All Forum Posts by: John Son

@Dylan Vargas, that makes sense, I can understand that. Thanks for your input!

@Rebecca G., I've given it some thought, but I figured I should get a grasp on how things work up close before doing deals out of state, since I've only rented my whole life and my parents currently need a place to live. I'll be sure to reach out to you when that becomes a good option.

@Dylan Vargas, are there any hidden downsides to living in a 4-plex, as opposed to a 1-unit home? The only reason we considered it is because I'd like to invest in rental properties while providing my parents a place to live.

@Kiersten Vance,

Thanks for your suggestion on using Redfin. I did see a more thorough breakdown of income and expenses to analyze the deals in more detail. Have you found that the numbers listed are pretty accurate, or could I still request source documents to verify historical information myself? Is that in any way intrusive or considered bad form?

Based on what my parents are saying and a little research on the side, it's looking a lot like we're going to end up making a 20% down payment even if my parents occupy a unit, so the additional equity in the property should make the search slightly easier, even if OC seems a little pricy.

I'll find out when the house is listed and work on prequalifying / getting preapproved then.

@Vincent Guerrero, what are typical signs of "mismanaged" units? Do you have any search tips or physical appearance giveaways to look out for? I'm willing to make a weekend drive down a few neighborhoods, but I'd like to have an idea of what to note.

@James Triano, I think the family dynamic between me and my parents is a little tricky, but I want to believe most of our differences are unrelated to real estate and have no material effects on doing business together. If my parents were to live in a unit for free or for discounted rent, would you recommend some sort of payment / investment structure to make the situation a win-win? They're offering to pay rent, but they're also making the whole down payment. Do I charge them regular rent and cut them a part of the cash flow for their investment, or can their rent be heavily discounted at a fixed rate to keep things consistent? I know my dad can offer a lot of sweat-equity, but as far as property management goes (finding tenants, screening, basically any communication that prefers English as a native language), I will be in charge of.

I will try to "cold-call" a few agents listing properties I'm interested in shortly. Where have you found is a reliable source for current market conditions?

Also for everyone who's replied so far, feel free to PM me directly as well (: I'm not 100% keen on all the forum post rules just yet.

Thanks @Christopher Suh,

My dad and I have been on Zillow for the past few days and I've been trying to run numbers on some deals like I do at work, but there isn't enough information available on websites. I'm not too sure whether it's acceptable to call up an agent and request something like T-12 financials or a rent roll for multifamily, but I might?

Anaheim, Buena Park, and Fullerton all sound like places my parents would like to consider. I read the article on pre-qualify vs. pre-approval, but I'm still unsure whether I need to find the property first, or go to a lender first.

I believe my dad said he would speak to an agent and have their home listed soon, but there's also no way of knowing when we'd have the down payment (whether it be 3.5% or 20%) or how much. He also has some experience in construction work on homes so I don't think minor to medium repairs will be an issue.

Any suggestions?

Hello everyone! I'm a new member looking for advice about an opportunity I've been given.

Due to my new job at a large mortgage lender, I started listening to BiggerPockets to familiarize myself with the real estate industry (math major, light underwriting experience, started with no real estate knowledge whatsoever). After 40-50 episodes, I decided I needed to read Rich Dad Poor Dad, The Richest Man in Babylon, etc. and also decided to give real estate investing a try.

My parents have fully owned a home in a more rural area of Southern California (imagine that Victorville is the closest "large city") for the past six years. It turns out, they want to move to somewhere more like Orange County and (when I asked hypothetically), offered to use the money from the sale of the house for a down payment on a 3- or 4-plex (or multifamily) so that I can get started in investing while they live in one of the units.

Is this a good idea? Any thoughts about business with parents/relatives?