All Forum Posts by: Laura Yazdi

We have listed two properties as mid-term rentals in the LA area for 3-4 years now, exclusively through FurnishedFinder. Previously, we would get high quality applicants quickly. Now with a current vacancy (Also in Pedro!), there aren't even any open 'housing requests' in our area, plus there seems to be a glut of available listings.

Maybe it's August, but maybe FF has lost some mojo? If 'zero activity' continues for another week, I'll need to scramble for more places to list. (Today is Aug 8 2024)

Anyone else seeing this? Any sense of FF loosing popularity? Or perhaps some other subtle change in the mid-term arena?

(Apartments.com has worked very well for our 'regular' rentals, I haven't tried it for the furnished units.)

Hello Greg, Can you explain more about the "Current Vacancy" that you mentioned and what you think is causing this?

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Quote from @Allen Duan:

Hi Laura! My company manages MTRs through Los Angeles. I'd love to see how I can help with getting your MTR booked.

We find the average booking lead time is 2-4 weeks. So if you're next vacancy is Sept 1, it makes sense there aren't many inquiries yet. I see your next availability is mid August, so I would expect to see more inquiries in the next 2 weeks.

The low amount of direct inquiries from Furnished Finder is normal as well, from our experience with 25 properties.

I don't recommend the discount for first 3 bookings if you're doing MTR, that can easily be an entire year of bookings discounted!

Your pricing is in the right range, you can always discount a little to be competitive but sometimes a lack of bookings is not price related. The only feedback for your listing I have is to shorten your description. The photos and property look great.

Hello Allen, Thank you for your expert opinion and taking the time to look over my listings. I've saved your information in case I decide to hire a property manager. Leave me your email. Many thanks! -Laura

1 Vote

Quote from @Zachary Deal:

You still have a month but I do think MTRs in markets with a lot of competition can be a bit harder to get bookings on before you have reviews. I think lowering the price slightly until you get a few reviews is your best bet.

Hello Zachary,Thank you for your feedback.Much appreciated!

1 Vote

When I listed my Single-family 2b/2b property back in July I thought I would be getting tons of requests. Especially when I compare my property to the other homes in the area because of it's proximity to a luxury golf course, the boarder of Rancho Palos Verdes (a high-end neighborhood). The property has great amenities including central heat and air, pet friendly, washer/dryer, great backyard + patio, an upgraded kitchen and bathroom, and upscale furnishings.

I've gotten maybe 6 inquiries combined (through FF, AirBNB, and Zillow.) My price seems to be comparable to other listings with similar amenities. I could lower the price, but need to make $4200 to break even after 8% vacancy, maintenance 5%, 5% cap ex, monthly utilities, etc.
I would like to have it rented by September 1st. Do you find that your listing inquiries pick up closer to the availability date? Please let me know if you have any feedback on my listing links below.

I've only gotten 2 direct booking requests from Furnished Finder. I follow up with unmatched FF leads and respond to every inquiry within 24 hours. I have also listed it with relocation companies. Not sure what else I can do.

www.airbnb.com/p/spbungalow

https://www.furnishedfinder.com/property/708291_1

https://spbungalow.com/ (property website only- no pricing)
I can:

A) Wait a few more weeks to see if I get bookings at the price I need to break even.mwhile I Continue following up with leads and insurance contacts.

B) Lower the price by $50 every week until I get a booking

C) Offer a discounted rate to my first 3 bookings on Airbnb to get reviews and have my property rank higher in the algorithm.

Any other options anyone can think of? Thank you in advance for any feedback!

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Hello Michael, Thank you for your input and that makes perfect sense. Right now, the purpose of my move is to take my real estate investing business from Los Angeles to Charleston, SC. While I am there I will be meeting with agents, lenders, viewing properties, and being closer to my rental properties once I purchase them to do the check-in, walk-throughs, maintenance, etc.

The other question I run into is what business to put these expenses under. I currently have a California LLC that holds the property I will do a 1031 exchange on next year and purchase properties in South Carolina. That would be the business the moving expenses fall under, correct?

