All Forum Posts by: Tim Bee

When you transfer a property to an LLC from your own name in California it triggers a reassessment on the property tax and it gets increased to the new value. Could cost many thousands extra per year.

You know that in California if you have an ADU you now fall under rent control and have lots of eviction rules. If you have a single dwelling you are exempt from rent control and those rules so long as you are not a corporation and don't live in LA, SF or a few other communist counties and cities. Be careful before you jump into ADUs (in Cali anyway).

People seem to like Detroit on here for some reason.  I would never invest there but you might want to look into it.

Hotels are already super expensive.  So raising rates 15% on your current AB&B to compensate isn't going to affect your vacancy rate.  People hate paying 300-400 for a decent hotel.  So don't worry.  Now a 30% or more raise in your rates.  That might be a problem.

I would assume that property values have gone down to compensate for the decrease in profit from rent control?  Any realtors in those markets affected by this care to comment?

 I only do LTR.  But maybe you can educate me :)  What would be the average monthly income be over a 12 month span after all the expenses.  And I mean all, like cleaning, advertising, maintenance, property tax insurance...etc etc.  But don't include the mortgage payments.  What would it come to on average per month?

Thanks in advance!

 Then it seems to me that is a bad deal.  Why would anyone want to buy that.  

The only thing you should be concerned about is, does the property meet the 1% rule. If it does and the rest of it checks out then I'd say go for it.  If you can't find any that meet that rule or the ones that do are built in the 1940s or 30s etc.  then just keep researching.  You can do it!!

what ever you do don't rent to them. DO NOT

You didn't quite achieve the 1% rule.  But since you already have it maybe throw a sec 8 tenant in there and swing for the fences on the next one. Remember there are tons of nice properties that fall in the 1% rule.