All Forum Posts by: Rachel S.

I tried to get a refi on a property with a mortgage balance of 57k to get a lower interest rate. Everyone said no. I kind of expected that though. It's not worth it to them.

1 Vote

Originally posted by @Christine Sierra:

@Matt M.

It seems all the bad advice seems to come from the ones you love and those closest to you.

My mother said the same when we purchased our first home!

Mine too. My father said I was too busy to manage my only rental and advised me to sell it a year later for the same price I paid for it. Eight years later it is worth 2.5 times what I paid for it. He claims he doesn't remember ever saying that. LOL

1 Vote

Originally posted by @David M.:

@Rachel S. @Jonathan Hasan

Hard money loans are specifically short term and unoccupied. I’m GUESSING if they did something longer it might get them into regulatory trouble. Also, they don’t want to have to foreclose if you can’t make the payments so the less time you have it the less possibility of you missing. Also, they usually can originate a conforming long term loan... you have to remember that these are specialized loans for investment.

As for private money loans, I don’t know them

@Rachel S.

Remember that the conforming loan limit is something like $50k. I heard during covid that it may have gone up a bit. So, once the loan goes too small they can’t even do it (as a conforming loan)

It's $58k so maybe the threshold did go up.

0 Votes

Originally posted by @Jonathan Hasan:

@David M.

You make a good point.. In that situation, there is not much purchasing power.

You kind of have me intrigued with your comment on leverage on fix and flips. Do HML and PML really want to work with someone who can repay the loan so quickly that they don't get any substantial interest for the money loaned?

I don't know about HML and PML but I ran into that even when trying to refinance my investment property with traditional lenders. The balance on the current mortgage is so low they won't touch it. It's not worth their time. It's not a huge deal for me, I was just trying to save a little money, but that was my experience.

0 Votes

Originally posted by @Colin Reid:

Originally posted by @Mike Dymski:

That question is often asked by potential residents with challenges in their rental, employment, or credit history. They are looking for flexibility that a management company may not allow.

And that is EXACTLY why I use PMs. I even have one managing the tenants in the other unit of my duplex hack. Part of it is that I travel extensively for my W2, but a big reason is I know I'm a pushover. If I was managing that property, I'd fall for every dead dog, sick goldfish, lost job, excuse for not paying, being late, etc. So I pay someone else to be the bad guy, which ends up saving me money.

I had a renter once tell me he was standing in the street and a 18 wheeler drove by. The wind took the cashier's check from his hand and it got sucked up into the 18 wheeler's grill.

1 Vote

Originally posted by @Louis Jeffries:

@Candice Blair You have pretty high standards. Why wouldn't that renter just buy a home or condo.

She's in Orange County, CA. The bar to entry is very high. You can have an extremely high credit score and a good income. However, if you are paying 3-4k per month just for rent, you are going to find it hard to save up enough of a down payment.

0 Votes

I only have one property aside from my primary residence. I am definitely not selling it. It was a good investment at the time and it still is. Panic is not a strategy.

With that said, I am not buying under the current market conditions. There is so much uncertainly and I couldn't evict for non payment of rent, even if I needed to... I don't know what is going to happen with the market over the next year or so. I have a few speculative ideas, but I don't have a crystal ball. What I am pretty certain of, is that I am not missing any opportunities by being patient. By that, I mean I am not seeing any deals in my local market. Just a lot of FOMO buying due to low inventory.

3 Votes

Originally posted by @Stanley Nguyen:

Originally posted by @Charles Cooper:

Public Market is being delayed by COVID and Alta Sea is up and running. There is starting to be more and more private investment that specialize in "Blue Technology" to make AltaSea their home. Google

As far as homelessness, San Pedro and Wilmington recently opened up the Bridge Homes. They are at half capacity. Homelessness is an issue and they are trying to fix it by taking people off the streets and into housing. It will take some time but now is a great time to buy in San Pedro. There is a lot of development going on like @Mo Brentwood mentioned.

I sit on the Central San Pedro Neighborhood council as an officer and Treasurer, so I see a lot of whats going on and the steps we are taking to clean it up.

That's great to hear. I drove by where AltaSea is and the exterior doesn't look like it has been used for years, but I might be wrong. If you are planning to invest for STR, would the downtown area (5th, 6th, 8th) be the right site to start? Thanks!

In my opinion 5th, 6th and 7th are more of longer term buy and hold prospects, if you are talking about the downtown areas. For current short term rental, some of the coastal neighborhoods might be a better bet. You generally are looking at a higher price point though.

0 Votes

Los Angeles County, California

Not sure exactly what the plans are for downtown.

0 Votes

Los Angeles County, California

Originally posted by @Stanley Nguyen:

I’m wonder if there’s any update to the public market development?

As far as I know, it's still going ahead. Just delayed by covid. Like everything else.

0 Votes

Los Angeles County, California

All Forum Posts by: Rachel S.

Rachel S. has started 2 posts and replied 120 times.

Post: Buy and Hold Properties

Post: Best/worst advice you’ve gotten as a new investor ?

Post: Determining appetite for risk in terms of leverage

Post: Determining appetite for risk in terms of leverage

Post: Why do they have to ask?

Post: What is an acceptable tenant credit score?

Post: How is everyone feeling on buying now?

Post: San Pedro Public Market Redevelopment

Post: San Pedro Public Market Redevelopment

Post: San Pedro Public Market Redevelopment