All Forum Posts by: Gail W.

Hello all! We have a unique opportunity to purchase 2 homes on 1 lot. It's a large parcel that used to be 2 separate APN lots, but was made into one. There is a primary house on one side, and a smaller house at the other end. 

We would like to buy it, live in the larger house (which isn't in that great condition) and rent the smaller house (that's actually nicer!) to our adult, married daughter. She and her husband would rent it at fair market value.

We have found out we CAN split the lot back to 2, but would have to get the electric meter split as well. The realtor says it would be around $40k.  She states it would be good to do if we decide to sell off the one portion with the smaller house. BUT, if we want to make this the forever-family-compound, should we bother?

Also, how will that impact taxes? I'm thinking as it is now, it's a 50/50 situation related to write offs, costs, fees, mortgage interest, etc...  If we split, how does that help/hinder our situation?

And since the house we'd live in is the one that needs more work, the write offs aren't going to be that great, correct?

TIA!!  (I HAD a CPA, but am looking for another so I can't ask him/her yet;)

I am worried, but I'm not... What I mean by that is; WE know towns like Big Bear and Lake Havasu City (both of which I have, and currently own vacation rentals in) DO rely mainly on tourist dollars. But sometimes the locals forget that.  Big Bear KNOWS they need tourists. Lake Havasu City KNOWS they would be Ludlow if it weren't for that lake everyone wants to be on. But when you become a full time resident who needs a full time rental and suddenly realize it's really hard to find one because everyone wants to do short term, you get worried, frustrated and angry. You start to think about moving on to the next town. There goes your workers that make the tourist machine pay! I know because I've been a full time resident in both towns, as well as a few other tourist towns.

Our vacay rental in BB was a money maker WAY before AirBnB came along. We decided to move up there full time and ran a vacay rental biz back in the early 90's that did very well. I also worked for the Chamber of Commerce. Our Havasu Park Model on the Island, in a lake front resort, makes money like it's being printed in the basement.

So now we want to invest in a long term rental to house the town's workers. But the prices keep going up which means we'd need to charge more for rent. But the town's workers can't afford it. So then the city management starts trying to please it's constituents who are complaining and asking for change. You see how I think and why I get kind of worried? I mean, not enough to sell off my STRs, but enough that I listen to the locals (on social media and by hanging out with them at local watering holes) and keep my finger on the pulse of said town.

We are seriously trying to decide what our next move is here as we sit on cash we made from selling our long time home and rental in South OC... buy in South OC again, or LTR in Havasu or another STR?? Hmmm....

We have been watching Havasu for a few years. We own a park model in a resort out on the Island that we AirBnB successfully, but wanted to do a long term SFR in town. Thing is, the prices have really gone up; Californian's buy cheap properties then flip them. But the market there isn't able to sustain these higher prices that require higher rents as the economy isn't adjusting along with them. They are doing it South OC style; higher end finishing and fixtures (think gray and white HGTV style)... and no one who works in this town can afford that. The backbone of this town doesn't care if the countertops are quartz; they want a solid home near a good school that they can afford.

It's a tourist town with hard working families that rarely move once they find a great rental. They know how hard it is to find something permanent as everyone wants to do vacation rentals or snow bird rentals. And snow birds snatch up everything years in advance!

The locals are starting to resent this and WILL leave. If they can't find reasonable rents they can afford on min wage, they have no problem moving to the next town in AZ. It becomes very transient. I, for one, would hate to see this happen as I love the town! So I want a very well priced SFR in a good part of town that I can rent to a nice, hard working family who will take care of it and stay put. But having a hard time finding that lately.

Ahhh. Ok, I thought HE had to check whichever one to show who he was representing. Gotcha, thanks!!

I am about to sell (in CA) for the 1st time ever. So bear with me, as legalspeak is NOT my forte.

