All Forum Posts by: Jonathan Taylor

@Steven Diaz

I just closed on a fourplex in January in NELA. I used the NACA loan program which helped me get into the multi family price point. It may be a great option for you since youre starting out.

Look them up at Naca.com

Dm me with any questions.

@Chad Gaither amen to the CA tenant BS that seems to suck the investment out from under you. I had an adopted tenant who thankfully took the extortion-level HCIDLA  'minimum' buyout agreement but in the end it will payoff. Im now studying all the screening tactics to avoid this in the future, what tactics will you incorporate in your future screening?

I agree with @Antoine Martel, but lunch is sometimes a good option too. 

Im going to reiterate what has been said but its a simple supply and demand. Even with the exorbitant rents here, there are jobs and people that can afford them. If you, as a landlord, offer a clean modern place and take care of it, there are tenants that can meet or exceed your qualifications. Its just like the posts about finding tenants say, screen well and cross all you Ts, the good tenants are out there.

@Zach Hoereth Im mid rehab right now but looking for my next project. Im in the Silverlake are and available the first and second week of May to meetup. PM me and we can see if something can work. 

Cheers

@Chad Gaither Anytime, NACA is a non profit that helps new owners purchase SFR or MF (1-4 units) with character based qualifications since it is geared toward low or moderate income folks. They also aid existing single property owners in predatory loan terms to refi into a more sustainable mortgage. I also was able to wrap about 85%of my rehab into the loan. Now this sounds like a sales pitch but there are downsides.

First, you cannot own more than one property to do this program, second, its a huge headache to do. It took me 10 months to be approved to buy through them with constant emails, calling, paperwork due to over worked staff and under developed systems. It was a 10-15 hr a week job for the better part of a year and then I had to find a buyer willing to work with this program and because of that, my escrow was 4 months long on a fourplex... so ... tread wisely but it is a good program if, keyword IF, you can close. 

That said, I bought in Glassell park and should have two of the three units online end of July. 

Why did your eviction take 7 months? How id you find your triplex?

I'm going to second this, I will be in need of these contacts soon. Anyone know these folks?

@KJ L. The part I find the most interesting is that small landlords (less than 10 units) are the ones who pay the highest cost for restrictive rent control rules. The big players have a large enough portfolio to accommodate, albeit begrudgingly, the changes in RSO rules. But that doesnt change the fact that we, as owners, will have to leverage our risk for owning to allow tenants to walk all over the already tenant loving rules that exist. 

I feel this next series of rent control bills will push owners over the edge. Its getting too ridiculous.

I called the RSO office and its correct. you can raise the rents 4% starting in July, but from my last visit to the HCIDLA office in November, All RSO landlords can raise the rents if they folllow the below guidelines

3% - standard yearly increase

4% - cover gas and electric

5% - pay all utilities (I have not met a landlord who actually did this but it came from Charles Garcia, a rep at the office)

Let me know what  you find out. 

JT

@Sophia Fong With 40k in the bank its highly unlikely to get 8% COC here in so cal. If your housing costs are low enough I'd suggest go out of state. If you are flexible in your location east of Azusa there are some decent duplexes that fit your price range. It really depends on your goals as an investor. I bought a fourplex and will be living in one but my costs break even once its rented to Im banking on appreciation/loan paydown/tax benfits.

Good luck