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All Forum Posts by: Harish V.

Harish V. has started 3 posts and replied 178 times.

Quote from @Bruce Woodruff:
Quote from @Jordan Tinning:

My question is, will this get any traction? Doesn't seem to make any logical sense and will actually limit supply even further but incentivizing investors to hold instead of sell. 

I live in WA state, but bad policy like this tends to start in CA and then travel north to OR and WA unfortunately. 

There have been a lot dumber ideas that gained traction in California.....take your pick.....

If it goes to polls, it will pass for sure. Tax payers are a minority in CA. Beneficiaries of these crazy policies are majority.

Looks like govt. does not like that people update homes. They want only builders to make homes.

Quote from @Kevin Phu:

@Harish Verma right?? It's not even targeting only investors. It's also targeting anyone that isn't a first time home buyer or just your average Joe who sold a home to buy a bigger home for their family and then decided to sell within 7 years for different home or to move out of state for whatever personal non speculative reason.

We should kick out any politician who can have such crazy ideas. Nip them in the bud. 
Quote from @Kevin Phu:

@Alan DeRossett found the bill and reading now...

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1771&search_keywords=Speculation

How do they come up ideas to inflict maximum pain on investors and still survive?

Post: California Prop 19 and primary residency length of time

Harish V.Posted
  • Investor
  • Fremont, CA
  • Posts 182
  • Votes 107

Proposition 19 Fact Sheet (ca.gov)  BoE says what you said. You are right the person may or may not be correct. Good luck.

Post: Cash Out Refi or Hold the current Loan?

Harish V.Posted
  • Investor
  • Fremont, CA
  • Posts 182
  • Votes 107
Quote from @Trevar James:

Hello community, I'm looking for a little advice. I just moved in tenants at my first rental prop. Its generating about $500 cashflow after mortgage, mat, and vacancy. I purchased the house as a foreclosure so after a few repairs I should have a really nice amount of equity. I was wanting to move foward with the Brrrr strat but I'm hesitant thinking if i refi to a bigger loan won't it kill the cashflow Im getting. Should I just stay with my current loan or am I looking at it wrong. 

Oh and the loan is a conventional with a local bank as a second home 3.35% interst rate if that info makes a difference. 


Thanks Beforehand for any advice.

First of all congratulations on achieving positive cash flow on your first rental.  You did not mention prop. tax an insurance, did you account for that. If yes, then you can take out 100k and still be slightly cash flow positive at same rate. If that allows you to do another such deal, it is worth looking into. At 500 cash flow it will take 15+ yrs to generate this. Just be careful to keep some reserves.

Post: What is Considered Positive Cash Flow?

Harish V.Posted
  • Investor
  • Fremont, CA
  • Posts 182
  • Votes 107

Simply put - Cash flow = "money in" - "money out". Money in will be rent, any other charges you may have like late fees, laundry profit etc. Money out - mortgage payment (P+I), taxes, insurance, hoa, management + vacancy + maintenance. Most "A" areas will be difficult to cash flow. Any house with large enough cash down should produce positive cash flow. For SFR - its become very hard to generate positive cash flow. Specially true if you buy property in open market.

ROI and profit on investment is totally different issue. e.g. even at negative or zero cash flow you may still have "Principal" repayment which increases the equity. Appreciation also increases equity.

Post: Bad Tenants Want Lease Renewal

Harish V.Posted
  • Investor
  • Fremont, CA
  • Posts 182
  • Votes 107
Quote from @Dan H.:
Quote from @Cathy S.:

Hi everyone.

I would like some suggestions on how I should approach this situation. I have a set of tenants who have been living in my rental for over a year (before I even bought my property) and their lease with me is ending end of next month.


During the last 12 months they have only paid rent three times. The other 9 months I got the rent directly from the city of San Diego through the Covid assistance program thankfully. These tenants only paid their rent on time a handful of times, are terrible at communicating and wouldn’t tell me that they weren’t going to pay rent before applying to the assistance program, and again did not pay rent for 9 months.


I texted them today asking what their plans are for when their lease ends end of next month and they wanted to a new lease “so they can save for a house”. I want them gone and obviously don’t want to renew. If I do nothing, their lease automatically becomes month to month (with an increase of $200/month on rent). If they don’t pay rent, I can just give them a 30 days’ notice and start the eviction process.


What should I do about this situation? Should I just put them on month to month or is there another way for me to get them to leave?

I see no replies from LL in CA.  California is more tenant friendly than most states and have laws that may apply.

Is this a SFR? In CA all multiplex units are rent controlled and lease can only be terminated for a few reasons that are spelled out in the rent control regulation.. @Celine Crestin comment that landlord has right to choose not to renew lease is not accurate in CA for multi unit properties.

Assuming the unit is SFR, you can choose not to renew the lease at lease end. With over 1 year of tenancy, you are required to give the tenant 60 days notice.

good luck


 I concur, not many replies from CA. CA is Tenant friendly. Also there have been recent changes in laws  allowing for limitations on rent and just cause termination. It would be most prudent to get professional advice. 

If you want to study yourself, I suggest look at following

1. Is your property subject to rent control regulation AB 1482. Even for SFR there are rules - you may have provided notice by specified date or included in renewal.

2. If tenant got rental assistance, one condition for 100% assistance from state was that tenant should not face eviction, you may want to double check.

I think the law allows you 5% + CPI (local) as max increase. Just increase the rent by full amount if you choose to renew. Take immediate action on any subsequent non payment.

Quote from @Donna Brown:

@Harish Verma Why would he negotiate? She has been pay low rent for close to 30 years. I think your advice does not reflect that this is a business and he is loosing money.


1. I cannot agree that rent was $400 30 years back and has not been raised.

2. I misread original post and did not realize market rate is 1000, but tenant was offered 750. I thought 750 was rent and that was offered.

Having said that, I agree OP should stand by 750 or leave.  My main point is to consider cost of vacancy and renovation when deciding the next step. Many times i have seen house stay in market for few months trying to rent at market rents, only to then offer discounts or lower rent. If you do not have that problem, all power to you.

That was a huge rent increase proposed. With COVID-19 may state/local agencies enacted rent control. I think easier way would be to take 500 and ask for increase in another year. You can definitely vacate the property, refresh and rent for higher, however consider cost of vacancy, refreshing the property.