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All Forum Posts by: Susan O.

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

Post: RENT CONTROL - BOUNDARIES

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

@Dottie Matheson I think historically that area has been a bit rough but things are changing quickly. I would not buy anywhere in LA that is subject to rent control UNLESS you get the units delivered vacant. That way even though you can't raise rents you can start with the rents high. The City of East LA does not have rent control (just east of Boyle Heights) however that is a bit far from UCLA. Is the student in question going to UCLA or USC? The area you're talking about is near USC BUT still fairly far from UCLA. Distances in LA are based on traffic, not actual distance, and that is going to be a brutal commute if they are going to UCLA. I prefer to rent in LA and invest elsewhere, the tenant rights in CA are so strong in LA, I would be afraid to buy! No cash flow and tenant relocations in the 40-75k range, no thanks! 

Well even if you buy outside LA they are trying to expand rent control into other cities.  Look up AB 1506

http://www.eastbaytimes.com/2017/03/28/alameda-let...

Post: Removing A Unit From Rent Control - Oakland, CA

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

@Osazee Edebiri

Make sure you see something in writing my man.   Before I bought a duplex in Oakland I had several realtors tell me, "You can..........."      I waited until I saw something in writing because sometimes it was quite different when looking at the law...

http://www.laweekly.com/news/legislation-to-expand...

It's going to expand outside oaktown

Post: New owner wants to increase rent?

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

@Susan O., rent control is the biggest reason I probably will never buy a multi-family in LA. With every regulation, there will be opportunity killed and created. Maybe it will kill the multi-family rental business, or maybe it will create more demand for motels and short-term rentals (as long as the city can collect their hotel tax). It may make the market very difficult for small investors. Larger investors, in my opinion, have more options. So it may create more opportunities for syndication. If we stay acute to the changes, we may tap into the next big opportunity created by the regulation. While I'm not likely to vote in favor of rent control, I remain hopeful in what the future holds.

http://www.laweekly.com/news/legislation-to-expand...

It's going to expand to smaller cities.  Even existing units that are newer.  They arew even contemplating allowing Single family residencies to have rent control as an option for cities in future

Post: Rent Control Strategies

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

Youre actually not allowed to do cash for keys in cities like LA. Possibly in other cities. 

http://www.laweekly.com/news/la-moves-to-curb-cash...

They cracked down on landlords  even offering as much as $75,000 to tenants to leave! it's like having to bribe someone even though it's YOUR property

Also if you want to be an owner occupier in LA you have to pay up to $22k in relocation fees.

If you try to give cash for keys you can get fined and open a lawsuit in a lot of cities with rent control.  it's illegal under rent control rules.

http://hcidla.lacity.org/Relocation-Assistance up to $23k/ family for relocating older tenants

Yes, you can do cash for keys in Los Angeles.  Not sure if you read your article, but it just discusses the fact that the cash for keys transaction has to be recorded with the City. 

 They actually don't let you raise it to market rents during a pay out or reloacation.  So you can pay them out to use the ellis act and change the use, but you can't raise the rents for the existing units.

I've paid out a tenant $23,000 then I was not able to raise the rents.  I had to keep the rents at the current rate based on the previous tenant.

https://caanet.org/rentcontrol/

http://hcidla.lacity.org/rso-overview

Just look at this forum at how hard these individual investors on BiggerPockets WORK their ASSES off to improve properties.  Then the government can just step in and change the law.

Blood sweat tears doesn't pay.  It's better to just live for free in an apartment and get your nails done daily. It's a simpler life (sarcasm)

I agree.  There are standard health safety codes in the California law NOW.  They are very strict, they just need to be enforced. 

I've invested out of state and in many cities.  LA City is one of the worst with their SCEP police.  They make tons of money on administrative fines too. 

http://www.laweekly.com/news/legislation-to-expand...

We need to get the word out at investor meetings, to other landlords, home owners, that we still need to maintain our PRIVATE PROPERTY RIGHTS.

It's like them coming in and telling all the tech guys in silicone valley-- hey you can't charge that amount at Amazon.com or Microsoft. You need to lower your shipping fees, or you need to cap your raises on your products to 2% a year.  You are REQUIRED to sell X product( or service) for X amount to these individuals.  Do you think Google, Microsoft or Amazon will keep their offices open here?  They're going to move to different states.

These sorts of attacks on private property owners and investors are killing the state slowly. 
Entitlement is becoming a big problem here

http://www.sacbee.com/news/business/real-estate-ne...

Sacramento.

