All Forum Posts by: John Collins

Right, but you flipped it which is not my intention. I'm talking about investing, ie landlording, ie cash flowing while you sleep. It's cannnibalistic when a property with potential goes on the market and the winners don't have great numbers comparatively (unless it's being flipped for sales). 

 Encino is part of it, my mistake, I was thinking Calabasas. Best of luck to you! 

What price range are you buying in the LA area? Are they SFH or 2,3,4 multiunits?

I have found returns in Houston to be really superior compared to LA. In the $200-600k price range , Houston market(everything is cash flowing and appreciating) has dominated for me so far compared to what I've seen in LA traditional neighborhoods... burbank ventura van nuys glendale pasasdena sherman oaks... once COVID dies down I will explore south of downtown in LA , newly gentrifying at a snail's pace but the slightly lower property tax isn't a big enough deal breaker. Cash flowing in LA seems to be viable with a tri or fourplex in an upcoming area that is bought distressed but as you know, there's so much competition and fall throughs for any property like that. I feel you really have to go to the outskirts like Encino, Simi Valley, Santa Clarita which then become your nromal upscale suburbs and not really "LA". But Im open to education and collaboration. 

Common question, common answer. Go red states, they are sensible with landlord laws and are experiencing growth because once glorious places like California have become their own worst enemy by over liberalizing. 

If you have a lot of cash to start out with then maybeee the Northwest likePortland/seattle is something to throw in the comp, but otherwise people are seeing returns in Arizona, Texas, Florida, Kansas City, Atlanta suburbs and Tennessee.

 I didn't know it meant occupied, I just thought it meant all the work was done and it was ready to move into (be on the market). I have always seen good turnkey deals on paper, but in reality you deal with vacancies, lack of interest and therefore reducing rent to get someone in. Of course like you said, it's a case by case basis, but if you know how to do the renovation work or have a good idea of what's needed, it's a huge markup that majority of the time hasn't been worth it to me. 

https://www.cnbc.com/2020/04/08/weekly-mortgage-applications-sink-as-coronavirus-sets-back-homebuyers.html

Pretty expected, not too bad. Still up from last year. Kinda expect the May June numbers to be worse as reality sets in rather than hooray, the curve is flattening it's all gonna be great. 

I would love to see the numbers of a "good turnkey deal" for renting and how long it took to get the unit occupied.  

Looking into creative financing at the moment and wanted to know what avenue's people on here prefer... conventional 30 yr is what I assume to be the most popular, and I myself cash flow with conventional 15 yr so prefer that. 

What other avenue's do you go for? Start out with hard money then refinance after renovation to conventional? What percentages do you get on these options?

Thank you!

Can you cash flow on 15 yr loans? Or only 30?  

Start camping in your backyard and giving yourself the mentality that you're still a kid, you'll always be a kid, and stuff isn't important. Cuz your mentality is pretty silly and holding you back but when you're not attached to stuff you'll be a lot more clear with what you want to do. I've never wasted a second worrying.  

You would want to lay the concrete / cement below the leveler in all of the cracks (don't count on the leveler to fill them), then use schluter ditra below the flooring if you're going to use tile.

Ditra is expensive but worth it - https://www.homedepot.com/p/Schluter-Ditra-54-sq-ft-3-ft-3-in-x-16-ft-5-in-x-1-8-in-Thick-Uncoupling-Membrane-DITRA5M/100143471

Otherwise, based on the info given, I would focus on drainage and monitor the situation.