All Forum Posts by: Harry Campbell

Thanks for the advice, I'm going to replace the outdoor unit, should cost a little under 3k. Work can't be done though for 4-5 days and it's pretty hot in the unit. Bought an evaporative cooler for them but doesn't seem to be helping much. What should I do in the mean time?

Ok sounds good, I do appreciate your advice. I think I'm going to provide a portable A/C unit and see if that helps. If not, I'll go ahead and get a few other quotes for repairing/replacing the unit.

Ok thanks for the replies. I honestly can't afford the repairs(quoted at 1-2k) or the replacement(quoted at 3-5k), and I don't think it makes financial sense either. At it's hottest the weather will be 85-95 during the middle of the day, never hotter than that though. At night, 75-85 at the hottest. That type of weather maybe presents itself 1-3 weeks every other year.

I'm thinking about offering to buy them a window a/c unit/portable type unit or an evaporative cooler(humidity is low, temp is not too hot so this should work well i think)

I just rented out my condo for the first time(in southern california). I lived there for a couple years and never really used the A/C. When it got really hot, I would turn it on once in a while but it never really worked that well. It did always work though.

Anyways, now it's not working and it's gonna cost me 1-2k to repair or 3-5k to put a new one in. There's really no need for A/C 95% of the year so I'm wondering what to do. I'm at the beginning of a 2 year lease with my tenant and don't want to strain the relationship but also can't afford/don't want to spend that much on an item like A/C.

I didn't explicitly state in the ad or the lease that there would be A/C but when the tenant asked me about it during the showing, I said there is A/C but doesn't work well or something to that effect(maybe I said I never really use it, I honestly don't remember).

So is it my responsibility to fix the A/C. From my initial research it sounds like the law is on my side, I don't have to fix the A/C since it's not a required item to maintain standard of living. But I also don't want my tenant to be pissed at me, this has all happened in the last day btw. There is especially hot weather right now and normally the apartment is just fine without AC. I was thinking about maybe just buying a portable unit(5,000 btu's) as a temporary fix for $200-$300 which would be a lot cheaper than repairing/getting a new AC.

Advice?? Thanks!

Hey All,

So I've decided to rent out my property. I'm moving out 8/1 so I listed it on the high side to start at 2k/mo. A guy came in with his girlfriend and looked at it yesterday and the most he can do is 1900/mo, which is fine with me since it's still on the high side of what I think it's worth.

I had him fill out a bunch of pre-screening questions that I pulled from this forum like intended stay, why are you leaving current place and everything checked out. I had him fill out a rental app and had him to do an experian credit check and everything looks good. He is a self employed realtor making 4,000 a month, she works in an office environment making 2,600.

Here are my questions:

1. They want a 2 year lease, good idea or bad idea?
2. Since he's self employed should I ask for tax return and w2 or paystub from her?
3. Should I have both sign the lease? If so, should I do credit check on her too or just him?

Thanks!

Is there anywhere you guys recommend I can read up on this type of transactions?(I will take a look at the rental property forum)

I do not have enough at the moment to purchase any type of investment property/residence, but I am interested in forming small groups such as this one or being part of one to purchase larger deals. The real estate areas I am looking at are in San Diego and Los Angeles, live in SD currently, born in LA, so not the most budget friendly places to purchase real estate, but these are the areas that I am most comfortable with and familiar with.

I am young, with a well paying steady job, willing to take risk, but still want to make a smart investment..

Hi Jon,

I appreciate your detailed response. You are correct, the monthly income is $3,800, yearly would be $45,600. I have subtracted 3% vacancy rate(1,368), 1.3% prop tax(5,938), 700 for insurance, 1800 utilities, 5% for off-site management(2,280), 1500 for repairs and maintenance, 720 for landscaping, 1200 for improvements. Total expenses would be 14,139. So the net income would be 30,093 miinus 18,478 for loan debt(12 months x $1540) leaving a pre tax cash flow of 11,614.

(Sorry I mean it was a 30 year amortization, 10 year fixed) So cash flow seems to be around 8%, I am by the beach in California btw if this makes a difference. What would be an appropriate cash on cash number to make a deal like this worthwhile? I like the idea of getting a quarterly return on my investment, but I am more interested in the long term prospects of the property. Re-selling in 5-7 years or cash out refi in 5-7 years.

I really appreciate the advice though, this may not be the deal for me but I am looking to invest around 20k at some point, which is a somewhat large chunk of my investment portfolio and available cash.

So I have an opportunity to be a part of a small group that is buying a 3 unit apartment building. I have done a lot of research online in the past, and purchased a condo for myself a couple years ago. I'm looking for advice from anyone who has experience in real estate or more specifically multi-partner real estate investment property transactions.

I did not do any preliminary research on the property until the investor brought it to me the other day. The offer on the property has been accepted at 475k, it is a 3 unit one story building, with 3 1 bed/1bath units. The units are all currently rented out for 1267/mo, not sure about the make up of the tenants or how long they've been there. The outside of the units are in ok condition, not good, but not bad. I am not too worried about the rental part, the units should rent fairly easily if there is a vacancy, the area is pretty desirable and the rents are around the current going market rate. The principal investor has secured a 10 year fixed loan at 3.8% with 30% down, which seems like an awesome rate to me.

Now the part where I have little experience and need some advice :) There will be 3-5 investors including myself and the principal investor. We will need about 150k for down payment, closing costs, etc. I am looking at putting in 20k, the principal investor will be putting in 30-50k. Now I like the fact that he has a stake in the deal and he is not just putting everything together, but he does take a management fee of 20% before profits are distributed to the investors, does this seem appropriate? The projected cash on cash return in the first year is 8%, with principal addition it would be 12%. I don't expect much though from the first year as we will probably need to build a small reserve account, etc. I think the 20% fee sounds reasonable to me. I will be taking a look at the property this weekend and we are doing physical inspections next week. Is there anything I am missing or that I need to consider?

Thanks for the help!!

Thanks for the response Claude.

I started working full time a year ago, and bought my condo 6 months ago as a personal property to live in. It is a 2bed/2bath in San Diego, I rent the other room to a good friend, which pays for about half the mortgage and property tax. I have done/plan on doing a lot of small repairs/projects to my condo, and plan to sell it after 2 years, hopefully for a nice profit.

I am saving up as much cash as possible to buy a second place, to do the same thing again. I am interested in flipping properties, but since I don't have the cash to do multiple properties, I like the idea of buying a place that needs some work, living in it and repairing it for 2 years, and then selling and not having to pay taxes.

In the mean time, I am interested in wholesaling; it seems to be a good way to make money and learn for a beginner. I would like to find someone in San Diego that I can work for part time. I do not have many real estate contacts however, is the best way to network at a real estate club meeting or try to meet real estate investors through friends? I have read some posts and it seems like most starting REI's do not have much cash, so that is why they turn to wholesaling/bird dogging. What are my best options considering the fact that I will have some cash in the near future?

I am a young aspiring REI, bought my first condo 6 months ago. A HAP property, got a pretty good deal on it, thanks to the government!

I have money saved up, and am currently saving about 1,000/month and looking to get into REI. I have been following the forum for a while, reading many different topics. I am located in San Diego, and I was thinking about going to a couple REI club meetings and networking, trying to find someone who might take me under their wing, or show me the ropes. Is this a good idea?

I have a full time job, but I am very good with numbers(including personal investments), very organized and willing to learn/ do a ton of research. What type of recommendations do people have for me? I want to know how to break into real estate, whether I should try and network for now, and save money. Or should I read investment books, follow this forum??? Any suggestions/advice would be greatly appreciated!

Thanks!