All Forum Posts by: Derrick Dill

I would get a structural engineer to check it out if you want to continue with the deal. Structural problems can be a big headache, on the other hand, could be more minor than you think.

Upwork.com has freelance engineers

I half-jokingly tell them that all my tenants live better than I do. I'm renting 1 room in the bay area with shared facilities. My properties have AC/heater/their own bedrooms/bathrooms/washer/dryer/amenities. 

I wouldn't mind living in any of my units, they're nicer than my current living arrangements.

Fed controls interest rates, Fed Head (Jerome Powell) said they plan to keep interest rates at 0 until 2023.

There's currently an eviction moratorium in place. I am purchasing a house with a tenant in place right now, and the tenant hasn't paid in 3 months. I consulted an attorney, and he told me the courts are closed and he cannot be evicted in this county until March, 2021. Attorney suggested cash for keys arrangement to resolve. Only thing worse than this eviction moratorium is extending this moratorium for me personally

You would have the old owners leases and need to respect their leasing agreement. Their leasing agreement would be yours. Cannot answer your question without more information. 

You used Zillow rent estimator? I plugged into rentometer, and got different results. Rentometer uses actual listings that got filled in the area.

These were the results I got:

Results based on 24, 4-bedroom, single bath rentals seen within 48 months in a 10.00 mile radius.

AVERAGE$1,715 ±8%

MEDIAN$1,438

nearest rental, 5miles away:

Rentometer Property Report

Tax brackets

If you're making 40,127$, you're taxed 12% on 40,126$. 1$ will be taxed at 22%. 

You won't be "bumped up" to a higher tax bracket, common misconception.

Will most likely bring back state and local tax deductions (SALT, property tax deductions) that were taken away

Storage facility? storage sheds/containers? RV park or RV parking? boat/car parking? 

Hey Josh,

1. I'm in an expensive market in the bay area, CA. Properties are flying off the MLS within days. I managed to find a place that I'm in escrow for now that I can make work and should be house-hacking for free after things get situated (troublesome tenant the seller can't get rid of,termites, deferred maintenance etc.) I'm taking on some headaches that people don't want, for the opportunity to buy in this market. After the deal is complete, I'll be able to live for free (if I can evict tenant without issues). I'll be looking to convert the garage to a additional dwelling unit and cash flow, in this market, in the bay area next year.

2. Seems the article is very half-glass empty. I look at it from the perspective that mortgage rates are at HISTORIC lows, the lowest they've ever been, ever (I'm at 30yr 2.6%!). That boosts your buying power and with the fed targeting inflation rate of 2%.. we're talking about near-free $. The low inventory is partially due to this. You might have to make some sacrifices in terms of location, need to do more repairs/renovations than you want, take on headaches that others don't want, but deals are out there.

Will probably bring back SALT (state and local tax) deduction will most likely be brought back to deduct property taxes.