All Forum Posts by: Fetch Phoenix

This is a helpful list @Henry Clark

Thanks @Cara Lonsdale, @Henry Clark, and @Bradley Buxton. 

We'll double check that wind is included in our policy, that's a good point. Regarding fire prevention, luckily, we're members of the local community organization that provides a Firewise assessment to members. We were able to get a full assessment with suggestions to improve the terrain and building in order to support fire prevention. Of course, if a canopy fire comes through there's not much that can be done - but we did what we could. 

What I'm gathering from these responses is not necessarily an encouragement to sell and that instead to take precautions to decrease the fire risk and ensure that insurance is covering things like wind. And also that rates are just going to continue to be an issue, so it's likely something to plan for in rent rates and/or overall investment costs. 

Thanks again!

Hello community,

We have purchased a home in Nevada City, California that is currently a cash flowing rental, until it becomes our primary home in 1.5 years when our family relocates to the area. The good news is that it will still serve as a house hack when we move, as there are multiple units on the property.

Our concern is that it is in a high fire prone area. We knew this when purchasing a year ago, but because our family has committed to the area we moved forward with the great opportunity when it came up. Given the renewed concern of fire following LA’s fires and the potential insurance consequences, we have begun discussing the potential of reconsidering owning in the area. Here’s why:

Putting aside the actual physical danger of living in a fire prone area. These are the financial concerns:

1. The home burns and the incredibly over taxed CA FAIR plan has either gone bankrupt or takes years to pay out.

2. The home doesn’t burn but the surrounding neighborhoods and town does, severely decreasing the value of our home

3. Insurance is dropped, which is a very real trend these days, and we have an uninsured home that cannot sell. 

We are considering taking a 2-5 year risk of owning the home to collect on appreciation since prices are stagnant right now, and pray fire doesn’t take it. But then moving to actually renting while our children finish school and investing out of state instead. 

I’m writing to get general thoughts on this situation. Is anyone else in climate impacted areas experiencing a similar question of whether to get out? Is it worth waiting the 2-5 years? 

Thank you!

Thanks folks, it seems like overall it doesn't make the most sense to start an LLC for real estate purposes due the cost and complexity, with few benefits here in California. That instead solid insurance should be just fine.

Appreciate the feedback! 

I just wanted to give a quick thank you to all that have responded. I'm going through them each with consideration. 

Thank you!

Hello folks, I'm new to the forums and thank you in advance for your thoughts. My spouse and I purchased a home in Nov 2023 (that we will move into in about 1.5 years), that has an additional 2 bedroom apartment and 1 bedroom studio on the property. We are renting all 3 units currently, while living in another home that we co-own with a friend. It's in the Grass Valley area, CA, about an hour north of Sacramento. 

We have been considering opening a Real Estate LLC to support with this and possible future investment interests. The questions I have so far:

1. If we opened the LLC, would/could we transfer the ownership of the property to the LLC?

2. What would be the logistics of that if so?

3. Are there notable pros/cons to getting the property under an LLC compared to regular homeownership (us)

4. What else should we be taking into consideration here if anything?

Thank you!