All Forum Posts by: Tom Fidrych

Salinas Ca is giving free, pre-approved ADU plans to stimulate development of housing. It's good to see a California city do something constructive versus the typical obstructive approach.

https://www.ksbw.com/article/s...

Quote from @Logan Stecher:

@Tom Fidrych Fair point. If say the reason were solely the building itself and not the environment, would you take the mentioned approaches? I'll ask my RE agent if he can investigate the reason in the meantime though.

The code enforcement office should be able to provide you the reason that they condemned the property. As Dan white mentioned, you will be working with the planning department to get permits and inspections to have the code violations removed.

There's no way to estimate until you know the reason it was condemned. I've seen properties that were condemned due to a earth slide and need $500,000 of geo-technical work.

I'd purchase a 200 amp panel with 30 plus branch circuits and de-rate the 200 amp main breaker with a 100 amp breaker. That way if you decide to increase the panel amperage capacity,  you don't have to replace the panel again. In such case, You would need to have the utility company take care of the service line and transformer capacity check.

Asbestos is only an issue when the fibers are released into the air. If your flooring has asbestos, simply cover it with your new flooring and forget about it. Likewise, if your siding has asbestos and if not flaking into dust, it's not as issue.

Given that more interest rate hikes are on the horizon, I suspect that home prices are likely to go down in the short term. Rentals are often a PITA and it sounds like land-lording isn't a good match for your situation. Might be best to simplify and sell now and avoid future stress.

I've been residing with cement board such as Hardi panel and Hardi plank lap siding. I've never had paint peel from it(15 years and counting) and it doesn't degrade in the sun like wood products do.

You could butt it against the wood walkway and seal or install flashing where the siding meets the wood. It looks like you have good eve coverage over the walkway so moisture issues may be minimized. 

Your state laws may dictate whether he is considered an employee or subcontractor.
For instance, in California the following ABC test is used to make the distinction:

A) The hirer actually and contractually does not control or direct the
person in the course of their work; B) The work performed is outside the
hirer’s normal business; and C) The worker also normally and
independently performs that work for others. If the hired person meets
all of those three requirements, they can be treated as an independent
contractor. As before, the element of control over how persons perform
their work is key.

So if he is considered a subcontractor , the 1099 amount will be added to his income. In addition, he will be responsible for the full 15% SS tax. Normally this is split between the employer and employee.
If he is not considered an employee in NJ, you will need to pay him as an employee and this will involve getting workman's comp insurance and all the other PITA things associated with having employees. However, by doing it all legit, you protect yourself should an unfortunate thing happen to him such as he fall off a ladder will cleaning the gutters and break his neck.

Be sure to check your local or state ordinances as to weather there is a cap on how much you can change the rent per year. Such regulations are becoming increasingly common in blue states and cities. 
I let a few of my rentals lag below market(25%) on some of my 15+ year tenants.Then Oregon capped annual rent increases to 3% plus the rate of inflation.
I've been increasing the rent to the annual % cap ever since but since area rents have been going up I'll never catch up to market rate unless they move. Some localities wont let you increase beyond a percentage per year even with new tenants.
I think you'd be best to hire a property management company and let them deal with the business aspects. Less headache, more money, and less marital stress.

I think the stated income and subprime credit scores were the biggest factors in the collapse. Nevertheless, it's a lot easier to walk from a property when you have no skin in the game.