All Forum Posts by: Julie Coleman

Hi Paul, I am a project manager in commercial architecture and am a newbie multifamily investor in Los Angeles as well. I am looking to partner with someone on my next residential investment. I have some equity in my first deal and want to develop a 4 plex instead of buying an existing 4 plex with tenants. I prefer to buy/hold for long-term rentals. Feel free to DM if you are interested in chatting further. Thanks!

@Paul Dashevsky

Did you connect with Jennifer? I am seeing this thread a year later and am wanting to know how it turned out. I am looking to develop a 4-plex in Los Angeles County versus buying one. My intent is to buy, build and rent/hold. Would love to connect. Thanks!

@Andrew Garcia Thanks for the quick response. I am starting to talk to various lenders about options. It cash flows nicely with a 3% interest rate and has doubled in value in the last 3 years. I give myself credit for that :) Luckily I can afford to buy him out, but at the property's current value and interest rates, I would have to sacrifice negative cashflow for a few years after refinancing on my own. It is in the Los Angeles market and is bound to further appreciate over the years. Not sure if I should sell and buy something different or keep the investment based on the numbers. 

My ex and I purchased a duplex in Glendale, CA as marital property in 2018, yet I am currently in the process of a divorce with my ex.

Due to the divorce proceedings, I would like to know my options regarding the property.

1. 1) I keep the duplex. What is required to take my ex off of the title and loan? He wants out.
   1. Will I need to refinance to get him off of the loan and title?
   2. Will I need to refinance using my income only in order to get a primary residence loan and a lower interest rate?
   3. It is a duplex that neither of us currently live in. Can the rental income be used to qualify for the loan? If so, how does that affect the interest rate and remaining principal?
2. 2) My ex and I sell the duplex.
   1. Since we have owned the property for 5 years and lived in it from 2018-2020, we avoid capital gains tax, correct?
   2. We split the profits.
   3. We pay ~5-6% sellers commission.
   4. In order to buy another property with my proceeds, I will need to get a new loan similar to Option 1 qualifications.

Thank you for your advice in advance. 

@Ciprian L. We are intending to rent or travel on a dime until we have enough cash flow (presuming 2-3 years) from renting out our first property to save enough for a 20% downpayment for a second property. I see in your profile you have experience buying properties in consecutive years. How did you formulate your strategy? What's your goal for cash flow?

We found a fixer upper duplex in North Pasadena for around 600k. We plan to put 5-10% down. Rehab for less than 6 months and then rent for 1500 - 2000/mo/unit. First property ever, so I hope it's not too aggressive. 

Thanks for your feedback @Boris Gutierrez. We were thinking taking two mortgages out at the same time was riskier than the third option. If the third option does not work, then we just continue paying the conventional mortgage down as we normally would until the principal of the loan reaches 78% LTV.

In regard to your question about Pasadena, we are looking for a duplex in North Pasadena above Washington Ave or in Altadena. There are more SFHs in the area, yet are mostly out of our price range in the 700-800s. We are not tied to this area or school district yet are familiar with the area having rented in Old Town Pasadena for 4 years. We are willing to look into other areas such as Glendale, Burbank and Inglewood, yet want to avoid LA City due to rent control restrictions.

Any advice helps. Hoping to analyze some properties and tour a few places this weekend!