All Forum Posts by: Chad Hale

Rent is due on the first. Late on the 2nd with late fees.

If a check is NSF (bounced).  It is now late and also incurs NSF fee.  

I make this clear from the beginning starting at lease signing and highlighting the appropriate clauses.  I have never received any push back from tenants.  This is part of their obligation in addition to maintaining the property in the same condition when they moved in.  My obligation is to provide clean, safe housing that they can call home, and take care of issues in a timely fashion as they come.

Yes, there are some special circumstances but they are very very rare.

Hi @Nick Thurston,

All of the inspectors that I've dealt with in San Jose doing rehabs have been fair and reasonable.  If your work is following codes/laws I would not expect any issues in San Jose based on my experience.

~Chad

Welcome to BP Chris.  Investing in the bay area is not for the weak of heart.  It is indeed pricey and tough to get in.  However, once in the rewards are nice.  You just have to work hard at finding the right deal and may need to be patient in finding that deal.  

Aster,  selling or rerenting your townhouse depends on your long term strategy and how/what you would reinvest the profits into.  If you could 1031 into a multi-family unit, you'd likely get better returns.

The market has slowed down, even plateaued in some areas.  So this spring may be a good time to sell if that is the route you choose to go. 

Lots of interesting articles/blogs on BP to help you decide which strategy might be best for you.

Best of success

Chad

An LLC in California requires $800/year minimum to run. It is called a franchise tax. And if you decide to have an out of state LLC control your California properties, there is a fee. You guessed it $800/year.

If your goal is liability protection, I agree with the other posts to buy umbrella insurance. It is significantly lower than $800/year. Also, an LLC will likely not protect you from gross negligence from my understanding.

Month to Month is what I do for the properties I manage.  This gives me the most control if/when something goes wrong.  Yes, screening and tenant selection are key but they are not perfect and people and their circumstances do change.

In California, tenants can break leases with minimal consequences.

The only time I do a long term (6month / 1year) lease is for special circumstances or if the owner really wants me to do that.  I do work for them after all :)

I reassure tenants that I will not raise rent during the first year nor more than once per year.  Any more than that and I am not doing something right.  Also, relationships and integrity build the foundation for long and successful partnerships, clients, and tenants

Lots of info on San Jose gov website:  

http://www.sanjoseca.gov

Here are a couple of links to get you started.

http://www.sanjoseca.gov/index.aspx?NID=743

http://www.sanjoseca.gov/index.aspx?nid=5144

rent controlled properties list
http://www.sanjoseca.gov/DocumentCenter/View/36039

Construction rates

$250/ sqft on the low end

I would plan for $300/sqft.  And that is nothing fancy.

great!  Thanks for clarifying.

Ok good to know.  Why the different numbers then?

There are at least three different people on BP all selling this same property. Kind of interesting...