All Forum Posts by: Yun Han

@Alan Asriants

I really like this agent—he’s been an investor in this area for 20+ years and has deep knowledge of the market, building codes, and investment strategies. His insights were valuable, and I see him as a potential long-term resource if I continue investing here.

That being said, I am wondering, if I were to move forward either with dual agency or without a buyer’s agent, are there any specific risks or aspects I should be especially cautious about?

If you have done dual agency yourself, did you feel you fairly represented in negotiations?

Also, if I decide to find my own agent, what’s the best way to find one with an investor mindset? Any strategies or platforms you recommend for connecting with an agent who understands investment properties?

Would appreciate any advice from those who have taken any of these routes!

I connected with an agent through Zillow for a property tour. During the tour, he mentioned another property he’ll be listing soon and later sent me details via email. He said he can show it once it’s listed next week.

I had signed a non-exclusive buyer agency agreement, but only for the initial property I toured (which I’m not pursuing). Now I’m wondering:

• - Should I let this agent represent me or find my own buyer’s agent?
• - If I go with dual agency, can I negotiate a lower commission?
• - If I bring my own agent, how might that impact negotiations?

This is in Philadelphia. Any advice?

Another question is… Which option would be better to cover the missing mortgage payments: a HELOC or forbearance?

Hope everyone is having a wonderful holiday season!

Unfortunately, the end of 2024 has brought a string of financial challenges for my family, and I’m feeling the pressure.

Two weeks ago, I was laid off from my job. Thankfully, my wife is still working, and we have a few months’ worth of emergency funds to cover our expenses. Initially, we thought this would be enough to get us through until I found a new job.

However, things took a turn today. I own one rental property with a mortgage of $3,400 and rental income of $3,300. After a long and complicated history with the current tenant, I’m now starting the eviction process. Since the property is in Los Angeles County, I expect the eviction could take 4-6 months, followed by another month or two to secure new tenants. That means I’ll need to cover the mortgage for the next 6+ months entirely out of pocket. With this additional expense, that would mean depleting the savings we’ve worked so hard to build over the past few years.

To add to the situation, my wife and I are expecting our first baby in just two weeks!

I’m turning to this forum for advice on what to do with the rental property. Here’s what I’m considering:

• I plan to call the mortgage company tomorrow to explore any assistance options they might offer.
• Should I look into selling the property? Managing it has been exhausting, especially with the tenant issues and LA’s landlord policies.

Here are some details about the property:

• Purchased for $650k, with about $90k spent on renovations.
• Current Redfin estimate: $1.1M.
• Mortgage interest rate: 3%.

Would selling it “as-is” during the eviction process make sense financially? Or should I stick it out and keep the property?

For additional context, here’s a snapshot of our financial situation:

• We’re paying the mortgage on our primary residence.
• We have one car with ongoing payments.
• I anticipate it could take up to three months to find a new job.
• I’ve already applied for unemployment benefits (in PA) and am waiting for approval.

I’d greatly appreciate any advice or insights. Wishing everyone a happy and peaceful holiday season!

I am curious if you had found one! Can you tell me how it went? 

It’s been few years.. wondering if you found one. Can you recommend if you did?

My lease to the tenant contains the below term:

“TENANT PROTECTION ACT OF 2019: This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

I am wondering if this counts as official Notice of Exemptions in Los Angeles county. 

Would I need to deliver a dedicated official Notice of Exemption to the tenant before being able to raise the rent, free of the rent caps?

Thank you everyone! I will keep records of as much as possible and prepare cash reserve for the worst scenario while letting PM to handle the eviction. 

Hello,

I recently received news from my property management (PM) company that they have initiated an eviction process against my tenant due to non-payment of rent, despite several attempts to resolve the issue. While I'm relieved that my PM company guarantees my rent until the end of the lease term (November), and they will also cover up to $15k in the eviction process, I want to prepare for any potential worst-case scenarios given that I live in Los Angeles, California.

Currently, the PM company is waiting for the attorney to draft the eviction application, and they have promised to keep me informed of any updates. However, I am curious about what else I can do to ensure the process goes as smoothly as possible.

If anyone has any advice or suggestions on what I can do to prepare for any potential issues, I would greatly appreciate it.

Thank you.

I am working on calculating the depreciation basis for my rental property, and I am currently analyzing two appraisals. The first appraisal was conducted in 2020 when I purchased the property, while the second appraisal was done in 2022 for the purpose of removing PMI.

(I am assuming the "opinion of site value" equals the land value. Please correct me if I am wrong..) 

According to the 2020 appraisal, the land is valued at $530,000 while it is valued at $410,000 in the 2022 appraisal. It seems little odd that the land appraised in 2020 is too high, making the land value 80% of the purchase price. This is resulting the depreciable basis of this property to be too small... Using the current calculation method, the annual depreciation would only be $4,000 per year ($125k/30 years).

Even with the increased property value in 2022, the land is valued less than 2020's. This raises concerns regarding the accuracy of the land value appraisal in 2020.

Given these circumstances, I am uncertain whether it is still appropriate to use the 2020 appraisal numbers as the depreciable basis. If someone can provide insights/advice, I would greatly appreciate it... Thanks!

(This property is in Los Angeles area, specifically Torrance).