All Forum Posts by: James Qiu

Brandon, your cost numbers seem really high. Are you getting a loan? If not, you don't need flood insurance. If so, have you checked http://californiafloodinsurance.com/ ? I used them in my most recent purchase that's also in a flood zone, A99. Their rate is much cheaper than the FEMA one and didn't need elevation certificate. Make sure you put personal property to zero, and up the deductible to $5K. Your property insurance also sounds too much. You need a better insurance agent.

Like you, I live in CA. And I do believe the property price here will keep increasing for at least a few more years. So if you can manage to get some positive cash flow assuming 75% vacancy, you should seriously consider it. Remember if inflation hits, both property value and rent will increase, but the tax increase in CA is capped.

To ding their credit score, you need to evict the tenant and get a money judgement in court and have it recorded. Most people stop after the eviction is done, because there's little chance of actually collecting the damage, and it costs more money to go all the way. Eviction alone will be in the court system for 7 years if you do a full background check including evictions, but won't necessarily show up in a simple credit check.

I think the answer depends on which state. In the standard California Assoc of Realtor lease form, it states that "All or any portion of the security deposit may be used, as reasonably necessary, to: (i) cure Tenant’s default in payment of Rent (which includes Late Charges, NSF fees or other sums due)". This form is used by professionals, so it should be correct and legal.

I'd recommend replacing the disposal asap. If it leaks again and develop mold, you could be in for a lot more money. It costs about $100 to get a new one, and 30 min to install it if you are handy enough.

I'd say pass on both (like others here suggested). On another note, if it's been on the market for a few weeks, and all your applicants were questionable at best, are you asking too high. Remember if you lower by 5% and rent it a month quicker, you're still ahead. Plus you may get more applicants to choose from. You can always try to increase the rent back to normal at renewal time.

What you can do really depends on the lease already in place. You should get hold of the lease. If one doesn't exist, you should sign new ones with the tenants. The standard CA lease says the agreement is with the owner who should keep the deposit. So technically if the tenant paid it, you're responsible for giving them back.

You should find out if the tenant paid deposit or not. If so, you need to recover it from the previous owner, because you're supposed to return them (after all the repairs) back to the renters after they move out.

You can't remove someone legally without a court order, or eviction. In CA, all eviction starts with a notice, 3-day, 30-day or 60-day. Depending on the wording of your lease, for example, if it says the yearly lease automatically turns into a month-2-month once it's expired, then I would serve the 3-day pay or quite notice based on the old rent. If he pays, serve the 30-day lease termination notice right away. If either of the notices expired, and he is still there, you can start the Unlawful Detainer law suite to evict him at which time you need to summon him to the court and go through the entire process. Unfortunately most dead beats will not move until right before the sheriff lock out to maximize the occupancy. If you hire a lawyer, it costs about $1K. Doing it yourself is about $500.

The $1K /side is just the escrow fee, not including title, courier, recording etc. That's why I thought it's pretty high. So I talked to the my and the listing agent who is going to talk to the escrow co. to see if they can lower it.

In most cases here the saler chooses the escrow company. But i also read somewhere the buyer can choose one if the current one is not good. But I have never done it.