All Forum Posts by: KJ L.

David Greene has a book on long distance investing that details steps for OOS investing.

Where in Alabama is the property located? If its near the gulf coast (Mobile, Foley, etc), either get an HVAC or minisplits in the property. My parents told me its about 93 degrees down there this week and their humidity levels are high. Minisplits have become pretty popular due to their energy efficiency & price point plus the fact that you can control temperature in each room. Our friends installed minisplits in their Airbnb properties and they love them. 

I agree with Jaysen; you should seek a quality lawyer who'll provide you value rather than someone that is convenient and free. Paying for a good lawyer is a solid investment because they'll help you stay out of trouble/avoid lawsuits. 

We found our first deal on the MLS.

@Chris Bustillo Let us know when you find out. I think this is a secret formula that everyone wants to know. =)

We own a duplex in Los Angeles with FHA financing under personal name and considered moving the property to an LLC but we were advised that a change in title and/or adding new construction will cause reassessment of property value for property tax UNLESS the property is moved to a trust. Based on prop 13, you can move properties in to trust without causing reassessment (consult with lawyer for the type of trust that is allowable to avoid tax increases under prop 13 rules). Also, if you have a residential mortgage on your property, you cannot safely move it into an LLC (could trigger due-on-sale clause) but you can move it into a trust without triggering that clause or negatively affecting your interest rates. Properties held in trusts can have residential mortgages while properties in LLCs can only get commercial loans.

If you need a name of a lawyer to establish trust or other RE holding entities, PM me. 

Hope this helps

@Sam M. Maybe you have some advice for this situation? 

@Benjamin Manibog

We're in the Vermont Square neighborhood near USC and we're seeing more gentrification and property movement. There's new development like LAFC stadium, new Honda dealership & George Lucas Museum but also property prices in the area are still some of the lowest prices in Los Angeles City, favorable zoning (primarily LAR2 and up), a lot of craftsman style homes, and the councilman is working really hard to rejuvenate the local parks. LAPD recently moved 300 police officers to the area and we've noticed more house flips too. 

@Marcos Urvina Do you mind providing an update after your ADU is complete? I'm interested in hearing how your ADU affects your property taxes and the reassessment process.

If you're renting, you should find a 2+ unit that you can convert your rent expense to a mortgage. You can receive some rental income and then also gain experience as a landlord.