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All Forum Posts by: DG A.

DG A. has started 16 posts and replied 190 times.

Post: Help/resources evicting problematic Section 8 tenant in Oakland

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

Yeah, to repeat what others are saying it seems they violated each of the following: 

  • Oakland's Just Cause for eviction ordinance - via non-payment of rent clause
  • Costa Hawkins - because it limits rent control so as not to apply to single-family homes. It should be noted though, that section 8 is a contract, and in the section 8 contract, you're agreeing to section 8's scheme for rent amounts, rent increases, and their definition of market rate rent. This can limit your ability to get a section 8 tenant out of a home due to limitations in the just cause for eviction ordinance, specifically, when a section 8 tenant IS paying rent on time and consistently. You can usually only evict a section 8 tenant if they're not paying the rent, or not following the rules of the lease. 
  • Section 8 - does not allow this kind of behavior from tenants, if you document each of these things by having the service providers you send to do fixes at the property take pictures... not only would you (usually) be able to get the tenant out, but you could get them kicked off section 8 altogether. Then they'd have to pay market rate rent with no voucher where ever they wind up. Have the service providers you send give you pictures documenting the damages caused by the tenants and the fixes you're paying for. 

Post: Buy-and-hold strategies in high priced areas

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

I'm super curious about that. @Account Closed - it makes intuitive sense, but I dunno if I'm ready to place bets on that now... I wonder if it's 10-20 years out or 20-40 years out. Makes sense if you're already doing OOS to go north, otherwise, I'll probably be investing in Oakland until the well runs dry. 

Post: Last minute Oakland meetup 12/1/18

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

I can probably make this. Would be good to talk shop with you Arlen!

Post: Buy-and-hold strategies in high priced areas

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181
Originally posted by :

You mentioned cash flow from day one. We don't care if an asset is cash-flowing from day one. Our question is how long does it take for us to get it to cash flow positive? 3 months or 6 months? How much reserves do we need to set aside to get there? How much equity would we gain once we got there? How much equity would we gain once we've fully stabilized the asset? Does it worth our time and efforts? 

Hey @Account Closed - I'm curious. For the buildings, you're buying how are you repositioning the buildings' cashflow? 

I looked it up, and San Jose has a rent control ordinance where you have to have a tenant leave via "Voluntary Vacancy" in order to set the rents to market rate. I'm facing exactly that challenge here in Oakland. What are the tools you're using to get rents increased to market rate when considering the rent control ordinance?

When I look up the ordinance, under San Jose’s new 2017 law, it says landlords must demonstrate one or more of the following grounds in order to terminate a month-to-month tenancy:

  • Nonpayment of rent (excluding rent withheld as permitted by law).
  • Material or habitual violation of the terms of the tenancy.
  • Damage to the rental unit.
  • Refusal to agree to a new rental contract.
  • Nuisance behavior.
  • Refusing access to the rental unit.
  • Unapproved subtenants holding over after the end of the term.
  • Substantial rehabilitation of the rental unit, subject to certain conditions, including payment of relocation assistance and refund of security deposit
  • Removal of the tenant under the Ellis Act, subject to compliance with the new relocation assistance requirements (see below).
  • Owner move-in, subject to payment of relocation assistance and refund of security deposit.
  • Governmental order to vacate.
  • Vacating an unpermitted rental unit.

So it seems like you can use these 3 as a tool for getting rents to market rate:

  1. Substantial rehabilitation
  2. Ellis Act
  3. Owner Move in 

Are those the tools you're using? Or are there others to get the rents up, and get from cash-flow negative (when you acquire a building) to cash-flow positive?

Post: Buy-and-hold strategies in high priced areas

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181
@Minh Le I sent you PM. I'll coordinate the trip. Thanks for offering to do this!

Post: Buy-and-hold strategies in high priced areas

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

@Minh Le i'll take you up on that if you're open to it! 

Post: Venting about Measure Y

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

this has only been in place a few months.  If you read the ordinance online it still says "oakland RAP board staff will develop a form for this purpose..."  

All they made me do was provide a utility bill from 2 years ago,  and one from the same utility for this year. 

Post: Venting about Measure Y

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

I might have a blank copy of the download I made a few months ago.  Send me an DM and i'll try to get it to you

Post: Venting about Measure Y

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

It used to be located here: 

https://www.oaklandca.gov/services/certificate-for-owner-occupancy-of-property-with-two-or-three-units

Post: Will property tax go up after building an ADU?

DG A.Posted
  • San Francisco Bay Area
  • Posts 196
  • Votes 181

The square footage of building you added to the parcel will be taxed at its current value. 

The existing square footage will not see a tax increase,  beyond the usual amount 2% annual increase.