All Forum Posts by: Jusstin Williams

Hey y'all interesting situation not exactly for me. I have an STR in San Bernardino, CA and the other day my next door neighbor came over to ask me for advice on evicting some of her tenants. I've never evicted anyone but I told her I would ask around. Anyway my neighbor is much older like 70+ she says she lives off of social security and the little rental income she makes. Her tenants have not paid rent in a year and they had a written agreement but not a full blown lease in place. Her daughter is trying to help her but they really have no idea what to do. They also have very little in extra funds so if anyone knows a low cost resource that I can point them to that would be awesome. Trying to help but also not trying to get to wrapped up in the process lol.

 We discussed that as well. I'm being ultra conservative on the numbers because I want to give an honest representation of what he would receive. However the property has been pretty consistent with earning above $5000 each month. Right now the medium term is bringing in $2k and Airbnb is tracking to $2844 at 41% occupancy for March so it can definitely earn more but I see what you're saying.

We have some non-real estate related businesses together so pretty used to work with him. That is a good point regarding the percentage ownership not matching the percentage that the house is worth. I was more considering making sure he got a decent return for what he was offering. At $46k I doubt the yearly return would be worth it so the real return would come if I eventually sold. I was thinking at the very least I would need an operating agreement however he would essentially be a silent investor just in it to make a profit on his money up until I sell and our deal would terminate. I'm considering seeking a lawyer to help with setting up a contract/operating agreement but hadn't considered an LLC.

Hey y'all!

I bought a house a lil over a year ago that I have been renting out. The house has a garage converted into a studio in the backyard so that has been a medium term rental and the front has been an Airbnb off and on. I want to go full time Airbnb for the front or even medium term rental but in order to do that I have to add space for parking on the property to comply with the local short term rental ordinance. I got some quotes to add a concrete pad in the backyard and widen the driveway in the front for parking which is gonna be around $14-15k. I could potentially finance this work however I financed all of the furnishing costs and I financed mini-split additions to both houses so I really want to get away from adding additional debt. My idea would be to sell 10% ownership in the property to my brother for $20k cash so that I can pay down some debt and pay for the concrete work. This would not be a loan needing to paid back but instead we would have a 90/10 split on profits up until I eventually sell the property. Does this sound like a good idea or should I just get a loan to do the work and maintain 100% ownership.

Here are the financials...

Purchase Price: 465K
Down Payment: 30,745.37 (includes closing costs)
Furnishing Costs: 14,416.78
A/C costs: 20,087

Expenses:
PITI: 2,920
Utilities/services: approx 750

Revenue: avg. 5k/month possibly higher if I go full Airbnb as I have been seeing 70%-95% occupancy back to back since november.

Got it! Thanks

Hey Y'all!

Finally closed on a place and I'm in the process of getting it furnished and ready to rent. I'm looking to rent to travel nurses as I have a couple of hospitals in the area since I'm hearing they are struggling with housing in the area. That said I'm a lil confused on the leasing agreement. I would assume that since I'd be leasing for minimum 3 months that a leasing agreement is needed. So can I just take what BP offers and modify it for the situation myself? Realistically the only thing I think I would like to change is the section on utilities. Since it is an ADU on the property and none of the utilities are separated I was planning to keep all utilities in my name and a fixed rate into the rent.

Thanks

@Elise Marquette thanks for the info!

@Stephanie P. Gotcha, I'll request to see what that'll look like to thanks!

Hi! My name is Jusstin and I'm just starting my real estate journey. So far I have a real estate agent and have been working on getting pre-qualified for a loan so I can get a good idea of what price range to look in. I've contacted 3 lenders so far and have received one pre-qualification (waiting on the other 2). From the first and second lender I'm told that the down payment requirements for SFR and a small multi are different. For instance, I was pre-qualified for $500k with 7% down for a SFR, however if I go with 2 units it's 15% down, and 25% for 3-4 units. One of the other lenders told me something similar for small multi just hasn't given me the actual details yet. Is this typical or should I continue to shop loans?

Ideally I would like to come in somewhere between 3-10% for a conventional loan whether it's a single house or 4 units.

Additional details:

I'm currently located in SoCal in the inland empire and I'm also looking in this area too. This will be owner-occupied however I was told a conventional loan would be best because I have a business (sole proprietorship) that reports a net loss for last year and this will lower my income if I go with a FHA loan. Credit score is between 703-728 or so. Employed with the same place 5 plus years. Have 18k liquid and 45k in stocks, plus receiving another 18k in stock from my job next week.

If this is not typical should I just call lenders in my area and ask them what their loan terms are for the two different types of properties?

Any insight would be greatly appreciated :)

*also it's my first time actually posting so sorry if this has been covered before*