All Forum Posts by: Gayle Eisner

Also, the rental was 1031, so I would have to pay taxes and cap gains right?

Also, the rental was 1031, so I would have to pay taxes and cap gains right?

good advice! thank you. 

The TESLA project is across Hwy 1 (only two lanes hwy). The ocean side is where the rental property is, along with about 55 SFR built in 1959-60... The home is about 1 block to the beach...About 300 people, most of which have lived there their entire lives and are retired, still believe it still is an old PG&E plant that went off line many years back. I was never notified about Tesla moving in, nor the project. After a few folks in the neighborhood became worried about the 2 chemical fires, they had a PG&E "information" meeting. A resident told me that they were told not to worry....However, Lithium batteries are extremely toxic when they explode.....Thank you for your comments!

Greetings:

I own a sfr and a ADU in Moss Landing, CA. That is Monterey, CA county... It was a 1031 exchange. As well as another property in Santa Clara Co, a great duplex. (BP please add Monterey to your list of cities). My dilemma is that within the last 2 years TESLA/PG&E have moved in to the tiny community of 300 residents. The area is a harbor with a beautiful beach, seals, whales, otters and lots of tourism and mixed uses. Well, TESLA/PG&E have partnered to purchase the old power plant. It has been partially demolished and they are adding a host of unsightly industrial bldgs comparable to an Oil Refinery. They claim to be storing lithium batteries for power production via AI for PG&E but they claim their goal is to be the "Biggest Lithium Battery Storage Facility in the World". (see attached article)

They are quietly buying properties behind the current the facility. There has been had two lithium battery explosions/fire emergencies in the last 2 years.  It is becoming extremely unsightly as they continue to build and will eventually bring tourism/desirability down (in my opinion).  It makes me very uneasy about my investment future.

QUESTION: Should I sell, do another 1031 exchange, or keep as a rental?  Is it a good time to sell?  Currently, it is a very desirable location between Santa Cruz, CA and Monterey and gets great rent!  A couple of the adjacent cities are planning on building 2500 new homes in the area...not sure of the impact as there is a water shortage due to salt water intrusion.  I fear poor planning on the horizon...

Any input/recommendations  greatly appreciated...

Maybe not all property management companies are hard to deal with but I have had 2 and both were very incompetent.  My advice is, since you only have 2 properties, do hands on management, get a feel for neighborhood, rental market and save money by DIY.  Good Luck to You!

"Best Practice: do not provide variable cost services like internet, water, PG&E, or trash service to residents. These costs should be paid by the tenant."

This particular unit is an ADU and utilizes my electric/sewer/water so they pay portion....& wifi I pay separate for unit because I could not find many tenants it seemed that did not care about wifi.

Just wondering where to start....Should I raise rent or let him pay his own wifi.  Utilities he pays 1/3 with 3 br in front area.  I'm getting squeezed due to inflation just wondering best way to get more money due to rising costs without losing tenant....Advice?

That's a good way to start! Thank you

Greetings:

I am looking for a good CPA that can assist a relative newby (3 rentals) with my tax planning.  Currently, I have an accountant that just does not seem to "get it" when I ask him about deductions and real estate.  He just seems to want to go with the "standard procedure".  I have been viewing YouTube and have enjoyed much of the advice of Mark J Koehler regarding investments and finance.  He has a law firm of tax accountants and claims they are experienced with real estate, revokable living wills, legal help.  Does anyone have any experience with them?  I have checked reviews and they seem good, but...?

thanks to all that respond! 

Greetings: 

What I have been doing with my 1br ADU has been charging a ratio by square footage & circumstances. So for example, if my 3 br house was 1000 sq ft with one tenant and the other house is 500 sq ft with one tenant, I have been charging smaller 1/3. The house larger 3 br sometimes have guests, esp during the holidays & usually chilly here. Lgr home has all electric, the other electric and gas. So I only charge ADU 1/3rd. It seems to work, no squabbles past 2 years.

 However, currently here in CA, PG&E is getting extremely expensive, that is why do not include electric/gas in their rent.  Only garbage, water/sewer & Wi-Fi.  Unfort. water is getting very expensive as well but I have not altered billing at present.  Rents have not gone up much to justify a larger rent pmts.  Also have great bill paying tenants...Plus, psychologically, I think if a tenant thinks he's paying x, including utilities it doesn't SEEM as much... :)

Also, when I rented rooms on another one of my  properties, there were always utility squabbles.  So I just let the tenants figure it out among themselves (I paid trash/water) and it worked great 95% of the time.  That way I don't get stuck with the high PGE rates.