All Forum Posts by: Scott Mac

Not directly related to the question, but what kind of neighborhood are you buying in- is this some kind of war zone?

And why do you want to control their personal choice so they must carry this with them on the property; is there some kind of danger in the neighborhood such as wild puma's or something, or bears (This is a serious question)?

Or are you looking to market to gun aficionado types or something?

I see you're in Riverside CA, I know many parts of Riverside can be a very rough part of town.

Personally, as far as quality of life I would rather rent in, for instance Newport Beach or Huntington Beach CA then own a house in Riverside or further out.

Nothing wrong with those areas, but there are many nice apartment complexes down at the beach, and if you look down there you might find something that you like.

That being said, it's important to live near your work so you're not spending forever on the freeway, and she's not spending forever on the freeway, and the two of you never get to see each other except one day a week at the afternoon at 2:00 PM or something.

But if you grew up in Riverside and that's your hometown, then that's probably where you would like to be.

What I'm getting at is it's not just a buy / rent decision always, some people want to factor in quality of life and neighborhood that they live in- and what are the fun things to do that are nearby, things like that.

I just wanted to weigh in that it can also be a decision of where to live, you might have some choices that are not just purely financial--as newlyweds the two of you together can decide where you would like to live and what you can afford when you get there.

And I would assume that renting in Riverside is a little bit cheaper than renting on the beach- not talking directly on the sand but in one of the beach cities.

To qualify for a home loan typically you need to have a couple of years of employment history that is not temporary work or side hustles- a regular job.

As far as down payment, you could look into grants that they have for first time home buyers in your county and city.

You will still probably have to come out of pocket with some cash though.

Trying to get the best paying job that you can with an employer that is stable meaning unlikely to go out of business at the first little downturn might be a smart move.

A wonderful option might be living with either her parents or your parents, and saving 100% of your money.

Maybe they would do that as a gift to you to allow you to save up for a home, and you could in return cut the grass or paint their house for them or something like that.

As far as rent versus own, the prices in California of homes are astronomical in some areas and you might be priced out even with dual income no kids (DINK).

Meaning you may be a forever renter in California, not by choice but by circumstance, and if that happens You might want to look at renting in a larger apartment complex, with amenities like a hot tub, a weight room, a dog park, etc...

Just be aware that an apartment complex is its own neighborhood, so be aware of who your neighbors are- because some of them will house some rather rambunctious loud individuals, and some tough guys, so just be aware of that also.

Good Luck!

Here is a video from years back of a neighborhood of some Fixer triplexes.

A few minutes into the video there appears to be (What I like to think is a landlord (at 4:30) and his son out collecting the rent) , driving along through the neighborhood.

I didn't know Chicago had triplexes like this, three deckers I mean.

I've only seen triplexes like this in Boston.

I just wondered if any Chicago natives knew where this area is or what's become of it???

Also, Many renters seem to have fenced off ther small front yards, and interestingly enough fenced off the verge areas in front of their houses with a shorter fence.

Does anyone know why they have fenced off the verge areas--it does not look like a garden in any of them--do they still do this???

Here is the video   

https://www.youtube.com/watch?v=tpE_hyUtbA8

It looks like a 1937 Lincoln 12 cylinder (this is not a cheap car).

What about the small fish, the people who don't have 200,000 in liquid cash to move from one bank to another, or those just starting out with their eye on the prize.

Do you have any thoughts for these people about forming relationships with a bank?

My thought on it is to just use a loan broker.

????????

Hey Joe,

If I were doing this, I would give the individual a preprinted numbered list with checkoff boxes of the things I wanted to have reviewed.

I would give them a couple of years worth at least stapled together, and have them fill it out simply by checking the boxes, and some of the boxes would say take a pick of the front of the house take a pick of the back of the house.

I would want some pics even if it is in good condition to prove that they had been to those spots and looked.

I would also have them take a pic of the completed check off sheet, and picks of any problems that they had found from the list or that were not on the list, such as a large aggressive dog running loose or something like that.

As for who to have do it, I think I'd call 3 or 4 property managers in the area and interview them and see if they were interested in it.

It seems like easy money for somebody that would be out in their vehicle in the neighborhood already.

And when they show up at the property if anyone asks questions they can simply say property manager.

My preference would be to get the pics by  having them sent via chat to my phone. 

That way I would know when they're there, and I could  ask them to look at something else if needed while they're there.

Good Luck!

Also focus on getting the right tenant in the house.

I say this because you may have an emotional attachment to this residence, and putting someone in there who creates major damage to the unit might break your heart as well as your checkbook.

Good Luck!

I think your decorator has hit a home run!

The dramatic wooden ceiling caught my eye first, and then everything I looked at, just made it look better.

Good Luck!

You might find it educational to spend time visiting competing properties and understand what they are offering for the price.

Maybe for instance some units are renting for $850 a month and some are renting for $1400 a month, what are they offering for that price.

That will be the basis of what you need to do in your units in a macro sense without looking at the dollars.

Then you have to find out what these type of improvements are going to cost you either by talking to a contractor or if you're going to do it yourself understanding the price of the materials and the carrying costs that are involved by doing yourself which will probably take longer than a contractor because you don't do this every day.

In a nutshell I don't think there's a dollar amount that can be set on this with an online question, you just need more experience in it.

Good Luck!

I think it is wise to realize that if you're going to own long term, that overtime there might come times when you're in a negative cash flow position temporarily, and you need to be prepared for that financially to be able to hold on to the property.

When things change in the area, that could be demand or demographics, or having a problem getting a problem renter out, you might be in a position where you need to ((( invest ))) a little more (of your own vs. the renters) cash into that investment - sort of like a margin call in the stock market.

Over the years I've seen so many people crash and burn and because they were unable to pay the expenses during problem times.

So in my thinking, expecting there to never be negative cash flow required during the lifetime of the investment on a long term hold is risky.

Just my 2 cents.

What are your thoughts on white kitchen cabinets in a rental (Not a flip but a rental).

I Have no experience with white, but I believe they would make the turn harder because they would be harder to clean.

On the positive side they seem to make the kitchen feel bigger because they're bright.

Personally in a Rental I like the old fashioned oak look or the cinnamon colored look. 

What has been your experience with white cabinets and renters???

What are your thoughts on white cabinets in a rental???