All Forum Posts by: James Peterson

Sorry you're going through that.  What Kelsey said... Have a frank conversation with the tenant.  Say you're willing to pay them to leave peacefully. Start with 1 months rent. Say you will not report an eviction... It's your free pass. You have until x to do it.  If not, you WILL be evicted and your record will be tarnished for a LONG time.  You can always put it up for sale too! Pressure makes diamonds... Don't let up.

Pat, good advice from above. My 2 cents, Elk Grove is more of a bedroom community for commuters although Apple does have a campus. You'll typically find families there because of the good schools and a single unit adu not as attractive as if it were close to downtown Sacramento or large hospitals. Those areas can attract great rents especially as a STR or MTR. How are you finding good deals?

Find a few local wholesalers that are doing business at a high level and ask how you can get involved...even if it's free labor.

Best advice you can get... Don't go at it alone! You can pay for courses and or go through you-tube college until you are blue in the face and never gain real experience because it's hard to jump in and take action. Having a mentor or coach that can show you the processes in action will help accelerate your education and knowledge of the market. Seeing it first hand will help you to get involved and make it easier to take action. 

Check with local Credit Unions Rollan.  There are some in San Jose that I'm aware of that have done HELOCS for investment properties.  Is this for short term financing or purchasing more investment property?

It's hard to imagine interest rates going much higher, it is possible of course, but eventually it will come down. If you can look at your total outlay in cash over the next couple of years with each scenario and see what best suits you, that's the direction I'd go. If holding your money now is more important, don't bother with paying down the loan. Or perhaps ask the seller to credit $ towards buying down the rate if you come up a bit in price. Depending on the renovation, look into Fannie Mae Homestyle and FHA 203k rehab loans... shop different lenders as well that offer these programs.

Hi John, keeping your current house because you have 'equity now' and probably a great rate on the existing financing is not a great investment philosophy. If your goal is for this to be your gateway into becoming an investor, which a lot of people do, it usually crashes and burns. I would sit down and crunch the numbers on what it looks like to try and pull this off, if you even qualify, and different scenarios for example, second home financing vs. HELOC. HELOCs are the ones effected mostly by the FED jacking up the fed funds rate and are not locked in so that could spell disaster.

Maybe the best play is to cash out, buy your bigger home with out worries and keep some of the money to buy your first investment property in the next 6 months when you can find a great opportunity to buy below market, and maybe use creative financing to hit your mark. 

Point being, make a plan, use strict criteria and work for it.  What is your 5 year goal, 10 year... etc.  If you don't know, figure that out first then work backwards. 

Hi Taylor,

Finding deals for cashflow are difficult in Sacramento right now. CAP Rates are typically micro-market specific for small multi-family. I'm curious what your buy box is? 2-4 unit? 4-8? 30% down? Pricepoint? - I have helped other investors cash flow on single family in certain areas just outside of Sacramento. Granted - not a lot of cashflow. Value-add is pretty much the name of the game including adding units etc. to increase cashflow and value. Partner with a great agent, and property manager that can help source opportunities. Wholesalers typically focus on single family, highest consumer denand, and rarely come up with multifamily. If you commit to an agent they should be willing to approach sellers, in your buy-box, directly and hopefully avoid the open market.

-James

Hi @Intan L., I have a rental coming up soon in Folsom.  The keys are #1 Full listing info as if selling, with professional pics. #2 And most importantly,  very competitive pricing.  Think about it, if you priced it 20% below market you would have every renter looking in the area applying.   But over price it 20% and you will get 0 applicants.  Find the sweet spot and underprice it 5% so you can choose the best renter... = less headaches and problems.  Zillow and Facebook is where it should be.

-James

Have a manufactured home on owned land in the Sacramento Area in contract and my partner is considering disposal of the existing, 1970s manufactured home and replacing it with a new or newer manufactured home.  Does anyone have experience in doing this, or have contacts for companies that sell new or slightly used manufactured homes and haul off old ones?