All Forum Posts by: Leon Li

Purchased a 8plex end of 2018, just realized one of the lease agreements says owner has security deposit. I just told the agent to ask the previous owner for it. Is this my fault for not catching it, either way am I still entitled to the security deposit? Thanks

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Ops, posted in the wrong place ignore me.

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Purchased a 8plex end of 2018, just realized one of the lease agreements says owner has security deposit. I just told the PM to ask the previous owner for it. Is this my fault for not catching it, or am I still entitled to the security deposit? Thanks

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@Judy P. American home shield is by far the worst, I had it before and was told by the technician it's their lowest priority and they only do bandaid fixes if possible. I recommend fidelity home warranty, they are the best, I have them for all my rentals in Washington, for some reason they always replace my appliances when I make a service call. I've had 1 rental that had a failed water heater and furnace within 4 month of purchase, I made a rush service call and they came out next day replaced them free of charge. Extremely satisfied saved me probably 7k considering the labor in washington. Not to mention I had fridges and electrical fixes. I average 1 big replacement or fix per year per rental, basically the warranty pays it self. In my opinion you dont need warranty unless you're in a high labor state. Also it's better to measure the appliance life span if it's getting to the end for most appliances, buy warranty.

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Originally posted by @Gretchen P.:

Don't make assumptions about what anyone on this site knows first hand.

My first primary residence was purchased in 1987 about a year after I graduated college. We were told by everyone, including the the lawyer at the closing we made a great buy and it could only go up, because real estate only increased in value in that "high appreciation market". It was in an area that was in commuting distance of NYC, walking distance to a commuter train, people were building everywhere, and real estate was HOT, as were job prospects.

It was worth about 1/2 of the purchase price within 2 years when the market dipped. That was not fun. Luckily we didn't max out on debt and were able to save most of one of our salaries for a 20% down-payment on a house, but it took a few years. We moved out of state, and we rented the place out as it was too small to start a family (at a loss, another lesson learned), and dealt with it long-distance for about 5 years until the market came back enough to sell it. (Sadly, you have to amortize the property at the value it is worth when converted to a rental, not purchase price).

We learned some hard lessons, and hope some other poster on BP will too from reading this. Obviously we continued to purchase real estate, however, we know the market is cyclical and even the experts cannot predict it. During the last dip in the market, we knew high-earners who purchased beautiful million dollar properties with low-money down who lost jobs and subsequently lost their homes and even marriages. High-income jobs are difficult to replace quickly, especially if you are tied to a location -- especially a location that corporations are fleeing. Having a strategy around how to deal with dips or loss of income is prudent if you decide to purchase property only for appreciation. Buying income property for cash-flow and using depreciation to offset rental income and tenants to pay off your mortgage is pretty fool-proof. There is a wealth of knowledge on this site, and the most successful posters are both teachers and eager students.

This is really good, thanks for sharing.

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I went through many real estate agent calling me poor and should buy a tiny starter house or condo. If I had 50k at the time I would own house and buy rental. Sky is the limit. But I guess nowadays 50k is consider proverty hard to imagine. But I say if you can afford it and your husband is working. Why not. Maybe house hack do what ever makes sense. Buying a 50k rental in C neighborhood is not always the way to go.

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Originally posted by @David Zheng:

@Leon Li

Telling her to purchase 500k worth of property with a 50k salary at 3.5% down is super irresponsible...

It is, but I am just answering her question. I purchased my home at 300k making 15 dollar an hour, now my house is worth 700k and I'm doing just fine. Everyone has a different path.

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@Jennifer Bailey I purchased my home during the worst economic times around 2010. I purchased at 300k with 20% down conventional loan, I was making around 13-15 dollar an hour. 50k a year you should qualify for 500k house, depending on how much other debt you have.

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@David Smit Once you reach that wealth level you will understand. Why does Bezos continue to work so hard to achieve new heights, why did he buy whole foods, and now healthcare company and blue origin to go out of space? Conquering mars and reaching his ultimate goal maybe? World domination or maybe God complex. Who knows. Everyone has different goals.

2 Votes

a qualified tenant my PM gives 9 month warranty. If evicted or break lease. No commission for next tenant.

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All Forum Posts by: Leon Li

Leon Li has started 5 posts and replied 75 times.

Post: Forgot to ask for security deposit after closing.

Post: Previous Landlord did not transfer the security deposit.

Post: Previous Landlord did not transfer the security deposit.

Post: AMERICAN HOME SHIELD Home Warranty Company

Post: Buying multiple properties in year 1 - can I keep this up?

Post: Qualifying for a Loan with low income

Post: Qualifying for a Loan with low income

Post: Qualifying for a Loan with low income

Post: When is enough enough? How many homes does one need!?

Post: Need advice on accept or decline tenant