All Forum Posts by: Drew Leo

Good to be wary about the lien although it is a low amount. 
1. provide us with purchase , estimated sale, rehab

2.  Consider a backup plan to negotiate upfront with all sellers you will pay off 50% of lien if  buyer pays the other 50%. Any other ratio could work too 30%\70%. I mean explaining the situation to all buyers could allow interested parties see : to get a good property giving extra $2-4K isn’t bad. 

Very likely for Silicon Valley high wage earners to buy, its their own personal housing. They are investing in their homes & jobs more than a vehicle to grow their portfolio.  Sacramento is just a tad closer to San Jose (1.40 minute vs 1.55 drive) so that is another excellent housing alternative. I wonder what is the weekly rent for hotel/lodging for 4-5 days in SJose so to avoid commuting and just go home on weekends. This would be an excellent hack for those making $150k. Have the spouse, kids, dogs live in Established city of Sacramento or Fresno , have temp living in S Jose , save $150k+ , essentially saving time and $$$. 
Fresno & Sacramento average houses are $300-400k so with 1 wage earner in a house hold of $150k that would be very doable plus the life style would be quite good. Enough $$$ left over for child care, child transport, dog walker, maid, etc.   

Hi Brian.  I am nearby in Walnut if you want to talk shop for a little.  I'm not a agent or sales.  Have my own main thing, have 1 investment, like to keep up with other like-minded folks.  Thursdays & Fridays are good in the day.

Are you still learning, researching, interested in meetup?  I'm nearby in Walnut. Maybe Thursdays 11:30-2PM can work.

@Joe Villeneuve. The property was listed under value so it got several bids: outs was $408k and the winning was $415k. After not getting the property, there is relief because it was quite pricing for out budget and we were stretching to make it work. Joe would be right that my 2 month regab can always go wrong and it would be hard to sustain $2600 mortgage for several months. Now I think about it, it was a flip project.

Thank you Joe

It may sound like strange but building larger may attract a certain tenant that wants the larger sqft AND it may even be a single person with money. Say a air traffic controller who is single/married that wants a place near the airport but his wife/family is 3 hours away. Less people, less wear for the same rent. You are in a very good situation. Some investors give up much more than a hobby space to increase their probability for a successful investment. Other scenarios is that the bigger and better your ADU can be,it would increase your chances of attracting better tenants...the ones that you feel safer around your family. When possible, I think it's wise to buy your problems away. Things like health, death, disasters, governments, etc I am pretty powerless to influence. If you preserve the space for your personal usage, you're containing the probability of something better from happening.

PenFed can be a good option.  The paper processing I think was a $200?  My brother opened it, didn't draw, let it expire.  Based on Nicholas Poster's 6%, its low enough I guess.  Not much difference from the others' 5.8, 5.9%.