All Forum Posts by: Lorraine Hadden

I see you're already calculating the rent to be $700/mo for all 5 Units.  Deep down you're probably thinking - there is no way the current four tenants are going to go from $525/month rent to $700!!!! If that rent increase is what you need to make this work - and there's no way you can raise the rent from $525 to $700/mo then that is likely why you are hesitant! 

@Coley Mitchell, I too have been off BP for about 6 months (focusing on several projects). But, I saw your post and also wonder about reaching property owners in my market (California in general and LA County in particular). looking for property owners (who want to sell but have tenant occupied property. Maybe the owner want the property vacant @ COE --- I COULD CERTAINLY HELP MAKE THAT HAPPEN)!!!

The advocacy side of our RE business actually want to connect WITH tenants who may qualify to purchase the property being sold or the tenant want help to purchase elsewhere (maybe they don't like the home they're renting but could use some help in moving on).

I usually represent BUYERS so tenant who I can get qualified to purchase is a never ending stream of clients.

Welcome to real estate investing!

Here are some things to consider:

Do you have an approval in place to purchase a 2-4unit property?

Do you have at least 6 months of RESERVES? Your lender might expect you to keep at least six months of cash set aside to cover your loan without income from the property.

I personally would NOT self-manage a 2-4 unit property while in school FT and this being your first investment property (no experience managing rental property). I would get a PM in place.

Good luck on owning your first investment property!!

I've never done the "First Lien, then Hustle" type post-close lien stacking financing -- I AM GAME!!

Right now I'm operating in all three.

I own/operate a RE Brokerage (as a non profit foundation). I am also an active investor (buy/hold outside CA - although I live in CA, w/property manager in place) while also investing passively in real estate for steady income (RE advisor handles all aspect of the asset and property management).

I find that I navigate between all three categories.

@Debbie Nunez, 
I do agree that we need a bit more information for context but generally speaking -- life events (whether they are a career change, starting a family, buying a home, or dealing with unexpected job loss or illness) can impact your ability to make certain financial decisions. You may need to not only navigate life changes effectively but also simultaneously and proactively adapt and maintain a stable financial situation for yourself.

You may want to seek professional financial and personal guidance as you are able. Hope you are able to stabilize yourself soon!

I have always lived in California. It's the Golden City - beautiful beaches, Hollywood Glamor,  it's the SUN, SAND, SURF AND MOUNTAINS --- that WEST COAST Vibe! 

You can go to the BEACH in the morning, SKI in the evening and go MOUNTAIN HIKING all day long --- We get it all - but with that comes the fires, floods, winds & yes - don't let that song fool you that IT NEVER RAINS IN SOUTHERN CALIFORNIA - it RAINS here!  

It's all apart of being a CALIFORNIAN - We have always bounced back --- but this time it feels different! 

@Sebastian Albors 
Congrats on starting on your real estate journey. My response will focus on your option #3 "Continuing to rent where we live, and buy a separate property to rent out"

A while back I lived in rental property but owned rentals in another state. Those rentals debt serviced and also covered my California monthly rent (I know some of you may question paying someone else's mortgage) but at that time, I preferred the renting lifestyle which placed me much closer to work, my family, my clients, and friends.

Live where you want and invest in real estate where it makes sense!

I have client who are try to wait for interest rates to come down rather than buying what they can afford for the best rate and hold. All while home prices are slowly rising.

It wasn't long ago that mortgage rates dipped below 3%.  Actually, during COVID (January 2021), mortgage interest rates dropped to historically low levels, reaching 2.65%.

Wondering how long will I have to wait for rates to dip below 3% again? Will mortgage rates ever drop below 3% anytime soon?