All Forum Posts by: Sam Yin

@Oscar Leon I can only see this as practical if you were pulling money out and keeping PMI off. The VA loan is valuable for the purpose of 100%+ leverage and no PMI.

only other scenario I can think of is thay you are trying to use the VA loan for another PRIMARY residence. Or else, streamline the VA into another VA if yours is old and the rate is high.

@John Underwood DITTO!

@Jim K. Lol. There's too much drama there. I have a few handymen that I keep good relations with and will come out for emergencies like this.

My scenario, a drink driver in a large truck jumped the curb, plowed through the planter wall, plowed through the entire house and the neighbors brick wall.

I put the tenants up in 2 hotels rooms for about 6 weeks. All out of pocket. Got the insurance involved. Got the estimate. Used my handyman. Played him... out of pocket. Paid my deductible. Got paired for all repairs and hotel and food costs and got an extra 5K because my handyman is the discount type.

Work was flawless, couldn't tell it ever happened.

Long story short, have reserves and contingencies. This is part of self management and part of the REI. It's an adventure.

But... I do not know your market or your local handyman history.

@Sam Tamayo

Not sure where you are getting information.

First off, what city is the property in? City ordinance will supercede State ordinance.

If it is not in a rent control city... then...To be clear, 30day is OK. Infact, any days is ok as long as the tenants agree. However, 30 day is standard. 60 days is required for eviction notice. If the property is held under your name, you are exempt form much of the state rent control. The actual rate is calculated as 5%+CPI ( technically for April of that year). However, you can increase 1,2,3,4...up to you. Generally, most landlords do 5%-7% to be safe and ethical.

I recently did a 20% increase on 10 units all at once because the rents were too low and the building was in my personal name. I had my reasons and I could have chosen 70%, but I felt 20% was more than fair and advised 2 more 20% increases are coming in the next 12 months. This gives them time to look for another place or stay, knowing it's still a great deal for the property.

@Marc Rice

Some banks will only allow 70% of the rents. You just need to ask the bank you are working with.

@Jim K. Solution is pretty simple. Either pay for the emergency repair, or put the people up in a hotel while the repair is being completed. If all your contracts are solid, you obligated as the landlord.

Also, home owners insurance will pay for all of it... the repairs, the hotel, etc... you just pay for the deductible.

I have dealth with this before. Pretty straightforward.

@Sam Tamayo I give a 30day notice. Nothing special, there is a standardized template online. I can send you one if you have a hard time finding it.

Keep it to the point. Just use the template. Increase should not be more than 10% unless it's really below market or it it your personal name and you really want to catch up.

Also, I would advise to increase the deposit amount to match as well.

@Scott Steele DITTO!

Well put and to the point. My sentiments exactly.  I try to learn as much as possible as I go knowing the conditions may never be perfect but if I can qualify for it, and it is within my investment parameter, then it's a deal worth pursuing.

Since covid began, I completed 7 refis (all at the same time with one bank), 5 purchases, and 3 exchanges.  It may never be the most optimal time but NOW is always the perfect time to get started.

Goals continue to change as I learn more about real estate investing. It started out as owning a 3 SFR and have them paid off by tenants in 30 years with $200-$600 cash flow each in the meantime. It evolved to an additional duplex with $500 cash flow in 2018, but now cash flows $1000. Then two more 3-plexes with $1000 cash flow each in 2020, set to flow $1200 each by 2022. Now in 2021, I added an 8plex that cash flow $4000, with a built in raise of 7% per year since its a long term government contract. Just pick up a 10plex that cash flow $3000 and gave notice to the tenants of 2 upcoming 20% rent raised in the next 12 months. Next month I will close another 10plex that cash flows $3000 as well and will do the same 20% raise 2 times in the next 12 months. both were mismanaged and below market rents. If anyone moves out, I bring in government program and raise rents 70% immediately. I could stop, but I want to keep the momentum going. My new goal is to keep growing my portfolio for 20 or more years and see where it goes. I am young, so I have a lot of time left. My current pace can only afford me 1-3 properties per year since I am on my own. If the pace keeps up, and the market stays steady or drops, there is a good chance to get to $500K cash flow/month in 15 - 20 years. My immediate goal is to get into syndications in 2022 and see where that takes me, with hopes to grow even faster. I learned it all from YouTube last year and a large part of it was listening to tons of BP podcasts and putting it into action.

The reality is your goals may change from year to year as your life style changes.  I use to think that as long as I can match my gross income from W2, I'll be set.  I do now, and I am still working the W2 to leverage the extra money to keep the real estate investment momentum going. Why not go the extra mile so there is buffer room to enjoy a little more later.  Some delayed gratification is always good. Keep work life balance now, but look forward to mostly life balance in the near future.

I use to believe that 20 - 26 units would be the magic number for financial freedom.  Its not about the number of units. Its about the income to support your lifestyle.  That could be one unit or one hundred units, depending on what each unit cashflows and if you are realizing the full gains of real estate investing.

Good luck and I hope you find everyone's input valuable. I continue to be inspired by BP community and learn more lessons everytime I log on.