properties we are debating on selling will not be up for at least 3 more months. So, I should have at least 4+ months to identify another property.

Definitely will keep in mind not to rush into a purchase just to take advantage of the 1031 tax deferral.

Really appreciate your advice!

Hi Biggerpocket Community,

First time posting -- I have enjoyed reading many forums, blogs, and podcast here in Biggerpocket - you are all my mentors. BIG THANK YOU to ALL

My husband and I are new investors. We started our investment @ end of 2011 and have acquired 4 SFR ranging from $300K to $370K in Los Angeles, California. We were fortunate to rent out the properties between $2,400 to $3,000 with no vacancy except when we remodeled the house after purchase. We have rented out all our properties for at least a year now and just computed our actual cash flow vs our budgeted cash flow. For each property, we generated between $700 to $900K cash flow each month. In addition, based on the most recent comps and research, we estimated our properties have appreciated at least $70 – $100K+ each if not more (Crazy Southern California market).

We are debating on whether to sell 2 of our properties that have the most potential appreciation and least positive cash flow to take advantage of the seller’s market here in Los Angeles. However, at the same time we feel if the property is cash flowing, should not we just continue to stay put?

We really need some advice on this, as we cannot decide what to do next. What would you do in our scenario?

Thank you so much in advance for your input and advice.