Three Campbell/Moreland School-Sets Collide at the Winchester Blvd & Payne Ave Intersection

Three Campbell/Moreland School-Sets Collide at the Winchester Blvd & Payne Ave Intersection

A T-boundary formed by Winchester Blvd  running north-south and Payne Ave running west defines the boundaries between 3 elementary/middle/high school sets.

East of Winchester Blvd lies completely in the Campbell Union and Campbell Union High School district, namely Castlemont Elementary (API 811), Monroe Middle (API 784), and Del Mar High School (API 694). 

North-West of the Winchester Blvd & Payne Ave intersection, the homes fall in the Payne Elementary (API 902) and Moreland Middle (API 861) of the Moreland School District, and Prospect High School (API 794) of the Campbell Union High School District. 

South-West of the Winchester Blvd & Payne Ave intersection, the homes fall in the Rosemary Elementary (API 835), Campbell Middle (API 755), and Westmont High School (API 796) of the Campbell Union High School District. 

1031 Exchange in a Tight Housing Market

Taxes have increased this year, so successful completion of a 1031 Exchange will be more than worth your time and effort.

However, with inventory tight in almost every market across the nation and the 180 day timeframe required to complete a 1031 Exchange, it's very important for 1031 Exchangors to start searching for replacement property ASAP.  

A couple other strategies that may help in meeting the required timeframes for a 1031 exchange in a tight market:


1. Consider asking for an extension of the closing date.

2. Consider making your offer to purchase a replacement property contingent upon selling the relinquished property.

3. Consider a Reverse 1031 Exchange

What is a Reverse 1031 Exchange?
In a typical 1031 Exchange, a property is sold and then replacement property is acquired. On occasion however, it may be advantageous to do it in the opposite order; acquire property first and then sell. This is called a Reverse Exchange. It sounds simple, however acquiring replacement property first in a 1031 Exchange presents a few difficulties.



First of all, funds will need to be available for the down payment on the acquisition property (keep in mind nothing has been sold yet). Second, the properties involved in an exchange cannot be owned at the same time. To properly structure a reverse exchange, an Exchange Accommodating Title Holder, or EAT (your Exchange Company), will go on title to either the property being acquired (replacement) or the property to be sold (relinquished).



If the EAT is to go on title to the replacement property, problems may arise if the investor is financing part of the acquisition costs. Many lenders balk at the idea of an EAT going on title to the property the investor is acquiring.

The lender issues are as follows:

• The loan will be made to the EAT not to the Exchanger.

• The EAT will require the loan to be non-recourse.

• The EAT will require the Lender to waive its due on sale clause for transfer of the new property from the EAT to the Exchanger.

• The EAT will require the Lender to waive its requirement that the EAT sign any warranties or representations concerning the new property.

• The EAT will require the Lender to allow junior or subordinate financing on the new property.



If the lender decides not to loan on the property because of the constraints previously stated, the investor has two choices: find a new lender or structure the exchange with the EAT taking title to the relinquished property that is ultimately to be sold as a straw buyer.

Challenges with the EAT acting as straw buyer include:


• The EAT will require cash to buy the property. The cash must come from the exchanger.

• The amount of cash advanced by the investor is the amount of estimated equity in the relinquished property.

• There may be a due on sale clause on the debt of the relinquished property.

• A property tax re-assessment may be made at the time title transfers

• The exchanger may be burdened with an additional county transfer tax



Also, keep in mind that with a Reverse Exchange the relinquished property must be sold within 180 days. The time-frame start at the close of escrow of the purchase property.



Despite the complications, the reverse exchange can be a powerful tool for the investor provided they are aware of the obstacles and have plenty of time to work through the challenges.




Disclaimer: The subject matter in this blog post is intended as general information only and not intended as tax or legal advice. Please always consult your tax or legal advisor for any specific tax or legal matters.

Before marketing new subdivisions in California, subdividers must obtain a public report from the DRE

The DRE ensures that subdividers comply with real estate and subdivided lands laws when offering new homes or lots for sale and deliver to buyers what was agreed to at the time of purchase. The laws enforced by the DRE apply to most standard subdivisions and various types of common interest developments including condominium projects, certain undivided interest developments, and timeshares offered for sale in California.




Before marketing new subdivisions in California, subdividers must obtain a public report from the DRE. Public reports contain information of vital importance to prospective buyers including covenant, conditions and restrictions which govern the use of property, costs and assessments for maintaining homeowners' associations and common areas, and other material disclosures.



Public reports are a critical disclosure document which should be read and understood by any home purchaser considering buying a home in a new subdivision. It is important for consumers to know that a subdivider is required to provide a copy of the public report to a prospective buyer before the buyer becomes obligated to purchase a lot or unit within the subdivision and also to any prospective purchaser who requests it.



Prior to the issuance of the public report, subdividers must file an application with the DRE and submit documents supporting the representations made in the application. If improvements to the subdivision are not complete at the time the application is filed, the subdivider must also submit evidence that adequate financial arrangements have been made for their completion.



After the subdivider conveys the last remaining lot/unit in the subdivision, the DRE's oversight ends and the board of directors of the homeowners association operates the subdivision.

If I currently rent in Cupertino but want to own my own place in Cupertino, can my children stay at their current school until the end of the school year?

Question:
If I currently rent a condo in the Cupertino Union School District (CUSD) and my child currently attends our neighborhood Cupertino elementary school, what would happen if I buy a condo that goes to a different elementary school within CUSD?

I want to own my own place in Cupertino, but can my children stay at their current school until the end of the school year?

