All Forum Posts by: Simon Lopez

Thx we checked and yes wrongful eviction is included in the plan.  

Thx everyone.  We have decided to raise the liability.

We have a family home that we are renting out in San Francisco California. It is currently in our parents Living Trust. I asked our Trust Lawyer if we should move the property into an LLC. This is what he said.

" if transferred to an LLC then upon passing the property is no longer transferred from parent to child but from LLC to child. If transferred from LLC to child then the property would be re-assessed at current value and would not qualify for Prop 13 protection. He recommends to purchase more liability insurance."

I never plan on selling the property. When moving from living trust to an LLC is the property re-assessed before putting in the LLC? House was purchased in the 70's id like to keep the 70's sale price.

@Ruei-Jiun H. How did everything pan out?  When did they finally pay and were they late again this month?

@Joel Wilmoth Im new to investing.   i like the idea of an escalating late fee.  

@Chris Carson Hello,  Its south of Normandy Rd.  Little neighborhood starts on the Corner of Noroad and Lambing.  

How does a mile north from Jacksonville Heights looks.  The other side of 103rd street.  Safe?

Using the 4 square method and every time I do a calculation my ROI is never above 6%. Sometimes its in the Negative. My Monthly cash flow is usually below $150. For calculating expenses I'm taking a percentage from the monthly Rental Income.

Taxes 7%

Insurance 9%

Xtra Flood Insurance 9%

Vacancies 5%

PM 10%

CapEX 5%

Repairs Tenant Damage 5%

From total purchase price:

Down Payment is set at 25%

Closing cost is set at 1%

Rehab Budget 1%

Are my percentages on the conservative side?  Should I lower them? 

Thanks @Michael Boyer these are great tips.  My market is mid west.  CA prices are crazy.  Tweaking the Lease to include wear and tear, being more competitive and just plain making peace with it is the way to go.  Thanks I feel a lot better no picking my first Rental.

Simon

I'm looking at investment houses and some of them list the owner is responsible for fridge, stove and microwave. What are the pros and cons for maintaining and supplying theses appliances?

Hello again,

When applying for a loan is the interest rate higher if the loan is for investment property vs a home I will be living in?

Thanks in advanced,

Simon