All Forum Posts by: Mabel L.

I've been going back and forth on selling my SF 1 bedroom condo in a 1031 exchange for a duplex-like property in South LA. I'd really love some thoughts from the BP community on this. Let me give more details to give some rationale behind my thoughts:

My SF condo is breaking-even and although it is technically not under rent-control, my current tenant has a LIFETIME lease. To keep this explanation brief, in exchange for converting our TIC to condo in SF, I had to offer my tenant a lifetime lease. Once she leaves, no rent-control. My tenant has lived there for 3 years now. She's young, late-20's or early-30's. Not married. No kids - yet. I could wait, but I've owned this property for 11 years and only last year, I finally broke even. (Now mind you, I lived there and did not originally buy it for investment purposes). I'd really like to buy something that cash-flows. Here comes my idea to buy in South LA.

I work in South LA so earlier in the summer, I was flirting with the idea of buying 2 detached homes on a lot (Idk if that's the definition of a duplex), each home with 2-3 bedrooms. Looked into the prices (mid-$400s to $500) which is what I would 1031 exchange my SF for, and it would cash flow - very conservatively speaking - at least $1000.

Does this seem like a no-brainer thing to do?

I've been going back and forth on selling my SF 1 bedroom condo in a 1031 exchange for a duplex-like property in South LA.  I'd really love some thoughts from the BP community on this.  Let me give more details to give some rationale behind my thoughts:

My SF condo is breaking-even and although it is technically not under rent-control, my current tenant has a LIFETIME lease. To keep this explanation brief, in exchange for converting our TIC to condo in SF, I had to offer my tenant a lifetime lease. Once she leaves, no rent-control. My tenant has lived there for 3 years now. She's young, late-20's or early-30's. Not married. No kids - yet. I could wait, but I've owned this property for 11 years and only last year, I finally broke even. (Now mind you, I lived there and did not originally buy it for investment purposes). I'd really like to buy something that cash-flows. Here comes my idea to buy in South LA.

I work in South LA so earlier in the summer, I was flirting with the idea of buying 2 detached homes on a lot (Idk if that's the definition of a duplex), each home with 2-3 bedrooms.  Looked into the prices (mid-$400s to $500) which is what I would 1031 exchange my SF for, and it would cash flow - very conservatively speaking - at least $1000.

Does this seem like a no-brainer thing to do?

I apologize for posting off topic! Mistakenly thought I sent a message! 

@J. Martin

Great in-depth post. I especially appreciate your analysis using CA as your lens!

I was wondering if you would be willing to share your knowledge on which lenders are doing high LTV helocs. I have in investment property in SF & would like to open a HELOC but not finding many lenders willing to do on NOO.

Greatly appreciate any insight.

Cheers,

Mabel

@Derrick Craig Duly Noted! Thanks!

@Manolo D. Thank you for the connections.

@Jay Hinrichs Thanks.  I'm checking out the next FIBI in Pasadena and Aaron Norris is also the speaker.  Interested in learning more avenues of real estate investment.

@Alex Craig Ha that's an idea!  I do owe it to those who did write blogs (not books): notably the madfientist, jimcollinsnh, and of course, the famous mrmoneymustache. 

@Jay Hinrichs, I guess I'm not looking at the right places and not working with any real estate professionals to find deals?  I just look often on like realtor.com and I'm not finding properties with cashflow in Los Angeles.  That's what I'm looking for.  Is there specific parts of California you are referring to?  I appreciate your time and input!

@David Faulkner, you got my wheels spinning! I was recently listening to a podcast about syndication-I am indeed interested.  Why does lending Hard Money seem so scary and risky? So much to learn.  But yes you've got my wheels spinning and I may ask you more questions down the way if that is ok with you.  Thank you so much for your time and input!

@James Martin, I am not leaning towards Memphis which is why I'm interested in other TK operators.  But I'm not 100%.  Just at the beginning stage here.  Thank you for the offer...I will definitely hit you up if I have questions!

@Stephen Akindona, yes completely aware of shady characters that's why it would be so helpful to get actual clients to share their experiences.  Reputation is of utmost importance.  Thanks!

hopefully I'll hear from investors/clients. Thanks for the welcome. 

Hello! I'm so happy to have stumbled upon BP through the Madfientist podcast and now, I'm addicted to listening to all of the BP podcast!  

My husband and I are in our late 30's and are about 4-5 years away from reaching financial independence and of lately, I've been thinking about how to speed up that process and create additional streams of income.

I have bought and sold a couple of properties (including land-lording) so I have a little experience here and there.  The podcasts however, have opened up so many different ways of approaching real estate that I had never thought of and has actually helped solidify the kind of investor I definitely do NOT want to be.

At this point, I am really interested in turnkey properties. I think it may be a good fit for all of the following reasons:

#1) I can't seem to find properties with good cash flow around here (in SoCal).

#2) I don't know anyone out-of-state that can help me acquire, rehab, manage properties.

#3) The idea of putting a team together to do #2 is not attractive.  I like simple.  Sounds like a lot of work (at least I can admit it!)

#4) Time is precious.  I have a full time job (Middle School teacher).  I do not want to spend my nights and weekends looking at ugly houses much less flying to places to investigate. (Instead, I grade papers and plan lessons...much more exciting!)

#5) I HATE landlording.  

#6) I know finding good tenants is actually quite easy if the location is prime (I own in SF and just sold in Pasadena - plenty of high-quality renters, never a vacancy).

#7) I am happy with decent returns, I do not need to squeeze every possible penny out of a transaction.  I believe everyone can win.  

I am really interested in hearing from those that have experiences with turnkey companies, especially how to go about evaluating property managers/managements. 

I'd also love it if anyone can offer how they compared the TK companies and what were the determining factors that helped them choose a particular TK.  

 The TK company I've read over and over again is Memphis Invest (which I'm at this point quite convinced they are a sound and reputable company) so I would love to hear from anyone with experiences with a different company. 

Thanks BP for providing this forum and to all who have generously contributed to BP!

~ Mabel