All Forum Posts by: Diane Tycangco

How high do you think cap rates are going to go and prices are doing to drop in Sacramento for single family with studio?  Is this subject to rent control?  It was built 1950.

So higher cap rates mean lower prices for real estate in rent controlled areas.

According to California Prop 13, property taxes cannot increase more than 2% in any given year, unless the property value falls and the assessed value is still below the Prop 13 cap.

https://assessor.saccounty.net/Forms1/HowPropertyTaxesAreAssessed_chart.pdf

If you bought at a lower price than assessed Prop 13 value, then you may be at a disadvantage in paying taxes but you saved money by buying low.

I will be closing on a Sacramento California single family home with studio rental property next week.  Should i even continue on my purchase?  It is at market rate and I want to increase rents next year.  I am cashflowing.  Both the house and the studio are rented out.

My question is if the state law passes and the county law is in existence which one do I follow.

Hello guys! In August 2019, Sacramento county enacted a rent control law and now there is state law AB1482 that just passed the California Assembly and is currently waiting for the governor's signature. Which one am I supposed to follow? According to state law, a single family home that is not owner occupied is subject to rent control of 5%+CPI with a max of 10%. While county law says that single family homes are not included in rent control and the rent control rate is 6%+CPI yearly. In addition, subsidized housing is not subject to rent control according to the county, but I think in AB1482, it is also subject to rent control. This is confusing and horrible for landlords. Thanks!

My question is this.  I am in the process of buying a property that has a single family home and a studio on top of the detached garage in Sacramento.  So in essence, this is a 2 unit property but not exactly a duplex.  Both units are already occupied by tenants.  I am going to be the new landlord.  So does this rent control law still apply to the single family home because this property is kind of a duplex?  Also, I read on page 4 of the ordinance under State Policy that owners with less than 10 single family home units are exempted.  Since this will be my first rental property, am I exempted?  Should I backout of the deal?  I already put down my deposit and the owner is putting in extensive repairs.  Would it be difficult to obtain permission for higher rent increases?

The rental rate she gave me is $200 above what Rentometer says.  She might just be telling me that to make me buy it. Either way, it is cashflowing. Tenants want to stay.

Ok, I used to look at Rent.com etc... but it was very laborious. I guess I really have to do that.  Thanks!!

Hi everyone!  Was wondering if the rent estimate Zillow puts at the bottom of the sale listing is reliable/realistic vs Rentometer?  I notice that Rentometer's average and/or median is higher most of the time compared to Zillow.  Also, zillow also has a blurb that usually says that a property has appreciated x% this year and this area is projected to appreciate x% next year.  Is their prediction usually correct?

Thanks!

Hi guys!  I am looking at investing in a single family home that is rented separately from a garage studio.  It is zoned as a duplex.  Is this property considered 1 or 2 units by a lender?  Also is the rate and downpayment higher for an investment property that is 2 units rather just rented as 1 unit?

Thanks!