All Forum Posts by: Robert Reynolds

Hi @Jade Stobbe, 

Welcome to Los Angeles and thank you for your service! You will find that the prices in Los Angeles are high, but so is the rent and the appreciation. I would love to assist with my knowledge of the area. I live in Westchester, which is right next to LAX and close to the Los Angeles Air Force base. Please feel free to reach out if you ever have any questions about the area and the current Los Angeles market. 

Hi @Julie Coleman, 

These are my thoughts on the matter but please talk to a CPA for tax advice and a lender for lending advice. 

Yes you would need to refinance to get your ex off the loan and with the current rates for investment loans (approximately 7%+) it could possibly affect your cashflow. The negative cashflow can then affect how much you will qualify on buying your own residence if that is what you want to do. You could also house hack the duplex and live in one side, if that is something you are open to and one of your tenants will move out. 

The simplest option may be to just sell it, take your proceeds and start over with a nice cushion. You must have gained some nice appreciation since buying it, and since you've lived in it 2 of the last 5 years, you will qualify for the $500k tax free of equity gained on the sale. You can then use that money and the money you were going to use to buy out your ex to buy several properties and jumpstart your investing journey. If your debt to income ratio gets too high, you can use a DSCR loan that doesn't take your DTI into account, but just the amount of money you have and the rent you will get.

Hi @Jonathan Carmel, 

I highly recommend house hacking in LA. The appreciation in LA is solid, because our supply is so low and the demand is always going to be high. This imbalance in the market creates high appreciation. One strategy could be to take a heloc on your investment property and then use that equity for a downpayment on a primary residence in LA. If you can find a good house hack situation, it will be hard to not come out on top. You can then repeat every year or two to scale your portfolio.  

I have a good handyman that is currently helping me out by fixing my grandmas house up prior to sale. When do you need him?

Quote from @Jason Kudo:

Quote from @Robert Reynolds:

Quote from @Robin Searle:

@Robert Reynolds I bought a vacation home in Venice Florida on the gulf and love that area but Sarasota County has short term restrictions as well as my HOA. I'd probably look a little bit south along the coast if I do decide to invest there. Amazingly my STR's in Colorado are pretty much solidly booked year round. They have always booked up last minute but even in the winter they stay busy. I'd need to research Florida in the summer and how busy they stay. It's pretty hot and humid there now which is why I'm happily staying in Colorado for the summer!

Nice, my next STR after JT will probably be something a little further out and will have to Check out Colorado. I want something that is less seasonal and more consistent year round. Dream would be Hawaii, but Colorado may work. I'll look into it and get back to you.  I chose JT because of it's proximity and I love the park. Also the numbers are still solid. 

Make sure to review the STR ordinances in each island of Hawaii since they do differ and Oahu has outright banned STRs in all but the resort areas.

@Jason Kudo I would buy at the Turtle Bay Resort condos once I can save the money. It’s my favorite place to visit and even if I could break even that would be a win for me  

Quote from @Robin Searle:

@Robert Reynolds I bought a vacation home in Venice Florida on the gulf and love that area but Sarasota County has short term restrictions as well as my HOA. I'd probably look a little bit south along the coast if I do decide to invest there. Amazingly my STR's in Colorado are pretty much solidly booked year round. They have always booked up last minute but even in the winter they stay busy. I'd need to research Florida in the summer and how busy they stay. It's pretty hot and humid there now which is why I'm happily staying in Colorado for the summer!

Nice, my next STR after JT will probably be something a little further out and will have to Check out Colorado. I want something that is less seasonal and more consistent year round. Dream would be Hawaii, but Colorado may work. I'll look into it and get back to you.  I chose JT because of it's proximity and I love the park. Also the numbers are still solid. 

@Sarah Bartlett, @Fabian Martinez

I am in escrow with 2 homes in JT right now (1 for me and 1 for a client) and just closed on a third for a client. I have seen the opposite as far as competition and bidding. All properties have been under list price and great deals, all fully furnished and active AIRBNB's. 

@Mike R.

As far as low season, it's definitely now with the hotter weather and high season is usually October to May. I still think it's a great time to buy in JT. I was also looking in Big Bear but the numbers didn't make sense, and every other house is already a rental. 

I took a HELOC out a year ago to build an ADU. The ADU is finishing up this month, and I'm in escrow on my first short term rental with the remaining balance of my HELOC. The HELOC has been great and has allowed me to cut my living expense by tapping into my home's equity.

Are you converting a garage into an adu or building new construction. It seems that on a conversion you are exempt on adding the solar. If it's detached new construction, it seems like it is exempt if it's mostly shaded by trees or buildings and it couldn't produce enough energy. Also it seems like their may be an option to just add panels on to your existing solar system if it's not exempt. 

I would check this website, seems like they are giving out good advice, and you can also call the Energy Standards Hotline at 800- 772-3300. Hope this helps

https://www.how-to-adu.com/adu...

Quote from @Chris Jeub:

You will learn SO SO SO much managing your first rental yourself, I'd encourage you to jump in and do it solo. Once you master processes, then hire to fill them. You'll know the job and know how to monitor the hire later.

 Thanks, I am leaning towards self managing, everyone's been so encouraging, and especially since I am buying in the slow season of Joshua Tree, my cash flow will get eaten up with management fees.