All Forum Posts by: Scott J.

Jeff:

How do you find out about the different property taxes on nearby properties? I was under the impression property taxes went by city.

Thanks.

As an Orange County, CA investor these deals sound like they are from another planet.

Be straight forward with the tenant and the prospective landlord. Tell your tenant you will be a reference and you will answer all questions honestly.

Great job guys! I've been lurking on this thread for awhile and, as a novice investor, find this spreadsheet invaluable.

Jon: (a) I didn't know there was such a thing as tree people. Thanks for the tip. (b) Yes, that is the property line. The tree is in the very corner of our property.

Steve: I've reposted the pics using the method in your link. Hopefully it works this time.

This has "stumped" me for awhile and I would love some insight from the brilliant minds of BP.

I own a duplex (live in one, rent the other) and the corner of the garage is being damaged by an avocado tree. Right now it is only hurting the overhang of the roof, so the supporting structure is safe. But it's just a matter of time before it gets worse.

We absolutely love this tree as it produces over 100 delicious avocados per season. So I would really like a solution other than removing the tree.

I've considered just cutting out the wood overhang of the roof, but then the tree might keep leaning over and end up damaging the walls. All opinions are appreciated. Pics below:

I live in CA and just received my Property Value Notice from the Office of the Assessor. I assume this document is used to calculate property tax. It says the value increased 2.466% from last year.

Here are my questions:

1) I have a unique, historic duplex (per the Mills Act) that is appraised using the income approach. Therefore it is only calculated based on rent. (Without boring you with details, I end up paying about 50% of property tax versus regular properties of this value). Does this "supposed" 2.466% increase affect me?

2) I imagine this document is what people fight when housing prices are really dropping but Uncle Sam still wants more money. Is this correct and are people actually successful?

Thank you very much BP.

I definitely understand the logic of the opportunity cost principal ("could I be making more doing something else right now?"). But it's not for me.

I only own two units, so I'm a very small fish. But I enjoy mowing my tenants lawn on a Sunday morning or installing new doors, toilets, or whatever myself.

A previous, and very rich, boss of mine in the commercial RE business used to always say how much his time was worth per hour. So he would never have lunch with friends unless talking business, work 12 hours a day, and 6 days a week because he couldn't justify leaving money on the table. I always found that depressing. His long-term girlfriend ended up leaving him because he was a workaholic.

I know that's an extreme scenario. My point is, if you enjoy doing handiwork yourself and it's halfway decent, do it! But you ARE leaving money on the table :)

This is interesting. If it were me, I would just have them go month to month or pay the fee to break the lease.

It sounds great in theory to have them do all the work finding new tenants, but I can see some sticky situations too. Like what if they keep bringing you new tenants that don't meet your (at least I hope) strict requirements? They might think you're sandbagging them.

They don't have a vested interest to get you a GOOD tenant. Just a tenant.

Another unique idea would be to have a decreasing fee for breaking the lease. For example, $1k if they break it in month 1, decreasing to $100 if they break it in month 10. I just came up with those numbers, it depends on your rent.

Your idea isn't bad, it's just not one I would personally go for. It kind of defeats the purpose of a lease.

Hi BP,

My wife and I own a duplex, but are going to purchase a duplex/triplex with a family member in the near future. She wants us to manage the property and to provide monthly reporting.

What would be a good CPU program to use for the accounting/reporting? I'm excellent with Excel but was wondering if there is something better.

Thanks!