All Forum Posts by: Lee Ripma

There are ways to legally evict tenants-there is something called an Ellis Act Eviction for full renovations. But I think buyouts are the most common. If can get tenants out then you can bring the unit to market. Due to a lack of affordable housing in LA tenants are resisting since giving up rent controlled units means leaving LA. There is an interesting podcast called there goes the neighborhood that goes over a lot of these issues in LA.

I’m interested to see what others have to say on this topic, rent control and tenant rights are why I don’t invest in LA. I know that tenant buyouts are common, but budget for at least 25k per buyout.

@Sebastian Scott

Happy to chat! Just send me a PM with your number and we can setup a call-probably easiest! 

@Dane Hutchins

I also invest in KC, value-add small MF. I know a few investor friendly agents. If you'd like referrals feel free to PM me. Would be happy to talk about my experience investing in KC with you!  

Do you have 500-700k or were you planning on leveraging each of those purchases? I personally would never buy SFH TK. I would buy a TK apartment building in an area in the path of progress. An area that’s on the up and up, with a good tenant pool and a lot of demand. There are plenty of them around, pick your market and your price range and check out loopnet. Just to be clear turnkey just means renovated with no additional work to be done. Turnkey providers sell SFH that have been renovated and already have PM. I think it’s crazy to buy 10 TK SFH when you could buy a few apartments. But I’m not selling TKs!

@Steven Gesis

USB outlets are cool and probably not much more expensive than a regular outlet, so go for it. I don't think anyone is expecting that nor will it sell the unit that much. I think you want to have things that "pop" when tenants walk in. To me this is nice flooring, nice clean walls, nice modern ceiling fans, nice countertops, lots of counterspace, gas stove, lots of storage, nice closets, in unit laundry (best) or free laundry (second best), nice bathroom with tile and storage. The more I think about it the more I think you really have 2 minutes to make the impression, wow, it would be so awesome to live here. You want to catch them in their emotional decision making state. I think that the amenities like pool, sauna, gym, shared working space, actually serve that purpose. I actually moved into a "luxury" apartment for all those reasons. I never used any of the amenities and moved out because the soundproofing was so bad. How many units is the one you are talking about? Ikea can be awesome for bathrooms and kitchens if you don't have wholesale modern stuff available to you. 

@Steven Gesis

I'm an RE investor in MO but a renter in CA. I've lived in a variety of rentals in CA I also renovate properties, so I'm always interested in the amenities/trims to include. One thing I will always put into future renovations is dishwashers. I also won't go for grantite countertops, but something in stone I will do, maybe quartz. Ikea has awesome countertops in stone and non-stone. In unit laundry is best. Second is free laundry in a common area. I think one of the most important things is sound blocking walls in between floors and shared walls. Also lots of outlets. I don't think amenities mater, I've lived in places with them and I didn't use them. Pools, hot tubs, gyms, saunas, I would not spring for those. 

Interesting discussion! 

@Amanda Olvera

I'm on of those coastal investors who loves your market! The price to rent ratios, landlord friendly laws, and population growth make KC an awesome place to invest. I really enjoy the time I spend in KC at my properties and looking for more. I think you've got a great opportunity by living in KC. I would certainly house hack a small fixer MF if I lived there. What are you thinking about starting your investing journey with? 

I live in CA and I invest in MO. I hold title to my properties in a CA LLC as I have been advised that living in CA means I am doing business in the state. Each LLC costs me 800/year so a series LLC seems appealing. CA is not a state that does them. What options to I have for series LLCs assuming I stay in CA and continue investing in MO? Is there something else I should consider?

I agree, don’t let him stay, you want it vacant when you close. You can push closing for 45 days or offer him cash to rent an Airbnb in the area for 45 days while he looks. I think that 30 days is the magic number (but check with someone more knowledgeable) so I believe you’d want to keep the a lease at 29 days. I’m terrified of tenants rights in LA! I would not mess around on this.