All Forum Posts by: Andy Eakes

Okay got it. Let me ask you this. If they are paying the rent on time, does it really bother you? I would get that person on a lease, but hey money is money. At least this time around. It could be much worse!

@Norman Berman It all depends on your goals and strategy. Mainly goals. There are some markets where real estate barely appreciates, but the cash flow is out of this world. And visa versa. I also know people who some properties that don't really cash flow but have good appreciation and then properties elsewhere that do the opposite. They enjoy the balance of it all.  It's like stocks in a way. It depends on what you are trying to accomplish and how much tolerance you have to adversity and risk. 

I hope that helps!

@MK Wang Sorry you are going through this. If she is really on a work assignment why don't you call her work? Explain how she signed a lease with you, agreed to terms, but has since broken the terms of your contract and now is being evicted and you need to get in contact with her immediately to resolve this headache. Present the facts you know? They may be able to help locate her for you.   

Otherwise, I believe you are supposed to send it to the last known address. Of course, I would consult an attorney to be 100% certain that's where you send it. 

@Mike Lopez Which calculator are you using? While the calculators are a great tool (I personally use them like crazy), newbies tend to make the mistake of trusting the spreadsheet magic a little too much. I always try and over factor the different costs and percentages when I do a calculations because there are so many unknown, unexpected things that can happen with real estate. Plus there are a lot of other costs associated with loans, inspections, agent costs, etc. 

But don't be discouraged or paranoid by your results. You could very well be finding great properties. Especially with a number of people trying to leave LA, don't let the cliché anti-California market rhetoric turn you away. This could be a great time where you're getting in while everyone is leaving. People will always return here. The weather is too good, beaches too nice and CA properties appreciate at an insane level and the economy hear is looking up according to the latest data out there.   

If I were you, and you were willing and able to get a property right now, reach out to an agent with some good reviews and has some investment experience. Show them what you got and see what they say. The good, investment-minded agents shouldn't give you an automatic "looks good". They might be able to provide feedback for future calculations and even get you a sweet deal. 

Good luck!

@Michael Ndjondo makadi I use excel and have been updating numbers as I do different rehabs so I can plug in numbers when things come up later on. Also, I had an agent one time give me a list with items and costs from a rehab she was involved with that she described as a "gut rehab". This is what I initially based my spreadsheet on and I have since expanded. Its a good overview of some of the more common rehab items for most investors. If you would like to see it, send me a PM and I'll email it over! We live in the same city so our numbers should be pretty similar. Obviously some of costs for the items listed are going vary based on the quality of products you choose to go with. But that's up to you ultimately.  

As far as ARV goes, that's a tough one. I am currently under contract on a property in San Diego that was appraised $40k more than we had estimated... Woohoo right?! Unfortunately, the same thing can happen only in the opposite direction. My worry with my situation was that I feel that the appraiser took a number that the agent gave her and based her report on that. It even said in the report that the agent gave the appraiser a figure of so much before the report was finished. And at the time they had an offer that was exactly what the appraisal came out to be, but that person backed out, we stepped in, and then negotiated the price down to what we got it for. So determining the ARV can be so tough, and I would say a good agent is going to be your best tool. They know the market trends and what's going for how much.

I hope that helps!

I'm not an attorney, but I know that "no-fault" evictions are not covered in the moratorium, but there still are some factors. If they lost their job, couldn't pay rent because of COVID, had to take care of a relative who got sick as a result of COVID resulting in a loss of job or less work, or had a reduction in the money they earned by like 30% or something, they can be covered. It's definitely a delicate dance right now, but not impossible. 

You can always consider negotiating a cash for keys deal too. Otherwise, they may have to wait until their current lease is up.   

@Brett Boyce Personally, I feel that someone's first investment property should always be in their local market if your finances allow for that. You already know that area, you have a better idea of what the rental market is like and where people are looking. Plus, you'll more than likely going to take more pride in a property that is located in the same city as you. 

Other people will have other opinions, but to me it makes a lot of sense. You have more control over the property and can manage any repairs that need to get done. You want to start off on the right foot. Once you get a property, maybe you'll cash flow a little bit, save your money and then buy at the beach. Trust me, as a guy who currently lives near the beach in San Diego, buying costal properties right now is especially competitive with rates and inventory so low. 

@Marina Shimanski Question... Is the title missing? Or is the fathers name just not on the title? You mention both and I don't see how they could have the son's name put on a title without proof that his dad even owned the house right? I am not an attorney so I don't know about that for sure. 

Honestly, there are resolutions to this, but it usually takes a long time and being that the deed is missing, and potentially never recorded, an attorney is going to have to get involved. Really the seller should step and be helpful in the process being that they cant sell without it. It was probably just a human error back in the day that never got resolved. 

I don't know how attached you are to this property, but this will most certainly become a huge head ache for you, especially if the seller isn't cooperative, and the main players involved in the original transaction in the 50s have either died or no longer exist. It'll make finding records that much more difficult.\

But if you are up for the process an attorney should be able to help you out! Also, consider having the seller  

@Allan Pilapil You are making a great point and I am sure many landlords are asking themselves the same question. I know I am. I guess I cant say which is the "best" option, but to me the month to month lease makes a lot of sense right now. Being from California, we both know how difficult land lording is right now. This may be our very slight upper hand, but you have to consider how long it will take to get a tenant out with a month to month lease. How much notice are you supposed to give them? Plus you'll have to do some repairs after a tenant leaves. A month to month option leaves you vulnerable to having to repair and rent out multiple times a year. Are you willing and able to handle that risk?

Something great I heard recently was that investors tend to get really afraid of not renting their units out, so they rent to bad tenants. If you have the reserves, be very picky who you choose to be your tenant. Consider them an employee who needs to meet certain qualifications that will allow for the best possible outcome as far as your property goes. If you can believe it, there are still people paying rent on time in California!

Good luck!  

@John Matthew Johnston I want to say yes to your concern, but it's all going to depend on the lease that they signed initially. If you covered in it that any damages done to the property would come out of their deposit, and on top of that you can provide them an itemized list of what needs to be repaired with specific costs, then you're good. They may not be happy about it, but again, they should've read the lease which stated the consequences for damaged property. 

I'll also throw out there that it sounds like you are a little angry with this person. Understandably so, but don't allow your anger to drive up the cost of the repairs just to stick it to them. Keep it fair and honest and you'll end up okay. Overall, it sounds like an unfortunate situation and I'm sorry that you have to do all these repairs now. Thankfully they're gone now!