All Forum Posts by: Alvin Uy

 Not sure if it depends on the state, but for all my properties Im responsible for appliances that was there when tenants moved in.   Only one that I have on contract that is tenant responsibility is the Garbage Disposal unless its from normal wear and tear.   

What ive done in the past is go to big box stores, home depot, lowes, sears, etc....  buy open boxed appliances at a discount. Then use the savings towards the extended warranty.   This saved me a few times....  even got a brand new replacement one time. Lol. 

Hiya!  How long are these meetings usually lasts?

@Mark Page  Hellz No, Brotha!   Definitely not too late.    I’m turning 47 this year and I know exactly how you are feeling.   We have a lot in common actually.... Im based in Los Angeles (Eagle Rock)... I too have been in creatives ....designing for entertainment/consumer products (for Disney, Dreamworks, Warner Bros, Mattel, Hasbro, etc. ) since my early 20’s.  Ive owned my own design agency for the last 15yrs.... that 6 figure salary is a golden ball of chain that slowed me down ...and Im tired of the hustle to maintain it.  (Especially now after losing 70% of my clientelle from layoffs with all these recent mergers and shifts in the entertainment industry, etc.. Im sure you know what Im talking about.)

Last year, I had an epiphany....  I realized that my true wealth came from all the passive real estate Ive acquired througout the years. Recently found BIggerPockets and sparked a new fire.   So, i’ve decided to change careers and focus more on increasing my real estate investment.    I quickly realized that I can easily replace that 6fig income pretty quickly with the right strategy.... or with a mix of strategies without as much hustle.   Now Im spending more time with my wife and kids.    Good Luck!  Feel free to hit me up.   

Wait... Are you saying Palmdale/Lancaster is BRRRR friendly with positive cashflow?

Yup...  I do think though the appraisers tend to be much much more conservative when they are appraising for a refi.   

 I should've mentioned that my wife (who is a realtor) pulled comps.   These comps are literally within the same block and even 4 houses down  the street.... similar sqft and lot sizes.    She was disappointed and was certain we would at least get 1.5m.   She commented that the "appraiser is just as bad as Zillow".   LOL.      

Valuation-wise... Its terrible and highly inaccurate in Los Angeles where many homes are unique... and wildly appreciating.    Sometimes even off by $100k.    I recently just had my house appraised by bank while I was getting a Heloc..   It appraised at $1.34M... while zillow says its only $1.21M.  It was a happy surprise.     

The rent estimates, however, are pretty close (probably due to Rent Control).

Sounds like a good plan.    Have you done your homework in terms of rehab costs and timelines?  

One thing to note...  From time to time properties like this are listed lower to get a bidding war going.   Its a very effective marketing strategy to get buyers reeled in.   Often times initial offers will be countered and almost always ends up selling way above listing price.    Just make sure you know your numbers going in... especially your max offer price and stick with it.   Good Luck!!

Rent Control in Los Angeles is no fun for landlords of multi-units.... especially for New investors getting into the game in Los Angeles.  Initial cash flow will be difficult because most multiunits will have existing tenants that are protected from no-cause evictions. .  Therefore, its extremely rare to find and purchase MF properties that are delivered vacant at end of sale.  Of course, you can always offer to buy out existing tenants for $20k or more each to vacate property... but thats easier said than done.   

On top of that, there’s a cap of 4% annual rent increases in L.A. ( which by the way just passed and is effective in July 1st). This means inherited tenants are more than likely paying under market rents.    This is primarily the reason why most of my buy and holds are SFRs...  because SFRs are not under rent control. 

 I forgot to ask you if you have them for your properties. 

@Diana Villalon @Ronnie S.  Yes, I currently have it on all my properties now.... but I wouldn't say they are that cheap compared to most Home Owners Ins.       Reason I ask is after speaking to a wholesale insurance broker ( a close personal friend of mine),  he personally think its not worth it....  and he is a high risk insurance guy!!   When I asked him why,  he says that Earthquake insurance policies are all by CEA (California Earthquake Authority) which is privately held.   He thinks if the big one were to hit, this company will more than likely go bankrupt and will never payout the claims.   Needless to say, this is very concerning and got me thinking.

Maybe I should've mentioned this on my original post.  I'll update it now...