All Forum Posts by: Kevin Velarde

Hi every one 

I am am not sure what to do. I am currently house hacking a duplex in San Pedro CA near the port of LA. This duplex consist of a 3 bedroom 2 bath front house that has a court yard that leads to a 3 car garage. Above the garage is the second unit that is a 1 bed one bath. I live in the rear unit above the garage. I have a 30 year fix at 4.7% and owe $530,000. House was in escrow to be sold for $960,000 last year but the deal fell through due to tenants inability to move due to COVID city ordinance. Taxes are about $8000 a year. This is a Solidly B area and in an up and coming neighborhood(i think). The city has put 1 billion into the port complex to retro fit and attract tourism. This is a heavy rent control area being that is in the city of Los Angles and in California. The tenants in the front house moved out last month. I am having a family member do the turn over and the construction project has gotten a little out of hand. Its going to cost $40,0000 that am going to have to borrow from my HELOC to pay for. When this is done I should be able to rent out the front unit for $3500-$4000.

Now that i am able to deliver the property vacant in a rent controlled area and the cost of construction has gone up more than expected. i am not sure if i should sell, pay off my dept and take my proceeds and invest in a similar property and possibly get another one. Or should i just keep it and try and rent it out,  Bank on appreciation and hope the Rent control gods smile on me and i screen well and get good tenants. No covid or city ordinance get jammed down my throat :).

Any thoughts are greatly appreciated. I go back and forth every day and any insights or opinions would be very welcome. 

Thank you very much. I hope every one is have a great week. 

Kevin 

I pay my tenants utilities on one of my duplexs. Can i write this off as a business expense at the end of the year?

Thank you very much for the quick advice everyone. Going to let them have it with a $300 pet deposit and a slight rent increase. Much appreciated 👍

I have had this tenant for a year and he and his wife and 3 children have been fantastic. Their lease is about to expire at the end of this month. I just got a text message from them asking to add a pet(small dog) to the home. I live in the back house behind my tenants and don't want things to get  awkward if I refuse .  I know their children have wanted an animal for a long time. how would you guys best handle the situation. I'm not too happy about adding a dog to the unit.

Text message from tenant: 

Hi, sorry to bug you but I wanted to ask you if it will be ok if we took in my mother in laws small elderly dog he is about 12 years old and is completely house trained, she needs to place him and asked us but I wanted to run it by you 1st. Here is a picture of him so you can see he is a small dog.

Please advice

Regards

The 75k is included in the 170k price tag.

Purchase Price: 170,000

After repair Value:260,000

repair cost: 10,000

rental income: Front unit 3b 2b = $1400 back unit (studio) $500 = $1900 

The seller owes $75000 in taxes is 85 years old and her children are a demon spawn. She wants to sell me the house as fast as possible but does not want the banks to get involved. I am a little bit of a traditionalist and have always used a bank, %20 down and a 30 yr mortgage. Is this what hard money is for?? Can i use a hard money lender for the $170000 to fund the purchase price? Send her happy on her way to Needles. Meanwhile ill eat the interest rate as i fix up and rent the house. Then is it possible for me in 6-8 months to refinance with a bank traditional loan? My other option would be to whole sale this property to a cash buyer but I have the %20 down in reserves and i  know this would make a great rental for my team! Any Advice would be greatly appreciated.

-Kevin