All Forum Posts by: Tanya Solomon

Amen!! CA was firmly on the road to the hell hole it is today back as far as 20-teens. In 2020, Gavin Newsome signed into effect AB1482 and brought Rent Control for the whole state. Im a 5th gen Californian that now lives in FL.  Sold ALL my properties in CA

BTW I am an ADU dork and can answer any questions you have about ADUs in the Bay Area. I set precedence in San Mateo Co (this Building and Planning dept is downright malfeasant) by getting a tiny house installed as an ADU.

I have never seen areavibes.com but plugged in an area I know well and the area I live in now and it seems pretty accurate for info on schools but WIDLY off on real estate prices. I wish that an "area matchmaker" was a real thing and one could talk to someone that is an expert on a given area and could give good, sound advice. I think it is hard bc it can be so subjective and ppl generally only pay attention to what is going on around them when "something" happens or they are unhappy.  

Can one access Nextdoor in a community they do not live in yet? That might be a good way to get an idea of what it is like to live there. 

I have moved twice in the last 3 yrs bc we had to get out of CA (costs of living, quality of schools, and community needs were all serious issues in NorCal) and how I did my research is to do some "soul searching" and come up with a list of 3-4 non-negotiables like "must have excellent public schools/affordable enough to pay for private schools" and or "must be within x distance to work" and or "must have a strong community of x kind of ppl."

Be honest with yourself and your needs. Stereotypes are there for a reason. Believe the good AND the bad. If you are a religious person or have strong feelings politically, look only at areas that have large concentrations of ppl with similar belief systems. It sucks to live in a town/city where you feel you do not fit in. When your kids make friends, you can feel akin to the friends' parents. 

Once you have a few areas/towns in mind, go there and stay in an airbnb/vrbo so you can get a good idea of what the neighborhood is like. A dog is a great thing to have bc when you walk the dog, you can watch what goes on in the neighborhood and casually meet ppl to get great intel.   

What part of FL are you planning on moving to? Our family moved from CA (with a 2 yr pit stop in NJ) to South Florida (Boca Raton area) about 2.5 yrs ago. We had the same plan as you in that we wanted to rent for the first yr and buy after getting to know the area better. BTW we LOVE our move and have zero regrets. There is A LOT of ppl moving to FL, so you will not be the only "new kid in town." 

I am less than 4 months away from having to renew my lease (It doesn't auto-go month to month) and there is not much on the market that would be a good fit for our family. The market here is IMO "schizophrenic" bc properties 2x in value between 2020 and July 2022. Most sellers want big $ and overprice their properties, so they sit on the market. Prices are going down but stubborn sellers are holding out. 

I found the same to be true about rentals too. I got a decent rate of rent bc I approached a landlord that had his home on the market for over 8 months (bc it was 1k overpriced) and offered to pay 6 mnths in advance.

Hope this helps  

To answer your question
"Statewide law that goes into effect on January 1, 2020 and expires on January 1, 2030. Requires a landlord to have a “just cause” in order to terminate a tenancy. Limits annual rent increases to no more than 5% + local CPI (CPI = inflation rate), or 10% whichever is lower."

This is taken from AB 1482 which is what Gov Newsome signed to create essentially "Statewide Rent Control." Here is an article on that https://ggulawreview.com/2021/... that is about as "fair balanced" as one can get 

Notice how the article is mainly geared toward "protecting" tenants. There is not a lot of protection for landlords and Rent Control laws are formed and function with the assumption that anyone that owns investment property is "rich." 

Any landlord needs to do their own due diligence, know what the law is AND have a good business plan for their property but in CA you MUST CYA. There is little room for error bc if you get a bad tenant, it can cost you tens of thousands of dollars to not only get rid of them but then fix any damage they cause. Unfortunately, you can not give ppl (prospective tenants) "a chance" or "cut someone a break" bc it can come back and bite you when you least expect it. 

Some ppl say that hiring a good property manager can solve these problems fairly well but I have found that no one takes care of your investment =$ better than you. In my experience, property managers do whatever is easiest for them, and getting top $ for rent is not easy. The $ one spends on a property manager would be better spent on a tenant law attorney unless you just do not have the time to vet potential tenants properly and physically take care of the property. 

