All Forum Posts by: Thomas Ellrott

Hey everyone, I hope everyone is doing well!

I am an aspiring investor and have had discussions with one of my very close friends over the past few years. He is in the process of planning a move to Texas at the end of the year and is weighing the options on if he wants to sell his current residence or use it as an out of state rental. He asked me if I would be interested in "managing" his property if he was to use it as a rental. I've looked all over the internet and I am finding a lot of different articles saying you need a license to do it if you aren't the owner, others saying you don't need one but you need to know the laws, etc. I was hoping one of the more experienced investors/ managers could give me some guidance on this.

Thanks in advance!! 

Hello everyone!!

So my girlfriend and I are looking in the Southern California area for an investment property to turn into a rental. I came across a sweet wedge deal online. It is a 3 bed 3ba two story single family that is on short sale. As of December 15th the cost to close was $429,000, and in the same neighborhood there have been 3 similar layouts selling from 550,000 - 600,000. I had my realtor look into any possible issues with the property and we got back the following:

Final sales price will be determined by the bank. Kitchen has had an active leak- source unknown- that has damaged most of the cabinets, master shower and tub are non-functional, AC unit needs to be replaced, garage door needs to be replaced. Master balcony leaks into the garage. Dry rot too.***Short sale***Shortsale approved- There is a $60k lien from Save Your Home CA, HOA in arrears plus a judgement and the cost of the negotiator. As of Dec 15th cost to close is $429k. The number may vary as more time goes on.

We work in the A/C industry so we have access to most contractors that can do most of the plumbing / drywall / AC for a very low cost to us. The biggest issue I see is the existing dry rot and the 60k lien from KYHCA.

My questions would be has anyone dealt with dry rot on properties before? What would be the estimated cost to fix the issue if it isn't extensive and can be accessed (I am assuming dry rot in garage the way it is described). Would this property be a worth while investment on a first go or would you suggest going with a easier property? (I tend to be very aggressive and head strong in my investment strategies).

Any input is greatly appreciated.

Hello everyone!!

So my girlfriend and I are looking in the Southern California area for an investment property to turn into a rental. I came across a sweet wedge deal online. It is a 3 bed 3ba two story single family that is on short sale. As of December 15th the cost to close was $429,000, and in the same neighborhood there have been 3 similar layouts selling from 550,000 - 600,000. I had my realtor look into any possible issues with the property and we got back the following:

Final sales price will be determined by the bank. Kitchen has had an active leak- source unknown- that has damaged most of the cabinets, master shower and tub are non-functional, AC unit needs to be replaced, garage door needs to be replaced. Master balcony leaks into the garage. Dry rot too.***Short sale***Shortsale approved- There is a $60k lien from Save Your Home CA, HOA in arrears plus a judgement and the cost of the negotiator. As of Dec 15th cost to close is $429k. The number may vary as more time goes on.

We work in the A/C industry so we have access to most contractors that can do most of the plumbing / drywall / AC for a very low cost to us. The biggest issue I see is the existing dry rot and the 60k lien from KYHCA. 

My questions would be has anyone dealt with dry rot on properties before? What would be the estimated cost to fix the issue if it isn't extensive and can be accessed (I am assuming dry rot in garage the way it is described). Would this property be a worth while investment on a first go or would you suggest going with a easier property? (I tend to be very aggressive and head strong in my investment strategies).

Any input is greatly appreciated. 

Thanks Bob, that is very helpful!

Hello everyone,

My name is Thomas, myself and my girlfriend Allie are looking to start purchasing rental properties in the SoCal area. We recently bought a house in December of 2017 using an FHA loan with 3.5% down. Total loan amount including closing costs was $318,313. Our current townhome complex has seen significant appreciation sense we have purchased it. Similar units are now selling anywhere from 355,000 - 390,000. There are two units in our complex that are in pre-foreclosure.

I am hoping to get opinions from anyone in this forum regarding sending out mailers to our complex. I'm hoping to get interest from the units that are pre-foreclosures. In this case would a HELOC plus liquid assets be the best way to finance the 20% down that will be required for a traditional loan, or does anyone have any other strategies they have used in the past.

Any and all pointers would be greatly appreciated!!