All Forum Posts by: Kaitlyn Masai

@Albert Bui

Hi Albert, thanks for the feedback. I meant that there is only $7k paid off on the loan. We don't have a rehab budget yet because we are still trying to decide how much work we should do on the house. It makes sense what you said about not spending too much on a rehab that is not going to add much value. 

There is for sure some work that needs to be done to make it rentable. We need to put in a new toilet, new floor, take out a broken built-in pond in the backyard, and some other minor cosmetic things. We could put a lot more work in such as adding a kitchen to the back room to turn it into a duplex. 

I got my comps from online sites, which is the reason why the range is so big. It seems generally to be $450k but I don't how reliable online sites are (like Zillow, realator.com, and redfin). It sounds like it would be better to get a real estate agent to give us better comps and help determine how much to spend on the rehab. Thanks for the advice about getting an attorney. That is probably a good idea since we are having the future tenant also do work for us. 

@Jerry Padilla What I meant is there is only about 7k paid off on the loan. Oh ok, I think I understand what you're saying. The equity isn't just the money paid on the house; it is also the difference between the loan amount and what it is worth. So if we rehab the house and it's worth over $412.5k then we would be eligible to refinance. Should we hire an appraiser before rehabbing? 

@Jerry Padilla  

Thanks for the advice. Just refinance for a lower monthly payment. There is only about 7k in equity in the house. 

Hello BP, 

I have a tricky situation that I could use some guidance on. My family just inherited a house in Marina, California. This house was previously by my uncle and his partner both of whom passed away in the last 6 months. The house was purchased for $476,000 in 2008. There is $7,700 in equity in the house and there is about $330,000 still on the loan. The house right now is a SFR (3 bed, 2 bath) and the value that I have found online range from $373,000 to $511,000 but generally seem to be close to $450,000. This house needs new flooring, a new toilet, minor cosmetic upgrades, and the backyard needs to be completely rehabbed. Additionally, there is a back house that was in the process of being remodeled. It is basically a studio apartment with a working bathroom but no kitchen. We want to rent the house out and already have a potential renter. My first question is should we refinance now or wait till after its is remodeled?

One problem here is that the house was owned by my uncle and now is owned by my mother through a transfer on death deed. However, my uncle didn't have a chance to transfer the loan to his name before he died. So the loan is in his partner's name and owned through a different executor. We've spoken to a lawyer about this but he was almost as confused as we are because apparently this transfer on death deed is very new.  

The second part of this is about the renter. This renter was renting from my uncle's partner but the house he was staying in is being sold. He wants to move into this house we inherited. He is known through my uncle's network as a good renter (never missed a payment, has been renting there for 8 years, and does repairs on their other properties). He offered to remodel the house for free in exchange for a discount on the monthly rate for the duration of the repairs. The house as a SFR could rent for $2,600. We would discount rent to $2,000 for about 6 months. Is there a way to do this and legally protect ourselves? Or is this just a huge risk?

Welcome Fred! I am a newbie from the Torrance area of South Bay. That's awesome that you are already having success in such a competitive market. Best of luck

@Stan Esperon Yes, it is really expensive. I haven't nailed down a place but I'm leaning towards Torrance or Redondo Beach. I'm going to house hack, probably by buying a multi-family and living in it. I've been told by local investors that this area is profitable by appreciation and not really cash flow. I see local investing as a way to get good hands on experience first and then I may branch out to out-of-state investing for cash flow.

Hi Stan, I'm also a newbie from Torrance. Welcome! I've settled on buy and hold investing because it seems like the most stable of the forms of investing. But my goal is to fund my retirement rather than to leave my job. I'm sure that your path will become more clear as learn more about investing and returns. That's been my experience anyway. Good luck!

@Chinmay Goswami Thanks! I will definitely read this.

@Andy Audate Interesting... Will do :)

@Sydney Hall Thanks for the welcome! Good to meet another CA newbie.

 @Mike D'Arrigo Thanks for the advice. It seems like house hacking might be my best bet if I want to stay local. 

@Robert L. Thanks! I will keep you in mind for sure :)

@Karen Margrave Great advice about the process behind this decision. I have noticed the price differences you mention about I didn't have a clear understanding of why that was. I will definitely keep that in mind.