All Forum Posts by: Johnny Sung

Thank you for responses so far.

@David Jay   Two are 29, one is 25. Job wise I feel they are pretty stable: High credit person (sister) is a dispatcher for plumbing company, Mid (friend) is IT technician and low (brother) works for Primerica which is commission based. Brother has provided bank statements and he has been generating the average income he claims the past 3 months (Feb-Apr). Not quite sure on the parental situation but a co-signer is something I can bring up.

1st time landlord here and looking for some insight.

I currently have a 3 bed/2 bath home up for rent in southern california. Rent is $2100/month. Great area, would say area is A with this being the B neighborhood.
The detached garage is going to be converted into an ADU later this year. It has been listed about a month and I get a lot of initial interest but not many qualified applications. I am currently considering this application.

3 co-applicants/roommates, 2 are related bro/sis. Combined their gross income is 3.6x rent. 1 great credit score (mid-lower 700), 1 mid (Mid 600 no credit history), 1 bad credit score (mid 500, balances owing on closed accts but no collections no open accounts.) Background checks all come back good. Able to verify all employment and current landlords all give good references. Unable to get a hold of the prior landlord for 2 of them for a reference. Maybe I am overthinking it but I am leaning towards approving them. 

Any advice would be appreciated.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I'm not entirely sure if the ARV I came up with is accurate. This can be converted to 3br/2ba, comps for 3br/2ba w/ 300 sqft more in this neighborhood are around 485k.

Also monthly holding cost is high as this will be funded with hard money.

@Mark Dance

Hi Mark,

How big of a system are we talking about? Are you in an area where the power company aren’t going to change the rules soon? I work for the power company in my area and rates are changing to the point where the solar peak periods are becoming the cheapest rate. That’s a problem when you used to get $0.25/KHW and now it’s $.16/KWH for your generation.

In regards to marketing I would definitely provide cost comparison with and without solar and let that be the main marketing tool you use to convince someone of the benefit. Once it’s paid off it’s pure profit so would need to figure out how many years out that would be based off how much you’re saving on the power bill. As for price adjustment I would see how much is still left on the loan with the solar company and what a new system of equivalent size would cost to install today and price accordingly.

@Samuel Chua

As a new investor myself I've mainly been looking to MF homes to get started. One of the problems I encountered in some more recently developed areas is very few MF. As a result hard to pull comps on them as maybe 1 other MF sold in the area within the past 6-12 months. I'm curious how an assessor would value the home without that direct comparison. Same comparable SFH?

@Lexi Teifke

Neither young nor wild but I’ll check out the podcast. 🤣

@Eddie Espinal

Thank you. Will definitely post an update when it happens.

@Antonio Hernandez

Best of luck on your journey as well!

@Jo-Ann Lapin

Thank you! I was mainly thinking buy/hold or BRRRR if possible in riverside. A lot of inventory in San Bernardino but unsure if investing in C/D neighborhoods is he first place I want to start and learn.

@Ryan Whitcher

Thank you for the suggestions. Already looking into attending my first local REIC meeting next Wednesday. t

Hello BP,

My name is Johnny and I’m a new investor based out of the Rancho Cucamonga, CA aka the place on the way to Vegas.

I recently discovered the BP podcast and have been absorbing as much information as possible. There is so much information on BP that it can be somewhat overwhelming but I’m excited about the various investment strategies or as @Brandon Turner coined them tools in your toolbox.

Currently I am looking to start my investment journey in my own backyard in the Inland Empire vs OOS. While properties are very expensive across California the appreciation here is second to none. I look forward to connecting and networking with fellow BP members on our respective REI journey.

@Matthew Cyriac

Hi Matthew, newbie here too but here is my take.

Depends entirely on your rental property strategy. Buy and hold on a cash flow play, very little appreciation. I can see how the FEL might be more attractive with the fixed rate.

BRRRR strategy or high appreciation strategy with a refinance where you're getting your money back relatively fast then HELOC since you can just reuse those funds whereas when you pay back the FEL you have to get another one for your next deal and you're paying interest on the FEL inbetween deals.