All Forum Posts by: Ben A

There's a bill pertaining to so called Jr. ADU. Google AB 2406 Government Code Section 65852.22

I meant to say high priced areas -- with $500K 3/2 in southbay, you'll likely have a difficult time meeting even a 1% rule. But it doesn't always mean, you won't cash flow. And that's when ADU can be very useful too right? : )

Thanks @Caitlin Bigelow. Yes the property already has separate door. When I made the additions more than a decade ago, I made it in such a way that I could perhaps put 2 families in the house someday. Now it looks like that would be legal via ADU permit.

2% rule is quick rule of thumb to see if you will have a nice cash flow; though it does not always reflect the true case especially in high rental areas such as most of CA metropolis areas. It says monthly rental should be about 2% of yourtotal purchase cost. i have Palmdale house bought for 120k (buy + fix), and rented for 1800/mo. That's 1.5% but as you can see with PITI of 660, there' nice cashflow once everything else is considered.

Speaking of rent control, as far as I know, only the city of Los Angeles is rent controlled in of all the areas in south bay.  That includes the communities of San Pedro, Wilmington, and Harbor City -- all part of Los Angeles city; as well as the narrow strip that "connects" them to rest of LA -- Harbor Gateway (and West Carson).

Oftentimes, this narrow strip is a source of confusion as they are addressed as either Torrance, Carson, or Gardena.

Does ADU always mean additions (seems mostly garage conversion)? I have a 6-bd/4-ba house in southbay, elongated that can easily be split by closing a hallway. All I need to do is to turn a back area space into a kitchen, and I'll have 2 3/2's plus the necessary meter changes as needed. Will this qualify for ADU permit?

Fibi long beach is among many. You go to one and you'll find out the rest of REI meetups in the area.

Looks like there had been a lengthy discussion about this here..

https://www.biggerpockets.com/forums/61/topics/381274-replace-your-mortgage-heloc-strategy

Thanks @David Dachtera

I've met Mark Kohler a few times in REI meetings here. I did learn a lot from him. But I think it's OK to start LLC, then "upgrade" at some point as long as we abide by rules and protect the integrity of the entity veil.

Perhaps @Brandon Hall can chime in to my concern above : )

Hello folks, I got a question for Tax and entity experts. My wife and I are planning to establish an entity for a new business. This is an active business (not rental) but we decided for LLC due its simplicity in structure and management since we, two, are just the owners. And then will elect S-corp for taxation to take advantage of dividend flow.

My question is what is the best way of owning the LLC? Should it be "husband and wife as community property with right of survivorship" or just as plain 50/50 members? Or Does it matter since we are electing an S-corp tax anyway?

Is the choice of ownership as "husband and wife as CPRS" solely for tax purposes (for joint flow vs partner)? or does it provide any other benefit in terms of estate planning (like trust)?

Or does my question make sense? : )

Thanks for any input!

Can he do a HELOC, max it out, then refinance the outstanding loan balance so that it is no longer a cash-out refi? If so, how long is needed between maxing out HELOC and refinancing to long term fixed? Is this a viable strategy to avoid the "higher cash-out refi" rates? thanks.