All Forum Posts by: Brendon Woirhaye

I've had this happen, which has always been fine with me.  It probably will continue to be fine until some enterprising tenant tells the utility that they are moving and then doesn't, and uses the utility on my dime.

Get a different realtor.  It sounds like this bozo doesn't want to "waste his time" on you before showing you a property.

Showing proof of funds with your offer helps bolster the strength of your offer.  Sometimes lenders want to see proof of funds for your down payment portion.

It is unincorporated LA county, cities would do their own actions.

I don't know when the new date will be.  Their agendas are at http://bos.lacounty.gov/Board-Meeting/Board-Agendas but I think the sponsor will be revisiting it before bringing it to a new meeting.

Figuring out what the other party's needs are is key to making creating financing work, and it sounds like you're figuring that out.  Good start.

You may trigger a gift tax if you buy it from them significantly under market.  You might look for a plan where you would get a mortgage from a lender for one portion and have your parents hold a note for the balance, and let them gift $30k a year ($15k per parent per year) of that balance to you over time.

Are there things you can do to the house which could increase its value? If so, you may be able to do that and do a cash out refi, which will give you better financing terms than a HELOC. Still, the HELOC may be one easily tappable.

The deal doesn't sound like a fantastic investment on its own.  If it gives you something you couldn't otherwise get (such as parental help to get into housing, or access to your first property that you couldn't get on the open market), those may be factors in its favor.

It depends on your investment thesis for the property.  If you don't have better investment options, and have a clear exit plan in mind for the cash losing property, it could be fine.  You need to make sure it is a good investment, though, and not just because you're itching to do something. or because you think that the market will magically always go higher.

I've had negative cash flowing properties because I was aggressively paying down short term debt on them, or because I was renovating vacant units.  My investment plan required that they have a path to becoming significant cash flowing properties at some point, which they did.

As many of you know, Proposition 10 is on the ballot for November, and if passed, it would repeal Costa-Hawkins which significantly prevents individual cities from imposing rent control.  It is shaping up to be a major battle over the next couple of months.

For those in Los Angeles County, there are other attempts at rent control in motion as well.  The LAC Board of Supervisors was slated to vote on a motion on a "temporary" 3% annual increase.  As of this morning, the vote has been postponed to a future meeting, but it is important for those concerned about this issue to contact the supervisors in the districts where they own property to make their opinions known.

My understanding is that if you use all the proceeds from the sale for the new property (purchase price plus purchasing expenses), it is tax deferred.  If those funds get used up during the escrow process, I think that should be a valid expense.  If you're getting a refund of some of those funds, that portion would be taxable.

Keep in mind that the full proceeds of your sale should be invested in the property(ies) you 1031 exchange into.  You cannot sell a house for $150k with a cost basis of $100k, take $100k out into your personal funds and invest the remaining $50k in the new property and have it shielded.  

I am not an expert in these matters, so don't take this as the final word.

Welcome to the forums, and looking to transform your life with real estate.  Building your education, savings, and credit is a good foundation to start with.  Reading a lot here on biggerpockets is a good (and free) way to grow that education, and recommended before you start taking paid courses.

Run the numbers with being an agent.  Its very competitive out there, and you may find yourself spending a lot to try to get into the realtor game and not getting a great return on that.  It may be even more difficult if you are only part time.  I'd recommend meeting with some brokers to discuss how the business works and how they can work with you.

You can do the house hacking thing without being an agent. If you can get your credit up, and a down payment, you could be eligible for an FHA loan with a small down payment, and that may be your foot in the door.

I would consider your vested stock to be a windfall when it vests, but not overly count on what it'll be worth in a couple years.  It could be stable, it could go up, it could go down.  Don't let your plan hinge on its future value.

I don't think the cashflow per door really matters.  What matters most (to me) is getting the best return on equity (RoE) on the cash you have.  If you can get another opportunity which will pay you more than the borrowing cost (6%), it makes sense to take the cash out.  If you can't, don't take the cash out.

I had a hoarder in one unit in a 4plex that I purchased a few years ago.  When we closed, we gave her a 60 day notice and they moved out without incident (including all the stuff - no idea where it all went!)

They kept two cats and two dogs inside, and the place nearly required a gas mask to step into (and this is coming from someone who has animals in the house and is used to the smell).  We aired it out for days, sanded down the wood floors and resurfaced them, cleaned and painted the walls, and used odorxit AQM, and managed to clear the stench.  We were afraid we'd have to fully replace the wood floors, but thankfully we didn't.

Having a hoarder there can be an advantage, as many people can't see beyond it.