All Forum Posts by: Andrew Faukner

This November, residents of South Lake Tahoe will also be voting on a "Vacation Home Tax". If the property is not occupied for 6 months out of the year, (and you will have to prove that) then you will have to pay $3,000. From the second year onward, you will have to pay $6,000 per year that your property is not occupied for 6 months out of the year. The value of the home does not matter. The local measure will be "Measure N".

Thank you Matthew! I did some research before I asked the question, but I missed the part about "Exemptions". I think that allows them to raise the rate 10%. Her rent is going up $240 per month. My sister, and a lot of the tenants are really upset, but I don't think there is much they can do. Thanks again for the detailed response!

My sister is in a senior living facility, and they decided to raise the rent 10% next year. From my understanding, in California you can only raise the rent 5%, plus the cost of living index, which I believe is 2.4%, for a total of 7.4%. The 10% is the maximum, if the cost of living index is over 5%. 

Do I have this correct? Should the total be no more than 7.4%? Could it be different since this is a non-profit, senior living facility?

Thanks!

Which part of California?

I've thought many times about doing the same type of thing, it's just that I've reached an age that I don't want another business to run. It seems like it would be really expensive to set up at first. For areas that would be used by the guests, you would need furnishings to match 1887. You also need the yard manicured to have weddings in the yard. What about parking? Is there room? Is there a water tank house? Could it be converted into living quarters? Zoning could be a problem. We had one farm family set up a very cute barn for parties, but they were shut down by the county, because it wasn't appropriate for a farm. 

If you decide to do this "business", surround yourself with people that really know weddings, like a really popular wedding planner, photographer, caterer. You need advice from your "partners" on how to make this successful.

Good luck, Nicholas.

@Chris Sharp Hi Chris, yes, please send me the name of your insurance agent.

Thanks, Andrew

@Joe Homs FYI, Concerning the roof certification and Foremost Insurance, my agent told me the roof certification would not work.

Yes Chris, can you send me the name of your insurance agent.

We have a duplex in Modesto, Northern California, and we need an insurance company that will cover a LLC. Our first insurance company went bankrupt, and closed in January. We have a new policy with Foremost, but now they are going to cancel us because of the roof. Our roof guy just told us the roof looks good, but it is composite over 2 layers of shingles. We aren't sure how old the roof is, but we have owned the duplex for about 11 years. If you have a LLC in California, who is your insurance company? I think it's time to look for a new insurance agent. Thanks in advance.

You might make an appointment with Rob Hawks, 1301 G Street, Modesto. HawksCPA.com 209-529-4060

I've only worked with him for a year and a half after my former CPA retired, but I like Rob. I have made appointments to talk to him about tax planning when it is not "tax time". He does work with real estate investors, and he is also a real estate investor. Good luck Christopher!