All Forum Posts by: Account Closed

@Gino Barbaro I ran the property calculator using all cash, no financing. Financing changes the numbers of course and varies from lender to lender. Getting the numbers to work is the biggest and first step for me. Not banking on appreciation and requiring sustainable cashflow would be my goal.

@Gino Barbaro Here's one thing holding me back. FYI I'm new, never done a deal, I'm still learning:

1. What's a good deal?

I'm thankful for the rental property calculator. I ran it, I may not have run it correctly on a property listed on the marketplace, but I ran it. I'm still confused if I should buy it or not. For this example, I'm guessing cashflow of $300 a month isn't worth locking up $54k. Yes I might BRRR my way out of locking up that cash, but then I'm back to very little cashflow due to PITI. So the first thing holding me back is determining ROI.

I am southern California born and raised all my life, I've traveled around the country, some of the world, and recently lived near Phoenix, AZ for the easy part of six months before the heat. Phoenix AZ, specifically, is similar in traffic, ghettos, and density of most Los Angeles suburbs. Where AZ is different is its MUCH hotter durning the summer (more on that later), Right to work state, I would imagine that can affect rents, SFRs are on average about $100k-150k cheaper than most Los Angeles suburbs but they are building like crazy in some spots, prices are becoming unaffordable, and finally your utility bills are going to be higher. Water is tight in AZ, reclaimed purple pipes for parks, low maintenance yards kinda thing, and flooding during the infrequent storm can be an issue since, AZ is really NOT engineered to withstand heavy rains. Then theres the Haboobs or sand storms, a temporary nuisance. Someone correct me if I'm wrong, but AZ tends to favor electric over natural gas due to the intense summer heat. Last but not least, police are more direct in AZ than Los Angeles suburbs. How does this all affect your cost of ownership? I think electricity bills are significantly higher yearound in AZ due in part to the summer heat. Let's talk about the AZ heat and how it affects everything from June to September. Think automobiles, air conditioners. Wages; minimum wage in AZ is $8.05/hr about $2 less than CA. Density; AZ 6.56 million vs CA's 38.1 million [1]. Welfare; AZ is a right to work state, not a welfare state [2] like California is. This matters when tenants decide to spend money on food vs rent. People like Arizona over California for different reasons. As an investment, I would compare the cost of your options. Good luck.

[1] http://places.findthehome.com/compare/2-16/Califor...

[2] http://www.phoenixnewtimes.com/news/will-kicking-1-600-off-welfare-inspire-arizonas-poor-to-get-jobs-7370080

@ Jamiel Strickland as you know I was HOA president in Los Angeles, CA for eight long years. I watched our management company grow with me. I got to know the owner well. They gained several credntials such as a real estate sales person license, Certified Apartment Manger certification, National Board of Certification for Community Association Managers among others. I got to learn the Davis Sterling Act (California specific) and some basic legalities about exterior Master Policy insurance for buildings. When I first got started I was scared, lots to learn, but I must have asked every question in the book to our management company. Most of the time they had an answer, sometimes they said, I don't have an answer but I'll get back to you. Be supportive in your role to keep the client.

The take always are as follows:

1. Its a numbers game. Fees are competitive so you'll be juggling accounts.

2. You might get spread thin across accounts so make sure you cover the essentials.

3. Get an attorney as you'll have lots of liability when advising the lamen.

4. Make friend with an insurance company as a Master Policy is mandatory in most HOA, commercial property and apartment buildings.

5. Hire a good accountant and tax professional as you will be handling lots of money.

6. You'll be constantly working with vendors to do work at a fair price, only recommend good contractors otherwise you might get angry calls from clients.

This is not legal advice. Consult an attorney, CPA, tax professional, Real Estate professional as you'll be wearning many hats and have lots of responsibility juggling work orders

Good luck. Management companies make a killing so if your good and fair priced you'll do just fine. That's my two cents.

Update: I called the National Apartment Association (NAA). I asked the educational rep Stephanie about the Certified Apartment Manager requirements in addition to the 57 hours of training. I let her know I have eight years experience as HOA president, I told her how involved I was in the day to day operations of the HOA, and how I supervised the replacement of all the vital components including pool gate, pool motor, patch and seal drive way, repainting if all the building exterior, letters, rules, notices, irrigation, landscaping, etc. Her response was, "unless you worked for a property management company and got paid for it, it doesn't count". I then realized that property managers must be getting hired without the Certified Property Manager certification they offer at $815. Just an FYI to anyone with HOA experience looking to get certification from the NAA

@ James Paine That seems like common reaction.

@J Beard, ESRI (an employer) and the University of Redlands (seasonal tenants) are awesome, views of the hills are nice for an SFR, Redlands is a nice area, with lower density, and growth potential.

@Fay Chen Yes I am in a career change. I wasn't happy with the pay so I quit my bus driving job. I'm looking to pursue a better life. I simply need to get started. I'm on BP looking for ideas and comparing advice. Ultimately I want leverage assets and become wealthy. I don't mind working hard to reach my goals. I reached out to an investor on BP and he mentioned I have nothing to offer. Until I get my real estate license or property manager certificate, I may be of no value. I do speak three languages, perhaps that will come in handy.

@John Van Uytevn House hacking a 4 plex with an FHA loan @ 3.5% down Is what's being recommended by others on BP to get started. From what I've read my documented background may or may not be enough to get a CAM certification. 12 months on site experience is what I read.

http://m.naahq.org/learn/education/certified-apart...

I figure if I can do the job that someday I'll pay others to do, a bank will take me seriously when I ask for a loan because I'll have a real estate license, a CAM certificate and a W-2 for income. Earning more income in Los Angeles is a must, but I really don't know how to do that in the real estate space just starting out.

Note investing is appealing to me, I'm not currently sophisticated enough to that yet.

Im starting out on my path in Los Angeles, CA due to density and a predominant rental culture. I need INCOME, KNOWLEDGE and CREDIBILITY that only licensure can offer. I'm considering getting my Real Estate sales person license (credibility) as a requirement to getting my Certified Apartment Manager (CAM) License (income and knowledge). According to payscale.com apartment managers average $36k a year, this would provide me valuable knowledge and a steady income for a conventional loan on a 4 plex

Should I follow this career path?

About me:

I have seven years HOA president experience under my belt. It was a learning experience working with the management company, vendors, a budget, vandalism, property walk throughs, maintenance, getting estimates, getting my hands dirty cleaning up other peoples mess, all for FREE while paying my dues. At some point the inmates want to run the asylum and I sold. I have cash in hand (100k) and I'll want to own a cash flowing property within 3 years.