All Forum Posts by: Justin Dao

@Chad Hale That was the info I was looking to hear, thanks Chad!

Hey BPers,

I wanted to better understand California rent control. I've read a summary of AB 1482, the 2019 California Tenant Protection Act, but just had a hypothetical question I wanted to ask to make sure I'm understanding it.

Say I was buying a condo, newer construction (~2017), which had a "grandfathered" tenant who was paying $1000/mo in rent. Since the condo meets both exemptions (condo + built in the last 15 years) for rent control and "just cause" for evictions, would I legally be able to increase the tenant's rent to market rate, say $4000/mo, after their lease was up? As I understand it, I could also choose not to renew their lease and then raise the rent to market rate for the next tenant.

Just wanted to ask, thanks in advance!

Hey BPers,

I wanted to better understand California rent control.  I've read a summary of AB 1482, the 2019 California Tenant Protection Act, but just had a hypothetical question I wanted to ask to make sure I'm understanding it.

Say I was buying a condo, newer construction (~2017), which had a "grandfathered" tenant who was paying $1000/mo in rent.  Since the condo meets both exemptions (condo + built in the last 15 years) for rent control and "just cause" for evictions, would I legally be able to increase the tenant's rent to market rate, say $4000/mo, after their lease was up?  As I understand it, I could also choose not to renew their lease and then raise the rent to market rate for the next tenant.  

Just wanted to ask, thanks in advance!

@Chris Wheelus

Hey Chris, thanks for posting, I appreciate your perspective.

Did you have any challenges managing the contractors from abroad? What kind of input did you provide them, did you give them specifics on what you wanted done, or did you give them the freedom to do what they thought was best?

Thanks again.

@Jason Martinez Appreciate the response. I’d love to ask you a few questions, can I PM you?

Thanks!

Hey all,

I’ve been looking into purchasing a few properties in Indianapolis, however I haven’t had much luck lately finding cash flowing deals. I’ve heard that in Indianapolis, property tax is 1% for owner occupied and 2% for investment properties, and that difference could be up to $100/mo. It seems like deals that meet the ballpark “1% rule” cash flow negatively, or are extremely thin deals because of this.

Has anyone had any similar experiences they'd like to share? Am I being too conservative with the expense calculations? I assume 10% of rent goes to repairs and maintenance, 5% goes to CapEx, 8% due to vacancy, and 10% to property management. The rest is utilities, insurance, etc.

What do you think?

I appreciate the responses folks. Thanks!

Hey BP community,

Apologies if this question has been asked before, but what should I be expecting to pay for typical property management fees? I am currently in the process of vetting different PMs, and I’ve found there to be quite a range of prices for all-inclusive service.

I’ve come across a few PMs that charge a full month’s rent for placement of the tenant, and 10% thereafter. Is this uncommon?

What would you pay all-in, for quality property management?

@Daria Sukhenko I’m a noob investor as well, but the best advice I’ve heard is that there will never be a time when you feel 100% ready. It’s about taking the plunge when you feel that your knowledge is “good enough”.

I’ve heard it’s a lot like parenting - you’re never truly ready to have a kid until you do it. Things may go wrong here and there, but as problems come, you’ll be in position to fix them whether you’re ready for them or not.

Good luck!