Below=TLDR

How I know 

I am a 5th gen Californian and my 1st home purchase was in SF. The home had SIX tenants that we had to pay to "relocate" bc we wanted to live in the home we bought(OMI=Owner Move In). We got the home for less than 1 mil bc it was not only "renter occupied" but a foreclosure. SF has very strong renter's rights (Gavin Newsome was the Mayor at the time) and luckily our gamble paid off bc all of them took the relocation $ and left. We paid 37k total (30k to tenants and 7k to attorney) and considered ourselves VERY lucky to get off so cheap.

We went on to buy 3 other properties as investments. 2 in the Bay Area and 1 in Tracy CA (Central NorCA). I sold them all one by one after AB1482 was put into effect. I sold my last investment property in CA this past June and did not even have to look up the number of the legislation bc I can remember it off the top of my head. 

 I have had good luck with this option when a tenant is still new or new-ish. I have been a landlord in San Francisco, where there is VERY pro-tenant rent control. It's easier to get a divorce with kids than it is to get a bad tenant out of your property. Many entitled brats want to villainize landlords because they do not want to have to make paying rent a priority.  

 They have shown their true colors. Immature (crayon comment), condescending (He will explain it to you?!?) AND do not pay on time/give rubber checks/haven't wholly paid their security/pet deposit? This has more red flags than a Chinese parade. 

Selfish, immature, and self-centered ppl can and do believe that the world revolves around them. By asserting that they are in over their heads and it is better for THEM in the long run, you can get rid of them more easily. Be CLEAR and like others have recommended, keep feelings out of it. You have already heard their sob stories (and straight-up bratty b*tching) and know they are not deserving of any more chances. 

There is only one thing worse than a bad tenant, which is a bad tenant with PETS. You mentioned they had not paid their pet deposit, which is the most disturbing.  Pets are an accurate indicator. Tenants that are responsible pet guardians are great bc they can be accountable for not only themselves but for a/an animal(s).  A landlord can ask for more from tenants with pets because many landlords do not allow them due to the damage animals can cause. Many fine (4 and 5 star) hotels allow dogs bc ppl will pay a higher price if they can bring their beloved pet(s). 

Bad tenants are lousy pet guardians. I can attribute a good 50% of the damage to my properties to the tenants' pets, even when the tenant pays on time. Puppies are the worse bc most ppl are not ready for the amount of responsibility of having a newborn/very young animal. Cats are terrible when a tenant does not regularly clean the litter box and becomes "nose blind" to the smell of cat urine. 

In the future, if someone has a pet(s),

-ask for proof their animal is up to date with shots. Not only do you don't want a sick animal puking and poop/peeing around the property but a responsible pet person takes excellent care of their pet(s) and can easily prove it. 

-proof of weight, size, and breed. Many landlords and hotels will have weight restrictions on pets for 25 pounds or under. In my experience, big dogs are far less problematic, especially when over the age of 2 or 3, but I guess some ppl worry about a big dog biting. 

-"Shelter pets" are better usually bc if the dog or cat was adopted from a reputable adoption organization, they will not only vet the guardian but will microchip and neuter/spay the animal. 

-ask to see proof that the animal is registered. https://www.charlotteobserver.... 

-last but not least, DEMAND that not only does the renter have renter insurance but that it covers the tenant's pets for LIABILITY. If the mailman gets bitten, you do not want to be left holding the legal bag. 

Hope this helps

In 2020 I got the first "tiny house" -212 sq ft home on wheels that could be hooked up to utilities, put on a foundation, etc. legalized as an ADU in San Mateo CO. The home and area I did it in is around $800 per sq ft, so even with such a small home, I was able to make money. I bought the tiny home for $65,000 and then spent another $50,000 to install it.

The ADU laws in CA are VERY powerful. The state is trying to encourage ppl to create these in the hope that it will provide "affordable housing." Per CA ADU guide here https://www.hcd.ca.gov/sites/d...
15) Ministerially Approved ADUs and Junior ADUs (JADUs) Not
Subject to Local Standards

Check out the State law before approaching your local county. Local counties can be a bear to deal with on ADUs. They are being forced to approve them by that State bc State laws and policies trump local. San Mateo is terrible as the building and planning dept are both maleficent and incompetent but persistence paid off. Neighbors can complain but they can not block you as long as you fulfill the requirements, which is nice. Ppl can be NIMBY pains sometimes and want to dictate what you do with your own land. 

Here is another helpful site https://www.hcd.ca.gov/accessory-dwelling-units#:~:text=New%20ADU%20funding%20laws%20effective,low%20to%20moderate%2Dincome%20households.

