All Forum Posts by: Tammy Skeath

@Kiera Underwood thanks for the vote of confidence. I could use it! We pulled our contingencies and Gavin Newsom (governor just put a halt on all evictions) :/ 

@Dylan Vargas thanks! We are getting it for a value 🙏🏼

@Matt R. yes, very interested in Section 8.

@Ryan M. not a bad idea. I’m going to try and get an extension, at least for 15 days...

Thanks all!

@Joe Splitrock we did that and got a $50k credit on the initial offer. So the deal is solid. We would be cash flowing about 5% with all things included (MTI, vacancy rates 5%, and utilities etc) 

@Matt R. it was a pocket listing that thyme went to market at $800k we are at $750k

@Randall Weatherall I hear ya. Thx

@David Lee Hall, III very wise. This building is a C class. 

@Shawn Melis 1. Yes we’ve considered this and we could swing it with our rent from some other properties we have and from our personal income. 
2. Yes we would still be cash flow positive with a 10% decrease in rent 

3. We are really interested in Section 8 and are doing our homework. 
4. only other exit is to try and sell it after rehab. 

@John Teachout thanks for the input. We have a heloc we are currently tapping into to purchase this property. 

@Marlen Weber thanks for the insight appreciate the optimism in the face of so much worry, currently...

@Gail W. I’ve checked with my contractors to make sure they have materials, so far everyone says no trouble on that front. 

@Jim K. I am concerned but also don’t want to let a good thing go bc of fear. California should bounce back... even if this sets us back a few months 🙏🏼  but I am trying to make sure all my bids are double and triple checked. Plus I’ve added a 5% contingency on construction bc it’s always more expensive in my experience. 

@Will G. it is a c class but Long Beach has chronic housing shortage so it’s more about how much will rents drop but the tenant pool is there. I set the rents at a fair price but I’m looking at figuring out what happens if the rents drop a bit although here in CA rents don’t drop too much they just may stay stagnant as they did during last recession. 

Thanks everyone!!! Really appreciate the feedback. 

Thanks guys! @Greg Dickerson @John Teachout that’s what I’ve been thinking but the encouragement is appreciated. 

Hello BP fam, we are supposed to pull our contingencies tonight/tomorrow for a quad in Long Beach CA. Given the state of the country under Coronavirus, I am really nervous about what the economy is going to do. This quad is a good deal however it needs a lot of work about $100k and it will be completely vacant meaning I’ll need to fill all 4 units as soon as I’m done. Which will be in about 60 days. It’s hard to guess what our country much less our economy will be doing in 60 days but it’s Keeping me up at night. Would you freeze the entire thing and hold off and potentially lose the deal? Or would you push forward? I’ve got estimates in place for construction and all my numbers ironed out but finding tenants to paymarket rents in a recession is what worries me most. I know I’m asking you to look in a crystal ball but I figured some experts on here might have some sage advice. Anyone with experience in the Long Beach market is greatly appreciated! Thanks in advance!!!

@Stephanie Simmons good point. 
I did state the requirements in the ad. The tenant we went with two young sisters have a baby too, so there’s no real argument there plus they meet the ad requirements and the original tenant doesn’t. 

I just got another applicant with great credit. She’s young, 22, with her 18 year old sister but all her references line up so I think we will go with them. I hate to be the person that turns away someone in need but I keep reminding myself that it’s a business. I really appreciate all your input! 

@Todd Powell WOW.

Still considering what to do. But that sure scared the hell out of me. 

@Kenneth Garrett thanks!! That’s really helpful. 
@Cherie Hampton thanks Cheri, yes I’m keeping all that in mind. 
Having another showing tonight then we will make a decision. Really appreciate all your input!!!

@Kenneth Garrett what kind of scoring system do you use to vet your tenants, mind sharing? Thx! 

Thanks everyone! I really appreciate your input. She does have a co-signer (mom) who doesn’t have great credit, but doesn’t have any late payments or red flags. Her moms credit is a little below the threshold because she has had too many open accounts. I think I may take the risk if we don’t get any other applicants this week. It’s been on the market since late January and I’m anxious to get it filled. Our last vacancy was so easy to fill I think I thought it would be like that always... newbie mistake. :)