All Forum Posts by: Emy Bernardo

STRs in SD aren't based on zoning like most cities- they recently passed a very restrictive ordinance and it's based on a lottery system.  I would avoid STRs in San Diego city limits.  There are other cities in San Diego county that are much more friendly to STRs. Check out Imperial Beach, Carlsbad, or Oceanside for other options. https://sandiegostra.org/coast...

@Hana D.  -  I have and umbrella w/Geico, but they aren't the only provider for umbrellas. You don't need an umbrella for each property, though, the "umbrella" can be used in the event of a lawsuit against any of your insured properties. It covers the amount that your primary insurance doesn't cover.   The polices start at 1 million of coverage and go up from there.   https://clark.com/insurance/um...

I would talk to lenders and see if there are any construction loans and low down payment options for you to preserve as much capital as possible. Crunch the numbers and make sure it will cash flow day one w/o the ADU in case you don't have enough to build it initially. Is the house paid off? If so, would owner financing be an option? I would try to negotiate the best price on the house since you are family and taking a lot of the hassle out of the sale for them and you will be saving them on the real estate commission.

@Hana D.  Good question!  Umbrella insurance covers you if you get sued for an amount over what your primary liability coverage limits are.  This can be for any of your properties, autos, many different situations - not just one specific rental property.  Read more here:  https://www.nerdwallet.com/art...

It's easy to get - check with your insurance provider for your auto insurance to see if they offer something. They usually require minimum liability limits on your auto and home insurance to qualify.  I purchased a policy through Geico since I have my auto insurance there already.  The cost to bump up my auto liability coverage was insignificant and I feel well worth it to have the additional coverage. 

For rental software, I've been happy with Turbo tenant - it's free and has a lot of features. I looked at of lot of the free/low cost options and wanted one that didn't charge a fee for my tenant to setup auto-payments.  They also didn't require me to provide my social security number to set up an account like Apartments.com started doing this year for the new tax reporting rules.  I try to limit the amount of PII I provide to these cloud software providers..

https://www.turbotenant.com/pr...

I have some first time buyer clients in lower end of this price range (400-450k) looking for condos and I do think it's slowing down a bit - just in the last couple of weeks.   I'm seeing longer days on market, properties falling out of escrow (buyers cold feet) and a few of the condos that I've been tracking have actually sold for less than or at list price. It could be that this price range is made up of a lot of first time buyers using FHA or low down payment options w/ added PMI and they are more price sensitive. Also, it seems many listing agents don't factor in the cost of HOA/Special assessments when determining list price. Most buyers go by what the monthly payment is rather than the purchase price. Add PMI & HOA to the monthly PITI and these costs really add up. It seems many of the condos at the lower price range have high HOA fees (400+ a month) - combine that with a 1% increase in mortgage rates from a month or so ago and many first time buyers are getting priced out of the market or simply not willing/able to cover an appraisal gap/offer over list price.

Following this thread - thought of doing something similar in a different state - creating tiny homes to rent out as vacation rentals or a small RV park.  What does the county consider this operation? RV Park or Campground? How many acres? I assume you have all the permits for the business approved and zoning allows for this type of use?

I do not recommend waiving the appraisal contingency unless you are willing to lose your EMD if you back out. You can include specific terms in your offer as to the amount of the appraisal gap you are willing to cover.

CAR form RCJC.  If you are planning to occupy one of the units, you may be exempt.  However, San Diego city is implementing a just cause eviction moratorium that may still apply.  

Exempt:
"A property containing two separate dwelling units (excluding ADUs and junior ADUs) within a single structure in which one of the units was Owner occupied at the commencement and throughout the tenancy."

There are lenders that offer cash buyer programs that are available on investment properties/second homes that could give you a leg up in this competitive market.  Most realtors have several lenders they work with so you can shop loans. That may be the going rate for investment properties - typically 25% down is needed for a duplex to get the best rate.  You might look into flyhomes for the cash buyer program.