What Are Opportunity Zones? Here’s Everything You Need to Know

Thanks to the 2017 Tax Cuts and Job Act, investors in the United States can benefit from investing in Opportunity Zones.

What exactly is an Opportunity Zone? It’s a special designation that a city can give to lower income areas or neighborhood and they are very similar to 1031 Exchanges.

When a real estate investor sells one of their properties, they can invest the proceeds from the sale of their property into an Opportunity Zone and defer paying Capital Gains on the sale of their property for seven years.

Opportunity Zones now allow an investor to defer capital gains taxes by trading one asset with another asset in a different asset class

Where Are Opportunity Zones Located?

As of April 2019, there are Opportunity Zones in all 50 states including the Virgin Islands, Guam, and Puerto Rico.

In California there are currently 879 Opportunity Zones, 871 are located in low-income areas while 8 are located in non-low-income areas.

97% of California’s opportunity zones located in urban areas while 5% are located in rural areas.

If you’re interested in investing in Opportunity Zones in the San Diego area, these areas of investment can be found in Golden Hill, South Park, and Barrio Logan.

Nevada currently has 61 Opportunity Zones while Arizona has 144 with 61 located in Maricopa County and 28 in Pima County.

Who can invest in an opportunity zone?

Investors with large capital-gains bills are appropriate candidates for these funds. But Aaron Clarke, a wealth advisor at Halpern Financial in Ashburn, Virginia, says it’s a limited market. “They are really only appropriate for serial entrepreneurs – people who are real estate investors by trade (not a hobby) and people who have a strong local knowledge of the opportunity zone they plan to invest in,” he says. Currently, most qualified opportunity zone investments are available to accredited investors. Investors typically need to be high-income earners, such as those with annual incomes of at least $200,000 who file with a single status, or have a net worth above $1 million, excluding their primary residence.

Source – US News

Contact GoldenWest Management

Property Management is the key to saving the time, money and hassle of managing your investment properties yourself. To learn more about the property management services we can offer you contact us today at (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

Property Management News – Learn How Demand for Multi-Family Rentals Is Changing In 2019

If you’re old enough to remember the rental market of the 1980s and 1990s, you remember that most people who rented units in multifamily rental properties were often younger renters who were just starting out in life.

In 2019 the demographics have changed, it’s not just younger renters who are living in multifamily rental properties any longer. There are renters across every age demographic who are living in multifamily properties compared to single-family homes.

The Changing Demographics of Multifamily Properties

Thanks to recent data from National Real Estate Investor we know that the apartment market has grown by 12% over the last 10 years. This growth can directly be traced to the changing demographics of the multifamily industry.

  • Millennials – In 2019, more people from this age group are putting off getting married and starting families than other generation in years past. Many people from the Millennial age group are also putting off buying homes early in life like their parents once did and are settling for renting multifamily properties.
  • Baby Boomers – More homeowners age 65 and older are choosing to sell off their single-family homes in 2019 and live in multifamily rental properties. Why? Most Baby Boomers who choose multifamily over the single family like the convenience that multifamily offers them and the fact that they don’t have to have as much “stuff” as when they lived in single-family properties

Another reason why there’s been such a huge demand for multifamily rentals over the last 10 years is most apartments, fourplexes, condos and other multifamily properties are being built closer to downtown areas. This means less of a commute to work for renters, easier access to the downtown nightlife, amenities, and medical care than single-family homes.

Contact GoldenWest For Professional Property Management

To learn more about changing demographics in multifamily rental properties, or to speak with us about our property management services, contact GoldenWest Management today by calling us at (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

What Should You Do After Purchasing A Rental Property?

Are you planning on purchasing a rental property in San Diego, Phoenix, or Las Vegas? If so, you’ve come to the right place!

Like most new Real Estate Investors, you’re excited about purchasing your first investment property but, once the excitement where’s down, you’re most likely going to ask the question: what should I do next?

In this article, we will answer this question and provide you with some things to do after purchasing your first rental property.

#1 – Get The Property Inspected

The first thing that you should do after purchasing your first rental property is to have it professionally inspected by a contractor or handyman. This step is important because you want to know what condition the property is in and verify if there are any repairs or renovations that the property needs before you can rent it out to your first tenants.

Depending upon the age of your rental property, it may only need a coat of paint before you can start running it but, if it needs extensive repairs and renovations. You should prioritize those repairs and spread them out over the course of one year, that way you can get your property into cash flow and have money coming in to cover those repairs over time.

