All Forum Posts by: Jon Schwartz

@Staci Hill, if you're very independent, I recommend Fathom Realty. No support from the brokerage (not really), but the costs are very low and the software is good. Plus, you pay your annual dues on your first transaction of the year -- so even if you slow down for a period, you won't be stuck with dues every month.

Good luck!

Best,

Jon

@Catherine Frederick, actual Angelino here...

I think this is a problematic plan.

Remember, whatever equity you create in two years, you'll need a cash-out refinance to access that equity, and cash-out refinance rates are higher than purchase rates. So you pull out your equity, your mortgage payment might increase from $2700.

And that refinance is still debt, meaning you won't qualify for as large of a loan on your next house.

If you want to buy a stepping-stone property now to prepare you for a better home later, you should focus on buying something to sell it. It's called a live-in flip. You buy a property that needs work, move in, and do the work on your own schedule over the course of two years. Then, you sell and keep the profits tax-free because of the capital gains exclusion. You now have more money for the next property, no debt, and no negative cashflow.

Is this helpful?

Best,

Jon

@Justin Woo, I use and highly recommend https://www.thebusinesstaxgroup.com/, who are based in SD.

Best,

Jon

@Yang Zeng, I was in a similar dilemma when I began investing in real estate.

I spent months comparing out-of-state opportunities with larger purchases at home in LA.

Ultimately, I decided that the equity gains I could make in LA far outweighed the cashflow available from less-expensive homes in the Midwest. I didn't need cashflow to survive on, just as it appears that you have a healthy career outside of real estate. I concluded that owning a large asset in LA would be more beneficial to my net worth over time than buying several small properties out-of-state -- and I think I was right!

Good luck!

Best,

Jon

@Sean Haran, what's your rent in LA? Have you considered house-hacking a small property in LA to cut down on your living cost and build up equity?

Best,

Jon

@Jose Aguilar, fellow Cali landlord/house hacker here.

Firstly, take advice from out-of-staters with a grain of salt. They don't really know what they're talking about.

Secondly, you don't need a lawyer to draft a lease!

Thirdly, zillow.com and apartments.com both offer great, free tools for taking rental applications, screening tenants (via credit reports), and even doing leases and rent collection. Check them both out!

Fourthly, buy "The California Landlord's Law Book" by an organization called NOLO. You can buy it on Amazon. It explains everything you need to know about being a landlord in California.

Good luck!

Best,

Jon

@Senen anthony Virocel, I'm in the Los Angeles area in California. Can I be of any help?

Best,

Jon

How did you qualify for the loan as a student???

@Jesse Leigh, as a fellow Angelino, my vote’s for Columbus. @Remington Lyman’s the guy to get you started. 

@Elvin Luccon, with all due respect, you're neglecting the biggest opportunity in LA investing right now: ADUs.

If you have the money to put 50% down on an LA fourplex, you can definitely pursue an ADU strategy to cashflow faster and with less down.

LA ordinance allows for the construction of two ADUs on any multifamily property. For this reason, the size, shape, and layout of the building is probably the most important consideration (after neighborhood). With a well-situated building, it's possible to add two studio ADUs to a building for as little as $250K.

So buy with 25% down and build ADUs. Or -- if your lifestyle can accommodate it -- house hack the fourplex with 5% down, build the ADUs, and cashflow with much less money out-of-pocket.

Happy to discuss more if you're interested.

Good luck!

Jon