All Forum Posts by: Vierra Wong

Hi,

I'm starting to invest in SFR properties in TX and I'm hoping someone can clarify whether there are any property tax caps from year to year? I heard from various sources that investment properties are re-assessed every 2-3 years so there aren't any property tax advantages to holding a property for a long time since my tax basis will always be at market value. However online I see that the tax increase is limited to 3.5% per year and will be put to a vote if taxes are to surpass that. Is that true for investment property as well? I'm an out-of-state investor and any info would be much appreciated!

Thank you in advance for your help!

@Joel Owens Thanks for your input! We are in CA and the restaurant is in San Francisco. Sure it doesn’t get that cold in the winter but it’s uncomfortable enough with the wind to dissuade customers. Restaurants just reopened indoor dining to a 25% capacity. I’m definitely doing this on a short term basis and taking it a couple months at a time. Yes they have a POS  system. Most places try to be contactless around here. 

Thank you all for your advice. I'll probably try it for the next couple months and will have a clause that things will revert back to the lease terms once his restaurant is able to seat people indoors again. 

With winter around the corner my tenant is concerned about business during the cooler months when customers don't want to eat outdoors. He's a good tenant and aside from April has paid rent in full. I'm thinking about offering percentage rent and want to see if others have offered this and how they have been structured. My plan is to have a floor of 60% of the rent so they can't pay below that. In addition the business income will need to be reduced by at least 10% for the percentage rent to kick in.  The numbers will be compared to the 3 full months of business prior to COVID. I'm also thinking about requesting to collect a percentage of the rent on the off chance that they make more than 100% of their numbers compared to the 3 months pre-covid. 

Has anyone structured one of these yet? Thanks for any input you have!

Thanks for the advice Kyle. Yes, it's just to upgrade 1 apartment. It would be changing from carpet to durable wood-grained vinyle planks throughout, upgrading bathroom vanity/counter and changing all windows. It could be more like 8K but I just added some cushion. If I try to rent it out the way it is I'm concerned that I won't be able to even get the $2900 I'm currently at.  Would you keep as is and drop the rent to 2700-2800 if needed? Thanks!

Thanks for your feedback! Usually there are very few vacancies in my area and rents are strong. However recently there seem to be more vacancies and landlords are lowering rents accordingly. Therefore, what may have been under market rent is pretty close to market now.  I feel like I need to rehab just to get what I was already charging! I don't want to overprice and have it sit for a couple months. Currently I'm getting $2900/mo. Reno cost would be around 10K. 

We have a small multi-family apartment building in a prime location.  The apartments have historically rented out easily because of the location despite the 70's look of the place. We have a tenant moving out in a couple months. Everything is in working order. My question is should I spend money to upgrade the unit (double paned windows, new flooring, re-do bathroom) if there is not that much upside in rent? It would show better and potentially rent out more quickly, but is it worth the cost if my rent can only increase by about 3%? Thanks in advance!  

(My first BP post)

Does anyone know if the conduit in the sidewalk between a transformer and the buiIding is Landlord's responsibility or PG&E? They say we are responsible because it's a "secondary run" but I'm sure they will put everything back on us if we're willing to pay.  Long story short this is just the most recent hurdle after a string of PG&E delays to bring new power to a building. We are currently 10 months into this PG&E project and tenant was supposed to move in last November.  I have never had to deal with PG&E in this capacity and hope someone out there has some experience in with this. Thanks!!