All Forum Posts by: Clarence Johnson

Hey Will, I live, own and work in Inglewood.  Rent demand is strong and trending up.  If you are getting an AirBnb just make sure it can cash flow as a long term rental as well as several city governments (most recently LA) have made changes that can crush a business model solely dependent on the short term rental market.  Additionally, make sure you check a map to ensure the property is Inglewood and not Lennox, there are numerous Lennox multi and sfr properties that are being marketed as Inglewood and they are very different areas with different demand and value.  Long term I do believe Inglewood demand will overflow into the Lennox mkt but they should not be purchased at the premium that Inglewood properties are selling for.  What is the bed and bath counts and what area of the city, I can help you to determine market rent.  Also, there are multiple developments being built and planned by the city, its a great area for long term holds and where I plan to make my next purchase as well.

@Shiloh Lundahl what is your motivation to seller finance?

Hey Danny, glad to hear your project is done.  @Nabil Suleiman is correct, use all sites available, in my experience Westside rentals (now free) attracts a better pool of applicants.  @Bobby Cauley Jr. not sure where you plan to buy, but make sure it cashflows as a traditional rental even if you plan to use the AirBnB model, many city goverments (most recently LA) are creating laws that may negatively impact your plans.  Currently rent controlled units in LA cannot be used for AirBNB, see the article below

https://la.curbed.com/2018/12/11/18136320/los-angeles-airbnb-rules-city-council

@Josh W. I started my portfolio using a FHA loan for a duplex in Inglewood, Ca. I have since refinanced to drop mortgage insurance and obtained a HELOC to possibly pursue out of state investing and other local long term holds.

I have helped clients purchase 2-4 unit properties in the LA/Southbay Area using FHA loans, but with rates and rents (especially since LA county has a rent freeze) it has become increasingly difficult to meet the self sufficiency standard for FHA 3-4 units, while there is no self sufficiency requirement for duplexes. I agree with the poster above that cashflow in a desirable area will be difficult to obtain. Also, you can obtain multiple FHA loans if buying in an order that is logical to the bank; duplex, condo, single family.

You are on the right track, FHA 203k rehab loans are good for properties whose condition may not qualify for traditional FHA financing but I would try to use it only for financing necessities and pay out of pocket for aesthetics. I have seen 203k's become cumbersome when the scope of work, contractors and lender are not aligned.

Hope this helps, let me know if you have any other questions.

Keller is an excellent place to start, I worked there for a year and still use their books and systems. Ultimately I dont like their broker split so I would not stay once you are self sufficient.  

Online brokerages are becoming more popular, however there is no substitute for being in office attending training's and having face to face interactions with colleagues and brokers.  If you choose to go to an online broker after learning the ropes, then that may be a better idea than starting at one.

I hear there is good opportunity in Muskegon, my aunt has been living there a few years.  Would love to get your opinion of the market for long term buy and holds for an out of state investor.  I hear the land bank is a good resource.

Thanks

@Huey Fontenot DM me.  You need to be careful, many solar panel companies place liens on the property, this can throw off your numbers.  I can give you feedback on the deal if you send more info.

No time to read all responses to make sure I'm not duplicating the same advise.  DO NOT WAIVE INSPECTION!  Shorten the contingency time, I typically shorten it to 5-7 days knowing I can have inspectors in within 72hrs, time to review the inspection, and possibly dig deeper if needed.

In my opinion, Rocket is like McDonalds, not great.  Get a second opinion and definitely get opinions from lenders in the area.