All Forum Posts by: Esther Thomas

Hi, I see various info on the internet so looking for clarification. As a property owner/landlord when selling a property that’s tenant occupied (triplex) can someone help clarify what this 120 day notification to tenant of intent to sell? I’m confused on this. Hopefully it doesn’t mean I have to give them 120 days notice before property can be sold or listed. (California Civil code 1954) Property is in Santa Clara county in California. We need to sell because my mom got sick. It all came together fast. Thanks 

Hello,

I'm looking to possibly airbnb a 4 bedroom house for short term rental. The house has an attached ADU (separate entrance and garage in the back) that I may keep for myself or a long term renter. How does one go about airbnbing a house that has an attached ADU? Technically is it considered "whole house" that you are renting even with a unit attached in the back that's not part of the listing? How do you market this? "Whole main house for rent"? Any useful advice or anyone who has done this, would love to hear your feedback. Thanks in advance!

I've talked to an eviction attorney who basically says the best thing to do is settle but he wasn't the most helpful attorney.

Hi Everyone,

 I have a sticky situation and could really use some helpful advice here. 

Back Story:

My parents have a 4 plex in California (purchased decades ago)

One of tenants has stopped paying rent (stopped paying Dec 18)

Unfortunately I found out their 4plex is really only permitted as a triplex but when they purchased it came as 4 units (they made no updates. it looks like the back unit had been divided by the previous owner into two units)

The non paying tenant is going to sue stating he's in a unit that's not legal and wants all his rent back since 2015 (when he first moved it)

Looking at all options it sounds like we're going to have to settle with him. 

I didn't know about the permit issue  (that it was only permitted as a triplex) when I moved forward with an eviction letter

The tenant is "sketchy". Not just my opinion but pretty much the consensus of others who've interacted with him.

He has told many folks he doesn't have money and he'll be homeless so I think he's going to squeeze out all he can. 

So in summary, I feel like my only option is to pay a tenant money to leave (possibly a lot of money) who hasn't been paying rent this year. 

Anyhow, any useful feedback here, other ideas or route to pursue would be really appreciated. Thank you! 

Thank you everyone for all the info. It’s very useful and I’m humbled by all the input. You guys are the best! 

Thank you all for this info. One last follow up question, I'm assuming if I need a place to park this tax deferral, I can't sell my property and 1031 exchange to part of a syndication, and then when I do identify the actual property I want sell my stake in the syndication and use that to purchase my end goal property? I'm just thinking of ways to buy myself time. 45 days to identify the 1031 property is stressful and I definitely don't want to make a bad purchase decision because of timing. Also I hear there's a reverse 1031 option where I can purchase the 1031 property first and then sell my originating property? My house that I'm considering 1031, I think time on market will be short. It's in a pretty "high demand" area in Silicon Valley so I don't foresee an issue selling it, it's more about identifying the replacement property that will be challenging. Thanks!

Clayton, thank you for your fast and detailed reply! Its' definitely a huge help, informative, and I'll follow up with others but a great start in detangling the mystical 1031 world! :) Thanks again.

Hi everyone,

I have a SFH (it's been rented out for about 7 years) and I want to 1031 exchange it in the semi near future. I have a few questions and wanted some insight into the implications of a few scenarios I'm considering and would love some feedback and advice if any of these are viable, pros/cons. Thanks in advance!

Property: SFH, been rented out for last 7 years (used to be my primary residence).

purchased: 400k, plan on selling for $800k, 20% down at purchase time + 100k rehab done.

Question #1: If I sell for $800k ,minus closing costs/real estate fees, does my 1031 property I find have to be of equal or more value? Can I take out my original downpayment in doing the 1031 exchange?

Scenario #1:

Sell SFH, buy 2 properties:

property 1: small multi-family unit

property 2: SFH

3 years down the road I decide I want to move into that property #2 the SFH. Can I do this?

If I can and then sell it 4 years later, can I get the capital gains exemption when I sell it? If so how does that work? Is it pro-rated for the time I resided in the home? 

Scenario #2:

Sell SFH, purchase 10 smaller properties

If I sell these 10 smaller properties at some given time separately in the future, do I only pay the deferred taxes on that portion of the 1031 that was allocated for each home? Example, I decide to sell only 1 of the 10 properties that were purchased for the 1031 exchange and I decide to pay taxes on it. Assuming that each property is equality valued at the time of purchase do I pay taxes on 10% of that tax deferral on sell of my SFH?

I need to offload this property in the future but I'm just not sure what my strategy and plan is going to be so any useful advice is much appreciated. Thank you everyone!

Thanks everyone. I guess I'll drop an email to my management company to upload the receipts for expenses into my account.

Hi there,

 I use a management company for my rental and they send me a monthly invoice via app folio. I see itemized expenses on there for the gardener or the plumber. Is it customary or normal to also ask for a digital photocopy of the receipt for the expenses? I wasn't sure if that's being overly paranoid or if it's a typical thing that management companies provide. Thanks!