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Quote from @Brad S.:

Quote from @Laura Yazdi:

I have a condo in Los Angeles that I plan to do a 1031 Exchange within the next year. The property is worth approx. $450k and I will have $300k in cash once it is sold to purchase other investment properties. My ultimate goal is cash flow to be able to quit my job (self-employed) and focus on real estate full-time. Do I purchase a multi-family unit in Southern California for maximum appreciation? Or, should I purchase multiple units in other areas around the country and convert them to MTRs/STRs for maximum cash flow? Keep in mind, taxes and insurance costs in California are higher than a lot of areas. All ideas/ suggestions are welcome!

I assume you haven't occupied the unit in the past 5 years and don't qualify for any of the tax exclusion?

I lived in the unit 2015-2020. It has only been rented for 4 years of the 8 years I have owned it. It was my primary for the first 4 years.

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Can I expense my moving costs if I am moving across the country to pursue RE investing full-time in another state? Can I write off BOTH the moving truck that I will hire AND my entire cross-country road trip (hotels, meals, supplies, etc.) to get my car there?

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Quote from @Sean Ross:

Hello @Laura Yazdi,

This is anecdotal, but we're seeing our 1031 clients flee from the higher-tax and higher-regulation parts of the country to places like TX, NC, GA, FL, AZ, etc. Lots of West Coast capital going elsewhere. We hear lots of complaints about landlord laws, delinquent tenants, and homeless encampments causing trouble/damage.

Maybe there is wisdom in the crowd. Again, just anecdotal.

Here are some things to consider about 1031 exchanging in and out of California specifically:

1. California Clawback Provision - California Franchise Tax Board has rules about investors who sell and 1031 out of state. In short, they're going to require you to file a new form each year to update them on the investment. If you ever recognize capital gains down the road in another state, they want their cut. Failure to file the form (#3840) will result in retroactive tax recognition in California.

2. California tax burden - Due to the clawback provision, you don't get a full break from the higher income taxes in California if you sell in another state later after a 1031 exchange. You'll still likely get some lower taxes, since some of the gain will be accrued in another state, but you still need a good tax accountant here.

3. CFTB review of 1031 exchanges - California Franchise Tax Board is even more diligent than the IRS when it comes to scrutinizing 1031 exchanges. No matter how you 1031 in CA (inside or out), you really need to dot your "i"s and cross your "t"s.

We do tons of work in CA. If you don't already have a preferred 1031 intermediary to work with, we'd be happy to give you a free consult whenever you're closer to making a decision. If you do already have one, I'm happy to be a second opinion.

Hello Sean, This is very helpful. Thank you. Saving your contact information down for when I start the process. - Laura

1 Vote

Quote from @Andrew Abeyta:

From a cash flow perspective, you’d really need to think long and hard about the cost of leveraging these properties, especially in the current rate market.

Yes a bigger purchase price might mean a greater potential of higher gross cash flow and appreciation, but that cash flow might get eroded fairly quickly if these moderate interest rates are here to stay.

- REI CPA from CA

Hello Andrew, thank you for your input. I am looking for a tax strategist that knows the California real estate laws and landscape. Do you offer real estate tax strategies? Particularly with someone who is self-employed and trying to buy more property and take my legal deductions?

1 Vote

Quote from @Alex Olson:

I am partial to the midwest for cash flow and good appreciation if you pick the right market. OF course I am big on KC which is where I am and invest in. Happy to chat further. You could buy about a $1,200,000 apartment complex here and that would be about 10-15 units.

Hi Alex, Thank you for your input. What is the average rate of return on an apartment unit that size in KC? What could be the expected cash flow per unit?

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All Forum Posts by: Laura Yazdi

Laura Yazdi has started 3 posts and replied 11 times.

Post: Need Advice on a MTR in Los Angeles.

Post: Need Advice on a MTR in Los Angeles.

Post: Need Advice on a MTR in Los Angeles.

Post: Need Advice on a MTR in Los Angeles.

Post: Expensing Moving Costs

Post: What is the best route for this 1031 Exchange Scenario?

Post: Expensing Moving Costs

Post: What is the best route for this 1031 Exchange Scenario?

Post: What is the best route for this 1031 Exchange Scenario?

Post: What is the best route for this 1031 Exchange Scenario?