All Forum Posts by: Jackson Carr

I agree that 6 is the best option. I am currently doing something similar and would use the HELOC to put a down payment and fix up on another property and then rent it out. Current tenants will pay off the HELOC loan while the new tenants pay off new mortgage on a 3-4 plex. If you find the right deal you can still probably get a nice cash flow.

Goodluck,

Jack

Check with your local laws. 

In California, before the convert to Month to month a notification needs  to be sent to the tenant prior to converting the lease. 

If this is not the case in your state or you have done so, then I would serve them a "Non Renewal of Lease Notice". You can find examples of these forms all over google. Pretty straight forward. If you have the ability to give them a 60 day rather than a 30 day, then that may help your situation as well. 

I would also do it at the start of the monthly term, as to make it so you do not have to prorate anything.

Goodluck,

Jack

Hey all,

I am looking to connect with hard or private money lenders on a deal in Napa, CA. North of San Francisco and West of Sacramento. I currently have a duplex and a SFH as well as some cash that I am looking to leverage in order to buy a great 4 plex. The deal is looking like it has potential to be a 7-8% CAP rate within <1 year in Napa CA. Which is amazing for an area that averages around 2-3%.

If interested please PM me for more details. I am sure we can make this a Win-Win for us both.

Thank you for your time,

Jack

Hey There,

Although I work on electrical extensively for my full time job, I am not a licensed residential electrician. I would consult with one either way. They way I see it you have two options.

1. If the box is metal with metal conduit that runs back to the breaker panel then you can ground to the metal box and ground the metal conduit to your panel.

2. Install a GFCI. Install one on every separate circuit. They are usually daisy chained and any fault will cause it to pop.  You are required by law to put the "No ground" sticker on the inside of the outlet for future reference.

Goodluck,

Jack

@Marco Cruzatt The best advise I can give you is to not rush it. I know how it feels to be hungry for your first property.

1. Decide where you want to live. (if house hacking)

2. Learn the market. Know pricing, rentals, demand, pet demand, taxes, news in the area, neighborhoods, etc.

3. Look for 2-4 units within your price budget. See FHA if you want to try that route.

4. Wait for a good deal to come up. People have told me Napa is impossible to get cash flowing properties. I have found a few so far, but I just had to search and search and search.

5. Get a good deal and pursue it. Sell the Seller on why you are the best buyer.

Goodluck,

Jack

A better question would be how many units is your duplex using and the definition of a unit of water. I don't have my bill in front of me so I cannot help, but I paid 64 on my last California duplex water bill.  If you PM me I can get you the gallons used.

Good Luck,

Jack

Hey Marco,

Residential loan is anything 4 units or less. You can qualify for that on C.I.A like stated above. If you get into 5+ then it is a commercial loan and it is more like a business loan where they will take your experience into account.

That being said, I have heard of people getting commercial loans with not much experience. Not that I would recommend it, but it has happened.

Back to your original question... "Should I invest in Compton?"

That comes back to your goals. Where do you see yourself and your market in 1,3,5 years? Is it an A,B,C property? Do you have the time and effort to run multiple units in C neighborhoods? If your house hacking, then do you want to live in a C neighborhood?

Hope that helps,

Jack

Hey Aaron,

The market here is very slim, and even harder for wholesaling. You will have more luck the farther east you go. Solano, then Vacaville, and Sacramento. If you find something there are plenty of people here who would be happy to go in on deals with you.

Goodluck,

Jack

Hey @Siva A.

It all really depends on your market and goals.  In Northern CA any cash flowing property is a great buy. I did however notice you did not write down expenses (taxes, maintenance, etc). You will have these. It is unavoidable. 

I also would put money toward capital expenses. You don't want to pay for a surprise 10-20k roof or 4k water heater out of pocket. Also unavoidable.

This will most likely cut your cash flow down a bit. 

Like i said thou. If you can make it cash flow then it is a good deal. As long as the tenants pay the mortgage then hold it for 30 years and then count it as your retirement or sell it in a few years if the market keeps going up. 

Goodluck

@Andrew Clifton Your searching should get done in a 7 day inspection period.  Not prior to offer. 

@Max T. gave you some great advise.  Cosmetics are part of the deal to calculate out. That is the softer part. No hard numbers needed. No going back for credit. 

I always get a roof inspection and a pest control.  I do the house inspection myself, but I am in the maintenance and facilities field. I know the local and state code, differences in wiring, grounding, plumbing, flooring, HVAC, etc. You don't catch a soft spot in the floor or a leaking tub...... You can easily shell out 6-10k on repairs.  Missed dry rot on a roof? Long term leaking roof dripping into attic and ceiling? Looks good now but will cost you 20k next year. How closely did you look at any window in the house? Was there dry rot, wet rot, cracking, Covered up cracking, out of square, do the windows open and close properly when its cold and raining?

I know you are excited about the deal, but i would rather lose my earnest money than eat a giant repair down the road for not doing my due diligence.

Goodluck,

Jack 

P.s. Not being negative but Mindset and heart wont get you out of a lawsuit or roof replacement.  There should be no feelings involved with due diligence. This is business that will eat you up and spit you out if you mess around.