All Forum Posts by: Jared MontBlanc

That's what I'm thinking to. The deal I was talking about was in Tahoe. When I said high end, I didn't mean quality of home I meant relatively higher price than many investors are seem to be seeking traditionally for big and hold (<$150k). Next time I think I'll pick a number for profit and target that, with some margin for error or rehab (+25%)

The BP folks are saying 70% for a deal after repairs, but at the higher end, does this math still hold? Knocking off such a large amount of cash seems almost unrealistic, but I believe the guidance comes from the fact then when the rehab is done, you can Refi and leave the 25% equity in the home and move on to the next property. Without the 20-30% deal, you'll need to leave some of your cash there to avoid PMI, is this right? I recently lost a great deal because I think my numbers were off due to this... The math I did was FMV -30% -Est rehab costs. This resulted in a $420k -$126k -$60k = $234k. I didn't get the house... looking back, I think I should have just set a target discounted of say $50k, minus rehab costs. My offer could have then been around $310k and I might have got the deal. Less margin for error though on my first rehab, and I'm a bit worried about a correction, so was baking in a little extra margin (hopeful but alas). Thoughts?

True, sorry. Was typing fast but here is the point I think I'm making here. The BP folks are saying 70% for a deal after repairs, but at the higher end, does this math still hold? Knocking off such a large amount of cash seems almost unrealistic. Thoughts? I should have just set a target discounted of $50k, minus rehab costs. I might have got the deal

Appreciate the great tips. I've almost got my HELOC done and have cash as well ready to jump on a deal. We offered cash on a rehab in Napa and Tahoe but we were out bid. The math I did was FMV -30% -Est rehab costs. This resulted in a $420k -$120k -$50k = $250k. I didn't get the house... looking back, i should have offered more but this was my first rehab and didn't want to get caught. Live and learn. I'll be ready for the next one though ;)

thx for the inputs.  It seems the Airbnb laws vary considerably by city.  If you google the most friendly cities, you can see that some are better than others based on legislation.  Its a constant battle, even in Tahoe where we have a vacation rental but needed a permit to do so and collect and pay tourist tax as well.  The city is making a killing on the rentals, but it comes at the expense of community.  I get it.  In Walnut creek where I live, I'm currently getting $1200mth for the in-law unit, so can just rent it separately without Airbnb and then rent the primary if I can get it zoned properly for multifamily.  I assume this may require fireproofing, possibly separate metering, etc.  need to look into whether this makes sense or not.

Does anyone know what it might take to be able to legally split a rental property to rent the completely separate In Law unit which is attached to the primary home? Even keep it open for Airbnb perhaps? I'm sure there a ton of laws and requirements on this but thought I'd ask. Anybody doing this? Thx! Jared

Will do, thx

I see a ton of posts but can someone please recommend a CPA I can trust and work with asap on the proper strategies to minimize risk and while protecting income from tax exposure. I have 2 rentals, one buy in progress, and would like to est an LLC and put this, and others, in the LLC. I'd also like to understand other strategies, as we have income from day jobs and a single family home as well. (401k, solo 401k, etc) I'm in CA Bay Area but happy to work with CPA via Skype. Thx in advance Jared

I just called my current mortgage holder, Citibank, and they informed me that I can get a HELOC opened for more money than I was anticipating, BUT that using that money for real estate was prohibited. Is this normal now? They are saying yes post housing crisis. Frankly, I'm not sure how they would know I was buying real estate if I'm off writing checks. Any advice here? Should I just keep calling banks? Thx

Good advice, thx. I'll just get an open line and keep it available. Much better idea. I guess I'll have to try some cash offers and test it out