All Forum Posts by: Jen Day

Hi Woojin, I'll speak from my experience buying a 4 unit multifamily property in LA in 2021. I bought a property that needed many repairs and some renovation, but not falling apart. I took an owner occupy loan to house hack for the first year and put 25% down. I was careful to buy in an area without rent control, and to investigate the situation with the tenants I would be inheriting. All tenants were paying far below market rent, but they were paying on time and wanted to continue living there. Their complaints were that many repairs were needed and not getting taken care of. When analyzing this deal, I knew that I was playing the long game. I knew it would take quite a bit of cash & time to do all the repairs, and that I would have to cover many expenses while they were being done. I analyzed this deal in three stages 1. What would my monthly out of pocket costs be for the first 6 months while renovations/repairs were being done and I did not have full occupancy (while I was living in one unit), 2. What would my monthly out of pocket costs be for the 2nd 6 months when I was at full occupancy AND raised the rents 30% (while I was still living in one unit), 3. What would my monthly cash flow be in year two once I moved out and had all units rented out at market rent.  This turned out to be an amazing investment because I had a plan going in and was able to accomplish it.  There were several challenges along the way of course, but because I was able to weather the storm at "the beginning", I am now cash flowing over $1000/month in Los Angeles! 

It is more challenging to make the numbers work now because interest rates are higher, but the there are several loan programs like the CA Dream for All and NACA that offer down payment assistance. To my knowledge, you can pay off the amount owed for CA Dream when you refinance, and the prediction is that interest rates will be lower next year. If you were to buy a multifamily property now, take care of any repairs/rehab to add value, and get the tenants paying market rent (since eviction moratoriums have ended), you would be in a fine position to refinance next year with the new appraised value, and you could then move out and have all units rented. This could be a strategy to get you cashflow by year two. Of course, you would have to be able to weather the storm of the first year. With small multifamily rental units in LA, if you play your cards right there is a pot of gold waiting for you.

I specialize in small multifamily properties in LA, so if you'd like to continue the conversation give me a call, I'm happy to share & help in your search for a great investment.  Best of luck!

Quote from @Dakota Harmon:

Here are some topics in an agreement that have my concern:

- Waive the requirement for approval from owner for any repairs or maintenance of any one item under a specified amount (one company is asking for $600…). There is no monthly cap.

- Indemnify, defend and hold harmless the management company.

- Name the management company as an insured part on insurance policies.

- Serve all documentation, records and disclosures in owners name.

- Grant access to regular credit checks on the property owner.

Are these typical in a property management agreement? The asks seem extreme in my opinion. However, that being said, this is my first time requiring the assistance of a management company due to relocating out of state.

Hi Dakota,
1. You are correct to have concerns about "grant access to regular credit checks on the property owner". A simple way to alleviate this concern for the PM company is to offer to give them a copy of your mortgage statement once or twice a year (with personal info redacted), so they know you are paying your mortgage & property taxes, etc. They shouldn't have any other reason to claim that your credit information is necessary to do their job.
2. You should be able to negotiate the specified amount for maintenance approval, that should be the owner's discretion.  Just understand that the lower that number is, the more they will need to be contacting you and receive a timely response (for the protection of your property). If you are not wanting to be bothered all the time, or are too busy to give them immediate responses, then have the number set higher.  The standard amount in our PM contract is $500, but we always have the owner make that decision.  

FYI: If you are still shopping for PM, and not settled on this company yet, I can tell you a bit about our services for you to compare.  We are boutique company specializing in small multifamily properties, single family homes & luxury condos on the westside of Los Angeles.  We customize our services to fit your property and your preferences, not the other way around. We don't have the overhead of larger companies, so we only charge 5.5% monthly fee (no additional cost to oversee maintenance). And, we offer a discount to all BP members, so your fee would only be 5%. Give me a call if you'd like to talk further. If you're all set, that's great too. Best of luck!  

Quote from @David Avetisyan:

Quote from @Jen Day:

Hello Anna,

I'm an Agent, Property Manager, & Investor.  I personally understand owning a property and what is important to the owner when looking for a great & qualified tenant. I also have gained experience from managing tenants how best to keep them happy and paying rent on time.  If you are still in search of an Agent & Property Manager, I'm happy to talk with you more about how we can customize our services to fit your needs.  Oh, and did I mention we give a special discount to all BP members! Just let me know you connected with me through BP. If you're all set, that's great too! Wishing you the best in your RE investment journey. 

 What is your charge to manage a property?

Our regular charge for property management is 5.5%, but with your BP promotional price it would only be 5% monthly fee (of total rent revenue). We are a boutique property management company, specializing in condos, single family homes, and small multifamily properties on the westside regions of Los Angeles County. Because we don't have the overhead of hundreds of employees needed to manage large apartment complexes, we are able to charge a smaller fee. We can also customize our services to fit your needs. We set up our services to work with YOUR property, not the other way around. Please let me know if you are interested to hear more details.

