All Forum Posts by: Sean Conroy

Hi there,

My family and I are moving from Los Angeles to Honolulu early next year.

We own our heavily-renovated, very nice 2BR/2BA with detached office space in the highly-desirable neighborhood of Silver Lake.

I’d like to keep the property and rent it out, but I need BP’s help.

What, if anything, can I do to protect myself from the nightmarish scenarios I hear about landlording in California? (Tenants not paying rent, tenants overstaying, paying to get people to leave, etc.)

I’ve heard you get a bit more protection (as owner) in a single family than a duplex or apartment building. I was also told to sent rent high enough so that tenants don’t get overly comfortable.

Any other tips for a prospective LTR in CA?

(FYI: I own two fourplexes in Austin, and a condo in HNL. So I’m an experienced investor, just need help navigating California’s laws. And selling is not an option right now, I want to keep the property.)

Thank you!

Hi there,

My family and I are moving from Los Angeles to Honolulu early next year. 

We own our heavily-renovated, very nice 2BR/2BA with detached office space in the highly-desirable neighborhood of Silver Lake.

I’d like to keep the property and rent it out, but I need BP’s help.

What, if anything, can I do to protect myself from the nightmarish scenarios I hear about landlording in California? (Tenants not paying rent, tenants overstaying, paying to get people to leave, etc.)

I’ve heard you get a bit more protection (as owner) in a single family than a duplex or apartment building. I was also told to sent rent high enough so that tenants don’t get overly comfortable.

Any other tips for a prospective LTR in CA?

(FYI: I own two fourplexes in Austin, and a condo in HNL. So I’m an experienced investor, just need help navigating California’s laws. And selling is not an option right now, I want to keep the property.)

Thank you!

Hi BP,

I have two fourplexes in the Colony Park neighborhood in northeast Austin, and unfortunately my current PM has decided to end our contract because they don't feel safe working in the neighborhood. I'm seeking a new PM/company that specializes in this neighborhood/type of property. 

Both fourplexes are nearly completely renovated, and there are three remodeled units currently vacant and available for lease—so the new PM will be able to come in and make commissions right away without doing much legwork. So it's a decent opportunity for someone who knows how to handle it.

Send me your recommendations and contacts if you have them. Thank you!

@Steve K. Such a thoughtful, well-articulated answer. Hugely, hugely appreciate that. Learned strategies I didn't even know existed. Time for me to dig in deeper and get back to you all! Appreciate everyone's time and input here. 

@James Carlson "and at the risk of sounding like a real estate agent selling the city he works in" :) This line is great. 

But just to be clear: "That doesn't take into account a lot of of factors that still make Denver and Colorado Springs super attractive." I have zero doubt there's a lot that makes CO investment a smart play, but unless I'm missing something (and I am pretty new to RE investing), those factors all add up to an appreciation play, correct? 

Looking for advice from any investors in Colorado! I'm an out-of-state investor with family and friends in Colorado, so I'm evaluating the market there. I'm looking for SFR and Multifamily, something on the more passive side (I would hire property management) and I'm looking to hew as close to the 1% role as closely as I possibly can.

Is the 1% rule possible anywhere in Colorado? Thanks in advance!

Thank you @Erik W. - this advice is really invaluable to me! Just for final point of clarification, when you say "I would probably be even more conservative," you mean less leveraged and more down, correct?

@Erik W. You're spot on with multiple approach strategies. What I should have clarified - we're looking to use this condo for personal use, as well. So even if we just break even each year on STR, that's a big win. (But previous Airbnb numbers from property, although yes, before CV19, project to have us making a few thousand a year.)

This is spot on:

"I realize the conventional wisdom on BP is leverage as much as possible: however, leverage is a two-edged sword as many investors are finding out today with tenants not paying rent. If you are going to take the risk of high leverage, be sure to have ample reserves in case you end up going 3-6 months with no rent but still having expenses and mortgages to pay."

I definitely, definitely am planning for a year+ of zero rental income and pure personal use, so holding plenty of cash in reserve. 

Erik, if I can ask you one more question: knowing this condo is partially for personal use (say 40% of the time), would that change your calculus on down payment percentage? Again, I have the cash either way - for higher mortgage or for down payment. 

Thank you!

Thank you both @Jingru Sui and @John D. ! John, I may be in touch about further desert specific questions.

First time poster here!  I've been working through all the Bigger Pockets calculators and I need help answering one more question.

I'm looking at scooping up a mid century condo in Palm Springs, which I would then enjoy myself while renting out about half the time on Airbnb (when things safely open back up again, of course). 

I've worked the Rental Property Calculator over and over and, of course, Cash on Cash return is higher if I put down LESS cash. (Duh!) But if I have have the cash, should I put more down *to avoid paying more interest over time*? 

I hate the idea of paying interest to the bank if I have the cash - but on the other hand, I realize the point of short-term rentals is to let others pay that interest for you - and then use that cash in other investments that yield a higher rate of return than your mortgage interest. Is that right?

Let's use 220k for purchase price, and 40k down on the low-end, 80k down on the high-end as an example.

Thanks in advance for your help!