All Forum Posts by: Mario F.

I looked into it and found out that it was going to be a huge issue rezoning this duplex so I didn't go for it.  Instead, I bought a fourplex in inglewood. Super excited!  Problem solved! haha

Hello, I just purchased a fourplex in Inglewood CA.  I have a renter leaving this weekend.  Once I am done with his walkthrough on Saturday, I'lll need to give him his deposit back.  Do I give him it at that point? Or should I wait and send it via mail? 

 All of the tenants have been living in these units for over a decade and so the question I have is regarding the interest accumulated on these deposits.  The seller has not given me any interest on the deposits.  What do I do about this?  Am I required to calculate the interest accumulated over the past 15 years of their residency? Or do I get a pass since I'm the new owner?  All I have are the old lease agreements which state the deposit amounts they put in when signing. I assumed that it would be OK to just give them that amount but my brother is telling me I'll need to send them the deposits plug interest accumulated over the years. Any thoughts? 

thanks

mario

@David Dachtera Everyone I talked to so far did not have an attorney present for the signing.  My brother is also from Illinois. Maybe it's more of a requirement in Illinois?   Everyone I know from back home is telling me to have an attorney.  Everyone I know here in Cali says they're not necessary

@Clarence Johnson  So my agent is also the seller's agent in this situation. But my Lender is certainly on my side here and he did say that at thiis point, adding an attorney would cause delays.   So I think I'll just move forward. Just need to close at this point, thanks.

Hello, I'm about a week away from closing on my first rental property. A 4 unit in Inglewood Ca.  The process has gotten delayed and I'm worried the sellers are getting anxious and might bail out.  My brother is now telling me that it's very standard to have an attorney present during the loan signing and that it would be insane not to have one.  My Loan officers seems to think it could delay things even more and jeopardize things further. This site has been my go to place for advice. Would appreciate your thoughts on this. Thanks

mario

http://portal.assessor.lacounty.gov/parceldetail/4...

there is the LA tax assessors record on the property which acknowledges all six bedrooms, etc.

Hello, I'm in escrow on a property but have recently found that there might be some huge risks moving forward because of unpermitted changes the seller has made that do not conform with current codes.  The city inspector came out and gave it the green light for presale inspections, even though he was aware of the red flags.  There is a garage that was converted to a bedroom and a carport that was built in the driveway in front of the garage.  These are the two big things. There are several little storage additions that are also not permitted.  

This is the property: 239 West Hillcrest BLVD Inglewood CA 90301

It has 4 units with 6 beds/4 baths. I called the tax assessor and they verified all of the beds/baths and square footage.  Somehow, the added bedroom has been allowed to pass for now but it seems if there are any requested renovations or remodeling projects, it could require the owner to put the property back into code at that time.  I went to the city planning office and pulled the presale inspection. I included it here.  

I was hoping I could get advice on what to do in this situation. Has anyone ever dealt with this?  Is it worth moving forward with the purchase?  I don't plan on massive renovations or additions. I simply just want to rehab it but keep the square footage and frame intact.  Everything else is so old so it's in desperate need of rehab.  The main concern is that if I go to city planning with my rehab plans to do floors, roof, siding, lights, kitchens, bathrooms, etc...they'll make me add back the garage parking amongh a TON of other things to conform with todays codes.  I'm worried it's a huge risk. I'm trying to get the price down now but there is no guarantee. The agent says there are many many offers on this place and they'll simply go to another one. 

Sorry i don't knwo why the images below are coming in horizontally. Must be a bug. But  one of them is an email in the public record for the property in Inglewood building and safety explaining that two inspectors approved the unpermitted changes to the property. 

The second images is correspondence with the owners in 2005 about the unpermitted additions and that the city would persue legal action. 

The third image here is the presale inspector approval of the properties. In it he states that " Three structures with existing non conforming garage and attached unit may remain as is. any major remodeling on the addition in the future will constitute bbringing the existing up to current codes"

Any advice on what to do would be helpful!

thanks

mario

@Michaela G. Yes it's looking more like 150k at this point but the good news is that the foundation is in good shape. Almost everything else needs to be updated though haha. I'll look into that 203k loan option though, thanks!

Logan Allec So what if i get this place for 5 percent down. Polish it up, rent it, and take the rest of my funds for another down payment for property next year? Im beginning to think about this option haha. I could use the rental income to qualify right? But if i do airbnb on these units then i heard it cant qualify as income.

Logan Allec thanks for that! Im feeling that this will be great long term even though costly in the short term. Im estimating that the total overhaul might be around 100k but i can chip away at it over the years. The place can basically pay for itself right now. The improvements would just make it more appealing for better tenants. My brother is telling me to put tge highest down payment i can to keep the mortgage low. What do you think about this logic? It makes sense to me but i noticed many investors preference to keep their funds free instead of going for the big down payment. Thanks! Mario