All Forum Posts by: Jon Schwartz
Jon Schwartz has started 37 posts and replied 926 times.
Post: California Draconian Rent Control and Property Tax Inc Nov Ballot
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Ryan Avila:
I think you have completely missed the point that @Christopher Smith is making.
This wouldn't be a Trojan horse if the supporters just came out and said what the real long term goal was. Just like California politicians will never just come out and express their actual desire to be a authoritarian socialist state but that’s the reality of what it is, sometimes you need to be able to read through the lines and see the big picture.
Gavin Newsom, supports anything and everything that brings more money into the state coffers, so that he can turn around and use that money for social programs. You don’t think if tomorrow the state legislature put up a bill to increase property tax or income tax Gavin wouldn’t be the first supporter in line? And before you say well this money is for schools not social programs, where do you think the money for school comes from currently? It comes from the state general fund, so if that money from the general fund is not longer going to schools due to prop 15, then the state suddenly has more money from the general fund that it can divert into social programs.
So you know what the Prop 15 backers' real long-term goal is? You can't point to anything concrete, but you know. Okay. I'll take your word on it, Ryan. Thanks for slapping that Kool-Aid out of my hand! Well done!
Post: California Draconian Rent Control and Property Tax Inc Nov Ballot
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Ryan Avila:
The $3m is the cumulative sum of all the “commercial property” they own, not the value of an individual property. It sounds pretty naive of you to say, how could a uber drive possibly own $3m worth of real estate... there are numerous success stories of people here on BiggerPockets that started from nothing with marginal income building multimillion dollar portfolios. What if that uber driver inherited a house or two in the Bay Area?
Funny how this editorial is no good, yet if it was from a liberal newspaper like say the LA Times it would be perfectly fine.
You have obviously drank the blue cool aid. You have your mind made up and nothing anyone says here is going to persuade you otherwise.
Keep thinking that it’s a slippery slope argument, don’t forget that your talking about a state government that has a law regulating cow farts and exploded the idea of taxing residential drinking water. This state will try to squeeze a dollar out of anywhere they can find, because it’s expensive to run failing social programs. And you don’t think they will try to come after property taxes? Your either very naive or your just burying your head in the sand.
Here is my question for you, can you show one article that says anything to the contrary?
Ryan,
Here's an article that says the contrary:
https://www.politico.com/state...
In this article, Gavin Newsom, a pretty prominent supporter of Prop 15, says he supports it because it will prevent the state from having to raise income taxes on everybody and property taxes on residential property.
Maybe I'm naive to believe that. Maybe so. But all I'm asking for is some shred of evidence that Prop 13 is the first step of a larger plan. Can anybody find me any quote from a Prop 13 backer along the lines of, "First we'll do a split-roll system, and then we'll get residential property on here"?
Thanks!
Jon
Post: California Draconian Rent Control and Property Tax Inc Nov Ballot
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Ryan Avila:
Ryan, buddy, friendo...
This editorial in a conservative paper doesn't once address the intentions of the backers of Prop 15. This editorial is total scare-mongering.
Case in point: this editorial warns that Uber drivers will have their homes reclassified as commercial property and be subject to reassessed property taxes. How many Uber drivers own $3M homes? I mean, come on!
Anyway, I appreciate the read.
Post: Looking for a Real Estate CPA
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Henry Long:
Hello BiggerPockets community. We're searching for a Real Estate CPA in Fresno, CA. Does anyone know of a good CPA who specializes in residential real estate? We mainly buy, rehab when necessary, improve on opportunities, rent, hold for long-term cash flow and repeat. Any help and or recommendations would be greatly appreciated. Thank you!
My CA CPA is the bomb: www.whodoesyourtaxes.com
Post: Airbnb in Long Beach/San Pedro/Lakewood/Redondo
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Rachel S.:
Originally posted by @Jin Kim:
San Pedro is part of LA city, but there is a draft pending. The last update was in February 2020.
