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All Forum Posts by: Susan O.

Susan O. has started 69 posts and replied 547 times.

Originally posted by @David To:

Well, what a load of crap. So despite these laws coming into effect to help landlords and I followed instructions, I'm still screwed. All those 57 BILLION in landlord aid, I'm not gonna get any. I didn't do anything wrong to try and get $27,000 owed to me by the stupid eviction moratorium and now will have to choice but to pursue small claims court.

1) I applied to San Diego Covid Rental Assistance on behalf on my tenant (appeal by tenant got rejected; not sure what the tenant did or did not do since I can't control her actions and this program only she can appeal and try to get aid, I can only start the process and try and get her to cooperate)

2) I also applied to San Diego Small Landlord Rental Assistance on my own (got rejected because I no longer reside in San Diego)

Both got rejected. I spent several months on reading up the stuff and filling out all the forms and constantly pestering my tenant to follow through with her application.  

Here's what they returned:

The San Diego Housing Commission (SDHC) has completed its review of the items you raised in your appeal of the initial determination that your application was ineligible for the City of San Diego COVID-19 Housing Stability Assistance Program. 

Upon further review, SDHC has determined that your application remains ineligible for the following reason(s):

  • Failure to return required forms and documents to determine eligibility  
  • Inaccurate information/Documentation insufficient to determine eligibility 

        This is the Final Determination that your application for the City of San Diego COVID-19 Housing Stability Assistance Program is not eligible for assistance. There will be no further review of this application.

         These politicians are con-men.  Same happened to me when i applied they rejected it after I spent 40 hours chasing my tenant down.  This is the tenant who has plenty of money but is merely not paying me

        At this point it's just too unfair and unjust.  I have a tenant who hasn't paid since october 2020 and they now have a brand new bmw and just purchased a brand new 2022 chevy silverado

        Originally posted by @Joe Splitrock:
        Originally posted by @Royce Kemp:

        I would be interested in filling a lawsuit. I feel I have one of the better cases because I already have a judgment in hand from February. I just can't evict, only a Sheriff can physically evict. I was 2 days away from that happening when the stay at home orders came down. The last time this Tenant paid was November 2019, so I'm at month 8 of my property being held hostage. If anyone has a lawyer in San Diego that would be a good for fit this (I believe this would be an eminent domain case), please let me know. I already contacted the organisations that pursue this stuff, none have bothered with me.

        Did this lawsuit happen becaue this isn't fair

         This is ridiculous. It is possible you may not even be able to get them out until after November, which would be a full year. I would be curious if you e-mailed your city, county and state officials with your story how they justify you having to pay property taxes. Maybe if they start hearing more real stories like this, they will shift their stance. Another option is go to the news media. It can generate sympathy for landlords and may even shame the tenant into leaving. The news media would likely share the responses you got from politicians. 

        We had a case in my state where a murder happened at a rental property. The county kept the crime scene for over a year and the landlord didn't have access to their property. They tried suing and it was a slow process. They went to the news media and within a week the property was turned back over. The court of public opinion can be much more effective.

        Good luck.

        Eviction moratorium with small landlords isnt fair  

        https://time.com/5846383/coronavirus-small-landlords how devistating the eviction moratorium is on small landlords and how theres very little help for small biz landlord

        You can organize join your landlord or apartment association locally to prevent this and also network with like minded people. Please help spread word

        https://www.facebook.com/CAAnet/ Get informed AOA is good too apartment associations!

        Post: Unfair madness! Landlords getting hosed.

        Susan O.Posted
        • Fresno, CA
        • Posts 552
        • Votes 181
        Originally posted by @David J.:

        Here we are MONTHS later. About 1.8% of Americans have (or have had) Covid-19
        Of that 1.8% , 97% Recover.

        I still can't evict for ANY REASON.

        I don't care what anyone says, this is ludicrous! 

         Super unfair gov

        Post: California Rent Control

        Susan O.Posted
        • Fresno, CA
        • Posts 552
        • Votes 181
        Originally posted by @Anthony L.:
        Originally posted by @Dan H.:
        Originally posted by @Anthony L.:
        Originally posted by @Dan H.:
        Originally posted by @Anthony L.:
        Originally posted by @Peng Lim:

        Need help interpret this soon to be law. Does this new rent cap apply to section8 units? I have 3 of my unites under section 8 and I am about $500 below the market

        Here is the text on the bill

        Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.

        I would also like to know if this new Rent Cap Law of 5% plus inflation per year affects Section 8 units that are well below Fair Market Rates

         My view is section 8 should not be below market value.  The extra burden placed on landlord should be passed on to the tenant (the government is in a tenant role).  So market rent on a section 8 should be higher than the equivalent non-section 8 unit due to the extra burden.  If you have let your section 8 housing get below market, you have been saving the government from paying market rent.  Why?


         In all honesty, complacency is what allowed this rate to remain so low up until now, but now is my chance to make things right.

        Would you happen to be familiar with how much above fair market rate can be requested in a Section 8 rent request? We have a unit each in Long Beach (2bd), South LA (3bd) and La Puente (2bd). We pay for all utilities including water, electricity, trash and occasionally maintenance and thankfully we've had decent people occupying these units. I have not done this before and a lot of information I'm finding for CA might be outdated. Thank you in advance for your time

        If the unit is not A SFR, you will be constrained on the rent increase to the rent control rules which is 5% plus inflation.