Hi Garrett, 

Condolences on your grandmother passing, but that's great she left you with an amazing asset. Since you are currently house hacking the property and want to continue, your idea to leverage the equity there is very smart. I would definitely heed the warning of others to be careful not to pull every cent out of it just yet, you want to make sure that the new loan you take on (with these current interest rates) is manageable and your property cashflows enough to satisfy your property & life expenses. My thought would be to pull out enough cash to put a down payment on another multifamily (keep in mind that as an investment property & not your primary residence, and a multi rather than a SFR, the lender may require 25-30% down and a certain amount of reserves). It is possible that these interest rates will continue to rise, and may take several years to go back down. You can refinance again once the rates are where you want them, and use that money for your next property. If you are planning to buy out of state, you will likely be able to buy more properties, but if you buy in LA you want to be strategic about how you allocate the funds so that you can create long term wealth for yourself and your family.

I'm an Agent & Investor in LA. I own small multifamily rental property in LA. My first property started as a 4plex house hack and turned into a rental. I definitely learned some tricks of the trade along the way, and I'm happy to share my ups and downs. I specialize in small multifamily properties on the westside cities of Los Angeles (Santa Monica to Culver City), and prices are becoming more affordable in certain areas. I'm curious to hear about your criteria and plans for your next property. Get in touch if you'd like to continue the conversation. I always make myself available for fellow BP investors!  

Hi Don, 

I think there are opportunities for BRRRR properties in LA, you just have to know where to look. I have great deals come across my desk every week, on and off market. I'm an Agent and I own multifamily property in LA. I specialize multifamily properties in the westside cities of Los Angeles, and prices are becoming more affordable in certain areas. I'm curious to hear about your criteria and plans for the property. Get in touch if you'd like to continue the conversation. I always make myself available for my BP friends!

Hello Anudeep,

First thing for short term rental is to pick a great location! There are tons of amazing places in LA that people want to stay & vacation, but there are also areas that are great for long term rentals but not for short term, so you definitely want a local Agent that knows where best to buy. Also, as someone stated, the laws are constantly changing and some cities that used to allow STRs are not allowing it any longer. You want to make sure your numbers work as a LTR as well, in case the laws change over time. I'm an Agent & property manager and I specialize in the westside cities of Los Angeles, where housing is always in high demand. If you're looking to buy in this area, I'm happy to share some of my knowledge of the rental market. I'd also love to learn about your criteria and long term goals. Let's talk soon, I always make time for my BP friends! 

Welcome to BP Jenaro!

I'm an Agent & Investor in LA. I own multifamily rental property in LA and I specialize in helping investors buy & sell multifamily properties. My first property started as a house hack and turned into a rental. I definitely learned some tricks of the trade along the way, and I'm happy to share my ups and downs. I specialize on the westside cities of Los Angeles, and prices are becoming more affordable in certain areas. I'm curious to hear about your criteria and long term goals for the property. Get in touch if you'd like to continue the conversation. I always make myself available for my BP friends!

Hi Yuval, 

I'm an Agent & Investor in LA. Welcome to LA my friend! I own multifamily rental property in LA and I specialize in helping investors buy & sell multifamily properties. My first property started as a house hack and turned into a rental. I definitely learned some tricks of the trade along the way, and I'm happy to share my ups and downs. I specialize on the westside cities of Los Angeles, and prices are becoming more affordable in certain areas. I'm curious to hear about your criteria and long term goals for the property. Get in touch if you'd like to continue the conversation. I always make myself available for my BP friends!

Hi Manny, 

As a Los Angeles Agent, I agree with all these folks.  You're best bet is to work with an Agent, especially on your first deal. They have a duty to keep your best interests in mind, above the seller's and above their own. It's even better to work with an Agent who is also an investor and understands your long term goals. Ideally you create a good relationship with your Agent and over time you continue to work with them on every deal as you build your portfolio. It's also a plus, for example, that each time a great deal comes across my desk, I call my previous clients first, so they will get first look at something that fits their criteria before others do, and likely before it hits the market. It's an important part of building your team in a certain market. 

I own property in LA and have helped many purchase their first property.  A condo is a great way to get in the game in LA, especially as your primary residence to get the best interest rate. My first property started as a house hack and turned into a rental. I definitely learned some tricks of the trade along the way, and I'm happy to share my ups and downs. I specialize on the westside cities of Los Angeles, and prices are becoming more affordable in certain areas. I'm curious to hear about your criteria and plans for the property. Get in touch if you'd like to continue the conversation. I always make myself available for my BP friends!  

Hello Anna,

I'm an Agent, Property Manager, & Investor.  I personally understand owning a property and what is important to the owner when looking for a great & qualified tenant. I also have gained experience from managing tenants how best to keep them happy and paying rent on time.  If you are still in search of an Agent & Property Manager, I'm happy to talk with you more about how we can customize our services to fit your needs.  Oh, and did I mention we give a special discount to all BP members! Just let me know you connected with me through BP. If you're all set, that's great too! Wishing you the best in your RE investment journey.