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All Forum Posts by: Diane Caballa

Diane Caballa has started 2 posts and replied 6 times.

Update:

This is a SFH which I own under my name, not a Corp, LLC, or trust.

My property manager seems hesitant to have me raise the rent because she said that I am not exempt from the rent cap. But I see in AB 1482 that the previous poster, Dan, is right. SFH not owned my a Corp or LLC is exempt.

This makes me want to consult a lawyer instead of relying on the advice of my property manager. Does anyone have any recommendations for firms that specialize in real estate?

thank you!

Quote from @Dan H.:
Quote from @Diane Caballa:

My tenant was notified in November 2022 that I would not be renewing their lease which was due to end in March 31, 2023. They just informed me now (March 2, 2023) that one of them is having open heart surgery (pre-planned). They would not be able to move out due to the 8-week recovery period so they earliest they could vacate is end of May 2023. I have already made arrangements for that April timeframe and this delay would incur additional costs.

What rights do I have in this situation?

I want to be understanding but they did have ample notice to move out. They even planned for this procedure which makes me think they were doing it on purpose so that they wouldn't have to move out. 

Thank you all in advance!


 I recognize that you are posting here to obtain knowledge, but I propose that it is very late.  If you do not know the tenant regulations, you are best served to hire someone to manage your rentals.

You do not state if this is a multi-family (MF) unit (duplex or more units) or a Single Family Residence (SFR).

If the unit is in a unit in a MF property (one property that has multiple units), the statewide rent control regulations apply.  With the statewide rent control, you cannot simply decide to not renew a lease.  There are only a couple legal means to terminate a lease without tenant's consent.  You did not state anything that leads me to believe that you qualify for a no-fault lease termination (which the ordinance refers to No-fault eviction even though it is not an eviction).

If the unit is a SFR (including condos, townhouses, Single Family Homes (SFH)), the state rent control does not apply. You can terminate the lease at lease expiration by providing the proper amount of notice (which you gave sufficient notice).

As has been stated, this is a tenant friendly state and San Diego is a tenant friendly city.  If the tenant does not move out, the eviction process will take a lot of time and can be costly.  

If your unit is not rent controlled, I recommend you immediately give notice to raise the rent at least $1K/month starting 60 days after you provide the notice.  This should convince them to leave.  If they fail to leave at least they will be paying a very large rent payment (or owe it if they fail to pay it resulting in a ding to their credit.

Prior to rent control, I never terminated a lease of a tenant that was paying rent.  If i wanted to convince them to move because they were an undesired tenant, I simply raised their rent to above market rent.  They may have thought I was clueless to what the rent should be for the unit.  They provided me notice that they would be vacating the unit and moving.  It ensures that they have no claim for any reason that I am terminating the rent lease seeing that they are terminating the lease.

Good luck

Thanks for the info Dan. For more info, this is a SFH which I own under my name (not a trust, LLC, or Corp). This is also managed by a property manager.

After seeing all the helpful posts, I am inclined to have them sign a new rental agreement before April 1st.

My tenant was notified in November 2022 that I would not be renewing their lease which was due to end in March 31, 2023. They just informed me now (March 2, 2023) that one of them is having open heart surgery (pre-planned). They would not be able to move out due to the 8-week recovery period so they earliest they could vacate is end of May 2023. I have already made arrangements for that April timeframe and this delay would incur additional costs.

What rights do I have in this situation?

I want to be understanding but they did have ample notice to move out. They even planned for this procedure which makes me think they were doing it on purpose so that they wouldn't have to move out. 

Thank you all in advance!

Quote from @Larry Turowski:

@Diane Caballa you'll generally be able to get a better deal when you offer all cash but you'll also likely be doing some rehab. The idea is to buy (for cash), rehab, rent, and then refinance, and repeat (BRRR or BRRRR). The refi part is where you ideally get back all your starting funds because you've improved the value so much, or most of your funds so that you can build back up to 112k quickly.

But rehabbing is not for the feint of heart, especially remotely, so consider your goals and ability to execute. 


 Hi Larry,

Thanks for the info! I'm a newer investor so I actually don't plan on doing much rehab. I'm think of finding a cheaper turn-key within my price range. I'm thinking of using the HELOC to fund the purchase of a property and holding it long term.

If a lender allows me to use a HELOC as a down payment for a mortgage and the numbers work out, I might be able to have a larger budget to work with to purchase a buy and hold rental. I know that the numbers of this might be a hard reach, unless I turn it into a STR. But I'd like to see my options nonetheless.

Quote from @Ally Gao:

@Diane Caballa May I ask which lender is providing the HELOC for 30 year fixed rate? I am currently looking for getting HELOC, but seems that many banks don't have it anymore.

Thank you so much!

Ally


 Hi Ally,

I used Figure for that loan. I've used their fixed rate HELOCs on another property of mine and it went pretty smoothly. Funding was also very quick.

- Diane

Hi all,

I'm pre-approved for a 122k HELOC for a 30 year fixed rate at 8.5%. Should I take this out to buy an investment property, functioning like an "all cash" purchase or should I use it as a down payment for a more expensive property and take out a mortgage? Which lenders would allow a down payment from a HELOC source?

Looking forward to learning from all of you!