Evictions are Illegal in California so I'm Buying Turnkey

James Wise · 2024-01-05T05:06:18-08:00

California housing is a mess. California has rent control. California has outlawed evictions. California landlords have next to no private property right. In California it feels like the tenants have way more control than the property owners. Because of all of the problem in California, many people are leaving California when it comes time to invest their money in the housing market. Who wouldn't want to get their money out of the Communist Republic of California? The California government tells landlords how much rent they can charge. The California government tells landlords that they can't evict tenants who don't pay rent. For many Californians turnkey real estate investing in more landlord friendly markets has become the best alternative to investing in California. During the 1,581st episode of The MLS Search & Analysis Show, turnkey real estate investing expert James Wise is helping Californians run the numbers on an affordable duplex in a landlord friendly city called Lorain, Ohio. Lorain, Ohio is just west of Cleveland, Ohio and is an incredibly affordable place for out of state investors to invest their money. Best of all, HoltonWise offers a complete set of turnkey real estate services to investors from California so investing out of state can be a turnkey experience whether the property itself is turnkey or needs a renovation. With HoltonWise we believe you should live where you want and invest where it makes sense so we make it easy for Californians to complete the entire investment process completely passively from the comfort of their own home in the Communist Republic of California.CLICK HERE TO WATCH THE SHOWEvictions are Illegal in California so I'm Buying Turnkey | MLS Search & Analysis 1,581 - 1949 E 30CLICK HERE to talk to me about investing in real estate in the following cities. Cleveland, Ohio Columbus, Ohio Akron, Ohio Canton, Ohio Cincinnati, Ohio Dayton, Ohio Elyria, Ohio Lorain, Ohio Toledo, Ohio Warren, Ohio Hamilton, Ohio Lakewood, Ohio Garfield Heights, Ohio Euclid, Ohio Maple Heights, Ohio Ashtabula, Ohio Conneaut, Ohio Sandusky, Ohio Vermilion, Ohio Lima, Ohio Dublin, Ohio Springfield, Ohio

Bonnie LowPro Member

Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes

2y

People love to hate on California, but this just isn't accurate. Yes, there is rent control in CA as there is in many states. But rent control doesn't mean NO rent increases. As for evictions, there is a legal eviction process in CA. Does it take time? Yes. Are there a lot of steps, yes. But to say you can't evict someone is just not correct. I'm not defending the state - there are ots of problems here. I just cringe at hyperbole.

[email protected]

3 Reply

AJ Singh

Rental Property Investor · Orange County, CA · Member since 2016 · 513 posts · 374 votes

2y

@Bonnie Low

i concur with your response. Lots of Californians run out of state without looking in cities a little away from the CA metropolitan areas.

No harm in OOS investing though.

1 Reply

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

2y

@Bonnie Low

Everyone I know who has invested in California is a lot richer than me…

7e investments53 Reviews

Website View Page

2 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Bonnie Low:

People love to hate on California, but this just isn't accurate. Yes, there is rent control in CA as there is in many states. But rent control doesn't mean NO rent increases. As for evictions, there is a legal eviction process in CA. Does it take time? Yes. Are there a lot of steps, yes. But to say you can't evict someone is just not correct. I'm not defending the state - there are ots of problems here. I just cringe at hyperbole.

But hyperbole is hyperdope.

0 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Chris Seveney:

@Bonnie Low

Everyone I know who has invested in California is a lot richer than me…

0 Reply

Bonnie LowPro Member

Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes

2y

Quote from @Chris Seveney:

@Bonnie Low

Everyone I know who has invested in California is a lot richer than me…

I think you'd be surprised. We're just normal people with normal jobs. We just happen to live here so that's where we started. Plus, California is so big and so diverse that what most people think California looks like and costs can be wildly different. We are in far northern CA where the cost of living is surprisingly low. Low property taxes help, too, thanks to Prop 13. However, the original point of my post was that it's BS to say rent increases are illegal. It's just not true.

[email protected]

2 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Bonnie Low:

Quote from @Chris Seveney:

@Bonnie Low

Everyone I know who has invested in California is a lot richer than me…

I think you'd be surprised. We're just normal people with normal jobs. We just happen to live here so that's where we started. Plus, California is so big and so diverse that what most people think California looks like and costs can be wildly different. We are in far northern CA where the cost of living is surprisingly low. Low property taxes help, too, thanks to Prop 13. However, the original point of my post was that it's BS to say rent increases are illegal. It's just not true.

I dunno........

___

0 Reply

Cara Murray

Investor · Redding CA · Member since 2019 · 55 posts · 24 votes

2y

LA is in California.

But California is not all LA.
You are using references that are discussing a single county.

I’m in California and invest completely in my local markets. What LA does has nothing to do with the way I manage my properties.

1 Reply

Brad S.

Investor · Pasadena, CA · Member since 2017 · 613 posts · 523 votes

2y

I agree, California can be a minefield. But, there is a reason why CA is typically near the top of home prices and lowest affordability and Ohio (statewide) is typically at the bottom of home prices with high affordability - that represents demand, and typically reflects in appreciation potential. I like some areas of OH for it's growth potential, but I question the demand of an area, where a $55k or $85k house has a marketing time > 28 days.

