All Forum Posts by: Danushka Abeyasekera

I have a 4 plex and one of my tenants are up on their lease. I am planning to increase the rent when the lease is over. How do I proceed with this. Do I sign a addendum with the new rent increase without giving a 45 day notice or do I have to give a 45 day notice since the lease says once its expired it goes to month to month.

Thanks for your response. I agree it's insane with these new laws. I have been looking inland, however I want to be in the local school districts,  do you suggest rent while I invest elsewhere?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $294,000
Cash invested: $58,800

This is my first investment property. I bought it for under market value, removated it and airbnbed it

What made you interested in investing in this type of deal?

Cashflow

How did you find this deal and how did you negotiate it?

Redfin and I asked them to lower the price due to the start of the pandemic

How did you finance this deal?

20% down second home

How did you add value to the deal?

I remodeled the kitchen and painted the house

What was the outcome?

I am airbning it for monthly airbnbs

Lessons learned? Challenges?

Las vegas is not a great city for short term rentals anymore since the regulations are extreemly strict and its impossible to get a licence if you do not live there or meet their criteria.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Yun from redfin

I would choose cincinnati since I have been looking at that area for awhile. Though the general population is moving out of there, there is great job growth and many stable companies. Also the weather is not as extreem as Milwaukee. Cincinnati has been cashflowing and still does. 

Introduction

Hello, I am new to bigger pockets and this is my first post. I have been listening to the podcast on YouTube for a while now and it has inspired me to get my first property in 2017 ( my primary residence which I house hack by Airbnbing . In 2020 I bought my second home in Las Vegas and Airbnbed that ( 1 month plus). At the start of 2021 I bought a 4 plex in Las Vegas and its been cash flowing. 5 months later in 2021, I closed on another single family in Henderson which I am also airbnbing. In 2022, I just pulled 350k out of my first home and is ready to buy a larger deal.

Problem

I am mainly looking in California close to where I live because I want to put my daughter in a great school district. The problem I am having is price and competition. All the single family and multifamily houses in those areas have large number of competitions thus I decided to go into 5+ units. The issue I am facing with these is that the lenders I have do not qualify the property if the debt service ratio is not less than 80%. I am okay with using the HELOC to put 20% down, but that is the max I am able to put. These house are extremely over valued and the sellers do not want to reduce the price. If I am somehow able to get a property, I still will not be able to raise the rents since the rent control rules in California which caps it at 5% plus inflation per year. You also cannot kick out the tenants unless they agree, and you pay for their relocation.

Question

How do you guys navigate these above changes. What should I do? Any advice helps