For Sale Morgan Hill Relatively Larger Newer House for Just $850,000

NEW-Looking 4BD 2.5BA ~2300sqft Home for just $850,000 in  Morgan Hill.
Call Robert Lei (408) 893-2410 for details.

NEW-Looking 4BD 2.5BA ~2300sqft Home for just $850,000 in  Morgan Hill.
Call Robert Lei (408) 893-2410 for details.






Robert Lei
REALTOR, e-PRO
Century 21 M&M and Associates
(408) 893-2410
BRE # 01716389

Landlord Notice to Sell the Property

When you decide to sell a rental property, you have one potentially unpleasant task ahead -- giving your tenants a notice to vacate. California has certain rules regarding how to go about doing this. It's important to familiarize yourself with these rules to ensure you do everything by the book so the process goes as smoothly as possible. The proper procedures vary according to particular circumstances.

How Much Time

You need to give a tenant who’s been in the property less than a year a 30-day notice to vacate, according to California law. If your tenant has been in the property for a year or more, you need to give him a 60-day written notice to vacate. Some exceptions to the 60-day rule exist, where you can reduce the 60 days to 30 days. The exceptions are as follows: you will sell the property to someone who will live there for at least a year; you must open an escrow account with an escrow or real estate agent; you must give the 30-day notice no later than 120 days after opening the escrow account; you canNOT have given your tenant a 30- or 60-day notice before; and the property must be one that can be sold separately from another dwelling.

Serving the Notice

You don’t need to let your tenant know why you’re giving him notice, but you do need to serve notice the proper way. One way is to send the 30- or 60-day notice by certified mail or registered mail with a return receipt requested. You can also have it served personally by having someone hand, or leave the notice with, your tenant. You can serve your tenant at work if you can’t contact him at home. If you do this, you also need to mail a copy of the notice to the home. If you can’t reach your tenant at home or at work, you can tape the notice on the front door or another place on the property where the tenant is likely to see it. You also need to mail a copy of the notice to the home. This procedure is sometimes called “nailing and mailing.”

Not Leaving

If the tenant stays past the end of the notice period, he’s there unlawfully, and you’ll need to file an unlawful detainer lawsuit to get him out. If you haven’t told the tenant you’re selling the property and he wants to stay, be prepared for him to bargain with you to stay. Tenants who don’t want to move often do this. You don’t need to withdraw your notice or explain why. Just reiterate that you expect him to be out per the terms of the notice.

Showing the Property

If you intend to show the property, your tenant will figure out that you’re selling it. According to California Civil Code Section 1954, you can enter the dwelling to exhibit it to prospective or actual buyers, but you need to follow some rules. You must show the property during normal business hours unless your tenant agrees to some other time, and you must give your tenant notice at least 24 hours in advance of your intent to enter the property. You can give notice orally by telephone or in person if you’ve notified the tenant your plans to sell in writing within 120 days of giving the oral notice to show the property.

From: http://homeguides.sfgate.com/landlord-notice-sell-property-47017.html

OFF-Market, NEW-Looking 4BD 2.5BA ~2300sqft Home for just $850,000 in Morgan Hill

OFF-Market, NEW-Looking 4BD 2.5BA ~2300sqft Home for just $850,000 in  Morgan Hill.
Call Robert Lei (408) 893-2410 for details.

OFF-Market, NEW-Looking 4BD 2.5BA ~2300sqft Home for just $850,000 in  Morgan Hill.
Call Robert Lei (408) 893-2410 for details.






Robert Lei
REALTOR, e-PRO
Century 21 M&M and Associates
(408) 893-2410
BRE # 01716389

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.

To sell an investment property in California, how much notice must landlord give to tenants?

An owner/landlord can end a periodic tenancy (e.g. a month-to-month tenancy) by giving the tenant proper advance written notice.  

"Proper" notice depends on circumstances.

If anyTenant or resident has lived in the rental property for less than one-year, the owner/landlord only needs to serve them a 30-day "No Cause" notice, consistent with State law.