I couldn't find any information about this draft. If you have any, I'd love to see it. As of now, (from my understanding) investment properties and vacation homes are limited to rental periods of 30 days or more.
Airbnb has a handy (and lengthy) guide to hosting in LA CIty:
https://www.airbnb.com/help/ar...
You can host in LA City for less than 30 days, but it has to be in your personal residence, and if you host for more than 120 nights in one year, you need to apply for a permit.
San Pedro is in LA City, so it follows LA City's ordinance. Long Beach is not part of LA City, so it has its own rules brewing.
Jin, whatever area you're considering, google its name and "airbnb policy" to get local information. It's confusing about LA because some neighborhoods, like San Pedro, are part of LA City and some neighborhoods, like Long Beach, are actually their own municipality.
Also, with a duplex, I don't think the second unit counts as part of your personal residence -- ie, in LA, you wouldn't be allowed to do a short-term rental in it. Then again, it looks like LA allows for the short-term rental of an ADU, so I really don't know...
Good luck!
Jon
Post: Prop 21 - Rent Control on Residential Property - Questions
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Ryan Wamsat:
I've read through the voter information guide as well as the text of the proposition on ballotpedia. Section 3f states "To exempt the owners of one or two residential dwellings from any local rental control law." Neither provided any clear guidance. I'm hoping the gurus here have more insight into this.
My questions are these:
1. If an out-of-state landlord only has one rental property in California and additional rentals in another state, is he/she exempt?
2. Similar to question 1: If a California landlord has one in-state rental and multiple out-of-state rentals, is he/she exempt?
3. Lastly, what happens if the rentals are put in an LLC and therefore not "owned" by a person anymore. Assuming that LLC only has the one rental. Is it exempt?
Also, one more important point about Prop 21 that isn't immeditely apparent in the language:
Prop 21 isn't going to put these measures into place. Rather, it gives local governments new limits on what ordinances they can put into place. Prop 21 would replace the limits put in place by the Costa-Hawkins law. So to summarize the three big changes:
1. Costa-Hawkins prevented city and county ordinances from including any single-family home in rent control. Prop 21 gives cities and counties the ability to include single-family homes in rent control except in cases where the owner is a natural person who owns two or fewer homes.
2. Costa-Hawkins excluded any buildings built after Feb 1 1995 from being including in local rent control. Prop 21 changes that exclusion to a 15-year rolling basis.
3. Costa-Hawkins forbid vacancy control, wherein rent is regulated when there's a vacancy. Prop 21 allows for vacancy control, but if any local government includes vacancy control in their ordinance, they must allow at least a 15% increase in rent from the outgoing tenant's rate.
Item #3 is what really FREAK ME OUT! Vacancy control is death to investors and cities alike. Spread the word: NO ON PROP 21!
Best,
Jon
Post: Prop 21 - Rent Control on Residential Property - Questions
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Ryan Wamsat:
@Account Closed, thank you. I'm not sure how I missed that. Section 5 indicates that section 1954.52 of Chapter 2.7 of Title 5 of part 4 of Division 3 (jeesh!) includes 2(A): It is alienable separate from the title to any other dwelling unit or is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the Business and Professions Code, and the owner is a natural person who owns no more than two residential dwelling or house units.
It'll be interesting to determine the answer to questions 1 and 2, specifically regarding whether the number of out-of-state rentals plays into this law.
Thanks again,
Ryan
I would also venture the guess that out-of-state homes won't be a problem if you're out-of-state. How will CA know about those homes? Your ownership of them isn't registered in any CA county, and you state tax filing isn't going to CA. Do you have a tax filing due to CA as an out-of-state owner of a CA home?
Thanks!
Jon
Post: When house hacking a multi-family
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Andrew Mowe:
Hey BP community, I’m starting out in real estate in the north east. I want to house hack my first property by buying a multi-family(3unit) to live in and rent out the others.
