All Forum Posts by: Kyle Smith

I’m trying to figure out if implementing a RUBS program will affect the overall percent I can increase rent for a duplex I own?

I’ve seen AB1482, the new brilliantly crafted (read: astonishingly shortsighted) rent control bill here in California but unless I missed it, it doesn’t specify what exactly is being artificially controlled with the legislation?

Basically, my question is whether or not I can increase the rent 5% + CPI and do the RUBS when the leases expire or if the RUBS would be counted toward the 5%?

Any insight is appreciated!

Hi @Mario Medina and welcome to BP. You'll find a lot of what you're looking for here on the forums. In the meantime though, connect with others in Tucson via the local AZREIA. You can find their website HERE

It looks like there's even an event TONIGHT there in Tucson if you hurry and sign up. Good luck!

Hi @Sam Bewley and welcome to BP. There are lots of things to consider with your potential deal. We don't live in a cash flow market necessarily, but if you're west of the 5 in North County coastal, you'll be good in terms of natural appreciation. It's just a matter of being able to hold on long enough to see that appreciation materialize. 

On the other hand, as you mentioned, it seems like there might be some forced appreciation potential with the R3 zoning and the large lot to consider. 

I think it comes down to whether you can sustain the $3700/mo on your own because you WILL have some vacancy to account for while owning it. It's important to understand that those won't be the only costs associated with owning the property either. Make sure in your underwriting you're including CapEx 7-10% of gross monthly income, Maintenance and Repairs 5-10%, and taxes and insurance. I assume in this setup you'll be managing the property yourself but include 5-10% for PM for your exit strategy when you move out and start to rent both the front and back units.

Lots to consider, but if you're diligent in your analysis and the numbers work out, then go for it. Good luck

@Harman N. This!!! Leveraging a massive network is yet another reason why BP is so valuable. 👏👏👏

@John Thedford as you well know, becoming a wholesaler has a low barrier to entry and is a decent way for someone to break into the business.

Like with many other aspects of REI though, there are unscrupulous operators that give the particular niche a bad name. Wholesaling or unlicensed brokering is no different. With that said, I've met and worked with plenty of wholesalers who are good people. They got into the business because they had little money but lots of hustle. There's room on any team for a person who's willing to grind, IMO

I do take your point about the licensing requirements though. That certainly filters out many of the folks out there just trying to make a quick buck by any means necessary.

@Angela Lucas try this:

1. Just be nice.

2. Remember that a lot of people in the room are feeling awkward and uncomfortable too.

3. Don’t let your imposter syndrome take over

4. If you see @John Thedford at one of your meetups, refer back to option 1. By the looks of things, it seems like now he will too...?

@Stephanie Moran GOOD! Mistakes are how we learn. Frankly, if you get through your first project with this as the only problem, you’ve done better than most.

I didn’t see whether this is your primary residence or not though? The post just says your first renovation. If it is your primary, I might be a little more cautions, and do what others have suggested (especially if this guy is unstable). I might add that you should install surveillance cameras in case he comes back and does damage to the property or threatens you etc.

In the end, you will make lots of other, more costly mistakes in this business. Learn from each experience and move on.

@Joel Santana there's a ton to figure out btwn now and when you decide to pull the trigger a year from now. While you're saving up for a down payment (if that's why you're waiting), spend as much time as you can learning about all the ins and outs of REI, networking with other people in the industry and immerse yourself in the field. BP is a great starting point.

@Payton Reid I’ve done both but each situation is a little different. It definitely FEELS good to not have a mortgage, but it doesn’t always make sense from a strictly financial standpoint.

Buying with cash also sets up a perfect BRRRR situation. Find your property, add value, get it rented out, refi to get ALL of your cash out and then go find another one.

With rates as low as they are, securing long-term fixed rate interest has never been easier.

@Joey Morea no idea. I’m just here to read what @Paul Sandhu was gonna write. Not disappointed...