All Forum Posts by: Daniel Zapata

There are provisions for owner-occupied and non-owner occupied STRs in Sacramento : https://www.cityofsacramento.gov/finance/revenue/short-term-...

The latter requires a conditional use permit but I don't see any info about that in the website.

+1 to hopefully the lease spells out what they can use and you can then enforce it.

You can't simply non-renew the tenant in California if they have been there 1+ years (AB 1482 IIRC). Oakland may also have stricter rules as well.

I own some multifamily real estate with a sweat equity partner and we currently split the equity and cashflow 50/50. We probably have another 5+ years of holding the properties before considering selling, but do reassess periodically.

I work full time in tech and make a good salary, so taxes are always a concern for me. I believe my partner could use more cashflow. Are there any issues/concerns I should be thinking about if we were to change our split to have him take 100% of the cashflow and I assume all of the equity in the property? Has anyone done this before?

I own some small multi family properties in the Sacramento area and I'm looking to jump up into a 10-20 unit property. Should I find a commercial broker to help me on the buyers side, or is this something only for the sellers? I have an agent I've used for all of my small multi family purchases but I think the commercial side is out of his depth.

Referrals are welcomed!

Thanks!

Winter is generally a tough time to get tenants if you want decent rents. If you can float the property for a while, I would consider doing some renovations and have it rent ready by the Spring. You can take the time to install LVP flooring, durable appliances, etc. Just make sure to not over-renovate to the point of diminishing returns. I like to renovate a little better than the other units in my area so mine stand out a little more.

Re:refinancing: you should run the numbers on those different scenarios and see if you're comfortable with the expected cash-flow + benefit of leveraging this property into others.

IIRC, you cannot deny any Section 8 renters so it's more a matter of them applying vs you allowing it.

Thanks @Chris Seveney. I'm comfortable that I'm able to do it. I'm more looking for some pointers on which devices others have used.

Quote from @Chris Seveney:

@Daniel Zapata

California has laws on submetering (sb7) which you will need to follow. I have not had to submeter in CA but My recommendation is to speak to a few pm companies or even the utility company or some mechanical engineers as they could assist.

https://www.naahq.org/new-calif-sb-7-law-and-benefits-submetering-any-state

I have a 6-plex in Sacramento and I want to bill tenants for their own water usage. The water goes from the meter into a water closet where it then splits into each of the 6 units. I called the water company and they didn't have any suggestions. I have found a couple of devices which seem to do the job:

https://www.amazon.com/bluebot-Universal-Detection-Tracking-Required/dp/B08V9DKFR3/ref=psdc_3180231_t1_B08DX6MP8X 

https://www.amazon.com/Moen-900-001-4-Inch-Smart-Shutoff/dp/B00C03D01Q

Installing multiple meters is a non-starter due to the price. 

How have you split the water billing for tenants? Do you have any devices you have used to read the usage for each tenant.

I acquired a property in Sacramento (built in 1890) which I was advised may be eligible for a property tax reduction under the Mills Act. Does anyone have experience filling out the `Mills Act Program` application (https://www.cityofsacramento.o...) and have any tips in getting the best result possible?

I would be wary of putting that many people in one property, but it depends on the unit size. I think you can limit the number of adults in one property as part of your criteria (verify for your state).

It's a red flag for me to need that many people to make your minimum income/rent requirement.

Make sure you are familiar with the fair housing rules and you apply your criteria the same way for any applicants to your properties.

@Daniel Michael Phelps I'm with you, I prefer the lower starting tax basis.