All Forum Posts by: Sonny Vu

I'm interested!

Hey Mike. It sounds like you have put some thought into this already as you are planning for contingencies and creating a contract with some clear guidelines. Kudos for that. Just from the info you gave, I think you should plan for the exit strategy. Since your mother-in-law and sister in-law will be using it as their primary residence, it appears you guys are looking for equity appreciation while helping them out in the meantime. I would just be concerned about the timing to sell the property after they no longer need to live there. What happens if one of the parties are unable to help out and wants to sell their share earlier? How do you handle that situation? Or possibly rent out the property as income producing? Then you would need to discuss the split on rent and costs in that scenario too. Just make sure to address the issues in your contract and have a lawyer review it. Also Dennis brought up a good point about holding title as TIC. You can also form an LLC to hold title and have the arrangement spelled out in the Operating Agreement. It's a bit pricey in CA with the ongoing yearly fees. Good Luck!

@Raj G. As a few others have mentioned, If you are "cold calling" you have a responsibility to check the DNC list. The FTC has been known to track down and levy big fines on unscrupulous telemarketing companies that ignore the DNC list. As a realtor they should know to check the number against the DNC list before making the cold call. But then again some people don't check and probably don't do enough calls to get on the FTC's radar. Good luck!

I don't agree with the negativity that you got from the recent response on this post. It was all criticism with no constructiveness. You have admitted that you are inexperienced and this was a daunting prospect but at least the other responses gave you options and advice. And there is nothing wrong with mutually benefitting while also trying to help someone who is in distress. Good luck bro!

Hi Bruce. The choice of pipe material for residential (including ADU) should be left up to the plumber. If you have a specific need or want, you should let them know and they will decide which is best in your situation. I'm not a plumber but recently took a plumbing course so please verify on your own. That said, supply pipe and DWV will be different. Supply piping is usually copper or pex. Drain,waste,vent(DWV) piping can be ABS, PVC or cast iron, depending on your specifications. Cast iron is usually used in commercial and multifamily applications due to durability and cost. Plumbers will know what material to use for your application.

Hi...Seems like everyone has offered up some sound advice for you. I just wanted to add, since you are in CA and the proposed flips are going to be in CA, you should get CA specific advice. CA FTB is very aggressive and will come after their share, regardless of how you structure your entity. Katie Lepore appears to be the only CA advice on this thread so I would weigh her advice more heavily. Not to say that the others are incorrect, but they are more generalized for federal taxation and legal protection. CA projects require more scrutiny. And as Katie has pointed out, the state charges $800 minimum yearly fee regardless of revenue or profitability for LLC. Make sure you get CA specific advice! just my two cents and Good Luck Hyung!

I agree with Jon and Collin. Most of the RE investing in CA is done for appreciation. If you are also able to cashflow then its a bonus. Multi-Family maybe a little different. But for SFH most of the value is in appreciation.

Hi Bruce....This Rockwool product is good(Safe and Sound)

https://www.rockwool.com/produ...

@Julia 

@Julia Tran you don't need a structural engineer or architect for kitchen/bathroom remodels. A designer can do the design for you and the GC will be able to refer a structural engineer if the design affects structure or requires structural engineering. I have contacts in OC if you're interested, dm me.

@Doug Williams I went a similar situation this past fall. I converted my primary residence into a rental after my divorce two years ago and had to sell it this past fall. It did fall under the universal exclusion, because it was a rental for a year and a half so out of the last 5years, 3 1/2 were my primary (the last 1and 1/2 it was rented out). Please contact your CPA for your specific situation. But from the details you gave should still qualify you for the universal exclusion.