All Forum Posts by: Erick Garske

Vista Home for sale

This is a completely remodeled home from the newly tiled living room, to the modern kitchen with granite counter tops and stainless steel appliances, to the designer tiled shower and with granite vanity. 

The roof is all but two years old. All of the windows have been upgraded from the original to milgard vinyl three years ago.

The yard has been framed with new cedar fence in June 2015. The garage, too has been remodeled. Next to the garage, a wide locked gate secures an ample concrete slab suitable for a trailer, boat or RV.

Hi Elizabeth,

Thanks for asking the question about the price differential.

I have about 6750 square feet. The least costly sod from HomeDepot is 400 square feet for $288 or $0.72 a square foot which works out to $4860.

I don't yet know the cost for either seed or drought tolerant landscaping. 

Erick

Am at the tail end of a southern Caliornia residential rehab facing the need to decide the type of landscaping necessary to sell it. 

The choices are:

- Seed Lawn

- Sod Lawn

- Drought resist lanscaping

My broker is encouraging me to use sod for a quick sale, but the irrigation district has limited watering to two days a week.

The neighborhood is about fifty years old without HOA restrictions. There is a mix of sod and drought resistant landscaping.

Hi Mindy,

My colleague took photographs of all of the dubious craftsmanship. Its inspiring and should serve as ample evidence either in court or in mediation with the California contractors board.

Thanks.

In my first round of interviews with contractors, I used a boilerplate contract with all of the terms and conditions necessary to cover any and all bases. There was even a clause in this contract that required that the contractor relinquish the right to file a mechanics lien. No one agreed to these terms. 

The second contract was supplied by the contractor. I never provided a wet signature. He never provided a wet signature. This is the contract below. I don't believe that this is a valid contract. 

Contractors name and address withheld.

My name and address withheld.

<snip>

1. REPLACE ALL OUTLETS, SWITCHES AND TRIM COVERS WITH DECORA STYLE. (OWNER SUPPLIES)

2. INSTALL NEW CARPET, TACK STRIP AND PAD IN 3 BEDROOMS, HALLWAY AND LIVING ROOM.

(OWNER SUPPLIES CARPET ONLY)

3. INSTALL TILE IN 2 BATHROOMS, DINING ROOM, FRONT ENTRY AND KITCHEN

(OWNER SUPPLIES TILE AND GROUT)

4. INSTALL CABINETS, FIXTURES, APPLIANCES AND COUNTERTOPS IN KITCHEN.

(OWNER SUPPLIES ALL)

5. CHANGE OUT ALL ANGLE STOP SUPPLY VALVES TO ALL SINKS AND TOILETS.

(OWNER SUPPLIES VALVES, TRIM AND SUPPLIES)

6. INSTALL NEW TUB/SHOWER VALVE BEFORE TILE. (OWNER SUPPLIES VALVE AND TRIM)

7. INSTALL 72" TILE AT TUB WALLS. (OWNER SUPPLIES TILE AND GROUT)

8. REPLACE 2 TOILETS AND 1 FAUCET IN FRONT BATH. (OWNER SUPPLIES FIXTURES)

9. PAINT ENTIRE INTERIOR. CEILINGS, BASE, CASE AND WINDOW SILLS WHITE AND REST OF WALLS

ONE COLOR. (OWNER SUPPLIES PAINT)

10. PATCH ALL DRYWALL AND COAT OR REMOVE ACOUSTIC CEILINGS.

11. PAINT FURNACE COVERS. (OWNER SUPPLIES PAINT)

12. ALL NEW BASE AND CASE ( 20 AND 17 RESPECTIVELY) (OWNER SUPPLIES)

13. REMOVE 2 JAMBS AND DRYWALL PASSWAYS.

14. REPLACE 2 DOORS WITH 24"X80" PRE HUNG 5 X'' JAMBS 1 LEFT AND 1 RIGHT.

(OWNER SUPPLIES)

15. ADD 3 SHELVES AND CLEATS IN HALL LINEN CLOSET.

16. 6 NEW BED/BATH DOOR HANDLES. (OWNER SUPPLIES)

17. INSTALL 2 NEW 30"X30" WALL CABINETS IN LAUNDRY ROOM. (OWNER SUPPLIES)

18. REMOVE WALL BOARD BETWEEN BATH AND LAUNDRY TO INSPECT WATER DAMAGE. COULD BE

A POSSIBLE EXTRA COST DEPENDING ON CONDITION.

19. INSTALL LIGHTS AS FOLLOWS:

4- CEILING MOUNT FIXTURES, 2- WALL MOUNT FIXTURES, 1-D.R., 2 FANS, 2 PORCH, 5 RECESS

IN KITCHEN. (OWNER SUPPLIES ALL FIXTURES)

TOTAL LABOR COST .......................................................................................................... $12,000.00

(ALL OTHER PARTS ARE INCLUDED EXCEPT WHERE LISTED ABOVE)

X _______________________________________ DATE ____________ _

<snip>

Originally I hired a contractor in March 2015 for a job that he claimed would take no more than ten days. Three months later in March, he completed 80% of the work and had been paid 90% of balance. He claimed to be on-site five days week from 7 am to 7 pm. In reality he made cameo appearances and outsourced the work. Moreover, he demanded regular payments during the job in order to pay his crew. In actuality, he asked me to pay one of his subcontractors out of the monies owed to him ahead of schedule to cover the subcontractors cost. I did so, but this subcontractor had to travel from San Diego to Orange County to get paid. This contractor left his tools and paint sprayer outside of my property unattended for weeks on end after these tools were no longer needed. Regrettably, the tools are missing. 

Due to the describe issues with the contract, I wrote the contractor outlining the fact that the remaining work to be completed exceeded the balance owed, and that we would rather end the contract now and move forward with another contractor.

He had tentatively agreed to this, but when he discovered that his tools were missing he threatened to place a lien on the property for $3900 this week. If he does this, as he pointed out, it would foil the sale of the property. As an out he is willing to accept $1200 in payment in order not to file the lien. 

This lien claim is wholly unwarranted and this offer, in my humble opinion, is borderline extortion. 

What should I do?

I am very interested in purchasing wholesale properties for cashflow in the Kansas City area in 1031 Exchange after the sale of a couple of properties in San Diego. That said, I need some assistance in finding a contact in the KC area to help identify the B type properties that I would be interested in purchasing as part of the exchange.

 Thanks Linda. I appreciate the feedback! Are the passive losses the same as well? 25k maximum?

Thanks for the prompt replies, and for confirming that these need to be filed using a schedule E.

I had changed accountants between 2013 and 2014. The new accountant is insisting that I need to file a schedule C instead of a schedule E. In my opinion, I thought that continuing to use a schedule E would be the way to go.

All the rental property ( three homes ) were quick claimed to my Califonia LLC. The are losses that need to be passed through to my personal income. Which is the more correct filing form? What is the maximum loss that may be passed through from the LLC to the personal return?

Thank you in advance for your replies.