**
attending another school

move into new address

When you purchase a place, you are supposed to give the closing statement for your home purchase to your child's current school's secretary.  The school district will then update the school assignment for your child. 

To prove that you have physically moved into your new home address, you'll also have to give them a PG&E bill with your name on it, plus one form of ID within 30 days.

Student Assignment with the Cupertino Union School District.  Normally when you move to a new residence, you are supposed to update your address with CUSD.  However, if space is available you can request to have your child stay at his/her current school.

The good news is that Eisenhower 4th grade does have a few spots available.

Charlene also checked and confirmed that Eisenhower has nobody on their waiting list of

waiting families from overflow trying to get back to Eisenhower.  Bottom line is yes, since Eisenhower 4th grade has space right now, now is a good opportunity to buy something and also keep Nina at Eisenhower.

In fact, I checked the other elementary schools that feed to Hyde middle school and got more good news.  Sedgwick Elementary is very full and has very little space.  De Vargas Elementary 4th grade is also full.  That means if you buy a property in Sedgwick or De Vargas, they will be glad to allow Nina to continue at Eisenhower.  The situation can change at any time.  Right now the conditions are in your favor.  If you end up not finding the right place for several months, we may have to check the situation again.

929 East El Camino Real Condo Investment Property Rental Earnings

Posted under: Home Buying in Sunnyvale, In My Neighborhood in Sunnyvale, Investment Properties in Sunnyvale

929 East El Camino Real Condo Investment Property Rental Earnings:

The condos on 929 East El Camino Real in Sunnyvale are conveniently located on East El Camino Real just east of Wolfe Road, near where Fremont Avenue merges onto East El Camino Real, just south of Sunken Gardens Golf Course.

Unlike most multi-story condos and townhomes, these units walk DOWN to the bedroom level.  The advantage of this arrangement is when it is time for you family to go to bed, the only people who will be above you are your own family.  If someone makes noise in the kitchen, living room, or dining room, it is your own family and/or housemate, so you can walk upstairs to tell your family member or housemate to be walk more quietly.

If the bedrooms were on the upper level of your unit, then above you would be people who live in the unit above you, not people from your own household.  You would have to go outside and knock on their door to get them to walk more quietly at bedtime.

Of course, the biggest consideration if you are considering these condos for investment is the amount of rent you can expect to earn each month from these condos.

The 3 bed 2.5 bath 1,832 sqft models right now earn approximately $3,400/month in rent.
The 3 bed 2 bath 1,440 sqft models right now earn approximately $3,000/month in rent.

To calculate the yearly income, multiply these rents x 12 months.  This is also known as the gross scheduled income.

From that, take into account the vacancy rate.  This location is very convenient -- convenient to commute to work and convenient to grocery stores, restaurants, etc -- so the vacancy rate should be under 5%. 

Multiply the Gross Scheduled Income x Vacancy Rate to arrive at Dollars Lost.
Gross Scheduled Income LESS Dollas Lost gives you Annual Rental Income.

If you gain any other income from the property, then add it to arrive at Gross Operating Income.
Subtract total annual operating expenses to get Net Operating Income.
Subtract Annual Debt Service to get Before-Tax Cash Flow.

The Before-Tax Cash Flow does not take into account your tax savings.
To arrive at your After-Tax Cash Flow, take into account the following:
--The annual interest deduction on your loan
--The annual depreciation on the improvements
--Your combined federal and state tax bracket (e.g. 38%)
   (Ask your tax professional whether all your tax losses may be claimed in the current year)

If your Before-Tax Cash Flow is negative, combine that with your depreciation to get Allowable Loss.
Multiply this Allowable Loss by your combined federal + state tax bracket to calculate Taxes Saved.
If the Taxes Saved is greater than the Before-Tax Cash Flow, then your final resulting After-Tax Cash Flow will be positive!


To calculate the Rate of Return, you'll need to first calculate the Cash Investment.
You can buy the larger unit for approximately $600,000 right now.
You can buy the smaller unit for approximately $550,000 right now.

If you get an 80% loan, then your down payment will be 20% ($120,000 for the larger unit. $110,000 for the smaller unit)  Add the expected buyer's closing costs to arrive at the Total Cash Investment.

The After-Tax Cash Flow divided by the Total Cash Investment = the After-Tax Rate of Return

As rental rates increase over the years, your rate of return will increase.
Perhaps an even bigger gain is the likely large appreciation of the property. 

The condos at 929 East El Camino Real are a viable choice as investment property.  Of course, you could also buy them to live in yourselves, so  you will be the one to enjoy its convenient location.

Meridian Site Map Hillsdale Ave Yucca Ave Taylor Morrison Clean Copy

The Meridian is a new townhouse complex built by Taylor Morrison  at the intersection of Hillsdale Ave & Yucca Ave.

Click to see a Clean Copy of the Site Map.

Taylor Morrison Pays the Closing Costs of Select Homes if you get into contract Before November 30th and Use the Seller's Approved Lender, Taylor Morrison Home Funding, LLC

Taylor Morrison Pays the Closing Costs of Select Homes if you get into contract Before November 30th and Use the Seller's Approved Lender, Taylor Morrison Home Funding, LLC

Click here to see the details of this offer.

Seller will pay all applicable Closing Costs at Closing, excluding discount points or pre-paids if qualified buyer uses the Seller's Approved Lender, Taylor Morrison Home Funding, LLC.

Taylor Morrison's ":The Meridian" Elevations & Floorplans

Taylor Morrison's new development at the intersection of Hillsdale Ave & Yucca Ave is called "The Meridian"

Click here to see the Elevations of Plan1F and the Floorplans of Plan1, Plan2, and Plan4