All Forum Posts by: Sri Voodi

Can anyone recommend General Contractor in Los Angeles area whom you have worked with who is reliable and reasonable? I'm looking into venturing into rehab in San Fernando Valley area

Any deal you will see on the MLS is already priced retail. So reach out to as many real estate agents and tell them you are looking for a investment property and ask them if they know any upcoming properties in the area. Real estate agents would more than love to let you know of any off market/upcoming deals, especially if there into wholesaling. It is a win win situation for everybody involved -seller/buyer and Agent

Check this out, use the excel sheet in the link to compare different properties

@Walter Roby jr

The IRS requirement for married couple is to stay in the home for 2 years to qualify for Capital gain exemption

Ricardo, if you can sell at that price than I think it would be a good idea. And the other consideration should be that you have lived in that house for at least 2 years, so that you can take advantage of capital gain exemption (tax free profits). Having said that, given the appreciation you have seen on our own home, the same would apply to 2/1 you are going to buy - you will be paying top dollar as well, unless it's a run down home. And as you know "Better Area/schools" tag alone in LA changes the price dynamics completely. But adding a additional bed and bath would increase the house price substantially. And IMO you can never go wrong with primary residence, if you have done enough due diligence. 

Good luck and keep us posted

Ok, let me tell you what I would do if I were in your shoes. 

Stay put for one more year

Rent it out 

Make the improvements

claim deductions while taxes as expense on income generating property

After 2 years if FMV is more than they are now and is to your liking, sell it. The profits are tax free on the sale of primary residence - that is if you have lived in the property for 3 years in the last 5 years.

If not keep renting it out. 

First congratulations on buying YOUR OWN Condo. As far as the townhome

Assuming that you have 20% down payment it is no brainer. So get it. 

Let's run the numbers 

Listing price - $299,000

20% down - $59,800

Closing costs - roughly $8000 - $10000 (If you have Redfin serving your community you will get back .6% which is close to $1794)

P&I -  $1132

Insurance - $67

Taxes - $299

HOA - ??

Total would be - $1498 + HOA

With room mates bringing in $1700 I think even with the HOA (hoping its not as expensive as Los Angeles) you should have a break even deal on your hands.

Good luck with the purchase and let the BO community know how the deal went. 

That is the name of the game - keep looking. You almost made it - good luck for the future

@Fay Chen

My venturing into real estate started with a primary home. When I first started, we were looking for a primary residence and after a few years we wanted to upgrade to SFW from a townhome. Then we rented the townhome for 3 years and made some good Tax free money, as it was a primary residence. In no way both of my houses are **** holes, they are in a good condition and townhome was sold with in a week of listing (just to give you a sense). As you said in real terms I wouldn't call it an "investment" property, but this method has been serving us good so far. Currently we are gave another offer for another primary residence and will know if we will get the property in a week or so. Now our current home would be rented for a year or two and then we will decide if we want to sell it.  Will keep you all posted

670 FICO score is not a deal breaker if you have a consistent income flow. And moreover Bank appraisers take the upgrades (rehab) into consideration when deriving the purchase price. Some tips to make appraisal favorable by Scott