All Forum Posts by: Tyler Turpin

I am having luck in the San Pedro area. Lets face it, it is the last affordable and oceanside community in CA with a large amount of multi family. It is rent controlled so do your homework. There are big developments going on down near the port which could lead to gentrification. The market is slow giving more buying power. Pretty simple market to learn and grow in because there are major streets dividing the good from the medium to the war zones. I want more investors in there fixing the place up!

Chris Mason Thank you for your help.

Chris Mason I have never looked in to this type before. She technically isn't a first time home buyer. Would that be an issue for this loan?

I have an FHA loan on one property. I have lived in it for more than one year so I can move legally. Would it possible for my wife to take out another FHA loan to purchase another multifamily? Is it more like 1 loan per household or 1 loan per person?

There are tons of investors on this site that can make offers. Im sure that if you posted it on here, people will bite and get it done quickly.

I read the entire forum post. It is basically a way to force yourself in to using your cash flow from your normal income and put it in to your principle. You save a very small amount on interest over the entire amortization schedule due to the way that the heloc is set up but its hardly worth it. The reason that to mortgage is being paid down faster is because you are putting all of your cash towards principle every month and that is where you are saving the money on interest over the life of the loan. It isn't because of something special with a heloc. Some people in the thread thought it was some little know "cheat the system" type deal but its not. Its over rated. What I took from the thread is that you may as well NOT take the risk with the adjustable rate of a heloc and just make extra payments to your mortgage directly. Don't use debt to pay off debt. A heloc is a great tool, just not in this particular use.

Its not just the fact that I used FHA. There are still good deals located in the San Pedro market and much less competition than anywhere else. I believe the city is working towards gentrification in this area so it also has opportunity appreciate. Just screen your tenants carefully! Hcidla.org has a good handbook about la rent control. Check it out. It made me feel more comfortable back before I started investing here just knowing all of the different rules.

I had a great experience with my first duplex in San Pedro. I bought it with an FHA and was able to refi after the first year to a conventional at 20% equity. Because I bought it with FHA, I am in to it for about 50k on a 650k property.

I feel like rent control gets a bad wrap. Of course you need to steer clear of inheriting tenants paying $500 when market is $2000 but there is a lot of golden opportunities in rent controlled areas especially if you are just starting. Significantly less competition when buying and you can still see a 10% return. Inglewood has SOME awesome areas if you can find anything worth the price. I believe prices are already reflecting the development. San Pedro on the other hand has the huge $1 billion development starting but the prices haven't started climbing excessively yet. Its also the possibly the easiest neighborhood in the world to understand. To the west of Gaffey are the easier to manage properties, to the east of Gaffey are the harder to manage but much better returns.

If it ain't broke, dont fix it. The water screamer is a great idea. Using the screamer, Id try to make it to the next holiday weekend sale and buy 10 all at once then replace them one at a time as they fail. You COULD still have another 8 years of life in them.