        As to what is fair market rent for section 8, if I was targeting section 8 I would start at non section 8 market rent and add a small amount for the extra burden associated with section 8.  Seeing that you are not even at market rent, your first step is to get to market rent.  

        I intentionally set my rents outside the section 8 threshold because I do not desire to have section 8 tenants.   Legally I cannot look at the source of the funds, but I can price my units to where they do not qualify for section 8.  

        Good luck

        After pouring through the text, I found that Section 8 is exempt from this new rent cap legislation and landlords are entitled to being increased to HUD's standard FMR. Would you say a request of 10% above FMR in LA County would go through? It seems SoCal's strained housing market gives Section 8 landlords some clout, but I am inexperienced with this matter

         Yes Section 8 can change, they might impose more restrictions on section 8 and taxessome are suggestig fees straight out of the sec 8 program.  Vote out the rent control politicians 

        Post: California Rent Control

        Susan O.Posted
        • Fresno, CA
        • Posts 552
        • Votes 181
        Originally posted by @Edit B.:

        Some of this is really bad. For one if you are an owner who is underrenting at the moment and plan on selling you will be screwed. Whoever will purchase will not be able to increase rents above 5% + inflation which means the perceived ROI will be very low and the sale price will be severely impacted.

        The other key thing here is the no fault eviction- you will basially not be able to get rid of a tenant for any reason you want even after the lease contract has expired. This is crazy. This can be abused in so many ways by the tenant and places all the burden on the landlord.

        This is why we have to vote out politicians who are too invasive on landlords and investors.  These are usually the ones who want to expand local gov policies and raise prop taxes.  Vote or support apartment associations, AOA, CAA and spread word about voting
        Our city councils are always trying to do these but we need to vote them out. Apartment associations are good routes to fight it

        Post: California Rent Control

        Susan O.Posted
        • Fresno, CA
        • Posts 552
        • Votes 181
        Originally posted by @Chad Hale:

        @Thomas Dougherty  What are you wanting to know?

        Here's the new law:

        https://leginfo.legislature.ca...

        or if that link does not work. Go to leginfo.legislature.ca.gov enter AB 1482 into the search box under "Quick Bill Search"

        It's going to make things worse.  A lot of nice landlords are now being forced into giving maximum rent increases every year.  Before they could be "nice" with no or minimal rent increases knowing they could raise the rents to market if their personal situation changed.  Now they can no longer do that, so they "have to" give increases to protect themselves.  For all the tenant protection rhetoric I see lots of properties that have lots of under market rental rates.

         These things hinder the growt of communities.  Rent controls just suck all around and create blighted communities 

        Our city councils are always trying to do these but we need to vote them out. Apartment associations are good routes to fight it

        Any updates? thanks for your last posts  Our city councils are always trying to do these but we need to vote them out.  Apartment associations are good routes to fight it national AA and CAA.net

        Post: Cost Segregation + Bonus Depreciation

        Susan O.Posted
        • Fresno, CA
        • Posts 552
        • Votes 181
        Originally posted by @Natalie Kolodij:

        Here's an actual example of Cost Seg + Bonus: 

        You buy a small apartment complex for $500,000

        Normally you get to depreciate the building value of that over 39 years (not land)

        So lets say your building is worth $400k we depreciate that equally over 39 years. 

        A cost segregation is something done by a qualifying firm/ expert where they separate out components of the building that may have shorter lives 

        Say they do their thing, separate a value for electrical, HVAC ect- and they say $250k of this is all components with 7 years lifes. 

        You can either, expense those portions over 7 years. 

        Or potentially apply bonus. 

        Bonus depreciation says assets with a life of LESS than 20 years, can be expensed 100% in year 1. 

        So that $250k you get to deduct in year 1. And then your remaining $150k is spread over the 39 years. 

        Things to consider: 

        If you're going to hold it long term, your taxable income later will be higher because you deducted most of your value up front. 

        If you're not a real estate professional, and your AGI is over $150k.....you are not allowed to use rental losses in the year they are incurred. So if you can't use the losses and you just generated a $200k loss, there's no real benefit that year. However, if you are selling another rental and generating say a $200k gain, you'll be able to offset that. 

        Also, with 1031 exchange there is a little concern with if there will be any issues. Since now we've separate out a portion from being a "qualified real estate" asset. The IRS definition of real estate for 1031 and the state law differ. I think they're still going to allow it with 1031, but we haven't seen any direct guidance or tax cases on this yet. 

         Hi natalie i thought that was such a good explanation.  I'm not quite sure if I should do it though.  I wonder how the state laws or if irs will change or look negatively on cost segregation

        What are the negatives of cost segregation? I had heard lenders will look at it that you have a big loss.  Is that true? Any other negative consequences of a cost segregation

        Post: Cost Segregation Depreciation Uses

        Susan O.Posted
        • Fresno, CA
        • Posts 552
        • Votes 181
        Originally posted by @Dennis Tierney:

        @Ashish Acharya That is correct I am now classified as active real estate investor. In fact I didn't pay any taxes in 2018 because of the losses and will carry forward losses to offset 2019. I am meeting with the CPA next month to map out our plan to roll the properties out of the SDIRA by selling inside the IRA to avoid capital gains then rolling the cash out of the IRA, sheltering the cash using cost seg, buying another property outside of the IRA with that cash and using cost seg on that property and repeating the process till all of the $ is out of the IRA.

         Hi dennis I only have rentals would I qualify as a real estate professional it's my main income