All Forum Posts by: Chad Hale

@Radai R.  Looks like you've covered all the numbers pretty well.  I offer the small pricing tweaks and info for your consideration.

I would increase your property tax estimate to 1.25%.   There are always special assessments and new ones being added.

I think your insurance is a little high at $4500 year.  You should be able to find insurance for that building less than $3k / year.

You can find good PM's for 8% and no placement fees or other hidden fees.

Also worth knowing the multi-family market in San Jose is softening right now.  Also don't forget about rent control limiting rent increases to 5% / year if you are looking at units with under market rents.  It'll take a (long) while to catch up .

If you can purchase all cash, you can find some rehab/fixer-up/ value-add deals.  Takes a lot of work and you have to be able to pull the trigger fast, like less than 24hours.

Personally, I would not buy right now in the San Jose market based upon appreciation alone.  Work hard and persevere to find a cash flow neutral or better deal with some margin.

I'm with @Joe Hines given the information you provided.  Also, depends on your long term goals, risk tolerance, etc.

Owning a good cash flowing home across the street for free (After BRRR) sounds great to me.

I would not do it.

In my experience rent o meter is ballpark at best.  You can get that info and more accurate from plenty of other sites, craigslist, zillow, rentcafe, local PM, etc

Make sure you have a signed release form from the tenant giving permission for the prospective landlord to make rental reference inquiries.  At least in CA this important.

These are the questions I ask and will answer:

    Dates of residence?

    How many times in last 12/24 months did they pay late?

    Have any checks/funds been returned for NSF?

    Did you ever file an unlawful detainer against the tenant?

         If yes, what was the outcome

   Does the tenant owe any monies for outstanding rent, damages, utilities etc?

   Did the tenant provide proper notice for ending the tenancy according to the lease agreement?

   Did you ever serve a three day notice to the applicant?

          If yes, explain?

   Would you rent to them again?

I add to @Anthony Wick phone questions.

  Do you have any pets?

  Do you have good credit  (I still run my own.  Just a screening process)?

  Why are you looking to move?

The Loan Manager in QuickBooks does this correctly.  It assigns the correct amounts to interest expense and liability reduction.

You can't use Zelle with Wells Fargo Business Accounts.

@Albert Ng  Sent a PM for a great mortgage broker

Agree with the others saying if you plan on returning getting back in the market is usually tough.  Typically rising market, property taxes, interest rates...

Somewhat depends on your income level too.

Yes, you can make your entire property inside and out a non-smoking property.  You can not say we don't rent to smokers.

Subtle but important difference in CA.