All Forum Posts by: Jane Kim

Thank you everyone for the advice! Considering and mashing everyone's advice together, this is an update on what I've done. 

I've checked my HVAC system and there are no leakage nor am I due for a new heater. I've realized two tenants were using space heaters which is the cause of a sudden increase in electric usage and understanding the fact we're in the colder months of the year, including the war in Ukraine, which is factoring in on the cost per kWH. I've also called Cal Edison and learned that 800 kWh should be the average use for my household and 1200 kWh being on the high end.

I've installed a smart thermostat and it decreased my electric usage in half. I'm expecting 700-800 kWh per month. The central heater is set at 69-70 degrees at a consistent rate so we're at a comfortable temperature. My gas bill did go up, but, in total, I'm saving about $100~150 in utility bills. 

For my next tenant, I plan on increasing the rent and including terms of use for space heater which will state that it will need to be plugged into a watt usage monitor. I'll have to keep my eyes on the utility bills in the next couple of months to see if I should include the max amount I'll cover as a landlord.

Thank you everyone for your advice! You guys truly helped me understand this situation better and solve the issue like a pro. This is my first time being a landlord and a property manager, but I'm slowly learning! :)

@Troy P.  @Dennis Nguyen 

@Richard F.

@Cory J Thornton

@V.G Jason

@Bill B.

@Carlos Ptriawan

@Allan C.

Hi,

I'm not sure if anyone else is going through this in Los Angeles/Moreno Valley so I'm reaching out if this is normal. I have a 2000 sqft home with 5 rooms that's currently being rented out by tenants. Utilities are included in the rent price. My gas, water, and waste service come out to a steady/normal amount, but only my electricity bill skyrocketed to $312 in January for 3 tenants and is estimated to be $450 in February for 5 tenants. Previously, it was $100 for December when there was only two tenants in the house. Is this the amount of electricity bill that I should be exacting for a 5 people household during this cold weather?

I know that one of my tenant uses an oil filled radiant space heater for 24/7 because it helps her fall asleep and keeps her warm. It didn't realize that this would make the electricity bill come out to $300-450. I have to admit that the house does get really cold, but I'm able to endure it if I wear a jacket and fleece pants, but I know that my comfort level is different from others. I was thinking of a few ways to approach this situation, but it would help me greatly if you guys can give me some advice on this and how you guys would approach this situation. 

In the lease agreement, it states that a tenant must get a written permission if "changing the amount of heat or power normally used on the property as well as installing additional electrical wiring or heating unit." so I have rights to ask the tenant to pause her space heater. I was thinking about first asking her if she's open to contributing to only the electricity bill. Her contract ends on June 10th this year so it's only a few months away, but I'm okay with terminating the contract early if she must have her space heater on 24/7. No one turns on the central heater at home so should I install a smart thermostat to keep the house at a consistent temperature? What if I install the smart thermostat and the electric bill goes even higher? Or should I no longer include utilities for my next tenants? What would you guys do in my situation?

Hmm that's true. I probably would have to do a more accurate estimate. Thank you for the heads up!

Oh! That's quite the smart move. I'd have to do some research on this! Thank you for your advice!

Hi!

I'm new to this process so please excuse me if I sound ignorant on some parts. These are rough estimates, but thought it'll be a good idea to get some opinions on it.

I'm planning to house hack with 3.5% down using an FHA loan on a duplex that markets at around 700k in LA/OC area. After the closing cost, this home will probably cost me around 35k to purchase.

I'll have 35k left to do another investment. I'm not sure if I should buy another home or I should add the 40k to the duplex down payment. 

But, can I even take out another loan to buy an investment home in LA/OC area with the 700k loan that I'll already have from the FHA loan? I'm worried I won't be able to take out a loan amount that's big enough to purchase another home in LA/OC if I already have a 700k loan...

I know that the home prices in LA/OC are outrageous, but I've heard numerous times that I should invest in areas where I live close by. Even if I'll live in this duplex, I plan on only living in it for a year. Then moving out to another home in LA/OC using an FHA loan.

This is my grand plan... let me know what you guys think! Thank you!

I wanted to get an FHA loan with 3.5% down! I didn't realize that brokers have access to a variety of lenders! If that's the case, I should be good with the broker that I'm using right now! Thank you so much for your response!

Ohhh I didn't realize that a loan broker would shop around to get me the best rate. Thank you!! I've learned something new today!

Hi,

I haven't bought any property yet, but I am in the process of it. I'm trying to speak to a few brokers who'd be able to get me a pre-approval letter to see what houses I can afford for my primary residence.

Would love to connect with someone who can consult with me on my debt-to-income ratio for a higher loan estimate.

Thank you!