Things to keep in mind:

-If you go prebuilt, you want to buy something built to code for your county. You will need blueprints, a site map showing where the main house is and that the set backs are all kosher, and even title 24 (energy code and conservation stuff), at least. My plans for the tiny house/adu were a whooping 11 pages long! 

-They now allow two, so be strategic and if two could fit, do one now and then maybe another down the road? 

-I 100% agree with @Paul Dashevsky that "usually" (I would say ALWAYS) "still need someone (a local contractor) to build a foundation, run utilities (water, sewer, electricity, gas) to the ADU, and build out any other necessary site-work: landscaping, patio/driveway, fencing, etc. Dont forget to budget for this when you're considering an a ADU kit" This is absolutely true

I am so excited for you bc the law and policies in CA have made this process so much easier and cheaper. Keep in mind anything worth doing is work and this is true in regards to ADUs. They are work, money and time but MUCH easier than stick building or otherwise a primary residence. They are a great way to add equity relatively fast 

Id be happy to answer any questions about my experience if ppl want to ask

@Carlos Ptriawan

"Why I bring Stockton to picture is to show to you that if you invest in Stockton,CA or KC in 2013, in both city you could still get cashflow but Stockton appreciates way more than KC after almost 9 years."

Here is my take on Stockton:

Pros:

1. It has a ton of potential. Twenty years ago ppl thought places like Pleasanton and Livermore were not considered part of the Bay Area but now, look at the home prices and the quality of life. There is the windmill area that one has to drive through to get to the Tracy (last I heard, Google was sending a bus at least once a day for employees that want to commute to the main headquarters in Mountain View) and then to Stockton, so maybe this will delay the Bay Area spreading to Stockton? I think that in 20 years, Stockton will be considered part of the Bay Area =Increased prices

2. Still affordable by NorCal standards

3. I have heard that BART has plans to have trains go out to Stockton. Like Pittsburg and Antioch, this should help bring higher end buyers that will want to be able to commute on public trans. 

Cons

1. The crime. Stockton has legit gang problems. 

2. Not considered the Bay Area. Ppl view it as almost a farming area. Like others have said, it is almost like being in the Mid West

We purchased an adorable Craftman bungalow and remodeled it in Tracy. Tracy can be so cute. Nice little town square. Great coffee shop down town. I should have just flipped the property after we modeled it but still made money after selling it 2 years later. It was hard to be so far away from the home (we live near Monterey) and it just is not there yet with ppl recognizing the potential. We found the quality of tenants to be much lower than in the Bay Area. 

Thanks @Lynette E. and @Todd Rassmussen

Todd you are 100% spot on. This guy is driving his business into the ground. This is an excerpt from a one-star review I found yesterday written by another customer that got stiffed just like me. 

"The best way to describe [redacted] would be a scam artist running a construction Ponzi scheme." So, I am not the only one that has been shafted recently by this guy. The reviewer goes on to say that the GC promised to return his money and then never sent a cent. Doing some rough math, it works out that I sent my final demand letter around the same period that this guy did. 

I am not worried about "Liable." The first rule of proving libel in a case is proving that the person said/wrote something about you that is not true. It is more than easy for me to prove my claims are true. I am not completely counting on being "bulletproof" but regard the chances of being taken to court as very small. He would have to spend tens of thousands on an attorney or get someone to take his case on a contingency. Considering his other bad reviews, I do not think there is an attorney out there that would want to take on a case like this. The GC would also have to prove his losses. Contrary to what some might think one can not just get a friend to come in and commit perjury by saying that they would've hired him but for my "damaging" remarks. 

My main purpose in going after him is to warn others about him. I do realize that if I am successful in cutting off his sources of income, would leave less money to pay me back. I can tell from the tone of the other reviewer that he thought the same thing. If you leave a bad review and warn others, then there will be no "Peter" to pay you the "Paul." As much as 5k is precious to me, I would not want the money if it was to come from another victim. This guy has a fleet of vehicles, owns his own home, etc. So, there are assets to go after. 

I do not need an attorney to take him to court. The attorney I spoke with yesterday is a VERY good one and has even written a guide for the Bar Association that walks a victim through the process of getting an enforceable judgment. https://njsbf.org/wp-content/u... It is a great guide and maybe could help someone even if they do not live in NJ. I have been there, done that with Small Claims, and am prepared to see this through. 

