All Forum Posts by: Cherish D.

 I hired a property management company that dealt with the applicants and they had refused them because of multiple problems, poor credit, saying there were 5 people and then only applying with 2, etc. 

 The city decided not to allow that either so it’s just as illegal. We tried it for a while when we thought they would pass the law for it and it was very different from renting the whole house. Guests expected to pay a lot less and  needed a lot more attention and service. Because we were there they thought they had full time service staff. Of course there were exceptions but I wouldn’t recommend that option. 

Where do you advertise? Do you run into problems with people sharing rooms? What is your occupancy rate? 

My father had wanted to do a senior care facility in my home because of its size but I’m not sure he can get it together while running his other business. Also would the city even permit it? They have crazy strict rules for simple things like garage sales. 

 I have a friend with properties in Long Beach and she sets her min stay at 30 days and gets plenty of traveling nurses but all her properties are 1 bedrooms. For 5 bdrm it’s difficult long term to keep occupied. Thank you for reminding me of the 1031 exchange, I was concerned about capital gains. 

 Yes, I have contemplated adding closests. One of the rooms used to be a formal dining room and the other an office so it just depends on how the next family wants to use it. For Airbnb I had more use as bedrooms.

 Yes, good point to make sure the next one cash flows as a long term rental just in case. Thank you for your input!

It’s the hotels mainly the Hilton and Marriott. They are paying off senators and city council members to pass laws to eliminate short term rentals and not just in California because they know they can’t compete with Airbnb. The New York Times did a spread on it. 

Yes, I was trying to consolidate both loans into one since the second is adjustable.

So I purchased my first home as an investment short term rental near Disneyland in Anaheim CA. I've owned the property for 2 years and now the city has changed the laws and no longer allows short term rentals. The neighbors contacted the city, the city has sent me fines and gave me a notice to shut off my utilities (since they are city controlled). So I cancelled my bookings and now I am left with a negative cash flow situation. I tried to refinance and can't because there were complications and I was not approved.

I might be able to go to a friend and he said he would push a refi for $6k closing costs. That seems high but he knows I'm in a bind. 

Without refinancing these are my expenses. T market rate to rent my home seems to be $2,995

1st Mortgage- $2,646.29

2nd Mortgage adjustable- $287.95 = $2,934.24

Property tax- paid from mortgage

Supplemental Tax- $1,289.36 / 12= $107 per month

Insurance- $560.08 for the year / PAID FROM MORTGAGE

gardening- $60

= $3,101.24

Notice this is not even including repairs and the roof will need to be replaced soon. The A/C might need repairs as well. 

If I am able to refi it would reduce my total expenses by $200 a month to $2,900.00.  Also the 2nd mortgage on my home is at an adjustable rate and if I pay $287 per month I am making interest only payments. 

Before when it was an Airbnb I was making plenty of money and had money to send extra to the 2nd to pay it off early, now I am in a bind. 

Also renters don't seem to like the unit, even though it is very large at 2,400 sq. ft, 2 of the rooms don't have closets so it's technically a 3 bedroom/2 bath. There isn't a driveaway for parking outside the garage and there is a train that goes right by the house on a busy street plus the school district nearby isn't good.  I've lost some months rent looking for a tenant until I've dropped my price to $2,995. Even at this price I'm getting problem people applying for example I found one person who had recently purchased a bunch of grow room supplies and one person who wanted to use it as a daycare. 

The house gets good appreciation at 5% per year. Plus with Disneyland adding Star Wars land in 2 years I'm wondering if the home value will go up even more? 

Selling fees are about 7%. Could sell anywhere between $620-$650 and I only owe $450 on the property.

I am really torn between renting vs. selling. I could use this money to buy in an area that allows Airbnb and make more $. Also I'm currently living with family and do not have my own home as I'm young and still and don't have a need for my own place.

What do you guys think? Rent or Sell?