All Forum Posts by: Jeff G.

I don't feel quite as bad knowing that Fire Stations are being decline fire insurance

https://krcrtv.com/news/local/california-insurance-crisis-st...

My agent just informed me that State Farm is not renewing any apartment policies in California ( https://newsroom.statefarm.com/update-on-california/ ).  Does anyone have any recommendations for insurers for a ~60 year old 8-unit apartment in the Sacramento area?

I recently had a(n inherited) tenant vacate a house, owing more in rent and damages than her deposit will cover.  Being in California, I have to send a list of charges within 2 weeks, but she left no forwarding address.  Am I really supposed to send it to the address she just vacated?

Also, she left an old, beat-up desk outside which has since been rained on.  Is there some sort of legal litmus test for whether something is trash vs whether it needs to be put in storage?  I think most people would see it as trash, but I don't want to open myself up to "oh that was a family heirloom with sentimental value..."

While you're at it, might as well stop E-trade, Uber, Expedia, Amazon, etc -- maybe start a trade union to protect brokers & middlemen too...

Illegal drug use is a 3-day notice eviction.

Code of Civil Procedure Section 1161(4). Health and Safety Code Section 11571.1; California Landlord-Tenant Practice, Section 3.7 (Cal. Cont. Ed. Bar 2011).

http://www.dca.ca.gov/publications/landlordbook/terminations.shtml

If you're finding lot of good cash flowing multifamilies in Sacramento, I suspect you are leaving out a number of expenses in your analysis.  Feel free to post an example of what you're looking at, but here's a quick example:

6336-6338 Bonham Circle; Citrus Heights

$295,000 plus it needs ~$30k capex

Rents are currently $2175, and could be $2400 after updates.

Expenses:

$250k loan, 15 year fixed @ 4.6% = $1950/month

Water/sewer/garbage: $200/month

taxes: $300/month

So this example is already negative cashflow before maintenance & management.

...sigh...  

Is that truly a duplex or are they just selling one side?

Looks intriguing, but it is located in a small town in Ohio, 50+ miles outside the nearest metropolitan area, with a declining population, a per capita income of $18k (vs $27k for US), with 3 maybe 4 street parking spots, and with its 2 bedroom apartments currently renting for just $500/month.

It could be a winner, but might be a value trap too.  I'd triple check expense assumptions (for example, the current property tax is based on a $23,000 assessment & $112 capex seems low for a 100+ year-old converted 3-5plex).  I'd also pad vacancy allowance because it might be very hard to fill.  

 You won't find one who did it passively in 10 years starting with < $30k. You'll have to do a lot more than reinvest cash flow into new turnkeys to achieve the income you're wanting in that timeframe.