All Forum Posts by: David J.

@Matthew Paul selling is certainly one option. I am not super keen on taking a loss on the sale. Another option is the REFI. I talked with my lender. I just need to wait for 6 months to pass. I am already 2 months in.  So in 4 months it can be appraised again. Considering it's now refurbished and the market is peek season in 4 months, I think it will appraise higher.  IF I also add a few funds I think I can get it up to 40% equity and a lower payment. I should be seeing cash flow at that point. 

The sad thing is there is no option I see on the table that is actually a GOOD option. I am only looking for the one with the least loss to me.

Just thought of another possible solve. 

REFI and dump more money into this property to lower the payment and make it positive cash flow. It would be a lot of liquid assets into one SFH so I am not sure it's a good idea but at least it would position me for positive cash flow into the future.

What do you guys think of that idea?

ah just figured out that even if I sell at the highest price my agent thinks I can get I would still net out at about $20K loss...  

wow I am really in a pickle.

@Account Closed I signed a short 6 month lease, so there is always the possibility of asking for a rent increase in 6 months.  I don't know. 

Speaking of inspections, this guy failed me because the heater wouldn't come on. The battery died on the Thermostat. I begged him to hang out for a minute while I go across the street to buy a new battery.  He insisted that he would come back next day if I called in. Took me a FULL WEEK to get him back over there. It's near impossible to get anyone on the phone at the Housing Authority office. Anyway, the end results are that I ended up paying Dec mortgage with NO tenant. Total loss for the month of December.  It didn't have to be like that, it was purely because dealing with the folks down there was so difficult. Granted they are understaffed and lots of work around the holiday time frame but still, ARGH that was rough. Only to find out the rent is WAY lower than expected. I was thinking they would offer low but like $2700 or something close.

@Account Closed I wrongly thought it would be a Cash Cow myself. I asked for $3250. It's in Baypoint. Section 8 Housing Authority approved me for $2,284. They only tell you this of course AFTER you have found a tenet signed all the papers and all but locked everything in.

Yeah, looks like cut my losses and sell is the only best option here. I think the key is to not let this cause me fear. I just need to get on my feet and try again. I don't have loads of properties to compensate for this one. This whole ordeal has been really rough on me. Would love to hear from someone who has had a similar experience.  

@Mark S. would you be satisfied with $100 a month for $97K invested? Bay Area is a hot market right now.  This neighborhood is C+ .. would be B in some states but relative to bay area C+

Not great but here it goes! 

For a bit there I was able to make Bay Area work, I could find houses cheap enough that they would cash flow decently. 

I guess it's not possible anymore. Or at least, it's getting really difficult. 

I found a 4 bedroom SFH in the East Bay. It was in decent shape and in a C grade neighborhood.

Paid $385K  (20% down conv loan). Payment is $2,179 /mo

Did $20K of upgrades and remodels. New countertops, kitchen sink, appliances, water heater, bathrooms totally remodeled, new bedroom doors, new floors, baseboards, paint ETC ETC. 

It's looking REALLY clean, nothing overly fancy but very clean.  Got it rented $2,284 /mo 

WOOOOOOOOO $97K to make $100 bucks per month.  Winning  -_-

Pretty bummed. At least I am out there trying. I have to avoid get discouraged. I need to sell this place and try something else.

UGH

I will have my 6th SFH in California shortly. They will all be rentals and they are all medium to low end properties. How much umbrella coverage is a good idea to hold? Obviously more is better but how often does a landlord lose a lawsuit in excess of $1M? Trying to understand the actual risk involved.

Thank you :)

His room is also quite dirty and he cracked apart one of the dining room chairs. 

I appreciate the feedback, I was thinking about just giving him everything but wasn't sure if I was being a push over or not.