All Forum Posts by: Michael T.

@Shiloh Lundahl like many others here have mentioned it will be difficult to get the full $10,000 back in the appraisal.  You will get a certain amount and if all of the homes in the area and neighborhood have AC then it will be easier to sale but otherwise it's not absolutely necessary.

Check the Dodd-Frank Act to make sure you don't fall into under the definition of a "loan originator".

@Bryan Beal yes, the 1% rule is realistic in numerous markets, however, every investor is different and has different goals.

There are many here that want immediate cash flow and typically the homes that are lower in price will achieve the 1% to 2% but these SFR's typically don't appreciate as much.

If you're able to achieve your goals on achieving the 0.7-0.8% than that's okay and you don't have to be at 1%.  The 1% is only a guideline.

I personally invest out of state to achieve the 1% rule and often achieve 1.5% then invest in Southern California and Los Angeles for appreciation.

@Leland S. yes there are definitely a few options in this price range in the Pasadena are and as @Nabil Suleiman mentioned 125 n allen Ave is a potential option.

You have options which is the great part!

@Sophia Fong congratulations on the progress you've made of saving for your future investment.  

Yes, you can definitely house hack here in the Los Angeles area and you have multiple options for renting out the units and the rooms.  You can either rent out the units separately or try to rent out the individual rooms.  

At this time it's very difficult to get cash flow here in the Los Angeles area.  It's not impossible but it's very difficult and as long as you're open to all areas of the greater Los Angeles area it's possible to find it.

@Robert C. yes, it is very likely that California will have some type of rent stabilization statewide within the next few years.  

It's not necessarily Oregon's fault, however, it does not help that Oregon is doing it.  Since California is the most liberal state, they are not going to let a state like Oregon beat them at doing liberal things.

@Jeremy Segermeister yes, there are some agents who will present this type of deal as a cash flow positive deal, however, in the true sense of cash flow this does not work.

You have a savvy agent and it sounds more like a commercial agent with an amazing pro-forma versus a true investor friendly agent. :)

Both @James M. and @Frank Wong are correct.  Don't include depreciation and tax savings as part of your formula.  

While I love appreciation and tax savings it is not something you should count on in your analysis.

@Jamie Garcia yes there are always numerous purchases that are happening here in the Los Angeles area for multi unit 2-4.  

It depends on what you're wanting to know about it?

@Jake Enas there are a few things that you can and should be very mindful of during the process especially here in California.

I'll send you a PM.

@Horacio Gutierrez yes the lease will come with the property, however, there are a few things you can do depending on the length of the lease.

If the current tenants are on a month to month lease then you can ask for a longer close 60-90 days so the current owners can give the tenant an eviction notice and you close on the property with no tenants.

You can do cash for keys upon taking over the property.

If it's a month to month lease you can give a new lease upon taking over the property.

Yes, @Jay Hinrichs the cities you mentioned for the most party have high taxes with Charleston being the lowest on the list.

There's a reason people want to live in these cities even if the taxes are high.