All Forum Posts by: Luther A.

Are you looking to buy a property in Los Angeles or Santa Monica? If Santa Monica, I wonder if you understand the City of Santa Monica. It is not like Los Angeles or California. It is its own unique communist enclave that is known for having some of the most anti-landlord / anti-property owner laws in the country. There is a reason that even the far left liberals here refer to Santa Monica as the People’s Republic of Santa Monica. 

High rents in Santa Monica won't be an issue. No one moves there looking for cheap. 

In Santa Monica you can find condos for $800K-$1M. Two possibilities. They are small, outdated, and relatively not that close to the beach and are usually converted apartment buildings. You will not get anywhere near $4K rent for them. Maybe $2.5K. Or they are close to the beach, but they are in the large buildings and for that money you're only getting a 500 sq ft studio. These can rent for $4K. Many of these are conveniently located across the street from the drug dealers. If you can't find a dealer, just ask one of the hundreds of homeless that are camped out in front of the building. 

If you're buying here, you're playing the appreciation game. I doubt you will find anything that comes close to being cash flow positive. Also, don't forget to factor in the HOA dues on these places. By the ocean can be $1K+/month dues.

If you're a newbie, I cannot recommend enough that you do not buy in Santa Monica until you fully understand the politics and laws.

I would recommend creating an LLC and getting commercial loans when you refi. There is not max number you can have. There are also a ton of other benefits of using an LLC vs Personal loan but just search the forums. There are a TON of discussions already out there.

Currently 16 SFH in Cedar Rapids. Don't post a lot due to the time spent rehabbing distressed properties after work. Closing on the 9th of January and always on the lookout for more.