All Forum Posts by: David Hutson

@Vicheka Chres,

A handyman would definitely save you some time and hassle unless you are already going to be in the area.  It's still good to come see the house at least once per year though.

I do a lot of my own repairs and can do most of the work you need done when you don't want to drive out here.  Message me and I can give you an idea of pricing and how long it would take to do projects.

David

Evening @Or Basan,

@Chris Clothier, has it right.  I am also in Sacramento and had one of my Memphis houses burn down about two years ago.  The PM will try to do the work for you, if they have an in house team or they work with another company.  They will want a small fee for managing it.  If you have great property management and you trust them then let them handle it all.  It will save you the headaches and you can have the PM handle any issues that result after the repairs.

The timeline will be determined by the amount of damage/repairs that need to be completed and your PM should be able to give you an idea since they should have eyes on the damage.

I'm in Sac too.  Shoot me a message if you'd like to meet up for a smoothie and discuss it or investing out there.

David

@Account Closed,

I do if the numbers make sense.  Right now what I'm seeing is properties are too expensive and the return isn't there.  Feel free to message me with all of the details you have.  

If there was a finance contingency the buyers probably couldn't get it to work and stated they couldn't close due to not getting a loan.

David

Evening,

The market is too hot here for owners to need to carry back a small loan.  Houses/duplexes in our area are selling fast for high amounts and buyers are paying full price with no issues.  Yes, the market has slowed here over the past month or two but duplexes are still hot.  I know of numerous buyers looking for 2-4 unit properties and unless they are in bad shape, someone will buy the properties quick.

David

Evening @Jaime Rossini,

I am an agent in Sacramento and I am also an investor.  I have completed several 1031's and have used IPX 1031 for my last three 1031 exchanges.  I have been selling off my Sacramento properties and exchanging into properties in TN.

Message or email me with your questions and I'll try to help you out.

Btw, nice photo at Machu Picchu.  I was there a few years ago and have a photo from a similar spot.

@Scott Davidson,

I can't speak for your state's laws but in CA I would never let the tenant keep the keys past the move out inspection.  I tell them the keys are due at the time of walk through since they can go back into the house.  I continue to charge the tenants until I have possession, which includes keys.

What you could do if you choose to and which is probably better in your case is to complete the walk through and then let them leave.  What I do is as soon as they leave I walk out to my truck and grab another lock set for each door and change the locks or rekey the doors immediately.  I usually have tenants ready to move in shortly after and I don't want to have to wait for keys, which may not show up.

If your state's law is that the tenants they have 24 hours to get you the keys then wait the required time and if they don't give you the keys the worst part may be you have to have a few keys made for your locks.  Take the master key to your local hardware store and make a few keys.  For less than $10 you can get possession of your home, get new keys and know your home is secure.

Good luck,

@Andrew S.,

Sounds like a fun weekend. In the past when I have had to deal with smoke, and discolored walls, I would do one good scrubbing with TSP. Never did two. Then Kilz and paint. Never had a problem with the walls.

As @Account Closed stated, the carpet will be the bigger problem as far as the smell.  Since you stated you are going to replace the carpet I recommend spraying "Odoban" (about $10 for a gallon to dilute) or some other cleaner/smell remover over the pad (if you don't replace it since it will hold the odor) or on the floor if you remove the pad.  It's probably a little overkill for concrete but if it's wood maybe not.  Spray the whole house down.

The TSP and changing the carpet should be good and you can relax next weekend.

Good luck,

David

@Andrew S.,

Sounds like a fun weekend. In the past when I have had to deal with smoke, and discolored walls, I would do one good scrubbing with TSP. Never did two. Then Kilz and paint. Never had a problem with the walls.

As @Account Closed stated, the carpet will be the bigger problem as far as the smell.  Since you stated you are going to replace the carpet I recommend spraying "Odoban" (about $10 for a gallon to dilute) or some other cleaner/smell remover over the pad (if you don't replace it since it will hold the odor) or on the floor if you remove the pad.  It's probably a little overkill for concrete but if it's wood maybe not.  Spray the whole house down.

The TSP and changing the carpet should be good and you can relax next weekend.

Good luck,

David

@Alan Grobmeier,

Since you are asking where to park money if you were to sell I won't discuss 1031's and other property investing. I have sold four houses in CA during the last year and a half or so and I'm putting money into notes or crowdfunding. I have been getting between 12% and 28% CoC from many online sites. There are numerous out there, depending on your investing level. I'm hoping the market slows significantly and I can buy in another state when the market goes down again. I don't expect it to be like 2009 but I do believe prices for investment homes will go back down. All of my investments are laddered so they will start paying off at the end of this year and are somewhat spaced out for the next few years, similar to what people do with CD's at a bank.

Hope this helps, at least if you aren't looking to reinvest in property right away.

David

@Heather Rodden,

I have my license (part-time agent) and have been using it primarily to sell my investment homes in CA.  I find the commission I save on one house per year saves me all of the expenses I would have paid a realtor for my part of the sale.  I will be selling off at least two houses per year so I'm definitely ahead.

Second, I have friends who need help buying or selling or that refer others to me so it's provided me three other sales this year without me doing any searching for clients.

Third, it gets me in to houses without needing someone else to let me in and then I can write my own offers if I were to choose to.

Cons are that it takes considerable time to study and take the test.  I know in CA many people do not put the effort in and fail the test at least once.  Be prepared to study content that will help you stay out of trouble.  CA's test did nothing to help be a successful agent.  

The fees for the test, state real estate bureau fees and the office you work with are a few thousand dollars a year.  Again, if you sell a decently priced house your fees for the rest of the year can be covered, a $40k house won't cover it.

Lastly, off the top of my head, you are held to a higher standard with your license.  People and the real estate board will require you to be professional and you are expected to do what's best for your client, not what's best for you.  As an example, I had a complaint against me this year for selling a house to fast (hahahahah).  Another agent complained that I listed a house for sale and only left it available for 24 hours.  I explained to the board that I received a full-price, cash offer and that's all I believed the home would appraise for.  It's what the seller wanted.  They closed the complaint immediately but I still had to take the time to respond and discuss it with them.

My advice is to think about what you really want to do with your license.  Then consider what else can you do with it.  Who can you help purchase or sell homes to.  If you have a large group of friends and family, in addition to using your license for investing you should tell everyone you know you have your license and would be happy to answer questions or give them values for their homes.  If you aren't pushy then they may ask you to help buy or sell their home.