All Forum Posts by: Alvin Uy

@Renee Bacon

This topic is very market specific. Some asset classes do better than others in certain areas.

However, I share your same sentiments with SFR vs 2-4units MFs.... especially in a Rent Control states/areas like mine in CA ( Los Angeles). I own both types. My tenants on my 4plex are more high maintenance than my SFRs. I am also able to get better quality tenants on my SFRs.

MFs are capped at 4% rent increases, while SFRs are capped 10% annually. My 4plex tenants are way under market rent, and because of Rent Control, i cant just end their lease at anytime without a $20-30k payout. I also pay for water utilities on my 4plex which reduces my cap rate even further. My 4 SFRs are cashflowing so much more that my 4plex... easier to rent... plus tenant pays all utilities.

Phase 1 of my new goal completed!! Im just so stoked to get a chance to finally level up my game...

I've been a long time passive buy and hold investor in Los Angeles.  Found Bigger Pockets just a little over a month ago and got super inspired by all the education and the podcasts I've since devoured.  Decided to shift my focus more on Real Estate investments more seriously.   As you know, Los Angeles market is a tough nut to crack...  So I decided to pivot to do bigger things beyond just buying, rehab, and hold to accelerate some cashflow for more investments.   

That said, I dove right back in... I've closed escrow with a JV partner last week on a SFR on a LAR2 (which we will tear down and build 2 houses from ground up to add and force some value) This will be my first ever ground-up build... and actually my very first real official "flip". I challenged myself to do all without using my own cash (instead Im using 100% Helocs against a couple of my investments). Potential upside is 300K-500K net profit which my partner and I will be splitting. I will be using that profit as downpayment for the next property for a long term buy and hold. Today is first day of ownership... and its Demo Day!!!

 Isn't Oregon under Rent Control now???

@Ricardo Martinez where in CA? And does it appreciate as well?

Actually, I put half the downpayment and we will also be splitting the rest of the construction holding costs.  My partner originally had an "all cash" foreign investor that was going to cover entire construction costs. The original investor bailed out on her last minute for another deal...  and I jumped in last minute to take over.   This is my first flip because I usually buy and hold....  but the numbers are too good to pass up on this project.

Yes, Im actually in the process of putting together a JV agreement. We will be building 2 houses on a lot. My parter is a runs a construction company and will be handling construction. My wife (realtor) and I will be handing architect/interior design and the sale of the property.

Ill look into how quickly an LLC can be put together.

Thanks for your input. My partner actually just funded today and recording on Monday. I don't have time to file for LLC so I was thinking of just being added on title using one of my existing SCorps. (SCorp is better for flips than LLCs taxation-wise according to my CPA)

At any case, my question pertains to what is the difference between taking title via Grant Deed vs Quitclaim?!?!  and which is better approach??? 

Doing a joint venture flip for the first time.  My partner is going to add me on to title after she closes on the house.   It going to be her and my SCorp on title.   Im wondering how to best take title... Grand Deed vs Quit  Claim???    By the way, she got a loan on this property with title insurance.   I know some folks recommend Warranty Deeds so it doesn't void title insurance but Warranty Deeds are not available in California...   I know Quit Claim is fairly common.  Can someone please chime in?

About a year ago, I had a tenant applicant made a similar offer to one of my properties once.  His credit wasn't too bad.  But something was a little suspicious after he mentioned he has applied at more than 10 places and never got accepted.  He even said he would pay $100 more for the monthly rent if we pick him over the other applicants.   He even showed his bank statements showing proof of funds.  After chatting with him for a while, he fessed up and said that he was a cannabis grower and recently just opened a dispensary a few blocks down the street from my rental property. He wanted to fully disclose it and was begging I would just give him a break.  Just fyi.. its legal to have a cannabis dispensary in Los Angeles... incidentally, that ruling had just passed during this time.   As tempting as it was, I didn't want to take any chances and decided to go with another applicant.  That said, I feel terrible about the decision and still keep wondering if I should've been more understanding.

For those that recommended to take title via Warranty Deed... thanks for the input.  Unfortunately, I was just told by escrow that Warranty Deeds are not available in California. 

First, give your tenants some credit for atleast telling you in advance and asking permission. 

Second, definitely add the new family member to the lease agreement... you never know if they're going to stay longer than intended.

Third, Ask for a larger deposit.   Also, I've heard some landlords have charged additional monthly "pet rent".  This could be a blessing in disguise.