All Forum Posts by: Rob Beardsley

Are solar panels a cost effective route or more of an appeal to environmentally friendly people?

This seems like great news for your "ugly duckling"! If the whole neighborhood is repositioned from C+ to B or even B+ then that tide will certainly raise all boats. Additionally, this will give you the confidence to reposition your own property through rehab, which will create an opportunity to create a ton of value and refinance all of your initial capital out of the deal. Try to get a better understanding of what the new development is. You're are most likely right that it will be class A stuff because anything else is simply too expensive to build ESPECIALLY in San Jose.

My company is putting together a large multifamily acquisition in Pittsburgh catered to wealthy CA residents. There are plenty of opportunities for you to seek out in which you can invest with a syndicate. We offer 8% preferred return but some other general partner investors may offer more or less return depending on your risk appetite. 

Because you have a full time job in CA, I would say any OOS endeavor should be through something extremely passive. Otherwise, you are placing yourself at a much greater risk. CA as a whole doesn't provide very much opportunity for cash flow but it's out there. I would recommend getting your condo rented out and pursue refinancing on it. You said a bank is willing to extend $60,000 credit line but that is only 60% LTV based on your $100,000 equity. Try to find a bank that will give you 80% LTV and find a comfortable path for you to deploy that $80,000 from the bank.

This sounds like a good deal for a more short term hold but with these long lease contracts, raising rents in the short term may be difficult. Also, you are heavily dependent on a single tenant (like SFR) which is never good.

what type of financing do you have on the property?

@Ralph R. Great insights! How do you go about finding and vetting PMs for a new deal and how do you learn the business of managing properties to be able to oversee their work effectively from afar? 

Not a problem! Keep us in the loop!

I don't think that would be a huge deal as they are traveling and should be out exploring most of the day. Look on airbnb near this duplex and call up any listings and ask them how much their tenants complain or care about noise.

You could try to operate this duplex as an airbnb. But your original plan would work fine. You may have to let the current tenants leave so you can command market rents just screen the next tenants real well to avoid future turn over. Don't panic! You're in a fine situation. Best of luck!