Using the word "hurt" implied the wrong sentiment? I just wanted to be in front of this guy in some way so it would not be so easy to just ignore me and not pay me back. In the past, I have been ripped off by far more egregious guys and actually was successful in bringing down a ring of crime. I have a letter from the CA State's Attorney General Office commending me for all my hard work (and money in attorney's fees) in keeping on the case and seeing that the Civil matter got properly turned into a Criminal one successfully. The wheels of Justice run VERY slowly but if one sticks to it, you will have your day. Just like in "The Art of War" "Revenge is a dish best served cold." 

I was able to kind of answer my own question yesterday on my own, so I will leave a list of what someone can do once they have been stiffed by a bad contractor. Some people do not mind being screwed or consider it the cost of doing business aka letting karma do its work but there are others like myself that simply do not want to feel "had" and are willing to put in the time because it means something to them and is worth it.

Scenario bad GC is hard to get ahold of, stops performing, work is subpar, etc. KEEP IN MIND THAT 85% OF PEOPLE JUST GO AWAY BECAUSE BELOW IS SO HARD!! THIS IS WHAT KEEPS BAD BUSINESSPEOPLE IN BUSINESS!!! PT. Barnum was attributed as saying "There's a sucker born every minute." Either you are ok with being a sucker or you are not. Below is help if you are not. 

-First write GC a detailed letter, stating dates, issues, etc. TAKE A TON OF PICTURES. They say a thousand words and will be very useful. Everyone will want to see pics. Give GC an ultimatum to perform to standards or quit. Give options like exactly what you want them to do, when, how, etc to prove that they are "turning over a new leaf" and get a schedule from them and then hold them to that schedule. Document EVERYTHING. You will need it for court, complaints to the agency that oversees their lic in the state or county you live in and or court. 

In this market, many GC are in huge demand. This usually means that they ask for and get money they have not worked for yet through large deposits and or having contracts that have payment schedules that massively benefit the GC and not the homeowner. In your demand letter, state that if they quit or do not perform appropriately that they have to cough up a determined amount and who the check should be made out to and where you want it mailed. Most importantly how long they have to pay you before you escalate. 

Once all efforts on the part of the homeowner to mitigate (lessen) damages and has given the GC any and every chance to perform fail, then write another letter as a last-ditch effort to let them know they are within "material breach" of the contract. Courts like have their jobs be easy and by doing this leg work, you will make it abundantly clear who is in the right and who is in the wrong. A judgment is never "for sure" but this is leaving little room for the GC to legally wiggle out of. It is AMAZING what people get away with when they do not care about their character. Do not count on the courts seeing that you are right. You will have to more than prove your case.

Maybe once the GC sees that you are not only willing to see it through but are likely to prevail in the future, he/she might be willing to work with you to come to a solution that is acceptable to you both. It can help you in some cases to already fill out complaints with governing agencies and or the BBB and take screenshots of the paperwork that is "ready to go" should they not attempt to work with you. Also, threaten to write bad reviews on review sites like yelp, angieslist, google, houzz, homeadvisor (though they make it SUPER hard to find a specific contractor let alone write a bad review), thumbtack (they are like homeadvisor), buildzoom (I REALLY like this site. They list permits that GC pull and where so you can see what they are literally up to. Good or bad), etc. Again, if they have an oz. of character, they will work with you so they do not have the bad press and or ill will. 

If GC still does not work with you to come to an acceptable resolution, send in the complaints to BBB and the governing gov agency that oversees the GC lic to do business. STICK with these complaints. Put reminders on your calendar to keep the ball rolling. It just takes a few minutes to let the person working for the oversight agency know that you are serious. So, two weeks after you send in the BBB complaint, email them to let them know that you still have not gotten an appropriate solution and want them to continue going after the GC. Squeaky wheels get grease!! 

If it is not effective to "inspire" the GC to work it out with you because you have reported them to the BBB and the gov agency, then file in Small Claims or the equivalent in court. If your case is over the max of that court, then hire an attorney. Keep in mind that the ONLY thing you are allowed to seek remedy for is what you are out financially. This amount DOES NOT include things like your time, "pain and suffering" or "punitive" damages of any kind. It will not even include what it cost to get it fixed by someone that is trustworthy. 

