All Forum Posts by: Tony Ngo

 Agreed with @Allan C.  Duplex is better choice.  You may break even or may be lose a few hundred each month on 20-25% down on purchase in CA.  However, you can increase rent and has potential on appreciation along with local to area that you live in.  May be with self manage on duplex can also help you save 6-8% more.  After a few years, you would start to see positive cash flow.  Most important of all is that you are in control of your investment in area that you like with better school, safer area, etc.

Appraiser give value based on the COMP.  Rent rate doesn't affect the value as it only use for lender to measure the amount rent to be use to for borrower to offset the liability of the property.  There will be more comp come into market.  The appraiser can provide the better value soon.  Agreed that you need to have good appraiser to help you justify it.  May some appraiser in BB can charm in to help on how they come up the value based on some guideline..

ADU purpose for investor is to generate income. It's good for long term hold as you can think of borrowing example of $250K pay off in 10-15 years. Can the collected income able to pay off that monthly amount. It's investment and it take time to grow.

 Hi Jacqui - I am not insurance expert.  May be some one at BP that has insurance knowledge on the assessment can help answer what are claimable or not.   Look like your cost may likely go up to 10K+.  I would get contractor/handyman to get good quote then you can debate if you want to file the claim.  Don't feel overwhelm.  Think of this is part of doing business in real estate that every investor may face.  Good luck 

Most ADU allow likely about 1200 sqft (at least in my area of San Gabriel Valley). If it cost you about $450K to build that size of ADU then it's about $375 sqft. Have you call around to compare the price is correct. Most people would likely use HELOC to finance part of cost of ADU along with their saving. If your total HELOC is not enough to cover project then you will likely need hard money. However, be sure the collect rent is enough cover it.

If your existing loan is not in lower 3% bracket, you may consider do cash out refinance help get more cash out to build or uou may call around for construction loan too.

Based on the pictures, it would just need new paint job, new flooring (I would upgrade to vinyl) and a few patches.  Not sure what the quote that contractor at your area would cost.  If not over 10K, I would likely take the lost and get it fix right away.  Then claim lost in your tax return.  Insurance process may take some time.  If the damage is into plumbing/electrical/structure, insurance claim will likely consider as these items will cost a lot to fix.  Good luck and sorry about damages.  Hopefully you get better tenant next time. 

Totally agreed with @Tom Freestone & @Michael Baum. Direct number is always in need for STR. You can't count on call/text to forward to your personal number as sometime you may get delay call/text.

I was struggle at first locating cleaner. But lucky that I asked around people surrounded me and found someone I know in person. I didn't know she was doing cleaning too. Guess didn't hurt to ask :). I felt there are two type of cleaners. One do whole house cleaning for tenant to move in and one is specific to STR. Ask them if they done any STR before. I think there app people use for STR cleaner. May be someone can share it here. If you can find someone you trust, you can train him/her. This will be the best option as he/she may also help you look after your property.

Security deposit is mainly for damage of property or cleaning need when tenant move out.  Since you find new tenant in place right away & you have no lost of rent, there is no reason to hold back the security deposit.

Credit score is very important when it come financing.  Be sure you have good credit or else it will cost you more to finance.  Down payment is also major factor.  If you are looking to down min of 3.5%, then be sure your income is high enough to cover debt-to-income ratio.  Work with mortgage broker provide you more detail on qualifying.  Beside that you will learn to analyze deal as you go.

Very nice.  You done a good job.