All Forum Posts by: Justin Cecil

Hi Jon,

I agree with Jon. You want the most qualified applicant, not just the first. Similar to hiring a job applicant, don’t discriminate and you will do just fine.

Hi Matt,

I'm a local realtor here in Sacramento and my first rental property was a SFR with a pool as well, I understand your concern.

There a few things I would suggest for you.

First, you will want to talk to your insurance agent. Homeowners insurance is different when it is a rental. In addition, you can ask your insurance agent what type and how much insurance you need your tenant to provide.

Secondly, the code requires doors leading to the pool area to be self closing. You can get self closing henges from the hardware store. They aren’t that difficult to install. Doors from the house to the pool area need some sort of audible chime/alert notification when the door opens and closes.

Lastly and just personally, if you have a diving board, I would remove it.

Good luck, let me know if you need a realtor.

Hi Jake, I'm an agent/investor and on my journey to financial freedom. I'm currently in the Sacramento area but I was raised in the South Bay. My investment strategy is combining the ‘live in flip' with the BRRRR method. Purchase a property with an owner occupied loan. Rehab over the course of the year, refinance( maintaining the owner occupied loan, then rent. The down side is this is a two year process because when refinancing you must stay in the property for 12 months.

For people looking to move from the Bay Area to the Sacramento area I believe this is a great strategy. Purchasing a 3 or 4 unit with a low down payment owner occupied loan.

This strategy isn’t in a book because it’s a lot slower. But this can be used while working one or more of the investment strategies simultaneously.

Cheers,

Justin

Hello Bigger Pockets!

I am a real estate agent who also works a full-time day job. Looking for my next investment property, I found something very intriguing. By intriguing, I mean a complicated puzzle filled with potential. Any advice, strategy, tips and tricks would be greatly appreciated.

Please hang in there with me on this because the details are a bit convoluted. There are 3 parcels in a trust that the seller(s) would like to sell together.

First parcel features a 2 bed 1 bath 864 sqft unit zoned multi family 2-3 unites. In addition to the structure, there are also 2 mobile homes that are not on foundations but are connected to public utilities(sewer/water/power).

Second parcel features a 1 bed 1 bath 480 sqft unit zoned multi family 2-3 unites. Similar to the first parcel there are also 2 more mobile home units also connected to public utilities (sewer/water/power).

Finally, this is a little tricky as the listing information does not match the tax data. MLS says it is a 2 bed 2 bath 1,314 sqft home. The tax record says it is 2 bed 1 bath 1,258 sqft unit. In either case, there is enough square footage to create a 3 bed 2 bath home. Yay for hidden equity! Also, this third parcel has another 2 mobile homes with no foundation but connected to the public utilities.

This is where it gets interesting...

Each mobile home space rental is $550/month for a total of $3,300/month plus utilities. The units also bring in a combined rent of $2,840/month. The total monthly income for all three parcels is $6,140/month or an average of $2,046 each. These numbers are current numbers and are low for the area. The average rent in this area is $1,309/month for 767 sqft for apartments and houses. Average space rent for mobile homes are closer to $750.

The property is definitely a fixer. The pest report shows about $20k worth of section 1 and section 2 items across the three units. The mobile home spaces are in desperate need of clean-up (trash, bushes/weeds etc). A true diamond in the rough.

ARV I feel is about $255/sqft. for the units. I've never comp'ed Mobile Home parks so maybe Brandon Turner will chime in but mobile home units in the area are going for $56/sqft.

Not sure what financing option I should use to get this property into contract? Seller financing may be an option but not yet discussed.

My goal would be to buy and hold long-term. Originally, I thought my next investment property was going to be a two-year BOORRR (Buy Owner Occupied, Renovate, Refinance, Rent). It is a two year process but I am working full-time (love my job) while also working as a real estate agent (love helping friends, family, and referrals) and you can't beat the owner occupied financing.