All Forum Posts by: Kevin Barnard

Looks like I missed this but , please add my email SXTYFVE@GMAIL>COM to your buyers list . 

We do not have " Rent Control " here. We do have rent mediation as seen here 

https://www.cityofgardena.org/rent-mediation/

I've believe I've decided to just serve 60 notice to vacate . Then rehab and move into larger unit . I can get close to current rent of larger unit for my smaller unit . I believe this will help our family not feel as we are sacraficing as much in this path towards financial freedom . 

Great advise from you both . 

I Appreciate it , as far as rent caps , California has a 10 percent rent cap annually my proposed rent increase was 12% . I figured a new contract could do that as old contract expired . My city has rent mediation meaning 5% annual raises go unchallenged and anything over 5% if my tenant chooses could ask City for mediation and I would have to justify the increase . My thought was he is on month to month so I would give him the chance to sign a new lease or leave . 

Seems the right choice is start over and make more professional buisness decisions in the future . 

@Matthew Netwon Marquess wish you the best of luck in your new adventure .

Its my first home and has done better each year , I bought it 4 years ago for 388k valued now at 615k , I'm finally at a place where I could move out and have some positive cashflow , kinda not if we are taking 5% vacancy 5% repairs , 10% cap ex and management fees, but If i solely move out and self manage it will create positive cashflow unless unforseen cap ex .  Right now I'm still " house hacking and living i the small unit and renting the larger to suppliment my income and allow me to pay down pricipal fast and save more for future investments. Its by no means a mid west cash flow property but california does have some serious appreciation that I plan to leverage to make my next move .

Very cool, I'm new to the game as well and from So Cal , I own one duplex in So Cal but am debating on trying to invest further here or venture out of state . No Advise for ya as I'm doing the same a few podcast a day , running number ever chance I get here and out of state . Gonna start reading books when work slows down , pod cast are much easier while working 80 plus hours a week . 

Hello BP, just wondering what you would do 

I currently own one duplex in southern California . Unit 1 is 2/1 with unpermited bonus room and unpermited 2nd bath making it a 3/2 in a sense 

which I assigned a 2 car garage as well. Has a nice private back yard . Unit 2 ( where I live ) is a small 1/1 with a massive 6 car covered car port and a nice work shop . 

My tenant has been here 4 years in unit 1 paying sub market for 4 years. I listed originally for $1850 a month and he wanted to rent it . But He took a while to make his mind as as a 1st time home buyer I lowered rent to $1495 in panick it wouldnt rent at all by the time he came back. So he signed the 1st year lease at $1495 

I've made the mistake of befriending him and his family . They are for the most part very easy to deal with . I didn't raise rent first 2 years. Then raised it 5% annually after that . Currently $1650 

I decided its time rent goes to at least low market rates . So I offered a lease for another year starting January as he has been on MTM for 3 years at $1850 a month on new lease. 

He isnt happy at all about it , I also included a $500 pet deposit in new lease since they broke the terms of last lease and got a cat despite lease agreement . He said " he would rather pay $2000 a month than sign a lease with such a crazy price hike "

So I have a few options , give 60 days notice , move into the bigger house , now have my larger house, extra bathroom and garage for my hot rod and only increase my portion of mortgage $350 as I believe renting the 1/1 at $1300+ will be cake .

Or supply 60 days notice and get new tenant at anywhere from 1850 -2150 a month and stay another year in our small 1/1 . 

Or of course keep him and just rasie rent 5% every 6 -12 months 

My wife would love more space as we have 1.5 year old boy and are trying for second. 

I'm searching for deals daily and learnig more and more on BP and hope to invest more aggressively in the future but this is all I have for now . 

Looks awesome, great job! Congrats on 1st deal

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*This link comes directly from our calculators, based on information input by the member who posted.

@Dan Barli  Thank you , I purchased for $388k 3% down fha . Payment was $2780 Refinanced later to 4% fixed 30yr . I live in the 1 bedroom 1 bath and rent the 2 bedroom 1 bath . Mortgage is down to $2350 currently . Tenant pays below market at $1650 . I did the math and at top rents I could move out and unit would cash flow . However I'm very nervous about that without having a new investment in place and place to live . 

Netting $300 after expenses and reserves wouldn't offset renting in Los Angeles . My thought in paying down mortgage is when house is free in clear should cash flow $3000 or more monthly . 

So paying to down mortgage faster in my initial thought process did two things . 

1. Increases my leverage point for future investments 

2. Creates retirement income if I can say pay off in 15-20 years rather than 30. 

However after watching pod cast and browsing forums I don't really think that is the best option anymore.  I feel I need to get creative and take the additional money I have to spend and invest in new investments . 

I am new to this and feel very intimidated by the so cal market prices .  I really need to get creative to invest here . I'm very Leary of investing in places I know nothing about.