Post: Insurance spec questions in Carlifornia - duplex,

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

@Susan O. The standard limits for commercial general liability are $1 million per occurrence $2 million aggregate.  A good policy will provide this limit per location as opposed to combined for all properties. I am always shocled at how little the price changes when you change from $500k to $1mm. My guess would be $25-$75 per property. 

The property prices you gave are extremely low and make me think you probably do not have all the bells and whistles on your property coverage. Maybe not though, everyone in Missouri gets earthquake insurance and we have a hail storm atleast oncec a month so that could be the difference in cost. 

I'm paying like $350-400 per  unit for duplexes and triplexes

and about $400-550 per SFR

For instance one unit on a duplex says. but this is split into 2 units. so It's $600 annual for the 2:

$130k dwelling, 7k personal property

1k deductible

500k biz liability w 1 mm aggregate

only 1 k medical

for $300 ANNUAL PREMIUM x 2 = $600 annually

Another example for a Single Family Residency:

$260k dwell;ing w 25k dwelling extension

12k personal property

and loss of rents

deductible 1k

$500k biz liab/1mm aggregate

1k medical

$600 ANNUAL PREMIUM

In forms, options end it says:

Special form 3, amendatory end, debris removal end, policy end, amendatory collaps, reg partnership, genl O sign end, mandatory reporting end, extra replacement cost cov, form 438 lndr loss pay, rental dwelling end.

Have no clue what all that is!!

Post: Los Angeles has gone housing market crazy.

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

Mike R just wait it out.  Prices will come down after overbuilding. It always happens. I've seen it happen 4 times in my life.  Everyone thinks buy now and it will continue going up and it all comes crashing down.  They will loosen the building laws, over build, people think its all good, then it BUSTS and us investors LOSE everything!

 There could be some over building going down in dwtn LA. Other than that there still seems like a severe shortage in the rest of LA to the tune of hundreds of thousands residences ( 300k to 400k short) to actually meet current demand perhaps. There is not anyway I know of possible to create over building in most locations outside of the massive highrises all built in downtown. It is no joke what is happening now...we have 60k homeless as it is. This is not like the situations we have had before as far as I can tell. 

We had a housing crisis in late 80s then there was loosened building and overbuilding early nineties.  This stuff will cycle when you really look at it over long periods of time.  There will be a bubble burst.  Especially with all the new housing rules.  I have apartments in LA and their rent control and SCEP units are charging me $900 in inspection and red tape fees.  Then they are changing the California rent control laws

http://www.dailynews.com/government-and-politics/2...

Reapealing AB 1506 means rent control will spread through the state.  We'll be locked in at how high we can raise rents, but we'll continue rising City housing fees, property taxes, contractor prices etc.

Post: New owner wants to increase rent?

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

Adding to @Kiersten Vance 's point, if the house is in LA and older than 1978, then there's a good chance that it's rent control. Then your landlord cannot exceed the annual allowable rent increase of 3% for 7/1/2016 - 6/30/2017. Link below.

http://hcidla.lacity.org/system/files_force/documents/allowable_rent_increases_english_4.pdf?download=1

You mentioned that the place needs a lot of repairs. By law, the landlord must make sure the property is in "habitable" condition. There's a list of things the landlord should repair unless you damaged it. Please see the link below.

http://www.dca.ca.gov/publications/legal_guides/lt-8.shtml

If the rent increase is within the allowable increase, you need to either pay to leave. However, if you believe the landlord has failed to make the necessary repairs to make the place "habitable", you can pay under protest. If the landlord still does not fullfill his/her duty, you can seek legal actions and hopefully get some if not all the rents under protest back. 

Disclaimer: I'm not a legal expert. For more details/clarification, please consult an attorney.

 That 1978 and newer rule can be changed and will be soon after all these tenant organizations are pushing for AB 1506. 

http://www.latimes.com/business/la-fi-costa-hawkin...

It will likely ruin the economy in long run but they don't care the politicians want votes.

This Tenants Together group is sponsored nationally -National Housing Law Project- They are pushing for rent controls all over the country even though most economists know it's bad for local communities.

http://www.tenantstogether.org/campaigns/rent-cont...

@ryan

And here's it spreading to Fresno. Notice it's the same group TENANTS TOGETHER they are statewide but also have groups in other states. They want to spread the movement nationally:

http://rentsandrants.blogspot.com/2015_04_01_archi...

Here are some tenants protesting to take away your hard earned investments:

This is what they're protesting every day.   Greedy Landlords and they want free rent!