All Forum Posts by: Derrick Dill

I'm not a big fan of selling. Taxes, deprecation recapture, realtor commissions (5-6%) just a few of the reasons. If you have a property that is producing well, why sell it? I'm big on leverage and I would access the equity with a HELOC or cash-out refinance.

Yes, you should have them sign a formal lease. I've worked with several different lenders in my days and they always ask for leases to prove you're getting rental income. You should have a paper trail in case anything happens, and a lease so you have a contract with your friends in case anything happens as well (never know)

 60k down payment to acquire the property. 10k in repairs, 40k to convert the garage. 

70k to get me in the property. 

I just bought in bay area a few months ago. Got a 5bd/5ba in Hayward for 880k. I converted the garage, and I'm cash-flowing now, the tenants cover the mortgage and I get paid to live there.

Outlined here: https://www.biggerpockets.com/...

@Justin Gottuso

Link to SB13 for reference https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB13

I've bought 2 FHA properties so far. Let the seller know you want to buy the property but to fulfill your requirements to FHA one unit has to be vacant.

Eviction process is easier for non-renewal squatter.. but it's still going to be a long, tough road ahead:

Eviction moratorium is not over, and it still might be extended (again)

Courts aren't taking on evictions in my county in Bay area at all, when the moratorium is over and they do start taking them, there's going to be a huge backlog of people wanting to evict.

I would reinforce you're not renewing their leases (make sure you don't accept their money during the next term), and let them know you plan to evict if they plan to stay there. Let them know If you evict they will: have an eviction on their record and be very hard to rent anywhere again, there credit score will be ruined, can still pursue their back-rents in small claims court.

I know it's not what you want to hear but, California is ridiculously tenant friendly, and the moratorium makes it even more ridiculous in their favor. 

You'll spend a good couple thousand on lawyer and eviction, might be worth it to offer them that same couple thousand? If not, buckle up.

Forgot the company name, but they'll put in coin-operated washer/dryer, do any/all maintenance on it for a small monthly fee. You collect ALL coins.

Build equity in the home and refinance to conventional loan. Then do FHA loan again on new property (your current would be conventional). If you're moving closer to work, lenders will let you get another FHA (I currently have 2 FHA loans).

By doing the rehab you should built some equity, and the exploding real estate market probably helped too. Take out a HELOC and buy your next house-hack. Have your partner live in one and you can live in the other. Or rent out the current unit you're living in for additional cash flow.