All Forum Posts by: Hassan O.

@Hassan O.

This is a college textbook when I was getting my masters I thought had a ton of content and case studies

https://www.amazon.com/Estate-Finance-Investments-William-Brueggeman/dp/1260734307

@Hassan O. here's the link below. You may be able to get a 75% ATI reduction but that will depend on the current assessment. There are no value thresholds that I am aware of. My "guess" is they'd be 250k-320k per year depending on the ATI situation.

https://www6.richlandcountysc.gov/AssessorSearch/(S(dln23pqkbwkacgcyvmctqcyk))/userinput.aspx

@Hassan O. you're paradigm is off...your question implies that rent increases will eliminate quality tenants, thereby resulting in lower quality tenancies. But the rent increases are a function of the market, so in your example if 5 years from now a similar market rate unit is renting for $3,800 then my current good quality tenants will either pay the increase to stay in my unit at ~10% discount to market. Or they will move and I will have a new competitive tenant placed in the unit. But the overall market demographic of the area is likely going to be unchanged because the same increased rental rate condition is impacting the entire San Diego market concurrently.

@Rachel Rocconi Hi there and welcome to San Diego! :). You will definitely have to kick out a tenant if you want to buy an owner occupied duplex...I'm closing on a duplex (FHA) for my clients this week and one unit is vacant (which is rare) and the tenant in the second unit will be given notice upon close of escrow for buyers to move into that unit due to their rent being 50% below market rate.

Most multifamily will have tenants and even in the scenario I have above of one unit being vacant, unless you were ok with keeping a tenant far below market price and knowing that you can only increase their rents 9.1% (5% + CPI), you would have to do the same.