All Forum Posts by: Brian O'Connor

Welcome aboard, Roman! Sounds like you're off to a good start. You are correct in saying that Los Angeles is a difficult place to find cash flow above mortgage. Looks like you have a good set up there in Barstow with family nearby. One of the most difficult parts about investing at a distance is having people you can trust that can serve as your eyes and ears. Just don't forget to treat them to a nice dinner every now and then to say "Thanks!". Best of luck!

Hi BP:

As a landlord, which approach do you typically choose when dealing with utility (e.g., gas company) or handyman/contractor visits:

1. Leave a key

• Pros: no one's time is wasted
• Cons: lock up your pets and valuables!

2. Hang out at the property

• Pros: you or the tenant know what's going on, can ask questions
• Cons: what a waste of a day!

Each option has it's pros and cons, but what's been your approach?

I'm helping a family member manage a property, and a recent call to the local gas company sparked this curiosity. The gas company said a technician would be at the tenant's property between 7:00 a.m. and 8:00 p.m. on the day of the appointment. When I asked if they could narrow the time down closer to the day of the appointment, or call shortly before the technician arrived, they said no such luck. If you're not there, they leave. The only other option is to leave a key.

It's asking a lot of a tenant to be home during that big of a window, so we went with the key option. However, I was curious about the forum.

Also, do any of you have any tricks or tips for these situations?

- Brian

Hi Guys,

I know I’m a little late to the game with my reply, but here goes…I too am frustrated by investment opportunities in SoCal. As a beginning investor, when I run the numbers I keep thinking...that just can't be right. But it is. Cash flow is a very rare find here and I have yet to find it. If people are able to cash flow in SoCal, my assumption is that they’ve usually “purchased cash flow” with a large down payment (>20% down).

Like some of you have mentioned, I have considered Riverside and San Bernardino Counties, however I have a problem with those locations for a few reasons.

(1) I haven’t really seen many good deals, at least based on properties advertised on sites like Redfin and Realtor.com. They're only slightly better than most listing in SoCal. At least in SoCal/Los Angeles County I should be able to experience decent appreciation.

(2) I don’t have a good feel for the area, so I’m hesitant to purchase in the wrong type of area (bad location, bad pool of tenants, etc.).

(3) I'm a beginning investor who intends to be a hands-on property owner (at least as much as possible at the start), which means a lot of long drives from L.A. showing properties, dealing with utility companies, handy-man/contractor visits, etc. The only ways around this that I can think of is with a local investment partner (which would be fine if you trust them) or a property manager, which cuts into your cash flow quite a bit.

Similar to Andrew’s response, I’m just buying time, learning as much as I can about real estate, and keeping myself open to opportunities outside of real estate. Regardless, it’s nice to know that others are in the same boat as me in SoCal. But, hey, we have great weather, right? Now about those property taxes…

Brian

There are so many great pieces of simple, yet far from simplistic, financial advice out there. Since many of my favorites have already been mentioned above, I'll add a paraphrased quote from Charles Dickens about living within your means:

"Annual income twenty pounds, annual expenditure nineteen, result happiness. Annual income twenty pounds, annual expenditure twenty one pounds, result misery."

Thank you Bryan, Paul, and Jenkins for your replies, andvice, and words of encouragement! I appreciate it very much and look forward to seeing you on here in the future.

Hi Everyone,

I'm a newbie to real estate. I work a 9 to 5 job, so I try to squeeze in time for learning whenever I can.

If you're also relatively new to real estate and live in the San Gabriel Valley (Los Angeles) area of California, it would be great to meet up and push each other to keep learning.

I eventually see myself buying and holding two to four unit properties, flipping properties every now and then, and one day moving on to some commercial properties (way down the road).

Currently in the education phase, I'm reading all that I can, listening to podcasts, and have joined some local real estate groups.

Also, if any of you know of someone in the area with some real estate experience that I can buy lunch for, or run errands for, in exchange for some direction and advice, I'd appreciate it very much.

I look forward to interacting with all of you here on Bigger Pockets.

Take care,

Brian