All Forum Posts by: Account Closed

Originally posted by @Michaela G.:

Well, for one thing, when you sell you'll have to fill out a disclosure and will have to admit to knowing about this railroad. 

Would I pay 700K for a duplex that brings in only $ 4500 per month? Not in a million years. So, I would rather look at selling and using those funds for something more profitable. 

Yeah, that's southern California real estate in a nutshell!  We pay a quite a premium. As far as the disclosure I'm assuming you're looking at this from the perspective that fall under a neighborhood noise problem or nuisance?  (albeit one that does not exist yet)

Hey BP Gang!  Looking to hear your feedback on how the following issue may impact the value and rent premiums my property (duplex) demands.  Some of you who reside in so-cal may be familiar with this issue.

The Metro in my area is making a big push to extend their commuter rail lines.  I live one house away from a rail road crossing that is solely used by freight trains.  They come through once or twice during the afternoon.  Metro purchased the right of way and wants to add a commuter line.  They are trying to move forward without even informing residents (I only found out through word of mouth) as this is by far the cheapest option.  If this goes forward, I expect a commuter train would be coming through every ten minutes.  As I said, the RR crossing is ~100 feet away; a new station will be built ~0.4 miles away.

Initially this wasn't going to be started for many years, but I understand that LA Metro may try and push a start in 2018.  They are voting in January on whether to extend the rail line by my duplex or a half mile away along a busy street.

Thoughts / recommendations on exiting?

I plan to move out regardless next year so I'm not concerned about how this will affect my own quality of life, more concerned about how it will drive renter and buyer demand.  I know you all like numbers, so to put it in perspective: gross monthly rent for the duplex is ~4500, should be able to sell for 700 to 750k in current market.  Given the dollars I've invested in the property to date, I make about 15% of it back in profit annually already and would see an immediate six figure profit if I sold.

Thanks!

P

Originally posted by @Brian Krause:

For securing vent just use screws and some OSI Quad caulk to seal it. When using the OSI Quad do not touch it to get a smooth finish as is sticky beyond belief. Put dish soap on your finger and then smooth out as it won't stick to your finger. Hope my comments help as kind of multi-tasking while typing. 

This helps a lot thanks again for the input!

Originally posted by @Sam Y.:

Great story Patrick, thanks for sharing!

Did the unexpected rehab cost missed by the building inspection during escrow? 

No, just underestimated the amount of work. Mostly cosmetic. The unit I rented out came in at about what I expected but I overestimated the “livability” of my unit. Realized after moving in that the kitchen and bathroom were wayyy to worn to be appealing to future tenants so I decided to renovate. During that process some hidden issues were discovered (some old pipes and dry rot) but those costs were probably less than 5k.

Originally posted by @Brian Krause:

Animals can find a hole from a mile away. They're probably chattering about your Un-covered vent out in Europe. Put a screen over it. For the flex vent on dryer 8' isn't that uncommon and I would worry to much.

Got it.  Regarding the screen, recommend any types that are corrosion resistant?  Any size mesh in particular?  As far as securing it to the vent, what kind of adhesive do you recommend?    Thanks Brian

Agreed fully Kevin!

Hey BP gang,

Two quick questions for anyone that is knowledgeable of range hood venting and/or laundry machine venting.

I had a contractor install a range hood in a unit recently and install venting to the outside of the unit.  I'm concerned that without a mesh covering the outside of the damper that bugs will be able to get through.  Recommend installing a mesh somehow or is that overkill?

Regarding the laundry vent, I was told by my inspector last year that a smooth wall metal type vent should be used and should only travel a short distance from the machine.  As you can see below the current vent is not smooth walled and travels approximately 8 ft before reaching a vent to the outside.  I'm thinking about cutting a hole in the wall right next to the dryer at the floor level and installing a much shorter vent going out that way.  Recommend this course of action?

Thanks!

Patrick

Hi all,

I've been lurking around on BP for probably close to a year now.  Closed on my first deal in southern California (duplex) last summer.  Most of the time I've spent on here has been learning and asking questions so I wanted to take some time today give something back: a key lesson I did not expect to learn that I think many newbies like myself will find valuable and more seasoned investors will nod at.

The first thing I'll say is that going in to do your first investment is always going to throw you at least one curve ball.  Learning about real estate - whether it is on here or in an actual classroom - does not 100% prepare you for the realities and things that can go wrong.  People can tell you how much work it is, but you don't truly appreciate it until you get out there and start doing it.  At least that was my experience.  Severly underestimated how much time and energy I would put into it!  Fortunately it has had a massive payoff financially.

Anyways, onto what I wanted to talk about.  Entrepreneurship.  I never thought that investing in real estate for the first time could have so many parallels to the stressful process of starting a business but looking at the past year it is remarkable how similar it seems.  I think it is common knowledge now that in starting a business you can expect the first few years to be very painful - long hours, up worrying every night over all the things that can go wrong, unexpected turns of events, near bankruptcy/failure, etc.  But those who weather the storm can hope to come out at the end with a profitable and successful business.  I found quite a few similarities in closing my first deal.  Definitely long hours for the past year between identifying the opportunity, navigating the escrow process, rehabbing the units, and getting them rented out and maintained.  Lot of worrying for sure.  Everything from unexpected maintenance issues to concerns over things like earthquakes, insurance, and encountering litigious tenants in the future.  Unexpected turns of events and failure?  Definitely had a few curveballs, such as a prolonged court case between seller and prior tenants during escrow and unexpected required repairs coming up during rehab.  I wouldn't say I've come near failure but the first year has definitely been in the red financially.  Roughly $40k in rehab and counting. 

But looking forward now it is great to see the light at the end of the tunnel.  Within 2 years these expenses will be recovered fully and rent from the two units will be almost double the mortgage and property tax.  So the reward is there for those who trek through the rough times.  Keep going at it

Hope this adds one more piece to the puzzle for those of you starting out and would love to hear similar stories from others that successfully made it through their first deal.

P

Thanks guys, this was helpful!

Hi all,

This has probably been answered already so apologies in advance (I'm on on my smart phone and in a hurry).  I'm looking to rent out a room in my own unit as part of my latest house hacking endeavor.  Can anyone point me to some good template leases for this purpose?  Also general best practices for renting out a room beyond background and credit check would be appreciated