#2 – Hire A Professional Cleaning Company

After purchasing your first rental property and hiring someone to make repairs or renovations, the next thing that you should do is hire a professional cleaning company to give your rental property a thorough cleaning.

Cleaning a rental property from top to bottom is important because, you just don’t know how well the property was maintained in the past and, you want to provide your future tenants with a clean, safe, and sanitary rental property before you rent it out to them.

#3 – Take Photos And Video Of The Rental Property

Once you have the rental property professionally inspected and cleaned, the next thing that you should do is either hire a professional photographer or use your camera phone to take pictures and video of the rental property.

This step is important because, in this day and age most people will inspect a rental property online by reviewing the pictures and video before they actually choose to tour the property in person so you want to have the best possible representation of your property available online because this will be was responsible for generating interest among prospective tenants.

#4 – Hire A Property Manager

Although you may be prepared to manage the rental property yourself, the most important thing that you should do before renting your first rental property is to hire a professional property management company like GoldenWest management to manage that property for you.

Property management is important because, it will save you the time, money, and hassle of having to manage that rental yourself.

Many investors make the mistake of managing their first handful of rental properties themselves, only choose to hire a property manager after they’ve become so busy that they no longer have time for themselves. Don’t let this mistake happened to you!

Learn more about the services that we can offer you contact us today by calling (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

How to Spot an Applicants Fake Landlord References

During the years that you own rental properties in San Diego, Phoenix, or Los Angeles, you may encounter one or more tenants who include fake landlord references on their application.

Sadly, thanks to the Internet, anyone can create a fake landlord reference in minutes especially if they have access to a VOIP phone number or some other tech skills.

If you think one or more of your applicants may have submitted a fake landlord reference, this article will provide you with tips on how to handle them.

Tip #1 – Think Like A Detective

The first thing to do when a prospective tenant has potentially included fake rental references on their application is to call the phone numbers that they’ve listed and act like someone who is interested in renting a property.

Following through with this tip is important because the majority of fake landlord references will not be prepared to take your phone call since they will not be expecting a renter to call and their façade will fall apart when they don’t know how to respond.

Tip #2 – Investigate the Fake Landlord Online

Thanks to online tools, you can easily research a fake landlord in minutes by doing a reverse phone number lookup and cross-check the phone number against the landlord’s name online. If the phone number checks out, the good news is that you have a real landlord reference but if there’s no listing for the phone number online then this is a good sign that it’s a bogus phone number.

Tip #3 – Ask Poignant Questions

When you are on the phone with an applicant’s potential landlord references, you should always ask poignant questions that every landlord will be ready to answer like: did they pay their rent on time, cause trouble, or communicate well with you? If the landlord can’t answer these questions in detail then the odds are that the individual is not really a landlord.

Get Professional Property Management Here

Are you tired of self-managing your rental property? If so, let Goldenwest Management help you reclaim your personal life when you choose our professional property management services to manage your rental property for you.

At GWM, we will save you the time, money and hassle of managing your rentals yourself. Some of the services that we can offer you include tenant screening/placement, accounting, rent collection and more.

To learn more about the services we can offer you contact us today at (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

The Rise and Fall of Small Apartment Buildings in The United States

Back in 1973, there were close to 300,000 small apartment buildings constructed in the United States. These buildings were condos, town homes and many of the smaller apartment buildings that have been renovated in recent years and are still around today.

It’s understandable why so many smaller apartment buildings were built 30 to 50 years ago because times were different back then, zoning laws were simpler, and there was less of a demand for housing in the United States.

Fast forward to the 21st century and we have more of a demand for housing than ever before but also highly complicated zoning laws which make it difficult to impossible for smaller apartment buildings to be constructed.

Where Are Today’s Apartment Buildings Being Constructed?

In today’s world it’s not uncommon to find more large apartment buildings (50 units or more) being constructed downtown or in urban centers, because these buildings are closer to jobs, mass transit, multiple entertainment options, and they have the amenities that renters want.

Thanks to recent data from Bloomberg.com we know that in 2017 a total of 358,000 multifamily units were constructed and 187,000 of those units were buildings that had between two and nine units.

As we mentioned above, zoning laws have also played a huge part in the number of smaller multifamily units that have been constructed in recent years, especially in space-constrained cities like San Diego and Los Angeles.

