All Forum Posts by: Michele G.

My highest HOA fees is in the complex with the fewest number of units. Maybe it’s not being run well. In CA condos can appreciate a lot of you’re willing to wait. My dad bought his condo in 1987 for $129. Units in the complex are now selling for over $500.

HOAs can be a PITA. We are constantly getting stupid letters...trash cans left out too long, cars not parked all the way in the driveway, and my favorite letter from a couple months ago - potted plants by front door were overgrown. Tenant trimmed them and we got a letter the next month saying no potted plants were allowed in front of the unit. Why couldn’t they have said that in the first letter??? The tenant hadn’t moved the plants (the HOA sent pics). She merely trimmed them nicely and I thought they made the unit look nicer since the landscaping is seriously lacking.

Currently all of our investments are condos in SoCal. They were bought awhile ago so the mortgages are very low which helps. 2 are very profitable. HOA fees have turned the other unit unprofitable, but we also had to do a cash out refi which raised the mortgage. The upside of condos is the maintenance is very minimal. If it’s in good shape then your repairs should be pretty minor year to year. I am able to use a $1/sf model for repairs & capex combined. I could probably get away with $0.75/sf & still be fine. Most years I spend less than 50% of what I place in reserves. One year I had a $4000 capex bill (HVAC replacement), but it wasn’t a big deal because my reserves had been building up for years.

Hannah Peerbolt We are in MI and looking for investments. I would be interested in connecting. I keep hearing Grand Rapids is a good market right now.

Most student rentals in Ann Arbor are in 100 yr old homes with original hardwood floors. Some landlords reseal them every few years. OC is different. I would probably find a nice looking inexpensive laminate vinyl wood floor. I would probably replace the tub and sink. You could probably get an acrylic tub enclosure for a couple hundred dollars plus labor. 

Most males won’t care about how the place looks as long as they have a place to sleep. BUT they will be harder on the unit. Girls generally tend to care more about the condition of the place they’re living in, but they also tend to take better care of the unit and keep it cleaner. Girls are students too so they are still looking for the cheapest place for their standards. 

Thank you Dave Foster If I understand you correctly once the sale is finalized the IRS is ok with the new property ownership changing (we would be moving it from my personal name into an LLC with me and my husband as members). I assume the deferred gains would transfer to the new ownership structure. Our hurdle would be to make sure the lender will allow us to transfer the deed post sale.

I live in Ann Arbor which is a HUGE college town with a very strong student housing market. It is very different than an OC college town. The terms will depend on your market. Find out what other properties are doing. Talk to student rental property managers. Here, leases are a full 12 months even though most students go home over the summer. Do you want to try to rent it out for short summer terms yourself or place that burden on the student? Adjust your vacancy expectations accordingly. Leases usually start a week before classes start. Leave 1-2 weeks in between your leases to prepare for the next tenant - unreported maintenance issues, carpet cleaning, general cleaning, painting if needed, etc. 

Co-signing is a personal decision. Some require it, others don't. 

Decide on your subletting policy. It's expected here. That is because most students have a 12 month lease yet they go home from May-Aug so they sublet to visiting students or students who live in the dorms during the school year. In OC, the issue would probably be Airbnb for extra income. Are you ok with that? We also have special certificate of occupancy inspections that must be done every 30 months. Find out if there are any fees, restrictions, or requirements in your city. 

Remember students can be extra rough on a rental. They are young & living on their own for the first time. I am not sure I would put an extra $40k into a student rental unless it is practically unlivable or I could get an extra room out of it. You're looking at a potential $6,000/yr increase in income for $40,000 worth of work. The students here would not care enough to pay the extra costs, but I know the OC market is different. 

Thanks @Dave Foster I think we will try to do one at a time for our first exchange. Are there any limits in regards to the 1031 if we change the ownership structure on the deed of the property now before we sell the property? I am aware of the Due on Sale clause. 

Jason White technically Diamond Bar, CA. PM me if you work in that area and we can talk.

Thank you for reading that mess of a post and replying. I had it all nicely formatted and the app crashed when I hit send. I assumed I would have to rewrite it this morning.

There is currently a 200k mortgage.