All Forum Posts by: David Hutson

@Antoine Martel,

Is it that good of a deal that you want to purchase it for more than the appraised value?  I deal with a lot of turnkey and if deal is that good then you will probably need to find private money.  

If you are under 4 mortgages now you could probably find a bank to do 80%.  I'm in Long Beach for the rest of the week.  Shoot me a message if you have questions but to answer your question all the banks/brokers I know will base their loans off the appraised value.

David

I have sold a fourplex and a few SFR in the past year. They all had good cash flow. The market is hot so I'm pulling out of the area and moving the money into 1031 exchanges and loans. It's a good time with the market as hot as it is.

I use Vistaprint also.  They are quick and very reasonable.

Realty Roundup is the big dog in Elk Grove.  They started with a tiny office in the old town area and now have the big office near the freeway.  They have done well by focusing on properties in our area and not going out too far. 

My and M is in the area now.  They have an office in old town.  I like the way they work with owners.  May want tof check them out.

@Mark S.,

I make about $180-$200 after taxes, ins, PM, vacancy and repair fund.  The turnover is low and they rerent the homes quickly.  I have five houses with them and only one turnover.  That home was cleaned up quickly and rerented in under a month.  Message me if you want specifics.

David

I'm on my way from long beach.  Looking forward to meetingredients everyone.

@Marco Santarelli, 

Morning, I do have quite a bit of interest in Memphis.  I have 13 houses there now to include one I have closed this year already.  I would like to expand into other markets but I haven't found one yet that I like enough to purchase several homes in.  I'll have to check out your site and check out the markets you cover.  

I just looked up and noticed you are in Orange County.  I command an Army unit in Long Beach.  I stop by your office and chat.  I'm flying down in a few hours so I'll check your site for your address.

@Alex Craig is coming out to visit all of us in southern CA tonight so I'm going to try and get him sell me a house during his meeting tonight.

@Justin Swindle,

I do have a few agents I work with.  I also have turnkey companies that I prefer.

Property management out there is challenging but they mostly do a good job.  I have fired a PM out there and stay away from some also.

I do focus on certain zip codes.  Some parts of the town are very bad and I feel some are getting higher levels of investors in them so it's more of a preference.  You'll need to determine the class of properties and the price range that you are comfortable with.  

I'll message you and then you can contact me with your questions.

David

@Alex Craig,

I'll be there.  Flying into Irvine in the afternoon but need to go out to Long Beach.  I'll head back for the meeting.

I go with year leases on all of my properties.  I think if you need/want to raise the rent in the first year then you were probably too low to start.  If you go with month to month leases and want to raise rents every few months your turnover will go up.  Tenants may be ok with one rent increase after 6-9 months but if you do it sooner or often they will leave and find somewhere to live that they can afford.  Turnover may kill your profits over a year or two.  If you are lucky the tenant will stay with one rent increase, two and they'll move. 

Doing it more than once will tick off the tenant and increases the chances of the tenant being late and leaving in the middle of the night with lots of damage.

I try to build relationships with the properties I manage here and all of my tenants stay a minimum of two years and I have a few that are around five.  I do that by raising the rent every few years by a reasonable amount.  That's my perspective after 16 years in the Sac area.