All Forum Posts by: David Jarvi

I spent $300 trying to repair a $450 home depot new stove 14 months after I bought it. and gave up! and ended up buying a new one.

buy quality re-conditioned or new with an extended warranty perhaps. 

recently lowes has had a lot of 50% off sales on open box stuff. 

@Dan H.  great points dan. and timely, as at my town council meeting tonight, the city lawyer confirmed they are NOT requiring owners to occupy at least one unit.  He also said in his research most cities were not requiring.  would be interesting to compile an overall list to see the differences in the law - I've always wanted to sell an ebook for $29.95 ;)  

I have lots to learn, but overall it seems significant in its implications - especially in coastal areas with $500 sq/ft + prices. 

@Joe Yobaccio definitely a concern — but making 20k a year in appreciation and 5k in principal paydown/tax helps that concern 

20%down. 

But ive locked in interest rates from a few years ago.   

And ive bought All cash at auction (or direct) for 60-120, fix for 6-20, rent and refi

Hope that helps. 

P.s. going forward Im starting to look into building "ADU's" then i can buy retail (with larger lot) and then "force" cashflow with a second smaller unit. (Google adu governer brown)

yes - the sewer assessment applies to yucca valley.  A 1% sales tax was put in place by voters to lessen the overall burden - and so each year the 180million tax is supposedly recalculated and then reduced based on this sales tax.   There are 3 phases to the implementation and phase 2,3 have only been assessed around 5k so far.   Anyway its somewhat complicated - so buyer beware    - but overall a sewer system should be great for the area as in-n-out, trader joes, etc.. will be able to do traditional builds rather then complicated septic system/environmental reviews etc.   

I rent and cashflow )~250/mo. I have found dual income younger families or older folks on fixed income pensions/S.S. to be the best in the area. (military isn't bad, but new leases every year or so from what I've heard and very few casino workers as the closest one to yucca valley is 29 palms)

I have found the area to be very misunderstood - as people driving by assume meth labs, sex offenders and neonazis  ---  when instead you find millionaire horse/animal lovers, older retirees who feel like they have found shangri-la, and an increasing amount of younger LGBT creative folks re-creating identity in the serenity of the desert. 

also, $15/hr minimum wage law is underway - going up $1 a year until $15 in 2020.  this means, 2 mcdonald workers living together in yucca valley could easily pay $1200/mo for a quality rental.

my homes have all increased 10-20% a year for 3 yrs straight - as the few quality inexpensive rentable homes that come up are fought over by investors, new home buyers, airbnb.

a sewer assessment going into effect will add 100-150 to the monthly tax burden (along with a few other assessments in the works - school,fire) 

Bob Armstrong (a realtor in the area) creates a nice email newsletter each month with data/commentary.

B class 3/2 in yucca valley, CA 

20 mins from palm springs, 5 mins to joshua tree national park,  10-15 degrees cooler than palm springs all year, 2 hrs from beach, 3 1/2 from vegas, etc..etc...

Nice work sir! makes me tired just thinking about it.

Don't let the secret out too much on Yucca Valley (looks like one of your best deals possibly)

I think I can speak on behalf of Uncle Sam and his entire family in saying thank you for all that tax revenue.

funding with my own funds, but only paid 20k for the lot (4 unit lot) and plan to pay about 200-300K in building costs.

I might just sit on it for 10 yrs as well... if I get 2K appreciation a year thats a 10% return.

I also am intrigued on doing what indian tribes do - 50-99 yr long term lease on the land.

as I probably could get $2000 a yr for the rest of my life.

Great work saving up 50K! (and soon to be 115)

If you have a W-2 job, you could use some of that to owner/occupy a cosmetic fixer- upper FHA - Fourplex - bonus points if you rent out rooms in the unit you occupy. you do this for 2 yrs and you can then sell the entire thing (as I understand) tax free (fed/state) IRS sec 121

you will LEARN (which is the most important part) about tenants, fixing up property.

OR!

with 115 you probably have enough to go to Trustee sales and start buying properties in rural areas of austin (45 mins out of the city?) for 70 cents on the dollar. fix em up on the weekends and target to make 20-30K a flip (do 2 of them a year and keep them as rentals if you want using the BRRR strategy)

again congrats on saving!   the first 100K is always the hardest as they say

*I have not successfully completed a land development deal, but am also interested in land development.  

I've heard the trick with land development is getting the right Land at the right price - 10% being a good target to shoot for. 

I've also met with a developer who said he looks to "double" on every deal  - meaning he is spending 200k for land/permits/materials/labor and targets a 400K sales price

In my area, 4 units+ is the trigger point for all sorts of additional complicated planning reviews and requirements, curbs/gutters, traffic studies, environmental reviews, etc...       so a triplex/duplex only requires the same review as a Single Family home.

So, I'm just building an excel spreadsheet with best/worst case budget #'s for each step in the process,  get an approved set of plans and then I'm going to shop it to 3-4 builders I already like in my area.   

I might just have them do foundation/framing/mechanicals/etc... and I'll finish it off with drywall, paint, tile, cabinets, etc...