All Forum Posts by: Lee L.

How about a few words to describe the site?

Social Networking for Real Estate Investors

Social Media for Real Estate Investors

On-line Real Estate Investment Network

Connecting Real Estate Investors

@Joseph M. Wow, I'd never thought I'd hear that on BP. That's awesome, I guess. CA all the way!

@Matt Kvalheim

 I like your thinking in upping the maintenance and vacancy percentages. Also, since it's an older building you might want to add something for capex. I'd also get a separate inspection with sewer cam especially since this is an older building and there are so many people living there. 

@Damien Cox

 What part of LA are you targeting? I focus primarily on Northeast LA income properties and run comps for clients all the time.

@Adine You might also look closer to L.A., just east and south of downtown where you can find 2 or 3 unit properties in the mid to upper 300's that cash flow decently for CA standards (Lincoln Heights, El Sereno, Boyle Heights, South L.A.). I like these areas because they're close to job centers and can get decent rents (if the unit rents are at market due to rent control in L.A.). Also, along the uncompleted Expo Line seems pretty interesting and prices aren't super ridiculous yet. 

$38.25 capex, $20.83 maintenance. YES! $25.00 for utilities also seems really low if you're responsible for any of it. 

Unless this property was brand new, I highly doubt this would be possible. 

@Sanedria Potter

 Perhaps you can shed some light on this since you're a professional appraiser, although slightly off topic. I've always wondered why the appraiser that helped with the loan qualification process for a triplex I purchased used comps to appraise the value of the property, and not the income approach. Furthermore, what really got my goat, was that the appraised value turned out to be exactly the offer price. Is this fairly common practice for 2-4 unit buildings? I kind of thought it was a sham. What's the thought process for this? On what kind of buildings do they start using the income approach? Thanks!

@Lekisha. It looks like Redfin does have listings for the Ft. Lauderdale area. I've found it the easiest to use, and even easier than MLS, although I believe the MLS is a little faster by a day or two, and the MLS covers the whole country, whereas redfin only covers certain markets.

In Redfin, search for the neighborhood you're interested in. Then go to Filters, and select "Sale Records", in the last 3 months or 6 months etc. Sold properties are blue, properties for sale are green. Do not mix-up "list price" on avaialble properties with "sold price" on properties that have been sold. 

Try to focus on properties that are within a few blocks of your subject property. When looking at sold properties, pay attention to things such as: Is it on a busy street? Is it in the same school district? Is it close to something considered NIMBY (ie: high voltage electric towers, railroad tracks)? Is it approximately in the same condition? Basically, you have to figure out how much pluses and minuses of otherwise comparable properties either hurt or enhance the value of the home. For instance, If your property is on a busy street, try to compare similar properties in the neighborhood on a busy street. Or discount the value of the subject home, if you can't find comps with that deficiency.  

Comparing comps is kind of an art and it takes practice and requires a really good knowledge of the area. I suggest you at least look at how much other properties in the neighborhood have sold for. Then you can test your knowledge by trying to estimate the value of a property that has actually sold. 

Comparing comps is just one of the main ways that properties are valued, but it's the most common especially for single family homes. For multi-unit properties, it's better to analyze the rents and expenses, but that's another matter. 

@Zach DavisGreat suggestion -- I'll check the lease tonight to see if it does not allow for businesses. About the language, I'd have to double check, but I believe it's just a box with "pets" checked off and says "1 big dog, 1 small dog." It's basically the standard MTM lease agreement they use in CA. The tenants will likely say that the 3 other dogs are not their's, so the 2 dog rule does not apply. 

@Marcia MaynardThey are on MTM, but I am in a tenant friendly city -- L.A., with rent-control. I'm not sure if rent control would make it more difficult to clarify/enforce these things since it gives so much power to the tenant. Otherwise, it seems that landlords can just modify the MTM lease in any number of unreasonable ways to make the tenant move out, and thus raise the rents. I'm pretty new to landlording, and I'm trying to manage the property myself. I appreciate your help. And already, I'm thinking about organizing some inspections. 

Hi BP,

This past weekend, I learned that the tenants in one of my units are taking care of 3 dogs that do not belong to them. According to the lease they are allowed to have 2 pets (1 large dog, and one small dog).  I believe one of the tenants is a dog groomer or trainer. They have a $250 pet deposit, and a security deposit = 1 month's rent. 

Now, there are 5 husky-sized dogs in the 650ft apartment. They seem pretty well-behaved, but I'd rather not have 5 dogs in the apartment.

What can I do?

Also, if it says in the lease that they could have 1 big dog and 1 small dog, but now there are two big dogs, is there anything I can do? My guess is that one of the dogs grew up. I didn't write the lease. Any advice would be appreciated.