All Forum Posts by: Edward Tamayo

@Mario Gonzalez

And by the way Mario, if your goal is to live rent free on your first real estate investment, your best bet is to stay home with your parents. Buying & owning & managing & maintaining & retaining rental property is not about freeloading. There’s nothing free about real estate investments. Have you considered crypto currency?

@David Barwick, to make a long story short, I’d go with the 2. But what really makes me moist in the shorts is job stability. If they’ve been at that job a while, or at least in the same career? Then I can overlook some other stuff. Except of course, prior evictions! NO PRIOR EVICTIONS! NO NO NO!

Good luck!

@Rick Albert you must be probably the best agent in Los Angeles because virtually zero properties get sold 3.5% down/FHA in LA these days simply because the prices are way wayy above the FHA guidelines for affordable housing for FHA buyers in most of coastal SoCal, and if the price is low enough to qualify for the FHA buyer price ceiling which I think is still somewhere around 600 to 700K, the property is probably not habitable without a good $100k to get it in livable condition which wouldn't qualify for FHA to begin with. The fact that you've managed to squeeze out 2 FHA deals in the SoCal market over the last few years is in itself a miracle & a testament to your talents as an agent & you should be commended for that. Excellent work! In reality, virtually all properties in LA, which average around $1M+ are usually bought with at least 20%+ down, (or cash). But let's not steer this kid the wrong way & get his hopes up on something that's probably not going to happen. It seems he already knows what's going on from the feedback he's already getting from the agents he's working with in his home market which would be to go owner occupied first, preferably multi-unit, & try at all costs to avoid dealing with an FHA loan. They're expensive & they eat up all the rental income profits. It's much easier to buy a rental property when you already own your own house than the other way around…

@Dylan Grieve

OFFICIAL REAL ESTATE HANDBOOK

Rule #1.

Never sell CA real estate

Rule #2.

Never buy real estate outside of California

Rule #3.

Refer to rule #1 & rule #2

REFI & Airbnb that puppy. You don’t wanna end up like all those other suckers who wish they had never sold their house in CA.

@Joseph Guidry

May God Bless your heart.

The short answer is DONT!

RUN AWAY! FAR FAR AWAY!

But if you do two words,

FAMILY TRUST.

Good luck!

@Kim Banks

Yes. Which is exactly why you get a brand new application & lease/rental agreement from the beginning so that they’re renting on your terms, not someone else’s who’s no longer involved in the transaction.

@Kyle Mullins

First of all, regarding leases, once you take possession of the property, you inherit tenants that don’t have any written agreement with you. They really don’t owe you any rent because they have never signed an agreement with you, whether it be a lease or month to month. You don’t even have a rental application. All you know is where they live, period. It is ABSOLUTELY NECESSARY that once you take legal title to the property, you MUST have them fill out a new updated rental application and you must have ALL OF THEM sign a new rental agreement WITH YOU. Or at least an addendum to their existing agreement denoting that they now pay their rent to you. And while you’re at it, don’t be afraid to inform them of their new rental amount. And if they can’t afford market rent, it’s better to get them out sooner than later. That’s the difference between buying rental property and making good investments…

@Kyle Mullins

Yeah raising rents & making improvements are two separate issues entirely and should never be conditional to one another. Obviously, if the property has deferred maintenance, that should be addressed ASAP. As far as updates or remodeling, that can be done between tenants. 2nd, you are inheriting those tenants, you didn’t rent to them so they really aren’t your renters. so as the new owner, you really didn’t establish the terms of tenancy as you see fit, therefore you don’t owe them anything going forward. However, making an effort to be a fair landlord is always a good idea. Sometimes some tenants will confuse your kindness as a weakness & try & take advantage of that.

@Rick Albert

It’s a double edge sword in LA, the landlord climate was already tough for landlords and then along came Covid and made it worse.

On the other hand, the appreciation in LA the last 7 years has been amazing, even during Covid. Kind of a tough question to answer…

@AP Horvath

And good bye & good riddance, let them move to Austin. Quitters. I for one will not be selling my LA house anytime soon.