All Forum Posts by: Jonathan Taylor

@KJ L. I've been telling everyone to vote NO. It wont be a long run win even though its being sold as such

Hello BP folks,

I'm shopping in LA and this turn key triplex came up. I was originally looking for value add opportunities but my loan program is pretty restrictive so I dove in but Im a bit skeptical. My out of pocket limits I set for myself were 1500 since that is what Im paying now. But I could use some experienced investors opinion. 

A few things to note, my loan program does not charge PMI if Im below 20% and they cover most closing costs so those are intentionally low. The projected rents are about 100-200 below adjacent markets as the area does not have decent comps.

What did I miss?

Thanks

JT

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HI Guys,

Ive been submitting offers around Los Angeles and educating myself on the rent control laws here (they are a pain but required). At my most recent meeting with the LA housing authority I learned about Prop 10 that basically limits the amount of rent a landlord can increase a vacant unit. This kills any value add and cuts landlords at the knees. Im asking LA landlords and others who may have experienced this, how does this change my investing strategy ?  Should I wait until November to buy because if it passes prices may fall but then waiting is never a good thing in real estate. 

All opinions on this topic welcomed. 

Thanks 

JT

Hi BP folks, I live in Los Angeles and have been putting offers in for fourplexes but prop 10 has me wondering if I SHOULD by as big as I planned. For those who don’t know, prop 10 would limit landlords ability to raise under market rents and basically cut landlords at their knees. So my questions are: 1. For existing socal landlords, what is your opinion on this bill and what are you doing to mitigate risk IF it passes? 2. Should I stay small, buy a duplex and move my money OOS or continue and hopefully close before/if it passes? Any and all thoughts are welcomed. Thanks JT

@Anthony White That’s wonderful story! Could you please elaborate on how you achieved this accomplishment? I’m in CA and bidding on my first properties this week but plan on moving out of state next year.

@Mitchell T.Thanks man, its tough, not gonna lie, Ive lost a few bids to the suitcase of cash scenario but Ill keep at it.

@Gilbert GutierrezStay in touch, seal beach is a high market. I'm more Downtown-ish. Stay in touch as Im curious about others experiences as well.

Hi guys,

Im new to BP and have been diving heavily in all things real estate investing. I am looking for a duplex with my first purchase and will grow as aggressively as I can to commercial multi family units. Looking to meet local folks so we can nerdily (not a word...yet) chat about all things REI. Look forward to meeting all you fine folks.

Cheers

JT

Hi BP folks,

I got my approval and am actively bidding in Los Angles for my first property. Most properties I come across have tenants in place and since I'm house hacking, at least one vacant unit is written into my bids. The legalese around getting a tenant out for renovations to up the rents are grey area. Does anyone know the legal way to get tenants out in California? I'm a newbie here so any help is welcomed.

Cheers

JT

@eric C That’s the plan and why I’m running into difficulty. Duplex for purchase and I’ll be living in one unit. Aside from the lender problem, most deals I see don’t even cash flow when I eventually move out. @Harjeet Can you delve a bit more into that please? I did make more, substantially, last year by about 23% from the previous year but spent more on my business due to the upcoming changes. So it only equals out to a 12% income growth over two years. On that note then does anyone know a lender who works well with private contractors in Los Angeles? Thanks for the replies.

Hi folks, I’m planning to buy a multi family in so cal and ran into an issue with my lender. I make high 5s a year but am an independent contractor so I write off a lot of what I make to take best advantage of taxes. I get that my AGI will be less than what I earned, basic tax stuff here. The lender took the lowest number for my income at 60s and said max I can borrow is 450,000 even though I only had 17 in write offs. That buys nothing in LA and is laughable because the bottoms barrel multifamily is 550,000. Seems like I’m running into this with other lenders and am unable to get my loan amount higher, any suggestions? Would love an experienced investors’ opinion on this. Cheers Jonathan