I love out-of-state potential, but my first two OOS rentals returned 30%-%45% immediately, only to lose me thousands 19 years later, when I was finally able to sell them and get released from those liabilities. Lesson learned - quality rather than quantity for me.

Now, if I put that same money and potential in CA at the time, I would've profited multiple 6 figures on each of those deals (and great cashflow). Again, I like some OH and OOS potential, but I love a real good demand and appreciation dessert along with my meal!

https://www.rockethomes.com/blog/housing-market/median-home-...
https://www.forbes.com/advisor/mortgages/real-estate/median-...
https://www.fool.com/the-ascent/research/average-house-price...

1 Reply

Brad S.

Investor · Pasadena, CA · Member since 2017 · 613 posts · 523 votes

2y

...and I am not a big fan of how our CA heads are running things, but, certain things are hard to complain about, like we will be freezing with a high of 61 deg today ( I may have to replace my low cut socks with the higher ones) and we may get a huge downpour of 0.01-0.07 inches of rain, which is almost unbearable for drivers here. And tomorrow, we may see a huge downpour up to 0.19in !

2 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Brad S.:

...and I am not a big fan of how our CA heads are running things, but, certain things are hard to complain about, like we will be freezing with a high of 61 deg today ( I may have to replace my low cut socks with the higher ones) and we may get a huge downpour of 0.01-0.07 inches of rain, which is almost unbearable for drivers here. And tomorrow, we may see a huge downpour up to 0.19in !

lol, it's true that California does have some mighty fine weather. I can't argue with you there Brad. Is that sunny weather worth your freedom though?

BREAKING California Property Owners have to Pay Tenant's Rent after Eviction | Ask James Wise 75

1 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Cara Murray:

LA is in California.

But California is not all LA.
You are using references that are discussing a single county.

I’m in California and invest completely in my local markets. What LA does has nothing to do with the way I manage my properties.

The anti house flipping law discussed below is outside of Los Angeles county.

New California Law aims to Stop you from Flipping Houses | Ask James Wise 58

1 Reply

Brad S.

Investor · Pasadena, CA · Member since 2017 · 613 posts · 523 votes

2y

@James Wise

I think we agree more than we disagree. :) Most of my investments are not in CA. I typically only do flipping locally, but I do have a couple of small development deals that will be exempt from the state rent cap law, due to being under 15 years in age. Then the plan is to exchange those oos after some additional appreciation, sometime in the next 15 years.

1 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Brad S.:

@James Wise

I think we agree more than we disagree. :) Most of my investments are not in CA. I typically only do flipping locally, but I do have a couple of small development deals that will be exempt from the state rent cap law, due to being under 15 years in age. Then the plan is to exchange those oos after some additional appreciation, sometime in the next 15 years.

0 Reply

Nick Maugeri

Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes

2y

Lol, classy. Putting another market down with little to no knowledge of that market to bolster your own pocket. A better market in OH is Dayton and Kent/Youngstown for cashflow, growth, and stability.

Evictions are not illegal in California.

Many people are not leaving California when it comes to investing their money in the housing market.

California government does not tell landlords how much rent they can charge.

The 'Communist Republic of California' has no substance.

Turnkey REI does not make sense with rates where they are, value-add is still sought out. REITs yield better returns than turnkey.

0 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Nick Maugeri:

Lol, classy. Putting another market down with little to no knowledge of that market to bolster your own pocket. A better market in OH is Dayton and Kent/Youngstown for cashflow, growth, and stability.

Evictions are not illegal in California.

Many people are not leaving California when it comes to investing their money in the housing market.

California government does not tell landlords how much rent they can charge.

The 'Communist Republic of California' has no substance.

Turnkey REI does not make sense with rates where they are, value-add is still sought out. REITs yield better returns than turnkey.

California doesn't tell landlords how much rent they can charge?

0 Reply

Nick Maugeri

Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes

2y

Quote from @James Wise:

Quote from @Nick Maugeri:

Lol, classy. Putting another market down with little to no knowledge of that market to bolster your own pocket. A better market in OH is Dayton and Kent/Youngstown for cashflow, growth, and stability.

Evictions are not illegal in California.

Many people are not leaving California when it comes to investing their money in the housing market.

California government does not tell landlords how much rent they can charge.

The 'Communist Republic of California' has no substance.

Turnkey REI does not make sense with rates where they are, value-add is still sought out. REITs yield better returns than turnkey.

California doesn't tell landlords how much rent they can charge?

Come on, man. Words have meaning. What you wrote was, "The California government tells landlords how much rent they can charge". They don't - it's right there in your screenshot.

Maybe it would have been better to omit that statement and just stay with the rent control/rent cap adjustment comment. But then it wouldn't have been such profound click bait. I would rather increase rent by 10% in California, which would be north of $250 monthly, with an average 8% appreciation on a $530K home than purchase a turnkey SFH in Lorain, OH where rent is a whopping $900 on average. The rent increase in CA. in the example is 27.7% of what an entire unit generates in Lorain annually. And you're saying people should buy turnkey and pay a premium for that market instead of CA? Come on. This math doesn't even include depreciation write-offs. Lorain doesn't touch California - rent cap or otherwise.

