All Forum Posts by: Ankit A.

Hello,

This post is time-sensitive as I am already in escrow, so it would help immensely if other experts in the field can provide some guidance.

The property I am in escrow for is being sold by a trustee who is an attorney, as the owner has passed away. I would like to know what all information/documentation should I get or verify from the city and the county as part of due diligence?

The seller's agent got city inspection done and I have the report as well. The city found a lot of unpermitted additions and alterations and some electrical hazards which need to be demolished/brought back to code.

Given this condition, I would feel more comfortable if there is any additional information/documents I can get or at least verify with the city or the county office; however I have no clue what to even ask for at this point?

Would it make more sense to get house inspected by the city again after the house is cleaned out? If yes, any idea typically how much would the city charge for the second inspection and who should pay for it?

The house is really old and so far I don't think there are any as-is building plans exist. The city doesn't seem to have them either. What would be the best and the cheapest way to get as-is building drawings created?

Thank you in advance for your response.

Hello,

I am single, in my early forties. I currently own a SFH in SF Bay Area.

I am in escrow to buy a fixer-upper property in a beach town on central coast. The house has amazing views but needs extensive rehab due to multiple code violations and unpermitted additions/alterations. My idea is to rehab the property, maybe make it a primary home for a year or two and rent it out until I retire (perhaps in my late sixties). When I retire, I may have to do another remodel/renovation to this beach town house possibly.

I am torn between whether I should spend more money now and add more square footage and do it up really nicely or should I just fix the code violations and pull permits or remove unpermitted structures and be done with it for now?

Adding square footage (or maybe an ADU) would certainly fetch more rent, but at the same time more money is tied up as well for new construction and more of my time.

This being my first time ever experience with major construction and the payments for two houses in northern California, recession looming in near future I can’t seem to make up my mind.

Any idea, how should I approach this problem? What other factors should I consider to come to a decision?

Thanks in advance for your response.

Hello,

I have a 1963 built single story ranch style house, being used as my primary residence, in Dublin, CA. As a supplemental income I am thinking of building a studio over garage and renting it out as a long term rental or through Airbnb.

My questions are: 

1. Would it make more sense to build entire second floor vs building a studio over garage? 
2. Would it be cost effective to have separate utility connection (electricity & water bill) for the second floor?
3. Besides general contractors, is there any place online that would help me understand the entire process and potentially give me ball park estimate?
4. If someone has gone through this process, what are some of the gotchas I should consider?
5. What other considerations I should make?

Thanks in advance for your response.

@Tommy F.,

Thank you for your response. However, my question is beyond initial 5 years. Let me try to clarify it further.

Let's say I rent out the house and move out on 04/01/2017. Now, I am not selling the house for the next 5-7 years or more. After 7 years I do want to sell the house so I move back into the house and two years after moving back if I sold the house would I still be eligible for 250K cap or the cap would be reduced?

I was aware of the 2 year requirement in any consecutive 5 years but was told by a realestate agent some time around 2009 or 2010 some rules had changed and this 2 out of 5 years rule was not applicable or would reduce the cap on capital gains tax for the scenario I just described above. I had never heard any such thing before so wanted to clarify it. 

Thanks

Hi,

I am living in the house I purchased back in October 2009 in Dublin, CA. I intend to move out of the house and rent it out for the foreseeable future. I understand that if I sold the house within first three years of moving out, I would not have to pay property gain taxes over 250K as a single person.

However, I also heard from an agent something into this effect that if I don't sell the house within the three years and even if I moved back in after three years and stayed for more than three years the property gains cap maybe reduced to a smaller amount than 250K. I am not quite sure what the laws are around this scenario.

Can someone please clarify or direct me to a place where I can find more information around this?

Thanks in advance.