All Forum Posts by: Roy Kwak

@Jacqua Le Fleur The short answer to your question is YES if you are talking about appraisals based on recent sales prices. Appraisers don't necessarily know if previously completed sales (comps) were delivered vacant or fully occupied. But you likely benefited from the same forces when you purchased your place...as even if it was vacant, the price was anchored by all the previous sales of fully rented units....BUT, for any multifamily, appraisers also value based on CAP rates which WILL reflect if places are selling for less because rents are low...versus an empty unit that will have a higher price because it will be based on the pro forma rent. That's how I see it.

@Lucas Allmon  Haha, got it!  Sorry didn’t mean to imply that you were doing any thought crime...Lol.   I get sensitive to the human side of this business...but, esp with the info about the aliases, yeah run the other way man!!!...that’s crazy.  

Hey @Lucas , you know I had a similar situation with a house I bought in Corona. I bought it with a seven day leaseback to the owner which didn’t seem like a big deal at the time.  He was going to use the time to move into their new house which closed on the same day.  The owner wouldn’t leave after seven days (The backstory is the family family was a little bit peculiar, neighbors hated them, and the Live-in adult daughter was mentally “not all there” and distraught at the prospect of leaving their home of many years).  I was faced with the prospect of having to go through a formal eviction which would take months and scuttle my hopes of a quick flip as far as carrying costs and timing.  But I knew that they had bought a house so they weren’t going to leave it vacant forever.   My agent had a stern conversation with him  and they were gone two days later.  I don’t know if I would get myself into such a situation knowingly again...unless it was a good deal, which as you know, in LA are super rare...the risk may be worth it but you would definitely want to structure the deal in a way that protects you from the costs of eviction and have some professionals on your side! 

BUT, my circuitous point is that we are dealing with humans and the owners motives may not have been nefarious.   Sometimes selling a home is something people only do once in their lives without much real estate knowledge and knowing they will have to move somewhere VERY different.  It can be scary.  Human emotions come in to play.  People are not logical when it comes to what they’ve decided they are owed or deserve. I don’t know if your owner was really intending to squat but they obviously felt a strong emotional need to have their terms acknowledged...this is when a good agent shows their worth and when clueless agents can sometimes get in the way.  There’s not much you can do in that sort of situation...work with them while protecting your backside if there is enough desire on your part, or just move on.  It is def a human game...and there are always more deals!

Welcome!  NELA is great.  Hopefully, for you, the market will soften in sync with your purchase timing. Good time to learn as much as possible like you are doing.

The condo I bought in 2010 was also cash flow negative until 2014!  But I have more than made up for that now in appreciation and principal paydown.  Time heals all wounds I guess!  Sounds like you've had some adventures...which is great because I'm sure you learned a ton.  I, like you, am a sucker for every shiny bauble that comes across my gaze but (I would never admit this to her) my wife has definitely made me more cautious about what I jump into.  That has either kept me from bankruptcy or kept me from already being retired!...probably the former. LOL.  

Hey Yong,

You sound too much like me!

I'm also a rad, Korean-American (assuming here by your name), and trying to lock in the future with real estate. I'm still a beginner as well, and mostly invest in SFR in Corona (where I grew up). I'm a little younger than you so I was fortunate in that I didn't have any money to invest back in 2007 as I was just finishing residency or I might have lost big time. I started with a condo in Century City in 2010. Anyways, I've been spending a lot of time/energy trying to live an intentional life in 2017 and part of it was cutting back work hours. As far as real estate I've been so eager to buy...it has really been hard to keep the reigns pulled back...I just pulled out of escrow on a house in Corona because I was trying too hard to make the numbers work. I agree with other posters here about being careful in this frothy market. Numbers don't make sense (at least in California/Los Angeles) and I think a lot of investors are going to be left holding onto stale assets for a long time.

I'm actually trying to purchase a triplex in my area but that has a complicated rationale that makes sense for my situation.

Anyways, just reaching out to say hello and happy to discuss real estate anytime. I do suggest being SUPER picky because good deals now will be even better deals when the bottom falls out on this asset bubble that we are all sitting on top of right now. As far as markets...I still love Corona (but I have roots there) and I think your area, Seal Beach, is fantastic because it is still relatively affordable for quaint beach living with great schools. Of course it isn't cheap but I don't think you can go wrong with SFR there...unless there is some action at the Naval Weapons Station...in which case we are all screwed.

Roy

Guess I'm late to the party, but for stuff like this, I would probably just opt to ditch any doors or coverings completely...just paint the alcove so it looks clean.   Less to worry about and depending on the tenant and the layout of the room/alcove it may not make a difference.  Definitely more convenient when you are doing laundry to not have to shove something over...but then again, if you are the type that piles all of your laundry in the laundry room then it would be visible...but maybe that is just incentive to keep your tenants from making the laundry area a fire hazard.

When I was remodeling one of my condos, we had a tub with a really old sliding glass door...you know those standard contractor double door that slides back and forth.  Instead of replacing, I just tore the whole thing out, caulked the screw holes, and put up a rod for the shower curtain...made the bathroom look WAY less dated and also more spacious since there was no curtain there when we were showing the unit. 

Anyways, my point is that I like to provide high quality dwellings and furnishing/appliances but I remove anything I can that will potentially be a headache or break...i.e. nice big stainless fridges but without ice makers in the door.  Also, microwaves...very unreliable so I only provide them if I have to.

Welcome @Liz Deering.  Great place community to be a part of.  

I'm trying to convince my wife that we should move down to the areas that you cover some day.  I used to live in Belmont Shore and it was great except not a real beach town. 

I'm curious to know your opinion about why Seal Beach and Rossmoor are such relative bargains given their proximity to the ocean and their great schools?  What about the area of Long Beach around the Marine Stadium but south of 7th?

@Sharyn Umaña-Angers  Glad to hear that your place is getting interest at the price you asked.  Keep us posted on how it all turns out.  Also what part of Corona is your home in?  at those prices I am guessing north of the 91 or south of the Ontario exit of the 15...but I could be wrong, lol.  

Hi Sharyn.  Agents should be able to factor in that that house is an anomaly when pricing your house.  Not sure how much turnover there is in your neighborhood but until that house is off the market, your place may seem expensive in comparison though.  I think the real issue is the bank appraisal, which u and your buyer have less control over.  Bank appraisers err on the side of conservative so having a really low comp nearby may drag prices down somewhat, which may affect the loan amount your buyer is able to get accepted when in escrow.  And yes, appraisers definitely factor in neighborhood comps...they don't do it just based on an individual property unless that property is very unique.  

Best advice is to just find a couple agents that you like and ask them.  It's no cost to you and they will be happy to do it.