All Forum Posts by: Jon Schwartz
Jon Schwartz has started 37 posts and replied 926 times.
Post: Secret's out. SA on California radar
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Matt Stricklen:
Originally posted by @Jon Schwartz:
Originally posted by @Matt Stricklen:
Developers looking this way...
Gosh...
Don't you have a new, state-sanctioned bounty to go earn?
Whoa. What? No, I don't, and never would. And what a thing to say about someone, especially on a real estate forum.
No personal offense intended, Matt!
Except insomuch as you're part of the electorate that produced the government that produced such a terrible, despicable law.
There's a tragic new element to the California vs. Texas debate, to the question of whether it's worth investing in Texas, etc. Texas's assault of women's rights is horrific, and it's worth pointing out regardless of the forum.
Post: Secret's out. SA on California radar
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Matt Stricklen:
Developers looking this way...
Gosh...
Don't you have a new, state-sanctioned bounty to go earn?
Post: Thoughts on new ca laws SB9/ SB10?
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Jason Berend:
Hello - would anyone happen to know if SB9 can be implemented in a Coastal Zone? Everything I've read does not indicate it would be a problem except for this link: https://www.hklaw.com/en/insig...
Thank you
SB9 can be implemented in a Coastal Zone:
"(k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for a housing development pursuant to this section."
Source is the text of the bill:
https://leginfo.legislature.ca...
Best,
Jon
Post: Duplex Vs Single Family
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Deepak Arora:
@Brendan Miller that's what amazes me :)
IMO, a multi family should be highly priced because there has been so much that has gone into dividing the parcel up and building two different independent structures. But that doesn't always seem to be the case.
Yes, but real estate prices are based on supply and demand. There's a lot more demand for single-family homes than multifamilies.
Post: Two ADUs or split up the parcel?
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Joy Elisse Garner:
Question for those of you with more experience than I,
With all the new laws Governor Newsom passed in California recently to increase affordable housing, I am torn on what to do with our rental property! There are benefits to both options.
My fiancé and I own a duplex in Northern California with adequate lot space to develop another two units by the side of our existing duplex. Lots of parking available but the property is exempt under the new law to add parking because we live next to a bus stop! So funny.
Anyway, do I build two ADU's on the property and essentially make it a 4 plex property, get the cal grant of 25k towards development, save money on permitting fees since the units will be exempt from impact fees (8k each if they're under 750 square feet) have expedited permitting under the new law; and also save money on metering and utility set ups since they can tie into our main BUT be prohibited or ever separating our parcel and selling them on their own, (and we'd get about 1600 a month in rent off of each of them so we'd cashflow quite a bit)
OR split the parcel to build two separate units that can be sold immediately after they’re constructed, but then have lots of extraneous costs like impact fees, utility fees, and not have the expedited approval BUT make a lot more money on the sale if I were to sell it, but have much less cash flow than if I build ADUs instead.
Totally torn :(
Joy,
To split your parcel into two, it has to be zoned for single-family, and you must live on one of the parcels for three years following the subdivision. Is this doable? Is your parcel zoned single-family, and are you house hacking the duplex?
Best,
Jon
Post: First Investment Property in the Los Angeles Area
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Jacob Amaro:
Hi everyone,
My name is Jacob, and I am looking to purchase my first rental property within the next few months. I am already pre approved for a loan, and am looking for a property to complete a successful BRRRR. I am looking specifically for a duplex or a SFR with potential for ADU. The areas I am targeting include : East Los Angeles (Near Whittier Blvd.) and around Pomona (preferably northern). Any tips on other areas to look?
This really depends on how much money you can borrow and how much capital you have to invest. LA real estate is expensive, but it's important to dial in your strategy from the onset. Would you mind sharing some numbers?
Also, have you considered house-hacking this property?
All the best,
Jon
Post: California Upzoning....what do you think?
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Bruce Lynn:
California bill SB9 effectively bans single-family zoning across the state, allowing severances and up to four units on most residential lots.
Of course as an investor you want to love this, allowing ADUs or replacing a single family with a 4plex.
But of course I don't want it in MY single family neighborhood...I don't want a 4plex with cars, noise, and all the other issues that come with multifamily next door to me.
What do you think?
Well, you gotta look a little deeper than the headline.
SB9 has a three-year residency requirement. If you want to divide your parcel or build a second home, you have to live there for three years. This will stop nearly all developers from buying a single-family parcel just to subdivide and build two duplexes.
Additionally, SB9 applies only to urban areas and urban clusters as defined by the Census Bureau, so we're talking about areas that already have a fair amount of traffic and noise. Don't forget that California is home to three of the ten biggest cities in America. One out of every eight Americans lives in CA!
So NIMBYism will survive.
What we're more excited about here is SB10, which upzones small multifamily to larger multifamily along rapid transit routes in cities. This'll really help with our housing shortage.
Anyway, enough educating Texans about California real estate. Don't you guys have some sleuthing to do for a new statewide bounty your government just enacted?
Best,
Jon
Post: Small lot subdivision experience?
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Hi all,
I'm looking for some information about how to get started with a small lot subdivision.
Does anybody here have experience with a small lot subdivision in LA?
Best,
JOn
Post: California Market Cycles
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Asiah Patton:
How can I identify the current market cycle and know if I'm in a buyers or sellers market ?
This is what an insane seller's market looks like!
Best,
Jon
Post: I'm looking to house hack.
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Francisco Miranda:
Is it possible to get a 4 to 8 plex and house hack it where do I start i don't want to waste more time and I'm still learning I'm in the Santa Clara County area in California and hava full time job
Francisco,
In the realm of multifamily, your only options for house hacking are duplexes, triplexes, and fourplexes. Once to get to five units, the lending goes from residential to commercial, and it's just not really possible to do a house hack.
If you don't want to waste time, connect with a lender ASAP. Just from a simple conversion about your financial situation, a lender can tell you about how much you'll be able to borrow and how much you'll have to bring to the table as down payment. Duplexes, triplexes, and fourplexes have different down payment requirements with different loan products, so get on the phone with a lender and ask a lot of question.
(Broadly speaking, any lender will do. Any lender who can offer a mortgage on a house can offer a mortgage on a duplex, triplex, or fourplex.)
Next, you want to connect with a realtor who understands investing and, ideally, has some experience with clients who are house hackers. The best place to find such an agent is right here on BP.
Finally, with a understanding of your budget and a good realtor to help, hit the market! Understand what properties should cost, but units should rent for, and start making offers where the numbers look good.
Best,
Jon