All Forum Posts by: Osazee Edebiri

I agree with @Robert M. My triplex is in the 94601 zip code and it is cash flowing.. like @saj said you have to be creative. There were many positives to this property such as the previous owner did not do any rental increases ever, so even though market rents are still (which I am working on), I was able to increase the rents in all 3 units and thus cash flow. Of course, nothing is peachy clean, so I have other issues I am working on, but the main point COCR's are very possible.

I am gym and WiFi sucks here so can't tag.

Solid post guys.

Ori and Chris, I want to check with some friends to see if I  can do this.

How do you setup the private lending piece of this strategy? Chris is that something you can help with?

Originally posted by @Susan O.:

Originally posted by @Matt Mason:

Originally posted by @Susan O.:

Youre actually not allowed to do cash for keys in cities like LA. Possibly in other cities. 

http://www.laweekly.com/news/la-moves-to-curb-cash...

They cracked down on landlords  even offering as much as $75,000 to tenants to leave! it's like having to bribe someone even though it's YOUR property

Also if you want to be an owner occupier in LA you have to pay up to $22k in relocation fees.

If you try to give cash for keys you can get fined and open a lawsuit in a lot of cities with rent control.  it's illegal under rent control rules.

http://hcidla.lacity.org/Relocation-Assistance up to $23k/ family for relocating older tenants

Yes, you can do cash for keys in Los Angeles.  Not sure if you read your article, but it just discusses the fact that the cash for keys transaction has to be recorded with the City. 

 They actually don't let you raise it to market rents during a pay out or reloacation.  So you can pay them out to use the ellis act and change the use, but you can't raise the rents for the existing units.

I've paid out a tenant $23,000 then I was not able to raise the rents.  I had to keep the rents at the current rate based on the previous tenant.

https://caanet.org/rentcontrol/

http://hcidla.lacity.org/rso-overview

That's just terrible!

J. Martin thanks, I will need to get on my computer to see the link, doesn't seem to work on app

@Simon Ghandil thanks for clearification

Simon Ghandil congrats sounds like an awesome strategy. I may have this wrong. I know you have already been asked about the financing, but I think we are missing the part where what is in it for your mentors to give you 30k? You said you only pay tax and insurance, and the rest is cash flow to you. normally when someone gives money to an investment they make money too, and I don't think I saw anything about that in this thread. If they financed you free, I am on a plane out there to put in the 7 months proving myself that you did.

Matt Hoyt I appreciate you finding out for me.

Jessie Tetreault I like that idea but at this stage I can manage to grab quarters, which gets me looking at the property. I see that as a benefit for now, once I scale up, yes.

I agree with Arlen Chou your friend just set you up with a free learning lesson right now. Saj Shah is right if he is willing to owner finance huge win because you don't have to worry about normal qualification standards. If you haven't already told him how much money you have to invest, try to find out how much cash he wants to have saved for another opportunity. Read up on rent control, you may have to cash for keys or other creative strategies to get current tenants out so you can charge market rents, so keep that in mind. Also, if you do get tenants out there will be rehab costs to factor in. I would suggest whatever offer you make, make sure the property cash flows or with rent control you might not make it. I am relatively new to this but it is what I have learned so far. Let's us know how it goes

Daniel Antonetti Here is a link directly to the city website on rent increases. I agree with Susan O. It is messed up http://rapwp.oaklandnet.com