All Forum Posts by: Chris Ghemm

Quote from @Matt Devincenzo:

I'll ask a seemingly obvious question, but one that has been missing in the discussion. You say this discussion is because "you can't rent your home to a relative for under market rent"...says who?

There is no rent police that prevents you from doing this...there may be tax implications, but that's not to say you can't do it.

I saw this pop up on my turbo tax when I was preparing my taxes last year.  Basically says something that IRS frown on rentals to relative that is below 80% of market. So I just want to keep it up to that level to stay on the IRS good side. 

Quote from @Dan H.:

City of San Diego has a tenant protection act that is more excessive than the state wide AB1482. Fortunately, if the tenancy was prior to 2024, nothing is necessary to exempt SFR from rent control. However, by ordinance tenancies that start after 2024 must have text in the lease that indicates it is not under rent control (exact text to use is provided in the law). However I question the legality of this requirement seeing that I believe statewide those single family homes cannot be rent controlled. So a local ordinance is trying to supersede the statewide law which is not allowed but unless you have the money to take on a fight with the city, it is best to include the text.

To @Bill B. point, being a property manager requires effort including staying aware of the various laws.  If you are not going to put forth the necessary effort, you would be best served by hiring a professional PM.  Self managing has cost you tens of thousands of dollars.  A professional PM would have been much smarter financial decision.  In addition, the wrong tenant could have cost you even more.  

Good luck

 Thanks. 

Quote from @Chad Hale:

Assuming your home is not under TPA (AB1482) and you have given notice to this, rent increases over 10% require a 90 day notice.

 Thanks.

Thanks. I have also found another site last night that talks about this. It is good to know that my home since it is an SFR and not under a corporation is exempt from the AB 1482. When I increase rent last year, everyone was talking about the 10% cap but not the exemption so I have to limit my increase last year.

So the question now is since I am increasing by over 10% will my notice need to be  at least 90 days or is my unit also exempt from this?   

I rented my first home to a relative 6 years ago. We never increase for the first 5 years but then I saw somewhere that you can't rent your home to a relative for way below market price. I also read somewhere that the maximum increase is 10%. So I increased rent last year by 200. Does this apply to all rentals including single family or just to the apartments?  

I am only collecting $2600 because before I rent my home 6 years ago, 2 property managers told us that they can rent it between $2,400 to $2,600 so we rented it for $2,200 because we decided to just do it ourselves when a relative offered to rent the place.  When I look at rent now, the similar model home in my area is now renting for $3,600 to $4,000.  Our rent is currently at $2,400 and even if I increase it again today by 10% it will only be $2,640 which is still way below market value. 

Quote from @David Ramirez:

Hey @Chris Ghemm

Reach out to the zoning department and ask them if there is any way of rezoning the property to Multifamily and what are the requirements.

https://www.sandiego.gov/devel...

Best of luck, 

David

 Thanks. This is what I was looking for. 

My mom have a property that's been paid for. Due to her health and age we are considering to let her move in with us and convert her property into a rental.  The house will need a major renovation or maybe a teardown and rebuild for it to be considered safe for rental. It is a small house in a big lot. We are looking at the possibility of tearing down the house and building a multi-unit.  I am not sure where to begin search on how many unit I can place in the lot.

Zoning Code is "M" and County Use Description is "1 Family Residence".

I would sell it.  Investment should be making you money. Property looks good though so I can see why would you want to keep it.  Unless you are planning on living there in the future, you should sell and use the money somewhere else where it would produce a cash flow. 

First time landlord here.  I have been using turbo tax for 10 years using itemized deduction for my personal income tax. Last September 2017, I bought another home and converted my primary residence (since 2011) as rental.  I just finished doing the taxes using Turbo Tax premier but I was wondering if getting an accountant will give me better return.  I think if accountant use the same papers I entered then the tax will be the same unless there might be something that Turbo Tax may not be covering that the accountant knows. 

I had problem getting the cost of land as I don't have a copy of the first tax bill when I purchase the home. The oldest property tax bill I have is 2013 so I guessed the cost of land for 2011 just a few thousand lower than the 2013 cost of land. Will that be an issue with the IRS?  

Also, I added a synthetic turf and retaining wall (around $5,000) in April 2017. I don't have receipt anymore (lost them during our move) but I have quotes that was emailed to me.  Will I be able to use that as receipt? Or since the work was done before it was rented, will it even affect the depreciation base value?  

Do you have CPA recommendation in National City or Chula Vista area?

How much will it cost for a CPA to do my taxes?  

Thanks!

I paid-off my loan for my personal residence March 2016. I have not received anything from the lender saying that I paid off my loan so,

I contacted them and ask for proof that I paid off the loan. They uploaded a document on my account right now titled "SUBSTITUTION OF TRUSTEE and FULL RECONVEYANCE".

It assigns MERS as the current beneficiary. Is has signature of the lender, the clearing company and a notary public. Is this all I need or am I supposed to also receive the

loan documnents back from the lender?

Thanks!