When analyzing this deal, is it ok if I break even on my expenses (using only 2 out of 3 rents) because I’m living in one unit and sacrificing that extra income? Considering if/when I move out I will cash flow well because that 3rd unit will essentially be 100% cash flow? I would love to get some insight on this strategy as I start to analyze more deals and walk through lots of homes. Thank you all!
Andrew,
I'm househacking a duplex in Los Angeles. I don't cashflow now, and if I move out in the next 2-3 years, I'll only just barely cashflow -- and this is a GREAT deal.
All real estate is local. All cashflow expectations are local. Don't expect your area to perform just like all the cashflow-heavy, Midwest towns that people write about on BP. If you're in or anywhere near Boston, I'm sure cashflow will be lighter.
In my situation, I'm paying about half what my tenants pay to rent the downstairs unit. I live on top in a better unit, and I pay half. When I move out, the property will cashflow. Just a little at first, then more over time. Plus, I'm in a A+ neighborhood in Los Angeles, so I have an excellent property for a longterm hold.
Best,
Jon
Post: California Draconian Rent Control and Property Tax Inc Nov Ballot
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
Originally posted by @Christopher Smith:
Originally posted by @Jon Schwartz:
@Ana Marie B., yes. That’s what I was asking. Where is the evidence that Prop 15 is the first step toward reversing Prop 13? In other words, where is the evidence that the proponents of Prop 15 plan to continue after Prop 15 passes to completely remove Prop 13 protections for home owners?
I’m well aware of what Prop 15 does. I’m asking for any actual evidence that the next target is residential property taxes.
Thanks!
Well I can certainly understand how you missed it, since I only mentioned it about 5 times (as well multiple times by multiple others in this thread).
Its exceedingly simple and if you had done any real research it would have jumped off the page and slapped you right in the face.
The primary members of the group floating this proposal are the very same coalition that have been attempting to over turn IN TOTALS Prop 13 for many years, but have as to date failed miserably in their efforts to destroy it for all.
So now they have reverted to some of the most despicable divide and conquer tactics of class warfare by nakedly and shamelessly pandering to people's envy of those they perceive to have more than they do. This so they can dismantle prop 13 in stages, the stealth based gradual erosion approach.
Mao, Stalin and Castro would be oh so proud as these are precisely the same tactics those utter reprobates utilized. A little time with the history books would make that obvious as well. Stalin's attacks on the kulaks, Mao's assault on the landlords, Castro's total rape of Cuba turning it into a backward cesspool.
All basic divide and conquer tactics pitting the "perceived haves" against the "perceived have nots" and ruthlessly exploiting the hatred and chaos they themselves sowed.
So are you now going to make us all laugh (or sigh) by asking yet one more time?
Christopher,
Your hyperbole is off the charts.
So is your slippery-slope fallacy.
Let's talk principles for a second, and then I'll ask my question again, but even more pointedly.
On principle, just because one thing is being taxed doesn't mean that everything will eventually be taxed. For example, if a Republican governor or President rolled back an environmental regulation to spur business, would it be right to accuse that leader of trying to destroy the planet? You'd probably consider that hyperbolic. It's another use of the slippery-slope fallacy, wherein one can't argue a measure on its merits, so he or she exaggerates the point at hand to its most extreme conclusion and argues against that.
Now I'm going to ask my question again, this time very specifically:
Could you please provide a link to one article or resource that demonstrates that the backers of Prop 15 have pushed at any time for the repeal of Prop 13's tax protections for residential homeowners?
Thanks!
Post: California Purchase Agreement Form
- Realtor
- Los Angeles, CA
- Posts 952
- Votes 1,153
@Michael Sueoka, @Dennis Maynard is right. You gain a lot by buying with an agent, and it doesn’t cost you anything. Also, in this seller’s market, I doubt you’ll get as far as an unrepresented buyer.