All Forum Posts by: Ben Capone

Hi All,

Our complex in San Diego had some concrete work done that caused us to have to relocate tenants for 2-3 days. We gave them the option to either provide them with the nightly rate per diem of the rental for them to do as they please or we would book accommodation for them. They elected for the latter. They have since come back and asked for reimbursement of their meals during those days. All the research I have done so far looks to state that landlord is only on the hook for providing habitable housing during the period of displacement. Any one have any previous experience with this? Any insight is appreciated. 
 

Thinking about setting up a property management company to use for my rentals to show the income as part of the management company rather than personal finances. I am sure this is a common strategy because I have heard various discussions about this. Wanted to get more information on what type of business to set up (LLC, S-Corp, etc.) As well as get any feedback or do's/do not's from investors who had success with this strategy. Appreciate any insight.

Thanks everyone for the responses and insight. Notices and formal documentation were already sent per lease agreement when payment was late as many have stated above. Where I was looking for insight was on the local legislation in San Diego Area in regards to legal eviction and what/how long that process usually is. 

I have a tenant that hasn't paid rent. This is my first time dealing with this problem and looking for some insight on what my options are. 

After talking with the tenant multiple times over the past month, it sounds like she started working for a fraudulent company and has not been paid for the past 1.5 months of employment (that's another discussion). Tenant doesn't have an update on when/if rent payment will be coming as she has been out any income the past 6 weeks. Rent is due next week and will be delinquent 2 months if not received.

Anyone dealt with similar situation? What are my options here? 

Appreciate any insight.

@Nick Bandiera, Although a lot of the comments about persuading against a partnership bring up valid points. Do not let that deter you. Especially if that is the deciding factor between getting started vs sitting on the sidelines. 

I have 3 properties now all here in San Diego and I can 100% chalk that up because of a successful partnership. Unfortunately for our SD market, starting solo, unless you have $$$$ saved up and a top tier paying job, is not as easy said than done. 

Make sure you cover all your bases and are on the same terms. Write up a contract if necessary to outline responsibilities, equities, etc. as needed. Good luck moving forward!

Can you point me in the direction of the 5 day funded HELOC? Was this HELOC on another investment property or your primary residence?

Hey Christian, I am in a similar situation hunting down my third property in San Diego currently. Some obvious right off the bats to keep in mind to help you start your search: 

- Down payment - if you are planning on purchasing your second property as an investment then prepare for a larger down payment (20-25%) then if you were to move into that property and finance as your primary. 

- Affordability - My current two properties are locked in at low 3% percent interests rates as well and current rates are double that so keep in mind affordability is no longer the same as the past couple years. With that being said, there seems to be alot of talk around 2/1 rate buy downs and some other strategies. Those may be good to research with your lender. 

- Competition - From experience over the past couple weeks, all the news about the national housing market crashing doesn't seem to be the case here in SD. Demand is still at an all time low and I have lost the past three offers I have submitted to people coming in well above asking price and foregoing contingencies. One going 150k over asking..

I know those are pretty obvious but hopefully it helps. Good luck out there!

 Thanks for the response Twana, I will keep all of that in mind when continuing my search.

Keegan thanks for the response and info. I will definitely need to do some research on the zoning as that is a new language for me . I do work for a general contractor though so I feel like I have a decent understanding of code requirements, which may help my cause. I would love to pick your brain some more on your processes and experiences with your properties if you have some time! I will shoot you a message. Thanks again. 

 Dan, thanks for your always helpful insight. I will look into more specific county requirements/regulations. Any idea where to start for this research? This is my first multi family purchase so I would like to learn up as much as I can in the process. To answer the second part, yes, I believe both units are unpermitted.