All Forum Posts by: Stephanie Trevizo

I agree with @Justin R., try for a multi-family to offset some of the mortgages. $300k may be a little low for a multi-family in Palmdale. However, I know there are a couple duplexes in the mid $300k that have been on the market for a while, you may be able to get close to your $300k. 

Personally, I put down just enough to make my "numbers work", the last couple properties that has been 20%. However, if the numbers work for you with 3.5-5% down, that's definitely worth considering. 

Hi @Jonathan Taylor, I have units in Los Angeles as well. My standard is to upgrade as tenants move out. I agree with @Matthew Paul , if it is a smaller unit, a mini split may be the most cost-effective solution especially if there is not a lot of attic space for ducts. Central HVAC could get pricy. 

Hi Scott, I try not to go below 600. 

However, I have gone as low as about 580 when the whole "story" seems to work. I had a recently divorced tenant come to a showing with ALL of his documentation and application. He a bad credit score but had amazing past landlord reviews, I always call the last landlord (or 2) they had. In addition, his yearly income was well over $100k a year and he was renting for $1,200/mo with very little debt. I did still require an increased security deposit and he offered to pay 6 months up front. I rarely make exceptions, because there is always extra work on my part as the landlord, but I am willing to be understanding with the potential tenant who makes it easy and understands the system. Still, these situations are rare.

Hi Tony, Simple answer, you do not NEED a new one, as mentioned their original terms apply. 

That being said, every time I have inherited tenants they had 1-2 page leases that left way too much wiggle room for me to feel comfortable. I use the standard CAR lease and disclosures. I know BP has state-specific leases on here. 

Ideally, you would have the tenants sign a new lease between you, as the new landlord, and the tenant. The terms are typically the same. However, there are a few updates that should be considered. 1. You will update the terms of paying rent, such as the address it should be sent to or who the check should be made out to if it is not an electronic payment. 2. Who they contact for maintenance, emergencies, etc. 3. If there are different people living there now the tenants' names should be updated.

If the property is under Los Angeles RSO be sure to register as a new landlord. 

Hi Bosko, it, of course, depends on the seller's situation. Generally speaking, you could buy an off-market property with FHA financing. Even if it were a distressed sale, it depends on the circumstances and the condition of the property. FHA financing now is much quicker than it once was. I know one of the lenders I've worked with could close an FHA loan in as little as 25 days. With a great lender and the right property, it shouldn't be a problem. It looks like you have some good lender references above.

Hi Raul, I agree with @Michele B., a cash-out refi may be the easiest route without a subject property identified. My suggestion would be to discuss your plans with a lender before you choose to refi, a good lender will give you several options for financing a project based on your assets and goals. 

Hi @Jordan Feiner , I use 10% just to be safe. I know a few investors who use 8.3% since it is one month per year. 

Hi @Catherine Underwood

1. It's worth noting the list in the link is over 4 years old, many of these neighborhoods are completely different today as a result of gentrification as Brett mentioned. As for investing in "ghettos" I would say I have invested in mostly "ghetto" neighborhoods and have seen the crime decrease steadily over the years and the demographic change rather quickly. It's just important to understand the area and where it is headed.

2. There are still long-term tenants in apartment-style homes. One of my quads has a 31-year tenant and a 25-year tenant, I think they are going to live there the rest of their life, they are under rent control. 

3. I agree with Brett, Riverside, Palmdale and Bakersfield may have a higher cash flow, but appreciation will likely not be as good as Los Angeles. Another thing to consider is vacancy rates, well priced, clean units in Los Angeles rent very quickly.

Hope that's helpful.

I agree with @Christine Kankowski, my answer would be no. If he's not making payments on other expenses it is likely that he cannot afford them, not that he forgot a payment here or there. If his income justifies his expenses, he just is not capable of managing his money, which is a big red flag for me. 

If you still decided to rent to him, he could pay the maximum deposit allowable in your area. However, the moment he is late, be sure to post a 3-day notice, or the equivalent in your area, and start the eviction process. 

1) Depending on your long-term goals, find out what the restrictions are on renting out both units. I am pretty sure in Whittier for an ADU (not a duplex) the owner must live in one unit, this is common in many cities for ADUs.

Also, be sure to go to the city during your physical contingency period and make sure you are are gathering data from the right source. I just closed with a client on a property that has a Glendora postal code but officially assigned to the city of San Dimas. Glendora's building codes would have allowed an ADU on their lot, San Dimas does not. This could have been a horrible mistake.

2) I agree with @Jon L., it will make your offer a bit less attractive but with a shifting market, you probably be okay. 

3) Any qualified contractor should be fine. Have your contractor walk through with you during your physical contingency period, if you could get them there the day of your inspection, even better. This way you aren't asking them to go out to everything you may make an offer on. If you are already in escrow, the contractor will know you are serious. The price seems reasonable, my client just contracted a GC to convert only a garage for about $80k.

4) There is a difference between a duplex and an ADU on an SFR lot, sometimes differences could be how they are metered, what the setbacks are, and how they could be rented out. Often times the ADU could only be a percentage of the primary residence and no more than a certain square footage. If there is Rent Control or a Rent Stabilization Ordinance, it may be triggered if you build a second unit. Just be sure to check with the city.

Hope that helps! Feel free to reach out.