All Forum Posts by: Clarence Johnson

House hack a duplex in LA using FHA financing (3.5% down) and find an out of state market to create cashflow.

Definitely house hack a duplex using FHA financing. Buy in the path of progress, hopefully you can drop MI soon and do the same with a condo and then a SFR. New laws allow you to convert duplex garage to a 1 bed ADU and the SFR garage to a 1 bed ADU, in my opinion theres no better strategy to get started in Cali.

I would not offer to forgive rent in exchange for a move out, give them this flier and have them apply for rental assistance.  Cash for keys is not a bad idea, if you Google LA RSO the proper procedure is on the website.  Have you considered applying for a forbearance, not my first idea but better than nothing.  Hope this helps.

Some 3 and 5% down conventional programs do not have MI but its concealed in the rate which can be better since mortgage interest can be a write off and MI is down the tubes.  

Great plan, I'm doing the same with my duplex right now and when this project is near completion will later do the same with a SFR. Comps and loan guidlines do become a challenge when there are no other ADUs in the area, but that will likely change with time. With the cost of garage conversions (I got quotes ranging from $50-65k) and mkt rent in LA (I saw one in 90047 LA last week for listed at $1600 a month), there is no better return in our mkt than to do a garage conversion.

Is the ADU legal, we didnt have means to legakize 14 years ago and you may be buying a headache. RSO letting you know if the ADU is subject to their policies doesn't ensure the unit is legal. @Lee Ripma and @Nabil Suleiman gave good advice, doesnt seem worth it.

Westcoast Sewer Inspections is my go to, they only inspect and will give round estimates and suggestions for plumbers if repairs are needed.

@Jeffrey Waldron rent it sir.  If you came to me to sell it I would very likely tell you the same thing.

I'm not sure what NACA guidelines allow for non married co-buyers, may want to look into this. Also, with 0 down whats the incintive to JV on a deal? I do not know if NACA would be competitive in the Inglewood mkt, we still have multiple offer situations in the midst of this crisis. I'm not the NACA agent but I do know one of the best people to work with using this program if needed.

Very grateful, my tenants both paid earlier than usual.  Our family owned property, all section 8 is at about 90% collection, but not really hurting us as the tenants portion ranges from about $30-300 and the rest is subsidized.