All Forum Posts by: Ori Skloot

Thank you all for this great thread.  I haven't used Cozy, but based on all the positive reviews I may look into it.  The biggest challenge I face is that I have quite a number of tenants that pay in cash and aren't technologically savvy.  Maybe one of these days one of the bigger sites will partner up with a national bank which will allow tenants to deposit checks or cash into a "cozy" account at any bank.  That would be the silver bullet.  If anyone runs with that idea I'll only charge a 5% royalty fee for the idea.  ;) 

@Brian Garlington where they have a written lease or not, they are legal tenants and protected under Oakland's rent control.  

@Michael Rojas  Right now they are month-to-month tenants with, I assume, low rents.  I think signing a new lease is a good idea, however I would caution to send them a notice of a change in tenancy.  I'm not an attorney, and this gets into some grey territory, but if you sign a lease renewal with them then the rules in that new lease now apply to them.  If they have something in writing that there was a change in tenancy then it could come back to bite you if you end up in a conflict with them and they go to the rent board. You don't want them going back and saying that you changed the rules of the tenancy.   For example, the California Association of Apartments lease has all sorts of rules about not having guests stay for extended periods of time, no pets, etc.   If they then bring in a pet you can hold them to the lease, but if it was a change in tenancy they may argue that the previous landlord verbally allowed them to have a pet or knew about the pet and didn't do anything.  If a landlord is aware that a tenant is breaking a rule in the lease but doesn't enforce it for an extended period of time, the tenant can claim that the landlord verbally allowed the change.  Even if that's not technically correct, it's enough for the tenant to fight you if you try to give them a notice to desist.  

@Bart White  I have some down time and I can take a look at the numbers for you.  Not as a potential partner, but just to give you a sounding board about whether it's a good deal or not.  Feel free to DM me.

@Mike Lambert

Once again, great feedback. I’m just at the beginning of poking around but I will definitely keep you posted.

Thanks Mike for the great info.  Right now with Covid, short-term rentals are in the toilet in Cancun.  Plus, the market is pretty saturated and daily rent for those properties has been slowly going down due to over-supply.  I'm not too interested in property development because all I've seen offered is pre-completion discounts given by builders looking for capital to finish their projects.  I've heard from people that they buy this product, wait until completion and then sell the property for a profit.  That works so long as prices are trending up and there isn't over-supply.  

As you said, competing with the local market puts foreigners at a disadvantage.  I have family in Mexico so that helps give me an edge.  And, where there is a barrier to entry perhaps there is more opportunity.  Population of Cancun is over 600,000 and all those folks live somewhere.  There are lot's of multifamily buildings for locals, ranging from very cheap, run-down, and "worse" areas to higher-end apartments/houses which are inhabited by locals.   That's the sandbox I want to play in (or at least explore).

Hello!

My family and I are currently staying in Cancun, Mexico for an extended period of time.

I am interested in meeting active investors who have personally done flips/holds/Brrrr in the area of residential or multi-family buildings.  (Note: I am NOT looking for airbnb or vacation rental models).

If that's you, perhaps we can chat and exchange some stories and experience?   Hit me up!

Regards,

Ori Skloot

Given the current Covid impact on business, real estate and banking, we could be heading into a liquidity issue in the coming months.  Perhaps the government's stimulus package will prevent this, but who knows?   What say you @Chris Mason? If there is a liquidity crisis will banks start canceling open line of credits like last time? If that's a possibility do you think it would be prudent to draw down our LOCs now?  I have colleagues with much more experience and deeper pockets than me who have maxed out their credit lines and HELOCs in anticipation of the funds getting cut off.  They figure they would rather pay a few months of interest with the funds sitting in their bank than lose their ability to have cash on hand right now.  

Has anyone else done the same and what is your reasoning?

@Hisham Zawil

I've built several ADUS, most recent one was finaled last September in Albany. No requirement from the city or PG&E to have separate meters. I did sub-meter everything, by my own choice. Unless some new rule has gone into effect Jan 01, 2020, I haven't heard of any requirement that an ADU be separately metered. I would go to the city of Oakland building department and speak with a supervisor. Let us know what you learn.

@Hari Narayanan.

Where is the property located?

What is the scope of work?

1. Where do I go look for a reliable commercial contractors? How have you gone about it?

Network and get referrals.

2. What are the caveats I should watch out for while signing the contract with a commercial rehabber?

Make sure you understand the contract and that the conditions are favorable to you, not just the contractor.

3. Do you include penalty clauses in your contract?

No! Refer to #1 above. This is not the way to work with a contractor that you want to build a relationship with.

You absolutely can house hack in the East Bay.  If it’s a longer term hold of 3+ years then you could do an owner move-in to an under-market rented apartment in a triplex or quad. Other units could pay for the mortgage and you live for free(ish).  You get cash flow and Bay Area appreciation.