Assembly Bill 1771, also known as the California Housing Speculation Act, aims to change real estate tax policy to discourage investors from quickly reselling properties like single-family homes.Under the proposed bill, an additional 25% tax would be imposed on the gain from the sale of a qualified asset (including homes) within three years of the previous sale.The tax reduction is dependent on the number of years passed since the initial purchase of the qualified asset, ranging from a 20% reduction for sales occurring between 3.01 to 4 years to a 100% reduction for sales occurring more than seven years after the initial purchase.The revenues generated by this tax increase would be deposited into the Speculation Recapture Community Reinvestment Fund, which aims to support affordable housing, local governments, schools, and infrastructure projects.The bill is introduced by Assembly Member Ward, and the proposed tax changes would take effect from January 1, 2023.Assembly Member Ward argues that short-term investors in the market, including fix and flip investors, contribute to rising housing prices, limiting opportunities for Californians to purchase homes.While the bill may discourage short-term speculative transactions, it is worth noting that California's tax laws still provide certain advantages for investors, including unlimited tax write-offs and depreciation benefits.The bill is subject to legislative approval, and Assembly Member Ward will speak publicly about the bill at the San Diego County Administration Center on a specified date.Please note that this is a simplified summary of the bill and its potential impact on fix and flip investors.

I did find verbiage but from another jurisdiction "Unavailable for rent means a unit whose owner has filed with the code official a statement signed under penalty of perjury that such unit is not offered or available for rent as a rental unit and that prior to offering or making the unit available as a rental unit, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter...."

Other wise land is tied up entitled then closed.. 95% of the time here in Oregon/washington..

That leaves you with NV,WA and now TN. 

Im a 401k administrator, I'm curious why the returns are low? 

They work on our accounting/bookkeeping/reporting/administrative aspects of our rental portfolio.

The job starts when the administrative work starts , not when you bang the first nail . 

Washington State has already enacted a similar law. 

My wife and I are considering taking on this role as a property management team, managing these properties from our current location in Washington state.Our plan is to establish a reliable network of local contacts in the area—such as maintenance professionals, agents, lawyers, etc.

Additionally, it gives you the flexibility to sell or lease the properties individually in the future.One potential downside is the costs associated with subdividing or creating separate LLCs, including legal fees, taxes, and administrative expenses.