All Forum Posts by: Jan H.

Hahaha...the magic question: where is the market going? This whole housing bubble reminds me of the stock market. Professional investors cash out when they feel they locked in a healthy profit, before the market takes a dive. I am hearing that investors who bought many-many properties at the last crash are selling off. What do they know? Looking at historical prices (at least in CA) we're at or very near the top again. Can it go higher? Who knows... I am considering selling off our rentals as prices tripled since we purchased them. And then we'll just wait patiently..;)

I think CA is a very unique market. Prices are unreasonably high, I just don't understand how people afford buying as everything in near the unaffordability-level. Deja vu 2003-2005. Everyone was desperate to get in the market in a very similar, crazy market. And then came the bust...I know the cause of the bust was different back then than it might be this time around (if it happens). However, people are emotional beings and the fear of loss is the biggest driver of this craziness. Everyone is getting into the retail RE market in the fear of losing future equity. Very dangerous game in my opinion. 

I have been looking at property prices both NorCal and SoCal and pretty much all of them at the all-time peak again. CA has been predictable in terms of cycles and I think we will soon the downfall. Get ready!

Imho the problem with these situations is that once they fall behind, these tenants start digging a hole for themselves that they will not be able to get out...unfortunately.

If you want to be nice, tell them that you give them a week to move, otherwise serve the notice and start the process....unless you're running a charity.

Congrats to your first deal! If you would share more specifics about your deal, someone might offer some help.Your post is very vague....

It's really smart to have a clause in your Lease addressing rodents and pest control, specifying that it's the tenant's responsibility. When a tenant moves out any of my properties, I hire a professional pest control company for inspection and treatment. I always have proof that pest control was done before the new tenant(s) move in, and anything after that is their responsibility. You can't control how clean someone is and to avoid disputes, best to set expectations upfront.

Op: I wold modify my lease for the next tenants.

I don't think any "real" investor would invest in a buy&hold in CA right now...Doesn't make sense and counting on capital gain is way too risky as prices are at near all-time high...There are some flips out there but as @David Faulkner said, it takes time, knowledge and sweat equity to find those. 

Get an umbrella liability policy that covers you. That is what I have. Used to have an LLC but as you said, the economics sometimes just do not work. Besides, hopefully you have a 'very solid' lease agreement that protects you.

 Andrey, I think this statement gets investors in trouble...

CA story, here it goes:

I have a property with 2 houses on it. It was rented to 3 elderly persons (retired), a couple and the wife's sister, all 3 of them have been on the lease for the past 2 years. They were living in the 'main' house and the daughter of the wife's sister lived in the in-law unit. Please note that the daughter had legal rights to live there as my lease states that only immediate family members may occupy the property.

Sadly, the two elderly ladies passed away earlier this year. The daughter is still in the in-law unit and has not been contributing to the expenses the elderly gentleman has now. Besides, there is a pest problem in the unit that need to be taken car of and she's been smoking inside which is a clear violation of the lease that she's not even on.

I told her this past weekend that she needed to move because his uncle (elderly gentleman) needs the space. She has no job and money so I am afraid it will be a hassle to get her out. Question: Do I have to evict her? Can I do that without evicting the main tenant, the elderly gentleman?

I would agree with Matt above. Charge a pet deposit, obtain vaccination records (up-to-date) and make sure your lease is clear about damage caused by pets. 

I would also check with the insurance company to make sure you are covered if the pets do anything (bite, etc).

I would do regular inspections to make sure that the pets are OK. Good luck!