All Forum Posts by: Uli Reynaga

Hello,

I purchased a duplex in Boyle Heights, 90023, in 2013. The lot is approximately 10K sf. I was able to legalize an unpermitted two bedroom, one bath space, thus making the property a triplex.  There is a 520 sf garage that I would like to convert into a one-bedroom, one bath unit.  I did my research with the city and am able to legalize it; consequently, making the property into a quad.  However, I inherited a tenant whose rental agreement included her two bedroom, one bath unit and the detached 520 sf garage.  The property is in a rent control area and the tenant was unwilling to accept a cash for keys agreement that was in accordance with RSO rules. 

The previous owner added the garage to her contract for $350/month.  I want to offer her a rent decrease of $350 for the garage as I believe it can rent for $1,400 (Median rent on Rentometer.com).   I am seeking help from this community to find creative ways for me to negotiate for the tenant to restructure her lease agreement without the garage; she currently only has junk in there and it's non-functional (I did pass city inspection a year ago though).

Thank you in advance for any advice you can offer.

Thank you for the private money refi suggestion!

@Stephen Akindona

Hello,

I became aware of this community approximately a year and a half ago and it has been a great resource! I listen to the podcasts and read the forums on a regular basis. BP helped me find information as I made a big leap and purchased a triplex in Boyle Heights (Los Angeles) a year ago. I also have a vacation home in Big Bear that I purchased before thinking about investing in multifamily units.

I can relate to others, where I immediately started to think about how to obtain a second investment property after buying the first one. However, I have hit a roadblock; properties in LA are expensive and a 25% down payment is no joke. I wanted to leverage the equity of this property in order to help me come up with another down payment. However, the comps in the area will not give me a high enough loan to value in order to secure that.

Needless to say, I do feel stuck and think that perhaps I just need to wait a bit, save more money, and wait for two years for a bank to consider the rents as income. I'm reading about alternative ways to borrow, but I am wary of higher interests/risks. Any thoughts on how to move forward?

Thank you in advance,

Uli