All Forum Posts by: Nate Wiger

Agree SB-9 will generate more value as 2 lots than 1 lot with multiple ADUs. The minimum lot size under SB-9 is only 1200 sq ft which is much smaller than local zoning would normally allow in CA.

Keep in mind SB-9 currently has a 3-year owner occupancy requirement. Eg you promise you will occupy the property as your primary residence for 3 years after the split is complete. Unsure how strict enforcement of this is, and many hypothesize this requirement will be loosened over time, but something to keep in mind.

https://focus.senate.ca.gov/sb...

Impressed you were able to get an ADU done in 180 days in CA! Nice work.

Thanks all, I like the NNN suggestion and have been looking into those as well. A couple questions:

1. I have zero experience with commercial properties. Should I be concerned going into a relatively large value ($3-4M) commercial property with a big chain like Walgreens as my first deal? Or are these the "easiest" because big corporations take care of everything?

2. What type of management is involved in commercial properties? I can intuitively understand MF properties because I've been a renter before... leaky faucets, toilet needs fixing, etc. What would Walgreens call me about?

3. Is there much appreciation upside in a high quality NNN property? I've seen a couple shiny commercial buildings leased by the likes of Walgreens. Unsure if it's a better deal than a truly hands off DST... eg do the appreciation or tax benefits make an impact.

I'm not opposed to doing some rehab work, I actually enjoy that part (hence our vacant land projects), I'm more concerned with the day in/day out maintenance, even with a property manager.

Thanks again.

Hi all,

First post, but have lurked for years. Amazing community.

I am selling a vacant parcel of land that will yield roughly $1M in proceeds. I am planning to do a 1031 to avoid capital gains.

I have developed several parcels and sold them, rookie land developer, but I know how that all works. I have never had a rental property.

My gut is to find another vacant parcel to improve, but I have coworkers and BP saying that multifamily is bread and butter, and I feel like $1M down could get a quality unit in a good area that would be a good long term play. I’m in San Diego and would be looking locally.

I’m not worried about short term cash flow as luckily I have a stable W-2 job. But this also means I have limited time to deal with tenant problems etc. (I would definitely hire a property manager regardless).

My options:

1. Get another piece of vacant land

2. Get a single large multifamily unit

3. Get multiple smaller units (1031 timelines add complexity)

4. Cash out and do a QOZ for the gains and take my time to find a property

Open to any thoughts. I can make spreadsheets work for any of them, but my question is more about the qualitative aspects, given that I have a day job. Thank you!