All Forum Posts by: Jonathan Ko

Originally posted by @Mark Pedroza:

To best answer your question follow these two links from the CA

https://www.dre.ca.gov/files/p...

https://www.dre.ca.gov/files/p...

Good luck..

Great info - thanks, Mark.

Due to the 'rona and the extra time spent indoors, I'm considering getting a real estate license.

Regarding CA's 135-hour requirement, which course(s)/website/business offers the most relevant materials that assist with what's actually on the exam? So far, I've only looked up The CE Shop (Google's first result).

I work in commercial banking and have worked on some CRE deals over the years, so I am familiar with some RE laws & terminology, but would still opt to do everything I can (i.e. educational materials/courses) before attempting the exam.

Any suggestions and/or leads would be greatly appreciated!

I don't believe you can. While the SBA.gov website does not explicitly state that it cannot be used to purchase investment property, the name of the loan program (Economic Injury Disaster Loan) suggests that it's to be used accordingly.

The SBA PPP does note in the interim final rule that misuse of funds will be investigated, and if deemed as such, the entity will be fined. Did not see this language for the EIDL, but in this case, I wouldn't recommend it.

BP,

Where would one begin to look, in search of a lender for investment property? And, is it possible to obtain financing for investment property without an initial 20%+ down payment?

Background: I purchased my first home a few years ago and had been house hacking since day one. The rents cover roughly 40% of everything on a monthly basis (P&I, insurance, utilities, property tax) and the remaining 60% is from me. Net equity isn't >20% but the job and rents are stable, so it's just a waiting game.

My personal cash flow and DTI is decent enough to where I believe I can get another mortgage for another piece of property - and ideally have it generate rents to cover the majority of expenses, or better. The only things I have on my side are personal cash flow, credit score (800+), and DTI/lack of any debt aside from the mortgage. The only debilitating factor is the >20% down payment.

Originally posted by @Kyle J.:

@Jonathan Ko You don’t mention anything about the specific rental “unit” (house, apartment, etc), so no one will be able to answer your question exactly. However, what I can tell you is that what the Realtor stated is not how it works.

There’s a new law (AB1482) in California and if a property is covered by the law (most multi-family properties over 15 years old are covered), and the tenant has lived in the property for over 12 months, then you can’t just kick them out without cause.

There are a few exceptions, and other types of properties that are completely exempt from this new law though. There just wasn’t enough info in your post to know if any of those might apply.

Here’s a couple links where you can read more about this new law:

https://a17.asmdc.org/issue/ab-1482-frequently-asked-questions

https://cal-rha.org/legislative/ab-1482/

Thanks for the links, Kyle. The property is a duplex.

Originally posted by @Erik Grahn:

From my understanding you can’t end a lease unless they want to leave. There are some ways to do it though
https://leginfo.legislature.ca...

Thanks, Erik. The lease already expired/ended, and the inhabitants want to renew/extend, but the landlord does not want to. I believe it's within the landlord's right to refuse as the contract is no longer valid; they are not terminating it prematurely.

BP,

Asking for another individual.

A tenant has leased the unit for the last two years. Their contract is about to expire at the end of the month (March), and the landlord does not want to renew the lease contract. Given that it's California, what are the laws/rules as it relates to having them relocate within the allotted timeframe, however long that may be?

A realtor noted that in California, the inhabitants have one month of "buffer" for each year they've lived on the premises. So, does this mean that the landlord just needs to provide a letter to the individual that states that:

1) They will not be renewing/extending the lease,
2) By law, they have 60 days' grace period to find another living situation (same lease amount per expired contract)
3) If they have not vacated the premises after the 60-day period, then legal action may be taken?

Links/leads to any resources that will assist me in answering the questions above would be greatly appreciated. Thanks!

YMMV but I looked up the HOA online, called the office, and asked, as a prospective buyer (which I was). They told me right there.

Hi all - my name is Jonathan and I purchased my first home earlier this year and have rented out the spare bedroom ever since I moved in.

I work in commercial banking, mostly dealing with C&I and some CRE so over the years, I've picked up on some of the relevant topics, acronyms, and methodologies like IRR, NPV, LTV, cap rates, appraisals, etc. I'm a heavy user of Excel, and built my own model to determine things like breakeven point for a future/hypothetical cash-flowing property, for future use.

I have friends and family who own properties abroad as well as locally, and also out-of-state, like Las Vegas. I aim to learn from both their success and horror stories and to combine that with what I've learned on the job to determine my criteria for where/what I will purchase in the future for myself.

While I'm fairly confident in some aspects due my serving in an analytical capacity at my job, I definitely have a lot to learn when it comes to strictly SFRs/non-CRE properties. I'm hoping to meet and learn from fellow investors, subject matter experts, and possibly potential partners.

-Jonathan