Another thing to keep in mind is that it can cost (and usually does) AT LEAST 100k to take a GC to trial. 99% of cases are settled out of court for this reason. This does not mean that settling out of court will get you any kind of resolution you want or deserve. It will probably mean that you will cut your losses and have to write off the "civil" matter. You can still pursue having their license revoked and or if it is bad enough, asking the court to hand it to the District Attorney's office for consideration as a Criminal matter. I have been successful in this regard and two of the six guys that ripped me off actually served TIME IN JAIL for what they did to me and my family. They also had to pay me RESTITUTION which is money the courts deem is owed to you as the victim. ALL six had their licenses revoked thanks to me. 

Good luck. You will need 5% of luck to your 95% of hard work. 

Hi Gabriel 

I disagree with the other ppl that have responded. It sounds like they, like you do not have that much experience. To quantify my experience, I have bought-sold over a dozen homes in Northern California and currently live in Northern NJ. 

I just got ripped off by a contractor that was all talk and no show. The guy came to me referred through my buyer's agent in NJ and from a reputable elevator company. My mistake was paying too much upfront in the deposit (I had just bought a seven-figure home and the amount seemed small at the time) and not believing the few bad reviews he had. I did so more research today on the guy and it turned out he has ripped off others recently and is probably having his Ponzi scheme implode slowly. 

In my experience, it seems very tempting to just trust a GC to oversee the jobs that need to be done around a home but NO ONE can be a BETTER ADVOCATE for YOU than you. 

Good GC are REALLY hard to find. When you can find a good one, they are expensive and take jobs months in advance. 

As a beginning investor, it is pretty important to understand what is involved in construction. That way you know who is telling you the real deal situation and who is trying to rip you off and or tell you what you want to hear. I have found the experience I have on the job site to be invaluable. 

Do RESEARCH, RESEARCH, RESEARCH!!! The best way to find ANY vendor is by word of mouth like "Nextdoor" AND check their references and reviews. The easiest road is usually the one that leads to more expense in the long run and therefore less profit for you. 

Maybe finding a young guy like yourself that wants to become a GC and giving him a small job to do at first and then SLOWLY increasing the size and magnitude of the jobs? Like starting with something easy like painting or laying flooring then doing a bath remodel with "like for like," then working up to the kitchen or making changes to the "footprint." 

Keep in mind that most of this stuff at the end of the day is not so hard. It just is the knowledge on how to do it and actually executing. The "trick" is in the execution. There is a reason why people hire others for "simple" jobs. But, you can learn how to do just about anything on youtube. Make it a point to watch one or two vids on youtube about what you need done and THEN listen to the vendor tell you how they propose to fix, change, etc. Knowledge is power.

to @Nicholas Field sounds like you changed your footprint if you are framing in a bathroom? Did you do a "rough in" for the plumbing and that is what the concrete is about? Any of the area is going to have weight on it like a bath tub? that might require rebar? if it is less than 4-5 inches thick, I guess you wont need it? I have personally poured a "self-leveling" concrete product when I was in a similar bind with a mudroom in a home I have in Silicon Valley. I did it by the light of my cell phone because I was also doing an upgrade from 100 amps to 200 amps at the same time. Ahhh those were the days....It cured and I put inexpensive linoleum on top and it looks fine and has performed well for over 5 years. 

As far as time lines in my experience: it takes 2 days for a small area of concrete to set, a week for larger areas. 

Tiling - Best case scenario is one day for "thin-set" and to lay the tile( it is fair to expect the guy to be able to lay at least 50-75 sq ft a day) one day to let dry, third day you can do the grout. I HIGHLY recommend doing a small space between the tiles (1/16 even if you have large tiles) on a floor AND sealing the tile especially if it is going to be a rental. 

Thanks but no thanks on the "tough love." @Jason Dugas Not what I was asking @Nicholas Field

So am I to understand you both would walk away from FIVE THOUSAND DOLLARS!!! Jeez, that is THE EASIEST thing to do. Requires NO business savvy or acumen. Not to mention this is not MY money but my family's. I have a duty to not walk away because it is EASY. How much money does someone has to steal from you before it warrants your time to go after them and or WARN OTHERS??!! 

I am complaining on the BBB's website and know that the BBB has little to no "teeth" but it feels empowering AND it will WARN OTHERS to not do business with this guy if they spend the time looking into his background.  

It is people like this that keep this guy in business and actually encourage him to steal people's hard-earned money.  If time is so important, why spend it telling me something I did not ask for? 

I can understand if you lack the "gumption" to fight what is WRONG in the world but to be flippant and chiding is uncalled for. I am asking the TRUE "ballers" out there for their creative ways to not be treated like a chump.