Money Monday: Finding a Business Partner

Posted on March 19, 2013 // Leave a Comment

Let’s make a deal! Anyone interested in becoming my business partner?

The more we rent places out and experience first-hand how owners bring in a a steady high rental income, the more I’m convinced that this is the path to early retirement. We are currently renting a super cute flat in Potrero Hill with an adorable sunny garden that makes me sing. The owners live above the flat and I’m pretty sure that this rental more than covers their mortgage.

I am now dead-set on finding the ultimate property with an in-law or separate unit to cash in on the rental income. There are always multi-unit properties available for sale. Here’s my question. How do you find investors who are interested in collaborating with you?

Please comment below for all to see.

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Livin La Vida Loca

Posted on January 30, 2013 // 2 Comments

We are keeping it real, living in the Mission this week on our quest to try out different neighborhoods before we buy. We rented our apartment in Nob Hill to a nice British gentleman who is in SF for work. Last time we tried the Potrero neighborhood, which we loved. This time, we opted for the Mission. We are a block away from the hospital on the corner of Hampshire and 23rd. I have to admit, I didn’t have very high expectations, but I am really loving it here. Sure this ‘hood is a bit grittier, but it’s got character. I haven’t felt unsafe. Lots of people always on the bus and walking around. I feel like I’m living in Mexico City!

The 9L bus whisks me to and from work so quickly, I’ve been shocked. This is my first experience dealing with a timely Muni bus! Can’t beat that!!

The apartment we’re staying in is small, but lovely and fine for us which makes me think we really don’t need a lot of space. Dean and I are so low maintenance. If the 2 of us can live in this treehouse for a week, then a reasonably-priced, minimalist home should be enough. We always joke that people buy big homes purely to put more shit in it.

What’s great about the couple renting to us is that they are doing exactly what I aspire to do. They own a 2-unit building, live upstairs, and rent the downstairs unit. The rent for the downstairs unit covers their mortgage. Score! In addition to the 2-unit building, they pounced on this tiny loft next door which they had used for family and friends visiting from out of town. Now that Airbnb has blown up, they’ve been renting it out to RAVE reviews. The rental is inexpensive. It’s nice and clean. And they’re the nicest hosts ever. So they’ve got a great little side business going.

 

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Money Monday: Cash Out Refinance

Posted on January 29, 2013 // Leave a Comment

I’m having a major freak out because I’m in the early stages of getting my place ready to sell. The tenants have been given notice. I sold one of my beautiful velvet couches last weekend. Stagers and painters will be submitting bids soon. I was mentally prepared to make this the focus of my life.

Now the curve ball.

The reason I moved forward with selling my place is because I couldn’t refinance it. The last appraisal came in at an abominable $400,000 even though I paid $455,000 for it. I tried again last October with a different broker who guaranteed no fees and no appraisal cost. After the appraisal, I never heard back from the guy. I called, I emailed, nada. I figured the appraisal must have sucked again.

But miraculously, the company called me yesterday asking for a status since the broker I had been working with left the company. That’s why I hadn’t ever heard back. Looks like my appraisal came in at $500,000. It dawned on me (after clearing my mind and meditating for 10 minutes last night) that I should go for a cash-out refinance which will pretty much solve all my problems.

1. I won’t have to sell.

2. I can extract some of the equity in my home and use that for my next down payment.

3. I can reduce the rate and shorten the term to 20 years.

4. In 20 years, this is going to finance our retirement!

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I Found Your New Apartment

Posted on November 13, 2012 // Leave a Comment

Is anyone looking for an apartment in the city? Because I while away a portion of my free time assessing apartment and home prices, I found this 2-bedroom, 2-bath in Potrero Flats for $2700 on Craigslist. What a deal, right?! Open house starts tomorrow.

If any of you readers pounces on this, I expect a finder’s fee!

 

 

 

 

 

 

 

 

Since we’re on the topic, I am totally torn on whether or not to sell my condo. I need to put together a decision matrix! There are pros and cons to both options. If I could extract the equity from our condo, the world is our oyster in terms of buying a new place. But with that money un-touchable, we are constrained in our choices. I need to win the lottery.

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Budget: Extreme Makeover

Posted on October 18, 2011 // Leave a Comment

I’ve been crunching numbers non-stop lately.

It started when my tenant gave notice that he’d be leaving at the end of this month. Quick to Craigslist. What’s the going rate for a 1-bedroom apartment in Lower Pac Heights? I’ve been renting my place for more than two years, steadily increasing the rent with each new lease. But this time, I aimed a lot higher. The rental market is dot-com hot. I’ve got Googlers, engineers, doctors, interns, VCs emailing and calling. A New Yorker hired at Facebook told me he was contending with crowds of applicants at every open house. Bejesus! Instead of 20%, I should have increased the rent by 30%. I still would have had the demand.

With the rental money covering my mortgage, HOAs, and property taxes combined, I don’t want to be one of those un-disciplined Americans who takes that extra money and spends it. Like when we get raises, we adjust our lifestyle accordingly. No, I want to be fiscally conservative.

More research! Even before the tenant changeover, I have been eyeing mortgage rates, targeting a 4% or lower 30-year rate. Then a friend tipped me off to consider a 15-year. THANKS KITTY! I couldn’t seem to make the numbers work, but I kept on it. Determined to cash in on these low rates, I searched all the major banks’ websites for mortgage rates. I scoured the web. I looked at ING and First Republic. I called Residential Finance Corporation because they had mailed me a promotion. And lastly, I checked Navy Federal Credit Union who I used to refinance my private student loan. There it was, a 3.125% 15-year mortgage rate – right on the money.

A little bit of luck, ample social networking, friendship, a lot of research, and persistence. It pays.

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Money Monday: Airbnb Beginner’s Luck

Posted on August 8, 2011 // Leave a Comment

Our Airbnb transaction went without a hitch this past weekend. So smooth. The renter was completely engaged with emails, text messages. He let me know when he was 30 minutes away from arriving. I love that—responsive, responsible, low risk.

I came home for a leisurely lunch on Friday, read some reports, and waited for his arrival. I did a walk-through, pointed out the brand new linens we had purchased for his stay, showed him the fresh towels and new toiletries, handed him a set of keys, told him where to leave them, and off I went to enjoy the rest of my Friday and weekend.

When we returned on Sunday, the only indication someone had stayed was the tussled bed. He must have brought his own towel because he returned our clean ones to the closet. The place was exactly as we’d left it.

We both left positive recommendations.

Me as the host: Planning and logistics went smoothly. Very easy to communicate with him. Perfect experience for us as a first-time host.

The renter: Lovely home, gracious hosts, and an impeccable location made my stay one of the best SF experiences to date.

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