Dear Landlords and Investors,
The principles of leverage, supply, demand, and ROI still push appreciation. San Diego has proven to be a wise location for your investment dollars. But, don’t become complacent. Don’t lose track of why you are investing, regardless of how successful you are. Dealing with unexpected issues can make or break your business. So of course, you’re right to want to understand how the current market affects your property values. You deserve expert guidance. Here are details on what you need to know now:
ATTACKS ON PROPOSITION 13
Over the last few weeks, we’ve received nearly a dozen emails. You may have seen them too! From our Assembly members, the Apartment Owners Association, and The California Association of Realtors. Along with good ol’ Carl DeMaio, the Chairman of Reform California. And these all were “RED ALERT” type emails!
Turns out the Democrat-led legislature continues to do its best to undermine Prop 13. Back in 1978, Prop 13 was put in place. It limited the property tax to 1%. Based on the new sale price. It also secures a property owner’s tax basis increase of no more than 2% each year afterward. Protecting a reasonable increase in property tax over time. Basically making it hard for politicians to raise your taxes. Not like we’ve seen happening in Illinois or Texas.
Prop 13 is a win for everybody. Homeowners and tenants alike. Owners don’t get the surprise of an escalating property tax bill. Tenants don’t see their rents shooting up to cover that owner’s tax bill. And business owners can plan ahead knowing future tax liabilities are stable.
Well, they just passed bill ACA 13, (Assembly Constitutional Amendment 13). With the hopes of blocking a taxpayer protection initiative. Which is already approved for the ballot! It overrides recent court rulings. By restoring the ⅔ vote requirements for ALL local tax measures. And it also allows local jurisdictions to hold “advisory votes” on tax increases. Which will create weaker voting thresholds. By making things a simple majority to pass the vote.
Here, in one of the most expensive states, politicians are carving out ways to increase taxes. The goal is to get ACA 13 to amend the state’s constitution by actually repealing Prop 13! Thank goodness this measure requires voter approval. So, do your part. Spread the word. Share this report with your neighbors, friends, and colleagues. You can expect ACA 13 to be on your ballot in November 2024.
RECENT FAQ’s FROM CLIENTS LIKE YOU:
- What should I be looking for when I’m reading the MLS listings you’re sending me?
You’re right! The MLS details are, for the most part, inadequate when it comes to 2-4 units listings. The reason is most agents are lucky if they land even one multi-unit listing in their career.
The MLS detail sheet is a perfect example of how they lack experience with selling this type of property. Many do not provide you with enough of the “moving forward with an offer” kind of details that investors need to know. Details that tell you if the numbers make sense. Often they leave out the configurations (bed./ba./sq. ft.) of each unit. We have even found the age of the property and the age of improvements missing. Current market rents are another biggy that they fall short on. And don’t get us started about their CAP rate calculations, or, GRM. This is why it’s so important to call, email, or even text us OFTEN in your buying process. If you see ANYTHING that peaks your interest or have questions on. We’re just a phone call away.
All you need to do is give us the address or MLS number(s) of properties you’re most interested in. Not only will we get all the missing details you requested. We get the inside scoop on showing instructions, offer activity, and seller’s motivation. Plus we can give you our insight and guidance on each property. Because no two multi-units are exactly alike.
Once you have all the need-to-know info you’re able to make a confident and comfortable choice of moving forward with an offer. Keep in mind that most listings are set up as “viewing of interiors subject to offer acceptance”. Having accurate and detailed info up front is key.
Once you are in the streets, actively viewing listings, and writing offers. We take things a step further. By scouting out the best deals. Analyzing GRM (gross rent multipliers), neighborhood stats, and ways to add value to a property down the road. Things that really set you up for success. Things only done by the best of the best in the income property arena.
KEEP YOUR QUESTIONS COMING! We plan on answering your questions monthly moving forward. It’s important that you’re informed and educated about what you buy and why you’re buying it.
AND WHEN YOU’RE AT THE END OF THE GAME… READY TO RETIRE FROM LAND LORDING?
Let’s face it. Being a landlord has its ups and downs. If we had to point you in one direction it would be the Delaware Statutory Trust folks. And here’s why. With the DST, you get all the benefits of ownership. Without the hands-on day-to-day dealings of tenants and property management/maintenance. Plus it provides you with cash flow. And in a lot of instances, it’s even more than the relinquished property provided. Second of all, you’ve got professional management and bookkeeping. It’s automatically done for you. We’ve touched on DST options in the past. Don’t be shy, contact us.
San Diego Real Estate YouTube-Weekly Videos Keep You Connected
Rentometer-House and Apartment Rental Rate Comps
HomeBot-Personalized Home Finance Tool
ALTOS Reports -Powerful Data-Driven Real-Time Zip Code Market Updates
MLS Access for Investment Property -Custom Searches For Investment Property
San Diego Apartment Investors Market Report Archives-Access Past Market Reports
IT’S TIME FOR YOU TO GET THE ROI YOU DESERVE
You’ve worked hard for what you’ve earned, and you’re right to want the best experience. Be confident you have professionals on your side. We use ROI-based marketing. Rest easy knowing we use an organized system to market your property. Employing our highly targeted and proven approach like no one else is what you deserve!
Thinking of selling your property in the next 12 months? Call us today for your strategic marketing consultation at 858-218-4511.