I think discouraging investors from buying anywhere just to pad your pocket and divert them to your market is bad practice and bad business.

Why would you bash the 5th largest economy in the world and the state with the highest GDP in the U.S because of personal feelings? Real estate is a great vehicle because we deal in facts and not in emotion.

0 Reply

James Wise

OP

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

2y

Quote from @Nick Maugeri:

Quote from @James Wise:

Quote from @Nick Maugeri:

Lol, classy. Putting another market down with little to no knowledge of that market to bolster your own pocket. A better market in OH is Dayton and Kent/Youngstown for cashflow, growth, and stability.

Evictions are not illegal in California.

Many people are not leaving California when it comes to investing their money in the housing market.

California government does not tell landlords how much rent they can charge.

The 'Communist Republic of California' has no substance.

Turnkey REI does not make sense with rates where they are, value-add is still sought out. REITs yield better returns than turnkey.

California doesn't tell landlords how much rent they can charge?

Come on, man. Words have meaning. What you wrote was, "The California government tells landlords how much rent they can charge". They don't - it's right there in your screenshot.

Maybe it would have been better to omit that statement and just stay with the rent control/rent cap adjustment comment. But then it wouldn't have been such profound click bait. I would rather increase rent by 10% in California, which would be north of $250 monthly, with an average 8% appreciation on a $530K home than purchase a turnkey SFH in Lorain, OH where rent is a whopping $900 on average. The rent increase in CA. in the example is 27.7% of what an entire unit generates in Lorain annually. And you're saying people should buy turnkey and pay a premium for that market instead of CA? Come on. This math doesn't even include depreciation write-offs. Lorain doesn't touch California - rent cap or otherwise.

I think discouraging investors from buying anywhere just to pad your pocket and divert them to your market is bad practice and bad business.

Why would you bash the 5th largest economy in the world and the state with the highest GDP in the U.S because of personal feelings? Real estate is a great vehicle because we deal in facts and not in emotion.

I would rather eat gas station sushi than have a debate with a man who thinks California doesn't tell landlords how much rent they are allowed to charge.

0 Reply

Nick Maugeri

Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes

2y

Quote from @James Wise:

Quote from @Nick Maugeri:

Quote from @James Wise:

Quote from @Nick Maugeri:

Lol, classy. Putting another market down with little to no knowledge of that market to bolster your own pocket. A better market in OH is Dayton and Kent/Youngstown for cashflow, growth, and stability.

Evictions are not illegal in California.

Many people are not leaving California when it comes to investing their money in the housing market.

California government does not tell landlords how much rent they can charge.

The 'Communist Republic of California' has no substance.

Turnkey REI does not make sense with rates where they are, value-add is still sought out. REITs yield better returns than turnkey.

California doesn't tell landlords how much rent they can charge?

Come on, man. Words have meaning. What you wrote was, "The California government tells landlords how much rent they can charge". They don't - it's right there in your screenshot.

Maybe it would have been better to omit that statement and just stay with the rent control/rent cap adjustment comment. But then it wouldn't have been such profound click bait. I would rather increase rent by 10% in California, which would be north of $250 monthly, with an average 8% appreciation on a $530K home than purchase a turnkey SFH in Lorain, OH where rent is a whopping $900 on average. The rent increase in CA. in the example is 27.7% of what an entire unit generates in Lorain annually. And you're saying people should buy turnkey and pay a premium for that market instead of CA? Come on. This math doesn't even include depreciation write-offs. Lorain doesn't touch California - rent cap or otherwise.

I think discouraging investors from buying anywhere just to pad your pocket and divert them to your market is bad practice and bad business.

Why would you bash the 5th largest economy in the world and the state with the highest GDP in the U.S because of personal feelings? Real estate is a great vehicle because we deal in facts and not in emotion.

I would rather eat gas station sushi than have a debate with a man who thinks California doesn't tell landlords how much rent they are allowed to charge.

"When you have no basis for an argument, abuse the plaintiff." - Cicero

Again, competent investors deal with facts in real estate. It isn't about what I think, the facts are in the screenshot that you shared: "The landlord may establish the initial rent to charge".

It's important to note that resorting to personal attacks is generally seen as counterproductive in a healthy and constructive debate. Constructive discussions involve focusing on the merits of the arguments, presenting evidence, and addressing the core issues rather than attacking individuals. Personal attacks often hinder effective communication and resolution of conflicts.

Lack of Substantive Arguments: When a person doesn't have strong or valid points to support their position, they may resort to personal attacks as a way to divert attention from the main issue.
Emotional Reaction: Personal attacks can be a result of heightened emotions and frustration. Instead of addressing the facts, emotions take over, leading to attacks on the person rather than the argument.
Defensiveness: Feeling defensive or threatened in an argument may prompt individuals to attack the character of the other person rather than addressing the topic at hand. This can be a defense mechanism to avoid acknowledging weaknesses in their position.