All Forum Posts by: David Tipton

Welcome @Eric Dowling.  You'll find people on here friendly and helpful, don't be afraid to ask and answer questions.  If someone is reading all of my posts, I probably sound like a broken record, but I really enjoy the podcasts.  I would recommend them for your drives back and forth to Palm Springs.  Really good stuff there.

Welcome @Sherry G.  That area is definitely hot right now.  Property north of Sunset is generally more desirable, but that whole area is growing.  Do your due diligence and make sure the numbers work out, but it seems like a good area for long-term growth to me, but it's all speculation.  If the hipsters get tired of it, who knows?

I like to use Padmapper (it essentially collects data from craigslist and lets you view it on a map) and Walkscore to find what people are charging for rents.  I don't know of a resource that publishes existing rents.  You may want to call around to a few property managers who specialize in that particular pocket and see if they are willing to give you an opinion on that.  

Welcome @Houston Garcia! You may want to check out the ultimate agent's guide to working with investors:

https://www.biggerpockets.com/files/user/brandonat...

Welcome @James Berry.  I'm working my way through the podcasts right now as well.  They're invaluable.  I have also been reading some of the books recommended by podcast guests.  The ones you hear over and over again are definitely worth checking out.  

I agree with you that buy and hold is the way to build wealth over time.  I think that's the endgame for any investor, but other strategies may work to build up a "cash mountain" so you can afford to invest in SLO one day.

SLO is expensive, but there may be some opportunities just south in Santa Maria/Lompoc that have lower entry points.  Personally, I'm skeptical of investing out of state and would do a lot of research before jumping into that.  Different strokes for different folks though.  For me, I would be hesitant to purchase a property that I could not (or would not) move into if times get really tough (at least for a first property).  

Welcome @Mike S.. You're going to like it here. 

@Roy N. is right. IMHO. 

Welcome @Gagandeep Singh.  

@Conor Colburn, welcome!  I would suggest introducing yourself over here as a place to start:

https://www.biggerpockets.com/forums/616/topics/21...

There was a meetup earlier this month in Santa Monica, but unfortunately I missed it.  There may be a another get together sometime after the new year.

 I tend to have a jaded view of these kinds of things, since I only see things when they go wrong.  When it comes to insurance, better to have it and not need it than need it and not have it.  I still haven't pulled the trigger on my first rental property, but definitely going to make sure I'm properly insured.  Here's to hoping I have your luck!  

There is a general misconception about LLCs.  They do not automatically and completely shield an individual from liability. If the corporation is simply an "alter ego" for the person, a court may "pierce the corporate veil" and find individual liability.  

For a simplistic example, let's say you start @Alex Chen, LLC. You are the only shareholder. You put your properties in, but extract cash regularly for your personal expenses. You hold no board meetings because it's not really a corporation, so why spend the time and energy, right? Wrong. A court may call "BS" on you and treat the corporation as an attempt to avoid liability, which it is. There are certain requirements that corporations must meet so definitely talk to a corporate attorney about your particular situation.

Is there anything that would stop you from doing both? @Jay Hinrichs has a good point that being a good, responsive landlord will go a long way. But California is one of the most litigious jurisdictions in what is unquestionably the most litigious country in the world. If a tenant is motivated they will find a way to sue. There is even a state law that prevents a landlord from preventing "tenants rights advocates" from meeting with tenants on your property. In Los Angeles, there are law firms that pay people to go door to door and try to get tenants to file big lawsuits against their landlords. Guess who is statutorily required to pay the attorney's fees for the tenant's attorneys? You guessed it! The landlord, or his or her insurance. Something to consider.