All Forum Posts by: Pandu Chimata

There is an offer to purchase a rental property but it's coming with a tenant. The tenant seems to have signed eStoppel. It means the new buyer has to continue with that tenant. 

Other than obvious checks (such as inspecting lease agreement, payment history, tenant job history, etc.) what are some of the extra measures I should do to ensure I am not inheriting a problem?

Also, how the inspection of the house going to be accurate if the property is occupied? 

Thoughts?

@Aaron K. It makes sense about measuring the population by region than cities. 

I was looking at the population change and owner-occupied housing units between some cities to understand their correlation to rental market potential.

The data source is - https://www.census.gov

• The percentage change in Hemet is 8.5% and the owner-occupied housing rate is 58%
• The percentage change in Moreno Valley is 10.2% and the owner-occupied housing rate is 61%
• The percentage change in Laquinta is 11.4% and the owner-occupied housing rate is 71.8%
• The percentage change in Indio is 15.9% and the owner-occupied housing rate is 69.5%
• The percentage change in Menifee is 22.5% and the owner-occupied housing rate is 76.5%
  
• The percentage change in Beaumont is 38.5% and the owner-occupied housing rate is 76.7%

Any of these indicators (solo) or combined indicates any rental market potential?

In the case of Hemet, the population change is less but the owner-occupied housing rate is also less. Does this mean there is more rental potential than Beaumont though the percent population change is high but the owner-occupied housing rate is high, 76.7%?

Thoughts? or should I be looking at some other indicators to truly understand rental potential?

FYI:

Population, percent change is: April 1, 2010 (estimates base) to July 1, 2019, (V2019)

Owner-occupied housing unit rate is: 2014-2018

I was looking at the population change and owner-occupied housing units between some cities to understand their correlation to rental market potential. 

The data source is - https://www.census.gov

• The percentage change in Hemet is 8.5% and the owner-occupied housing rate is 58%
• The percentage change in Moreno Valley is 10.2% and the owner-occupied housing rate is 61%
• The percentage change in Laquinta is 11.4% and the owner-occupied housing rate is 71.8%
• The percentage change in Indio is 15.9% and the owner-occupied housing rate is 69.5%
• The percentage change in Menifee is 22.5% and the owner-occupied housing rate is 76.5%
  
• The percentage change in Beaumont is 38.5% and the owner-occupied housing rate is 76.7%

Any of these indicators (solo) or combined indicates any rental market potential?

In the case of Hemet, the population change is less but the owner-occupied housing rate is also less. Does this mean there is more rental potential than Beaumont though the percent population change is high but the owner-occupied housing rate is high, 76.7%?

Thoughts? or should I be looking at some other indicators to truly understand rental potential? 

FYI:

Population, percent change is: April 1, 2010 (estimates base) to July 1, 2019, (V2019)

Owner-occupied housing unit rate is: 2014-2018

@Chris Gawlik, Thank you for your input. Can you please name some of those B and B minus cities? Thank you for the input on Redlands areas as well. Where is the rough area in redlands? Is it West Redlands, close to the intersection of 210 and 10 FWYs?

@Aaron K. Thank you for your input. I have not heard about Mentone till now.  

In Redlands, I see that the average price seems to be around 450K for 3 beds and 2 baths and around 1500 to 1600 sq feet. I believe the rents will be between 2,000 to 2200. It seems not a breakeven. 

I am sure from the appreciation aspect and/or retaining the price aspect, definitely better than Hemet. 

Hello folks, how is everyone doing? 

I live in San Gabriel Valley in Los Angeles County and have a primary house over here. I have one Airbnb property in La Quinta. I am looking to buy another rental property along 10 and 210 freeways between Rancho Cucamonga and La Quina.  

It's a little difficult even to get a breakeven (rents paying off the mortgage) on the western side of the Rancho Cucamonga areas such as upload, Montclair, Glendora, San Dimas, Covina, el monte, etc. I am having a hard time finding fixers in this area and/or any area in LA County. 

I am looking at areas such as Hemet, San Jacinto, Riverside, La Quinta, etc. It looks like Redlands is another good city but I am not sure about the returns. 

In Hemet, I can buy a decent 3bd, 2bth single family property between 250 and 300 and able to get 1600 to 1800 rent. It will be breakeven with an expectation of future appreciation. 

In LA Quinta I can buy a decent 3bd, 2bth single family property between 350 and 400 and able to get 1800 to 2000 rent. I can be almost breakeven with an expectation of future appreciation.

I also looked at Redland but the price seems to be high over there and may not result in a breakeven. 

The reason I am looking for 10 Fwy and 210 Fwy because it will be easy for me from the management aspect since I have already one property on 10 in La Quinta. 

Any thoughts? Any other cities you folks suggest between these areas that make investment sense?

Thank you for the feedback and interesting scenario. I see the point of being a fulltime as this job needs attention when a client needs. 

Is there a possibility to work as MLO as part-time, outside of 8 to 5 work hours? Are there any mortgage brokers that hire part-time MLOs? 

Also, does this really work since the part-time job is limited with hours, also not prime hours? 

Hello everyone! I hope you are doing good and safe! 

I have received an inquiry for my furnished rental house through an agent. The agent says the tenant's house was damaged due to fire and it's covered by insurance. They are looking for a year rental for a furnished house. I was just wondering how this works out with the insurance. 

If the insurance is paying the rent, would they pay directly to the homeowner or they pay to the policyholder and policyholder pays to the owner? 

If the homeowner directly gets from the insurance, does insurance negotiate the price? and/or how do we know, how much is their limit? 

In this situation, does the renter need to take rental insurance if they like to, or is it already covered since the rent is paid by the insurance?

Have anyone dealt with such scenarios? Please advise.