All Forum Posts by: Clarence Johnson

Definetely sellers market with inventory lacking and the ground being broke on the stadium/hotel/casino/commercial center at Hollywood Park.

I know the area well, ARV def isn't $490k....don't base numbers on speculation, only sold comps....within the last 45 days I closed a new rehabbed 3/2 for like $430k...

Just fyi based on 3.5% down the payment would be about $2900 (PITI) not $2100.

What is the bed/bath count on the duplex.  I know SoCal (LA, Southbay) multifamily very well and based on the list price and rents I would assume the duplex is 1/1 1/1.  Amandas question about *really* needing somewhere to live is also very relevant.  The numbers make sense but its hard to call it a deal without seeing comps or knowing a zip.  I would advise to be patient and exhaust investment options at home before you purchase out of state.  You don't want a slow appreciating $50k property out of state to get in the way of a strategic Ca purchase that can net $100k equity in a few years.  Feel free to send a message direct if you would like further analysis without broadcasting your find to the board.  Also, the holidays will slow the market down drastically in So Ca, it may be your best time to look when no one else is looking.  

 The bank has an agent representing them in the transaction, the agent needs to get estoppels from the tenants.  If they do not provide original leases or estoppels nothing is stopping a tenant from telling you that their rent is $5 and they have a $4000 security deposit.  I am surprised that the lender has not asked for the estoppels or leases to protect their investment.  Definitely have your agent consult their broker or manager re this item.  Wish you the best, and please keep us updated on your progress.

Also pay close attention to points (3 points = $3K on 100k loan) and ask if there is a minimum holding time or prepay penalty, new to hardmoney myself but these are some items I see that can possibly drain $$$ from a deal.

Sears Outlet has been good to me.  Just out of curiosity, are appliances the norm in rentals in your area?  I have mixed feelings about providing appliances if that is not the norm in your area because that is just another item for you to maintain.  Unless you plan on targeting first time renters, most people will already have their own appliances possibly causing you to have to store your appliances.  

No lawyers allowed in small claims court.

Be very careful because most buyers will have a Realtor protecting their interest. If they have a Realtor (buyer paid) and you do not have experience with the RE sale process you will be at a severe disadvantage possibly losing more money than you planned on saving. I have personally assisted with similar transactions where I represented a buyer in a FSBO situation and it was like the Dodgers playing a college team, they understood the concepts of the game but they were not professionals. I wish you the best, just be aware of all pros and cons of your decision.

The house can sell with no shower door or curtain.  I agree with the other poster who stated that bathrooms and kitchens sell homes, and a curtain may make the bathroom seem smaller, cut off natural light and hide your nice tile work.  If your budget allows I would add the glass shower door and get an inexpensive concrete paint from Home Depot for the garage floor.  Best of luck sir!