The Realtor produced a CAR form AD (Disclosure Regarding Real Estate Agency Relationship). There are 4 boxes right above where you sign that the realtor is supposed to check... Buyer, Seller, Landlord or Tenant. What if NO boxes are checked and I am being asked to sign it? Is this something hinky? What is this form really about?? Why bother having me sign it if nothing's even checked? 

Thanks in advance. :)

Woops... accidentally double posted when I was trying to edit to add - Second post has price of pool home added

We did it. Bought a mobile home for $14k in a gated resort right on Lake Havasu. Blew out a few walls and made it very posh- it's small, so why not? 

Our space rent is high; $900/month. HOWEVER, we have a great lake view, private beach, private launch ramp, a safe, gated community and it's out on "the island", where vacationers want to be. And we can write of that HOA fee-which we needed with high rent coming in on a So Cal property.

We have snow birds who stay from December to April for $1800/mo who have committed to renting it "until they die", as they told me. I get pretty good rentals throughout the rest of the year from friends and off the ABNB or VRBO sites.  I can get anywhere from 150-200/night. I have an excellent cleaning crew, a home warranty for all the stuff I can't drive out for and the resort office handles check ins. It's pretty passive.

We are now searching for a duplex or SFR up in the south side of town we can rent out full time until we need to move there upon retiring. The realtors have told us they are desperate for buyers who will do FULL time rentals. Families are finding it difficult to get a regular rental; everyone wants to do ABnB! We found a lovely little duplex for under $260k with each side renting out to full time renters at $1000 (for the 2 bdrm) and $1200 for the 3 bdrm side. OR an SFR-3/2 with pool at about $240k, getting $1600/mo. As we may live in it ourselves one day, we are still trying to find something we would like.

I'm starting to see more Californian's coming out and jack up the prices, though. The LHC market can't really support those prices. There's a glut of ABnB homes that can fill during snow bird season, but the rest of the year they sit empty. Meanwhile, full timers have no where to rent and are priced out of buying. So we figure if we make a sharp deal, we can help the community by offering what it needs and still do well.

We did it. Bought a mobile home for $14k in a gated resort right on Lake Havasu. Blew out a few walls and made it very posh- it's small, so why not? 

Our space rent is high; $900/month. HOWEVER, we have a great lake view, private beach, private launch ramp, a safe, gated community and it's out on "the island", where vacationers want to be. And we can write of that HOA fee-which we needed with high rent coming in on a So Cal property.

We have snow birds who stay from December to April for $1800/mo who have committed to renting it "until they die", as they told me. I get pretty good rentals throughout the rest of the year from friends and off the ABNB or VRBO sites.  I can get anywhere from 150-200/night. I have an excellent cleaning crew, a home warranty for all the stuff I can't drive out for and the resort office handles check ins. It's pretty passive.

We are now searching for a duplex or SFR up in the south side of town we can rent out full time until we need to move there upon retiring. The realtors have told us they are desperate for buyers who will do FULL time rentals. Families are finding it difficult to get a regular rental; everyone wants to do ABnB! We found a lovely little duplex for under $260k with each side renting out to full time renters at $1000 (for the 2 bdrm) and $1200 for the 3 bdrm side. OR an SFR-3/2 with pool, getting $1600/mo. As we may live in it ourselves one day, we are still trying to find something we would like.

I'm starting to see more Californian's coming out and jack up the prices, though. The LHC market can't really support those prices. There's a glut of ABnB homes that can fill during snow bird season, but the rest of the year they sit empty. Meanwhile, full timers have no where to rent and are priced out of buying. So we figure if we make a sharp deal, we can help the community by offering what it needs and still do well.

OK...  The renters have now told me THEY want to buy the property! BUT, they are not sure they can close by May 30. They said we can move back in around May 1 and they'll go squat elsewhere.  

So I asked THREE different tax attorneys/CPAs and Accountants how this scenario (we move back in for about 2-3 months) would affect our taxes. I have received 3 different answers. :/  

Anyone else wanna add their thoughts? ;)