Bought the short sale: lease template for condo in CA?

[spdrun]

So, less than two weeks ago, I bought the 1/1 condo that was sitting in short sale approval for the last seven months. Cleaned it up, painted, went through all mechanical systems with a fine-tooth comb, put it up for rent. Found a tenant with stable job and good references. Even after closing costs (mostly paid by the bank; I went hardass on that point) and misc expenses, I’ll be getting 8+% cash/cash cap at the agreed rent.

Next step: write up a lease, get it signed, collect 1st month and deposit. Any suggestions for good lease templates specific to CA? I’ve only written for NY, NJ, and DC.

PS – I don’t fark around when I want to get something done, even if the banksters do 🙂
PPS – thanks for all the advice; be happy to grab a cold beer with any of you all this week.

[ctr70]

NOLO Press has good California lease templates. The have a Landlording in CA handbook.

Did you finance or buy with cash? From late 2008 to late 2012 I found cash-on-cash returns (including loan amortization) could easily be 15% annualized with 20% down 4.25% loans on San Diego condo rentals. That’s just the return solely based on rental income. Of course if you count the appreciation we have had the last few years, if you sold condos bought 2-3 years ago right now you are looking at 100% annualized cash-on-cash returns, counting the Capital Gain from appreciation + return from rents. And to think there were some on this forum that argued passionately against buying condos for buy and hold back in those days from late 2008 to late 2011 when the pickin’s were the best.

[spdrun]

I meant > 8% unleveraged return. About 16-17% leveraged /w 25% down.

[SK in CV]

[quote=spdrun]I meant > 8% unleveraged return. About 16-17% leveraged /w 25% down.[/quote]

In the original post you said 8% cash on cash, which would mean based on however you bought. If you’re getting 16-17% cash on cash, that’s pretty damn good.

The cap rate should be based on today’s cash flow. Cap rate is a method of valuing current cash flow. If it’s worth more than what you paid (which by all indications, it is), then the effective cap rate would be less than your cash on cash return.

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