All Forum Posts by: Cara Murray

Okay I am also in Northern California and please note...... The Cap rate is not 10%. As we all know California laws/regulations are always convoluted.
"annual rent increases of 5% plus local CPI but no more than 10%, whichever is lower."
I believe your cap rate as of today is 8.8% 

There are a few options for you to do this. If I am understanding you right, this is what I would do. Ask the seller to give notice to m2m tenant. Requiring the unit to be vacant at close of escrow.  60 days prior to your lease ending with 2nd unit give them a notice of increase (based off of current max allowed increase). Or give them notice if you desire to do so. (Make sure to research your requirements to do so and your obligation to the tenant if you decided to go this route. AND what you can re rent the units at after a no fault lease end)

I have come to find that landlords that are renting far under fair market rents do not want to give notice to vacate. They feel bad for the tenant. My standard practice is to take ownership with the units rented and give notices on my own normally because of health and safety standards of the units, and do full remodels. I don't know if you finances or your funding will allow you to do that. 

Best of luck and congrats on dipping your toes in the water. 

@Stephen Horan - We invest in Shasta County. Feel free to reach out. I am always interested in grabbing coffee and meeting people with similar goals. 

 Hi Christian- Redding hasn't had any meet ups lately. But I have seen a few posts of people looking. Maybe its time to get the meet ups going again. 

Going with A. 1.Window in the kitchen. I own units with no kitchen window and have had tenants mention that it just feels weird. 2. Pantry. Don't give up the pantry. From a lady that gave up a pantry and then requested her husband to steal from the garage space to build a pantry :). 3. Island. nothing installed in your island. It gives you so much counter space. Another thing I wish I had done differently in my own home.

Who are you using in Redding? Its always nice to hear positive things about local people.

@Vince Violante where are you at in Northern California? 

I'm in the Redding area- I can refer you to a few commercial agents. How have you pulled comps for the property? For a 10 unit I feel like your numbers are high. I have seen 8 units going for under 1M. Just be prepared. What is the NOI? shoot me a message and I can get you the names.

There are pros and cons to both markets. Mt. Shasta to San Francisco is not a quick drive. So you need to treat both as long distant properties. Don't set yourself up for "Oh i can just drive up and change the light bulbs". Make sure you are calculating all your costs for snow expenses if you are looking that far up. Best of luck to your new adventure. 

Hi Cecil- We are also in Shasta County. We invest locally and enjoy being involved in the projects. A lot of conversations between you and your partner need to happen before you take the leap into investing. Along with some serious conversations with yourself. How involved do you want to be? What are you looking for equity or cashflow? Are you holding or flipping? and so much more. 

I saw a post not long ago about a meet up in Shasta County not sure if they will be doing more but its a good place to start.