First deal, Building my Parachute on the way down😅

[Sean Moore]

Hello Everone! My name is Sean I am in escrow on my first TRI-Plex. Due to the fact this will be a house hack for my wife and I, We will have to give a 60 day notice to vacate before we can move in. I am starting to realize how unprepared I am to become a landlord. I read “The Book on Managing Rental Properties” and got a lot of really helpful information there. I live in California and was wondering if there is any specific tips I needed to know just getting started for the first time becoming a landlord.

[Nathan Gesner]

California is full of ridiculous regulation. A former client of mine owned two apartment complexes since 1980, over 300 apartments. They were always professionally managed and he did everything to abide by the law. An employee of the management company allegedly discriminated against someone in violation of Fair Housing. The owner and PM company were sued and it cost him nearly $500,000 and a couple years to defend against it. He "won" but immediately sold his properties and pulled every dime out of that state.

Two investors I work with have sold a combined total of ten properties in California and reinvested the money in Wyoming. There are many more making the same transition. I'm not saying this to scare you; I just want you to know the reality that California is not a forgiving place and you need to be careful.

The best book I'm aware of is "Every Landlord's Legal Guide" by NOLO. There is one version for 49 states and another specifically for California, which should tell you something. This guide is recommended because it's full of practical advice but, most importantly, it is updated every year with specific state laws. They not only guide you through the laws, they provide resources where you can read the law yourself. It also includes some common forms for you to use, like the lease agreement or pet addendum.