All Forum Posts by: Joe Xie

One of my tenant inform me that she is switch banking, as a result, she need set up new ACH to pay the rent. The process include she initiated a try deposit into my bank account which it went through. After I told her i saw a small amount deposit into my account. She asked what was the amount as it need for her to set up the link so she can pay me monthly automatically in the future. I just not very comfortable to give out as I am worrying this kind link may enable her to pull money from my account. Am I worrying too much? None other tenants asked that step. She has been rent the house for 4 years now.

@Lesley Resnick I put down big down payments, so all are cask flow positive. 

@Alex Capozzolo Thanks a lot for the information, this helps a lot. One question, the seller had an increase this Jan, so that mean I can not do any increase till next Feb, right? The tenant is on one year lease, so how my contract should looks like? A lease till end of next Feb? 

Andreas Ernst thanks! I will keep in mind if I need a 2nd opinion. My realtor give me one I have not contact him yet.

Lesley Resnick Not all CA has rental control, San Francisco and Oakland are two cities have the strictest controls. I just saw documentary called Real Estate Wars: Inside the class and culture battle that's tearing San Francisco apart. There a story that a 37 year tenant paying $470 rent in SF on a place market is more than $6000, while refused $80k cash for key pay out offer from new owner who bought the place and want to move, the tenant says he has the rights stay there. Craze, right? See yourself https://m.youtube.com/watch?v=LVVO8b4vvis However, even without rental control, the cap rate is not good here. All my rental's cap rate are below .6 if against the current market property value. In CA, we have to look at appropriation. I have properties increased value 4 times than I bought. so I am ok with .6 cap.

@Albert Ng This is a unit at a 4-plex and I already got one with $480K without tenant. This with tenant unit rent 20-25% below market, listed at $390K and I am in contact with a price slightly higher than the list.

If you could get 7 units at $640K, it will be a steal. See this 4plex, a little farther away from lake, 2 with market tenants (~$2600), 2 units with half of that (~$1400), listed at $1.5M, I think it will sell above or close to the list.

https://www.redfin.com/CA/Oakland/4121-Greenwood-A...

Thanks Minh Le, good suggestions. Tia Jones the property is at Oakland (Lake Merritt area).

Bruce M. Thanks! How to "hold up the current lease"? Do Tenant and I need sign some papers?

Tia Jones very good suggestion. Where should I get such information?

I am buying a rental property at Bay Area has a tenant who is paying 20%-25% below the market. Due to the rental control law, I am planing continue with the term's the selling landlord. This is my first time to get a property with tenant, need some help on What are the steps I need to take to make the transition smoothly? What pit holes should I watch out?

Will Johnston Udaya P. I think I will be OK with 70%. Do not want push myself to a limit.