All Forum Posts by: Jeffrey Magenes

Please comment below if I can pay you for 1 hour of your time to analyze it.I have full photos/video walkthrough, and also have several contractor quotes.

3 Votes

Orange County, California

California released the new Civil Code 4741. It's quite lengthy, but does this mean that Short Term Rentals (Under 31 Days) are now allowed in ADU's where the property is owner occupied?

Basically, it allows people to AirBnB their ADU even if the HOA restricts this in their CC&R's?

https://www.calassoc-hoa.com/H...

0 Votes

Orange County, California

My digital marketing business is doing really well, and after COVID, we switched to work from home permanently. HOWEVER, we're looking to return to the office and I would like to fly in my remote staff that is based around the world to come work in our office, and ideally stay there.

Rather than purchase boring commercial offie space, it would be most ideal to purchase a live/work style unit that my team can both work from and also stay.

Question - Has anyone successfully received an SBA 504 Loan to fund their LIVE-WORK property? We would be owner-occupying the majority of the property and ideally would rent out the rest, if we can do AirBnB, that would be awesome.

Example Properties:
Los Angeles DTLA Live-Work Loft - https://www.zillow.com/homedet...

Coliving Podshare - https://www.podshare.com/

Orange County Live-Work Home - https://www.zillow.com/homedet...

1 Vote

Orange County, California

Quote from @Theresa Harris:

How many repairs are you doing? If something breaks from normal wear and tear, than you pay for it, but if the tenant damages it, you bill them for it. If the tenants are simply requesting changes (eg they don't like the colour of the toilet), tell them no.

As others said, if you sign a multiple year lease, make sure it says that you have annual rent increases.

Tankless water heaters and HVAC repairs are the most expensive. That, and potential water damages.

0 Votes

Orange County, California

Quote from @Greg M.:

Really?! You have a property in Orange County, CA, and the cost of regular labor/repairs is making the numbers no longer work? Perhaps the >15% increase in value since the pandemic can help offset some of the temporary pain?

Suck it up and upon renewal hit him with the the 5%+CPI allowed with a one year lease. If still under market, do the same again the next renewal. Repeat until at market.

Hahaha. Agreed! However, I'm missing out on 6 figures plus here in potential income. Suck it up is a hard pill to swallow when everything is getting more expensive in the HCOL areas.

0 Votes

Orange County, California

Quote from @Matt Devincenzo:

You should have included an annual rent escalator tied to CPI etc, or signed a shorter lease. So at this point you wait it out.

Agreed. Lesson learned. My plan was to sell the property and the reason why I signed a 3 year long term lease so that the potential buyer would see the stable cash flow. Going forward I will do this.

0 Votes

Orange County, California

Hi Everyone, I signed a 3 year California Real Estate lease with my client last year before the reported inflation numbers and now I'm stuck. It's getting too costly just for regular labor/repairs when all of my handyman are increasing their rates, but yet I'm stuck in a 3 year lease with my client.

Is there anything that I can do?

0 Votes

Orange County, California

Hi Yonah, I'm based in California, can you do cost segregation for a multi-family property here? Please PM me.

--

Originally posted by @Yonah Weiss:

Originally posted by @Matthew Weisberg:

I am brand new to REI so please forgive my ignorance with the question I'm about to ask...

Why would you want to take that much depreciation (a little over 20% of the purchase price) if you only expect what I will assume is only a cap rate of ~10%?

Can you roll over the rest of that depreciation to year two and if so, then what is the benefit over depreciating any more than your cap rate?

Is it a one-time deal where on year two you will only be able to depreciate 5% or less?

I appreciate the community’s patience and guidance with this issue!

Matthew, the best way to learn is to ask questions, and that's what this forum is for. But do some more research on cost segregation, because it is definitely not all summed up on this post!

Usually the accelerated depreciation of the 5-year assets (personal property) is spread over five years. Bonus depreciation allows you to take all of that in the first year. For many investors who own multiple properties the depreciation of one can be used to offset the income from the other properties as well. Someone defined as a 'real estate professional' can us the depreciation deductions to offset, ANY other income.

1 Vote

Why?

0 Votes

Do you business owners have 401K plans for your employees? If so, can you recommend me a plan administrator preferably in California? Thanks.

0 Votes

All Forum Posts by: Jeffrey Magenes

Jeffrey Magenes has started 14 posts and replied 22 times.

Post: Can I pay you to evaluate my Orange County, CA fix & flip real estate deal?I

Post: New ADU Short Term Rental Laws in California?

Post: SBA 504 Loan to Purchase LIVE-WORK AirBnB Rental in California?

Post: Signed a 3 Year Lease With My Client but INFLATION is TOO HIGH

Post: Signed a 3 Year Lease With My Client but INFLATION is TOO HIGH

Post: Signed a 3 Year Lease With My Client but INFLATION is TOO HIGH

Post: Signed a 3 Year Lease With My Client but INFLATION is TOO HIGH

Post: Cost Segregation Study

Post: 401K Plan Administrator Referrals in California

Post: 401K Plan Administrator Referrals in California