All Forum Posts by: Dustin Lang

To get it to cashflow, you gotta really push down some expenses. I would recommend to try and refinance out of the FHA loan as soon as possible! The $600 MIP is a major cash flow killer. Definitely look at comps and how homes/multifamily are appraised for in the area, and strategically rehab to force as much appreciation as possible. Luckily, the LA area naturally appreciates faster than most of the country too. Consider to self manage it still even after you move out to lower expenses. Congrats on the househack purchase (:

Hi John, I've noticed the BRRRR calculator lacks that feature too. In the meantime, I've just been calculating it by hand. If it helps, Brandon Turner stated on a webcast that a newer version of the calculators will be released early next year.

On a side note, I'm also surprised they don't feature a MIP (for FHA) or PMI calculation for down payments less than 20%. 5% conventional loans are starting to come back.

Since you're not selling/flipping the property and plan on keeping it for a few more years, make it tenant proof in the meantime. For example, use laminate or tile which can withstand tenant "Wear and tear" in kitchens or living rooms more nicely and cost efficiently than nice pristine hardwood floors. 

Along with this, make sure to look at comps in the surrounding area and have your own property up to par or reasonably nicer to keep it competitive and maxed out on its rent potential. 

What do the surrounding rentals have that I don't?.... such as stainless steel appliances. If comps do have them, you might want to add it too to remain competitive; if not, maybe you can skip out on it. 

As others have mentioned, it really depends on your financial goals! Besides the financials, make sure to factor in the opportunity costs of either holding or selling the house. San Pedro is a growing area and the market is at an all time high; if you choose to sell, that’s a large lump sum of cash you can use to invest elsewhere like out of state RE, stocks or bonds (if you’re close to retiring) or do a cash out refinance and rent it. Weight out every possibility and how it aligns with your financial goals. 

@Jason Good Thanks for the response and wealth of knowledge Jason! Never knew or considered looking into the LDC but I definitely will now going forward! Yes it's in about a half acre lot and nearby development.

@Christopher Lombardi Thanks for the response Christopher; you were right! I did just that and contacted the local zoning office and they said the same thing. It's now zoned as commercial/business highway but since it's still occupied as residential, it can still remain that way or as residential rental.  

Found a SFR deal in Osceola County, Florida. However, the house has been rezoned into a commercial zone. I was planning on buying all cash, so don't need to deal with the bank. If purchased, can it still be used as a rental?

How do I look into county zoning laws? I've spent a good amount of time already but the county websites are so ambiguous. Thanks!