All Forum Posts by: Steve Graves

They're probably looking for a buyout. Have you offered her , "cash for keys", yet?

Consider buying a foreclosure from fannimae or freddiemac. Your chances of better cash flow will go way up. That's how I started out. I have never paid market price for an investment property. Find a hard money lender for the rehab and when it's ready to rent, refinance it into a Conventional mortgage.

As of January 1st of this year the whole state of California is rent controlled. No disrespect to Sue but eviction is not an easy situation to deal with anymore in California. I'm dealing with it right now. If the tenant hires a non-profit attorney they can cause you a lot of problems. Get used to the term, "cash for keys", if you're a landlord in this state. 

If you were in California your only option would be a 3 Day Notice to Quit. Then file for an eviction. If they get a non profit lawyer you'll be in a cash for keys situation or go to court and the property is tied up for months. I'm going through this right now. So far they have accepted a 4k buyout with 1/3 going to the non profit. Basically it's just like the mafia. Hope this works out for you. Get a lawyer before you go any further. You need to cross all your t's and dot all you i's or it starts over again.

@Bjorn Ahlblad Yes, totally agree Bjorn. I'm getting legal advice on the situation now. These non profit lawyers are really making it hard for mom and pop landlords in California.

Has anyone on here had to go up against BASTA in an eviction case? I just learned who they are because I'm buying an SFR with tenants being evicted and they are represented by BASTA. I know the best advice is to wait until they're out before closing but there will be a lot of equity on the table that I don't want to walk away from.

@Alvin Uy

"They", is the LA County Planning Dept. My rehab is in the unincorporated area of the county. In LA County setbacks DO NOT matter on a garage converted to an ADU, that is a fact because my property is proof. Maybe the City of LA overrides this but the state of California sets the conditions for ADU's and separate building departments can modify them.

I'm in the Antelope Valley. You can find foreclosures here and in Bakersfield. Still close enough to manage. Investing in the LA City area is very expensive. I don't see any way to cash flow there without putting in a lot of up front on the down payment. Expand your range to include North LA County and Bakersfield, you'll be surprised at the numbers. You can make a profit in these areas. Granted, more and more investors are discovering these areas so prices are going up so be ready when they ask for your highest and best to add a little more than is comfortable to spend. 

If you're in Los Angeles and want to keep your investments there I'd seriously look at some foreclosures to rehab and add an ADU - Accessory Dwelling Unit. I am in the process of one right now in LA County and it's going to double my cash flow. I was so bummed out when the Planning Dept told me I couldn't convert the garage into a 3rd bedroom because the setback was not 5 feet from the property line. They told me I could do an ADU though because they don't care about setbacks. Lots of pluses by going ADU. I'm currently considering this as my next investment strategy so I can continue to invest close to home.

I'm converting a garge into and ADU - Acessory Dwelling Unit. The cost for an additional water meter is extremely high so I want to sub meter the house and the ADU. Looking for recommendations on type and if allowed here, the manufacturer.

@all who responded          Thank you for the replies, definitely puts me more at ease.

@Tony Kim  The duplex was in Needles and I was having to deal with the Needles Housing Authority and they controlled what was needed. I don't remember the full list but it was things that seemed small but would have taken a lot of time and money. I remember one being outlet height was too low or too high. On a brick building it's easier said than done.

Glad to hear your positive outlook on Section 8. It's always been a negative in my vocabulary but in the long run maybe it's not so bad. Are there any websites you recommend for landlords on Section 8?