If every tenant or resident has lived in the rental unit for a year or more, the owner/landlord normally must give the tenant(s) 60 days advance written notice.

However, the owner/landlord can reduce the 60 days to 30 days if all of the following are met:

• The landlord has contracted to sell the rental unit to another person who intends to occupy it for at least a year after the tenancy ends.
• The selling landlord must have opened escrow with a licensed escrow agent or real estate broker, and
•  
• The selling landlord must have given the tenant the 30-day notice no later than 120 days after opening the escrow, and
•  
• The landlord must not previously have given the tenant a 30-day or 60-day notice, and
•  
• The rental unit must be one that can be sold separately from any other dwelling unit. (For example, a house or a condominium can be sold separately from another dwelling unit.) 203

The landlord usually isn't required to state a reason for ending the tenancy in the 30-day or 60-day notice

Good deal in great school district if you don't mind nonviolent death in the property

I just got word of a good deal in great school district if you don't mind nonviolent death in the property.

The seller got many great offers on this property, but apparently the buyers who submitted their offers did not read the disclosures carefully and changed their minds when it was pointed out to them that there was a death inside the property. The owner died peacefully December of last year.

Bottom line is if you don't mind that someone recently passed away inside the house, you can get a good deal on a property in a good school district.

For people who are superstitious, perhaps you could do some blessings to remove the death issues.

Out of respect for those involved, I did not post the address in this public blog. However, if you are a serious buyer, I can give you more details privately.

Robert (408) 893-2410

Selling or Buying a Short Sale Rental Property in a Rent Control Neighborhood

Be careful when you are selling or buying a short sale rental property in a rent control neighborhood.

Below is a list of California Bay Area Localities With Rent Control Ordinances:
City of Campbell
City of East Palo Alto
City of Berkeley
City of Fremont
City of Hayward
City of Oakland
City of San Leandro
City of San Jose
City of San Francisco

Before buying or selling a rental property in a city with rent control, you should consult a real estate attorney familiar with the Rent Control Board of the particular city in which the rental property is located.

For example, what happens if in the months leading up to the short sale, the tenants threaten to move out and in response the landlord drastically reduces the tenants' rent? Will this set a new monthly rental base with which the new owner must use in calculation of his future potential monthly rental rate? Or does a long history of higher market rental rates take precedence over a few short months at the drastically reduced rental rate? One real estate attorney associated with the Oakland Rent Control Board stated that as soon as the owner dropped the rent, he created a new rental rate that was subject to rent control.

The new owner would inherit the drastically lowered rent as his base and could not raise the rent for the existing tenants back to market rate. This killed off any interest from real estate investors.

In one case study, the seller did drastically lower the rent to his tenants soon after putting his investment property on the market. Did the seller unwittingly hurt his own chances of selling? Maybe that was exactly what the seller wanted. It was a short sale, and the seller might have simply been trying to collect as much rent as possible before losing his property to the bank.

To the seller faced with renters who are threatening to leave, then it might be in the seller's best self interest to lower the rent. This has two advantages in the mind of the short sale seller. #1) Better to collect some rent rather than no rent, and #2) The owner collects free rent for longer before losing his home. Making the property less attractive to buyers effectively delays the sale of the property. Since the deal no longer appeals to real estate investors, it will take longer to find a buyer. Only buyers willing to buy and live in Oakland as their primary residence will still be interested.

Every extra month of delay is extra rental income for the seller. However, when faced by an owner attempting such tactics, the banks would probably save a lot of money by simply foreclosing, booting out the tenants, and selling the property as a vacant unit. That seller is counting on his hope that a bank will not respond in this manner.

Disclaimer: I am not a real estate attorney. This discussion is just so you know what issues to think about and what questions you should ask. The bottom line is whether you are selling or buying a short sale property in a rent control neighborhood, you should consult a real estate attorney familiar with the Rent Control Board of the particular city in which the rental property is located.