All Forum Posts by: Kevin L.

@Wade G. You are giving her 20k and putting in time and money for the minor upgrades. All of this is potentially at risk if she decides not to pay you the amount she owes upon sale or doesn't go through with listing the property. I'm assuming you don't know how to secure your loan or otherwise get any actual interest in the property. So you will have to sue her in court; if you win, you will have to try to collect from her. 

Even if everything goes right with her, the market can change in a few weeks and you may not make what you expect to make. Are you taking into account agent's commission and other seller expenses?

It's not wrong to take on some risk but it is definitely advisable to seek an attorney's help to properly document the deal and help you think through all the scenarios where things can go wrong. Good luck!

I'm not in your geography so I can't say how the differences affect tenant quality, returns, etc. But I can tell you that if you are a first-time landlord the major benefit to townhomes is that the HOA is likely responsible for major structural issues, yard/landscaping/driveways, all significant plumbing, etc. In short, some of the risk of a giant headache is shifted onto the HOA. Of course, the downside are the HOA fees and often dealing with the HOA itself. It's also important to understand any CC&Rs that restrict what you or your tenants can do.

Have heard a lot about BP and happy to finally join! 

I'm a business attorney based in Los Angeles and have a little experience - I rented out a townhouse I used to live in forand recently sold it w/o an agent. I have another rental SFR in the Inland Empire that's been going strong for 3 years. My current house is set up a bit like a triplex so I rent out a 'studio' long-term and host AirBnB guests in a separate 2BR/1BA, and live upstairs.

I'm hoping to learn more mainly about:

* Out of state opportunities for pure investment. Rent rates seem much better and also lower priced properties would make getting in easier. It seems challenging to find a good reliable team to do the legwork (and generally risky not to be local), but I know it's possible. 

* Smaller commercial properties (~$1M). I know the structure of some of these deals (from legal review of leases) but don't know the financials and how these markets differ. Would be tempted to dip my toe in in the LA/OC area if possible. 

Here to learn more - appreciate any general tips/advice. Thanks for reading!