All Forum Posts by: Tony Ngo

If you already feel struggling on PM with 25-30% of your gross, you can give it a try for yourself.  @Michael Baum suggested.  Do welfare check the place once a month or so.  Most important person is the cleaner.  If you can find someone that you can trust, pay them a little more with return that he/she can be your 24/7 emergency response person and look out the property.   You can always communicate with cleaner each time on guest check out for conditions of place at the beginning so that the cleaner know your expectation.  Good luck.  You can do it. 

If you have luxury with all cash on BRRR is always the best. You have good bargain power on the offer compared with financing. After you purchased the property, it will take some time to do remodel. The holding cost is also major factoring into your profit if you have a loan. You will also feel stress out that interest accrued over time. May be you can consider with partners to team up the purchase. Be sure you explore the partnership to ensure it's also worth it.

I agreed with @Nathan Gesner. If you can pay off HELOC within 12 months, it ok to use it as long you understand the risk involve. All investing have risk. As investor, you would ask yourself if you can manage that risk. You indicated that you can pay off 8-10 months. That's good. Just make sure you have some good reserve. Be sure talk to mortgage broker who can help you analyze your qualification. From lender perspective, using HELOC for down payment would have monthly debt. Be sure you guys still qualify with 80% loan along with monthly payment from HELOC. Good luck.

My client had the property build from ground up. The existing property used septic tank. The new construction had in drawing to connect to public sewage. After everything completed and my client moved in. Two years later and he had problem with the sewage and then he found out that the contractor never connect the sewage to public sewage but city inspector signed off based on the plan. City didn't compensation anything to my client except refund the city fee back to him. I guess in your situation, you pretty much have no choice to correct. Very sorry to hear that. I am also starting ADU build from ground up. Thank you for sharing and I will make sure the type of pipe to be listed on the plan. If you have any more tips or recommendation, kindly share with me. Thank you

I would suggest to have professional picture line up right after you finish. You done a great job on the remolding and you want it to look the best as much as possible.  The photo do the most selling part beside the price. 

It's depend on the market you in.  In CA, a good 25% down payment (remember 25% down has less cost on lending compared to 20% down on investment property) would give you break even or a little negative on property tax for long term rental.  But you will get good appreciation when you purchase in good area.  If you are creative, you may break away to get even.  Think of long term that within 2-3 years, the rent will increase which will give you cash flow.  Or you can get into short term/mid term rental then you can possible get cash flow.  

Have you consider split unit where it provide heat and cool.  It would just electric only.  I assume you have individual electric meter for each unit. 

I agreed with Christopher. Convert a long term rental to STR is like creating another new job for yourself. LTR is passive where STR is active & you need be involve in book questions, cleaning arrangement, etc (unless you hire management company). Before go into STR, be sure you locate good cleaning team. One more factor you need to consider is the furnitures. It will require some profit months to regroup back the expenses. Be sure to run the number to ensure it's profitable. STR is just another business. Business for each month has up and down. Good luck!

Thank you Drew for the information.  Totally agree with you of service provide beside the price.  My objective of this post is to help my client get a few PMC for her to decide.  Thank you.

I have a client looking for good management company to help them manage their property in Meford OR.  Currently need help on screen tenant.  Thank you in advance.