All Forum Posts by: Will Lee

@Brian Schmelzlen @Matt K. @Michael Kovac @Ben Stewart  any all that responded, thank you for your input. We are going to to with the Lawyer route to determine the best course of action.  The OMI route although time consuming, may make the most sense at this point.   We may try to break it down for the tenants via the lawyer, to help them realize what we are offering is a better deal since they will be evicted anyways via OMI.   

Thank you all again and thank you BP!

Will

Brianne H. In SF there are tenant rights which require evictions to be of “just cause” and not just because the lease is up as long as the tenants are willing to pay the controlled increase in rent and don’t break any laws. CA is also a pro tenant state making tenants hard to evict even if there is “just cause “ so it’s a headache and time consuming (up to 6month) process with mounting lawyer fees. This is what I understand of ca law , but anybody feel free to correct me if I’m mistaken

Hi Brian, They are on a month to month lease, but in a rent controlled area

Hello BP family! 

I have another problem that would love to brainstorm and get some feedback on for San Francisco Flat that I would like to get some help on!

Scenario:

- Landlord/Owner bought 2 br/2ba flat in San Francisco Richmond area

- Rented to 2 seniors (couple) that has lived in the flat for almost 8 years (rented since 2009)

- Rent is around 1000/month but Market Value is now around 3000/month

- Rent has been stagnant for all 8 years (never raised)

- Owner/Landlord would like to evict tenant to bring rent up to market value or to live in 

- Owner/Landlord is open for Cash for Keys or OMI (Owner Move In) eviction to get place back but wants to assess what is the best financial/logical decision

-  OMI process estimated to cost around 16,000 for Tenants + 5000 for Lawyer

-  Owner/Landlord already offered 21,000 to Tenants, but Tenants "googled it" and saw numbers as high as 100,000 for other "Cash for Key's" offers.

Question:

- As a Landlord/Owner, what is the basic calculation to use when assessing how much money to offer as "Cash for Keys" as the Base amount vs  Industry Avg vs High Amount.

- IE: Is it something like 5x monthly rent? or Some specific calculation? 

- What is everybody else's experience in offers/#'s that were successful for Cash for Keys in San Francisco?

Thank you so much for your time and responses! Very much Appreciated!

Will

@Dave Foster Thank you for your very clear and specific advice! Gives me some comfort I have some cushion to decide my next move.   I'll follow up with my CPA next year when I run my taxes to look at my depreciation schedule as well. 

Thanks again!

@Chase Keller  Thank you!

Great, Thanks All!

Hello Bigger Pockets Family!

I'm originally from Des Moines, Iowa, but work/live in Los Angeles.  As everyone knows, not easy to find cash flow properties on the west coast.  I still have friends and some other investments in Des Moines where I feel like it's the best place for me to look into Turn Key Investments. 

Anybody on here can help me out with sending me listings/information for some investment real estate agents specializing in TurnKey SFR or Multi? I'm looking for B and above areas with positive cashflow. I'm interested in the West Des Moines and Waukee areas due to the data centers being built by Microsoft and Apple.

Thanks in Advance!

Will

Hi @Keong Kam Thanks for the feedback!  So technically, I can rent it out for the next 3 years as a "rental" and still be able to reap the benefits  of the capital gains exemption? 

Note: Obviously I understand all advice I get here are from people who are not CPA's so I'll confirm with mine after I figure out what the right direction/questions to ask

Hi Bigger Pockets family!  

Thank you all for any input in advance as I have been soaking up information these past few months. 

I have house hacked my primary home in Orange County, California for the last 5 years.  I recently got married, and we are planning on transitioning to live in my Wife's house.  My property is still considered my primary on paper right now since my marriage is so recent. 

Question:  What is my best strategy to move forward in this situation?  

1. Do I continue to keep my property as a primary residence and just "house hack" it as a rental? 

2.  Is there some transition where my property now becomes considered a fully "rental/investment property" as opposed to a live in primary? 

3. If I transition to out of my primary and convert it to a "rental/investment property", the concern is now if I sell it, I lose out on the tax savings (I think up to 200k  cap gain?)  for selling a primary live in property, as opposed to as a "rental/invst prop" which I only have the option to 1031 in order to save tax. 

Hope my question makes sense.  Not sure if I even have an option as I'm assuming I have to convert my primary residence into an investment since I'm moving in with my wife in her house. 

Thanks again!

Will