All Forum Posts by: Rick Albert

The reality is if you are putting 5% down and the numbers work, why wouldn't an investor putting 20% down just buy it? This is an expectations issue, not a calculation one.

With that said, you need to be looking at properties where you can add units and/or bedrooms. For example, you are looking at a four bedroom house but you can enclose the dining room into a 5th bedroom. Another example is converting the garage into an Accessory Dwelling Unit. These types of improvements increase your house hacking income. 

I've never heard of him, however I am also skeptical of almost all "gurus" in the space. 

Mainly because they advertise saying they have been investing over the last 15 years and been wildly successful. Well no kidding! We had been in a fast appreciation and low interest rate market for years. I made tons of mistakes on my second house hack and I still came out ahead. But then because they have established such credibility, they can easily buy now with great rate and terms from lenders because they have the track history. Therefore the concern I have is people are giving them their money and they are giving dated and unrealistic advice. Again, this isn't saying this guy is, I'm saying generally.

My recommendation: Contact the city about section 8 programs, read here in the forums, listen to podcasts, then talk to property managers. What I've learned in a few markets is some property managers want nothing to do with Section 8. Asking why gives you insight into that market. 

Hey Jonathan!

I might argue that most investors start out part time. The fact that you have four days off puts you at a great advantage (don't forget to rest).

I'm a full time agent and part time investor (mostly out of state now). Here is what I have been doing:

1. I really beefed up my spreadsheets. This allows me to analyze a property quickly. 

2. I set expectations for my agents that I work with out of state. I let them know when I'm available.

3. Most things can be signed electronically and then loan docs in person. The loan docs can be signed on your days off.

4. Really understand your buy box. If you are house hacking, what do you want? 4 bedrooms? ADUs? If you are straight investing, single family, multifamily? For example, for me investing out of state, my buy box is 3-4 unit properties. Rarely would I consider a duplex (although I do own one). 

I hope this helps. You are smart to maximize your days off. But also don't forget to live life. Travel, rest, etc. Working 12 hour shifts as a nurse can be a lot. 

I have seen it. In my opinion it is a BS fee. It is to justify hiring a transaction coordinator. It is the Realtor's job to manage the transaction. If that person has staff, then it is a cost of doing business.

I would push back on this. It is also extremely high. Typically I've seen $400-$500 fees towards a buyer. Some agents also put this in as a negotiation tool between you and the agent. The agent will just say, "hey, I value your business so let me waive this." It gives off the impression they are are conceding. I went to a conference that was coaching this strategy. 

 Why do you have to cave in and allow people to be added? To answer your question about raising rents it depends if it is subject to LA Rent Control or not. 

Just put a guest policy in and enforce it. 

 You are at risk of a few things:

1. More unnecessary damage. Yes, you have a deposit, but it may not be enough.

2. Higher maintenance cost. Are you paying for utilities? If so, you are paying extra.

3. Squatters. They aren't on the lease and it needs to be clear that they are guest.

I wouldn't add them to the lease, I would want them out. Have a guest policy in place and stick to it. Why add more people and not charge more for it?

So each of you put 1/3rd down but you are the only one living there? Put 5% down is mutually beneficial as you only had to put less than 2% down. 

The only thing I would think of is decision making. The husband and wife are likely going to be on the same page, so it will constantly be 2 against 1, yet you are the one living there. I would set ground rules on decision making. For example you are in charge of maintenance while they are in charge of tenant placement, etc.

You are in Los Angeles, whoever told you to lay low is giving you bad advice. The more people staying there full time the harder it would be to evict and more wear and tear. Are utilities included? That is another issue with more people there.

I would speak with the tenant about it. He may not know that his girlfriend is bringing men over.

As a side note, I would look to see what is included in the application. I tried Zillow Apps years ago and saw that it wasn't very comprehensive. Look at Tenant Cloud, create your own application and then use MySmartMove.com. 

 I appreciate the insight. The idea of attracting more buyers is because of financing options. Once you go down to 4 units, the buyer pool increases because of financing options.