All Forum Posts by: Leonel Lerena

Hi Gitit,

Congrats on purchasing California real estate! Sorry that plans are forcing you to pivot, which for most is the theme of 2020.

The Sacramento area rental market is very strong. Just like the sales market, there is low inventory with lots of tenants to choose from. I would suggest looking at comparable rental units on the market. You want to take in account size(sqftage), number of bedrooms, features (garage, pool, etc). Will you be allowing pets? Not many rentals do and lots of investors agree that pet owners typically stay longer because it is harder to find rentals which allow their pet. As far as resources, use multiple so you get a full picture. Sites like Zillow, Rent Cafe, and Rentometer should give you a good idea of the comps in the area. Lastly, you will have to be honest with yourself about your property and where it fits interns if location and condition with the other comp properties.

When it comes to asking for 5 times rent, I think you mean  making sure tenants have income 5 times above rent amount. I would say it is more common to ask for income to be closer to 3 times rent.  Combine that with a solid credit score and positive rental references and you should have a good tenant.

I’d be happy to help you find a property management company if you like. There are many out there. But if you decide you can do it on your own, there is a website called Cozy.co which has worked for me. It takes apps, runs background, sets up payment, can automatically charge late fees if lat3, etc.

In the event you need to sell the home, I am a local agent and I’d be happy to  help.

@Natan Gutt

HMLs will do 10% sometimes.

You can do creative financing with conventional loans sometimes. You could have the seller carry a note for that extra 5%.

Hi David,

@Todd Pultz You guys are on fire! Well done! Value add is our go to, it aligns with our business plan and makes a BRRRR that much better! We are just getting some residents that have SSI in the property we are in contract on and look forward to learning more about it. Good luck!