All Forum Posts by: Account Closed

@Wes Blackwell Numbers aside, you'd recommend owning in this area? Personally, I would not. But that's just my opinion. Would love to hear others.

@Jennifer L. Personally, I wouldn't be worried. There are far bigger issues to worry about in my book. But, that's just me.

Health and Safety Code section 1597.40, subdivision (d) also requires a tenant to notify their landlord 30 days before they begin operations. This law has been on the books since 1997. So the day care issue wouldn't be a surprise to any landlord.  Also, there are licensing requirements for day care providers. So if my tenant were running a legal day care, they'd probably be the best tenants I could have! Someone else regulates them and they have a job! 

If you feel bad about it, I'd comp the tenant's laundromat's costs. You never regret being a nice person. 

A friend picked up a rental near the college earlier this year and has no problem renting to the students. Good luck!

Welcome to the club Jeremie! Here are a couple of tips that have helped me.

1. For me, Landlording on Auto-Pilot by Mike Butler was great book to get me started. That's literally the only book I needed. PM and I'd love to give you my copy. I hate to have books collect dust.

2. Landlording all comes down to screening. I love SmartMove to screen a tenant's rental history, credit report, and criminal background. I'm sure there are others out there, but it has worked well for me. Picking the right tenants will make landlording a breeze, a nightmare, or somewhere in between.

3. Identify contractors for the tasks that will go wrong, but you don't have the expertise to fix, AHEAD OF TIME.  You're a heck of a lot more handy than me, so there might not be many things that you cannot fix. 

4. As much as possible, draft your lease to put as much "ownership" of the property on the tenants. For example, if there's a lawn, require that the tenant provides upkeep. I have a friend who requires the tenant to get estimates and schedule plumbers, electricians, etc. if something goes wrong. He just pays the bill. 

5. In general, a lease is not very complicated. Civil Code section 1950.5 (http://leginfo.legislature.ca.gov/faces/codes_disp...) sets forth the general requirements for security deposits. Understanding how to get in and out of a lease is important. But, I don't think the average person needs an attorney to draft a run-of-the-mill residential lease. I would Google the California Association of Realtors lease and modify it as necessary. 

6. Marketing - stay away from Craigslist! I've gotten a lot of good leads on Hotpads. Posting a sign in the yard and word of mouth referrals would be ideal. 

Good luck and have fun meeting some awesome people during the process!!

 Talk about the sky falling. Get insurance that covers the dogs as many people have said. You've met the dogs and said they are great. What's the problem? Sleep easy and collect those rent checks. Don't let fear turn you into someone you don't seem to want to be.

Area wise, it is fine. There are a lot of shops nearby and it is convenient for commuters. While it is not the "safest," that doesn't make it unsafe. And personally, I do not feel unsafe in the area and I would feel comfortable owning a rental there.

I think as an investor, it's hard to put ourselves in the shoes of our perspective tenants. Why do they choose to live in this area? What other options do they have at their price range? For me, answering those types of questions goes a long way to really understand an area. @Ali Samee, I would encourage you to spend some time in the area and see how you feel. 

In the end, your (hypothetical) rental will likely be an option too good for prospective tenants to pass up. You will provide a great product at a competitive price. Good luck with your search!

Why not take some cash that you have on hand and pay down 1 or more of your existing mortgages? You have a nice diversification of assets, but instead of looking for greener pastures, why not tend to your existing herd? That would be my play. Your cash flow would increase, which you could then use to pay down more mortgages, and alleviate a ton of risk. 

As an attorney who owns property who my fiance, I don't think this is situation too complicated. I'm assuming you eventually want to marry this person. If not, then I would not buy property with a girlfriend. Period.

Assuming you both plan on a future together (i.e. marriage), I would draft a simple partnership agreement and do as the article advises: take title as joint tenants and have both parties on the loan. A real estate attorney could put this thing together for you very easily. And as a previous poster said, I don't see a need to buy as an LLC unless and until you have multiple or very valuable assets to protect. Good luck!

And of course this is not legal advice.