All Forum Posts by: Shanell Law

@Rosalie DiPietro definitely your responsibility to repair or replace A/C unit. Do you have a home warranty that can come repair item?

@Bryce Jamison ABSOLUTELY. Should something happen at the property that makes it inhabitable during repair you will be held responsible for housing tenant in a comparable area to accommodate all household members . Atleast this is the case in California. Whereas if they have renters insurance, their insurance will relocated them, pay a per diem for food and cover any loss of personal items as a result of the damages incurred due to mold, pipe bursting etc. Their insurance will cover pack-out and pack-in moving services which will remove all their personal belongings and place them in a storage unit.

I highly recommend as it not only protects you. But also let the tenant know it protects them and their personal belongings. Huge benefit for the tenant.

@Manda Gouvion

Welcome to BP! Just keep reading and listening to others share their experiences. In additional start analyzing deals (crank the numbers) to help you build and define your strategy. No LLC right now in my opinion. It's a start up and annual expense that you don't need at the moment... if ever. You'll see as you go along and read. Best of luck to you.

@Marcus Lopez

Hello Marcus,

You’re off to a great start by beginning with the end in mind. The timeline isn’t impossible. Multi family is always a great place to start if you can qualify. It’s Much easier to scale up to the single family residence in the near future...especially with a cash flowing multi family unit.

Message me if you have more questions pertaining to this blueprint.

@Marcos Urvina

Just wondering what the nature of the debt is. Cars? Credit Cards? I wouldn’t recommend cash out refinance for such debt or to sell your property.

I would search for other means to resolve the debt. Perhaps a second gig or ride-sharing if you have the time , but uprooting yourself just doesn’t seem worth it. I know working a second gig is a sacrifice but likely worth it and you won’t have to do it for long.

Preparing to sell, selling, searching for a property and closing will take time and because the timeline is unknown the debt will remain unpaid. The same goes for building an ADU.

I would recommend minimizing spending on other items and extracurriculars with part time employment that would together total $1k a month which would could dedicated to debt pay down. Going this route would start your debt payoff almost immediately.

ADUs are terrific but minimize debt first then look into building on your property so that you can enjoy the income that the rental would generate.

All the best.

@Mark De sagun

I’ve completed 203k in the LA area. You definitely should ensure you select a contractor that is knowledgeable and has reserves to fund the project upfront and be willing to reimbursed. For my last project I utilized contractor Ken Kinslow (213) 309-7635 and senior loan officer (619) 665-2343 Eric Otfinoski. These two work very well together and have worked on several transactions together which is important for communication amongst all involved.

You'll also need to hire a FHA 203k consultant. My experience with Javier Enriquez (323) 497-2422 was exceptional. He's very timely with responses and worked well amongst the team. His responsibility involves inspecting and appraising property to account for its value post project completion. That said, you definitely need to be clear on the scope of the project to avoid delays.

@Kalib Williams hello! Can you provide more info or insight into your situation? Why the non-occupying refi so soon. The rates are usually more favorable for owner occupant refi. What your next move?

@Deborah C. Compensate her for the days without hot water by prorating rent. If she has children maybe even compensate her for week with a verbal apology (although it’s not your fault the water heater died). I always try to be amicable....it’s translates to good karma.

@Eloise Hoshi Garcia speak the office manager and cancel the contract. They appear unorganized. Not a good start.

@Alec P. It’s extremely tough when selecting a tenant. Honestly my experience is that you won’t truly know their personality until they move in. If they are needy and have a sense of entitlement of course they are going call you for all the small details. Changing air filters, batteries in smoke detectors and so on are a tough task for many tenants.

Speaking from experience many will simply put their best foot forward should you request images. A smart tenant will stage the photos. A savvy tenant will also know how to apply the various filters to hide damages.

Like you, I discovered a pet on the premises by appraisal images. But many tenants have no clue that appraisals involved photos that are forwarded to us.

Although the cost is low with Hulu and Netflix and others, I don’t necessarily think it will get you what you want.

I did however have a tenant request paint to repaint her unit. The unit wasn’t due for paint, but I purchased the paint for her in exchange for her committing to doing a better job maintaining the cleanliness of the yard and trash bin areas. So far so good. No more complaints from other tenants since. So find out what they desire and make a deal.