REO (real estate owned) property where the previous owner live in

[Dong Eun Kim]

Hi, 

I found a property with a great potential in a very nice location in Berkeley, CA. The property is on the market for 2 months. After getting disclosure, I found that it is REO where an old lady, previous owner refuses to leave the house. The bank got the house in 2019, but she used Covid eviction rule and has lived in over 3 years. The eviction was ruled but she appealed to the court to maximize her staying.

Here, my question is whether there is anyone who has a similar experience. And how long does the appeal process take and let her move out? Do you think that it is a crazy idea to buy it? 

[Greg San Martin]

No comment on existing "tenant."

Would the home be owner occupied or a rental? Does it have ADU potential? Under Measure Q, rent control would not apply if owner occupied one unit after ADU is built. The exemption extends to eviction controls in most if not all properties.

Rents have been flat for a few years.  And Berkeley remains very anti-small landlord.  Rules often get changed behind closed doors and without notice.  Building would be expensive. Tenants control the ballot box so expect wealth transfer measures to become even more outlandish. If you leave the owners unit vacant, or rent it, you lose the exemptions 

Still, if I were starting out, I'd consider building and living in the ADU and renting the larger house. It is nice to have options.

Berkeley Measure Q