All Forum Posts by: Chun Kin A.

I have the following questions.

1) Realistic rent? Rent of 3500 in La Mesa is quite a lot, where one expects a recent remodel and/or great amenities. I'm not sure if a house in need of TLC can command that, let alone one built more than 100 years ago.
2) Seller finance: The terms the owner offers is 25% down at 6% interest with a balloon at 5 years (presumably 30 year amortization). If you have good credit, that's about the same terms as what you get from a good lender these days. So why seller finance?
3) What is the deal about "discounting the purchase for rent"???? Is the owner going to live there for another 5 years and you are going to lease the property back to her? By "discounting the purchase" it is a form of prepaying that rent and then she expects you to sign a lease to rent the unit for her for $0? If so you want to read the details of AB1482. If AB1482 applies, your rent increase is limited to 5%+inflation (i.e. $0 for you if you start from $0) and you are not allowed to terminate a lease except for just cause(tenant issues or you are moving in or major renovation). There will also be an eviction issue if she decides to horde the place. And is she going to live in the main house or the granny flat? Why isn't she paying the rent she claims to bring (3500 for main or 1900 for granny flat), and factoring in the annual rent appreciation?
4) I assume you have done a thorough inspection for roof, foundation, drain line, and termite damages so that the purchase price had properly factored these in?

Thanks Dan for sharing your thought. I think it makes sense for each renewal to be a new agreement and attaching AB1482 along with renewal should allow me to raise rent beyond cap by 2024.

Hello all,

I am new to landlording and therefore also new to the AB1482 notice requirement. Let's say I started renting out a San Diego property in Jan 2022 and I did not get the renters to sign AB1482 (i.e. did not fulfill the notification requirement) but now I realize my property satisfies exemption from the 5%+CPI rent cap rule. If these are long term tenants, does it mean I will lose my ability to increase rent beyond the cap for perpetuity? Or can I tag along a AB 1482 notice at renewal (assuming I do it more than 60 days ahead of time) and increase rent beyond the cap on either the 2023 renewal or 2024 renewal?

Thanks for your opinion in advance.

I think a large audience in San Diego, including myself, will want to buy from you if you can find deals at 70% ARV. If the seller is a bank, who is quite knowledgeable about market price, then I thought the bank would rehab themselves and sell at ARV. If you don't mind, can you share for what type of properties a bank would be willing to sell at 50% ARV? A fire damaged property that needs total rebuild?