All Forum Posts by: Kerresha Musgrove
Kerresha Musgrove has started 2 posts and replied 7 times.
Post: Recouping inspection and appraisal costs due to dishonesty
- Hawthorne, CA
- Posts 7
- Votes 0
Quote from @David P.:
To be honest your actually better shape buying it as a single family residence. Just lending alone they add 1-2 points for 2 unit investment properties. If you can get it as owner occupied you can always refi to the best rates out there. As long as it generates rent and you think it is 2 units then that is what matters. Appraisers are getting better at adding value for ADU conversions now but it is the benefits in interest rate that will help you cash flow.
For example last year i purchased a 2 unit duplex thinking it was all under one APN. Turns out they were actually detached condos with their individual APN number. Besides paying 2 of everything apprasil, escrow fees, i got the benefits of a SFH investment loan at 3.125% with no points. On top of that I can actually sale them seperately in the future if i want. In your case you won't be able to sell them seperately but if it was a true duplex you wouldn't either but you get the benefits of not getting dinged for 2-unit rates.
Thanks for your response and insight, David. I was still interested in purchasing it as a SFH, however the seller didn't want to come down on the price so he cancelled. I'm looking more into the ADU route , because traditional multi families are hard to come by in my area.
Post: Recouping inspection and appraisal costs due to dishonesty
- Hawthorne, CA
- Posts 7
- Votes 0
I put an offer on what I thought was a 2 unit property. While in escrow we found out that it’s actually a single family residence per county records. We asked the seller and listing agent if the back unit was permitted. They were adamant that it was and after tons of back and forth they sent over permits and the building plan. I took those plans and went to city planning to get clarification. I was told that the back unit was once a garage and was converted into a guesthouse in 1959 (the seller bought the house in 2014). City planning confirmed I was not buying 2 units but rather a single family with a guesthouse and should negotiate the price to match.
My agent went back to the seller with my findings AND a lower offer price. The seller canceled the contract. Money and time were wasted due to them not being truthful. I would have never made the offer if I knew from the beginning it was single family home. Can I recoup my inspection and rush appraisal costs which totaled up to a little over $2,000? I’m slightly bummed as this would have been my first home purchase, but excited to have come out with so much more knowledge. Thank you for suggestions/advice.
Post: Attorney to help draft a rental agreement
- Hawthorne, CA
- Posts 7
- Votes 0
Quote from @Ali Boone:
Thank you. I'm leaning more towards this. I just wanted to make sure I fully protect myself at leas t on the first go around.
Post: Attorney to help draft a rental agreement
- Hawthorne, CA
- Posts 7
- Votes 0
Quote from @Theresa Harris:
Does the tenant have a current lease?
No, they had a verbal month to month.
Post: Attorney to help draft a rental agreement
- Hawthorne, CA
- Posts 7
- Votes 0
Quote from @Steve Jones:
As a member you get access to all the forms you will need for a CA landlord...and they are constantly updating the forms to comply with whatever the legal landscape is. I use their lease forms and their forms are more comprehensive than the typical CARS form. It is worth the $100 annual fee! CAA also keeps you in the loop on upcoming laws, threats, etc.
Best of luck!
Thank you for responding! I'm going to look into this now!
Post: Attorney to help draft a rental agreement
- Hawthorne, CA
- Posts 7
- Votes 0
Quote from @Tim Grich:
I've never heard of the apartment association. I'll look into it! Thank you!
Post: Attorney to help draft a rental agreement
- Hawthorne, CA
- Posts 7
- Votes 0
Hello, I'm in escrow on duplex ( my first home!) and will be inheriting tenants. I'm reading Brandon Turners book on managing rental properties and it's sooo helpful. However, there are quite a few legal clauses I need to add that are specific to California. Can anyone recommend a real estate attorney to assist? I reached out to one, and he recommended I use the CAR standard realtor form, but it's not as comprehensive as I would like .
Thanks!