Due to zoning laws and the opposition to construction in some metro areas, it’s not uncommon to see more high-rise construction or apartment buildings with 50 or more units being constructed in downtown areas like Downtown San Diego.

Why?

Most people see downtown areas as the “urban core” compared to suburban areas where homeowners frequently object to largescale projects and developers have to contend with higher land costs, zoning costs, rules, and opposition when compared to building downtown.

Will there be fewer large apartment buildings constructed in the future? The reality is that it’s unlikely that we will see migration patterns change anytime soon, especially in California, a state where people continue to migrate to in search of high paying jobs in a time of economic uncertainty.

Get Property Management Here

Do you own rental properties and need property management? Or maybe you’re tired of managing your rentals yourself and are ready for a change? Contact Golden West Management by calling us at (866) 545-5303 or click here.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

Old Rental Vs. New Rental – What Are the Pros and Cons?

Are you planning on buying a new rental property in San Diego or elsewhere in the United States? You’re making a smart choice because real estate is still a great way to build wealth and cash flow.

The big question is which type of rental property should you be investing in? Should you buy a new or old rental property? In this article, we will break down the pros and cons of investing in new vs. old rentals and offer you tips on what to look for when considering either option.

Pros of Buying an Older Rental:

Cash flow – Older rental properties often cash flow better than newer rentals.

Improvements – You have more opportunities to update an older rental than you do with newer properties because with a new build the improvements have already been made and are under warranty.

Established location – With an older property you have an established location with predictable rents and property values.

Cons of Buying an Older Rental

Cost – Depending on when the property was built there could be more costs involved with getting the property ready for rent like removing asbestos, lead paint or making improvements to upgrade the property for safety

Lack of amenities – Some renters in today’s world prefer living in new build rental properties because they offer more amenities and features like laundry rooms, swimming pools, gyms and better parking than older rentals.

Pros of Purchasing A Newer Rental

Zoning – Newer rental properties are often zoned better than older rental properties and are often in the best school districts that parents want to have their children in.

Cash Flow – When it comes to cash flow, newer rentals ten to have more predictable cash flow than older rental properties and best of all, lower capital expenditures.

Energy Efficiency – In today’s world energy efficiency is important and with a new build your tenants can count on higher energy efficiency as well as lower utility bills.

Less Turnover – New build rental properties also have less turnover than older rentals along with longer lease terms as well.

Contact Goldenwest Management

Property management is the key to long term success with owning investment properties because it saves you the time, money and hassle of managing those properties yourself. Learn more about the services we can offer you by contacting us at (866) 545-5303 or click here.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

What to Do as Soon as Your Tenant Gives You Notice

During the years that you own rental properties in San Diego, Phoenix, or Las Vegas, you will without a doubt receive notification from at least one or more of your tenants when they are planning on giving you notice and moving out of the rental properties. This is to be expected because owning a rental property is a numbers game and you can expect to rent to a fair share of tenants over the years who will only be interested in renting from you for one year, while you may attract a small group of tenants who will be interested in renewing their leases and staying with you for more than one year.

Although it’s not fun, once your tenant gives you notice and informs you that they will be moving out of the rental property there are a series of things that you should do as soon as you receive notice from them including the following:

#1 – Review Their Lease

The first thing that you want to do as soon as your tenant gives you notice and informs you that they will be moving out of their rental property is to pull their lease to make sure that it has expired by the time that they move out plus you also want to confirm that they’ve given you sufficient notice as well.

#2 – Schedule A Move out Inspection

Once you review your tenant’s lease, you should next take the time to schedule a move out inspection just so that you can verify the current condition of the rental property and point out to your tenant any repairs in the rental that they should consider repairing before they move out.

#3 – Inform Your Tenant of When They Can Expect the Deposit Return

Last of all, but most important, after you’ve inspected your rental property you should next inform your tenant about when they can expect to have all or a portion of their deposit returned.

 

If you have to use a portion of your tenant’s deposit, make sure that you let your tenant know how much of the deposit was used, and what it was used for, just so they are fully aware and will not expect a full deposit return.

Get Property Management Here

For Professional Property Management in San Diego, Las Vegas or Phoenix, contact us today by calling (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

What Are the Advantages of Owning Rental Real Estate?

Are you planning on investing in rental real estate in San Diego, Phoenix or Las Vegas but you don’t know if now is the right time for you to invest in real estate or not? If so, you’ve come to the right place!

In this article, we will share with you some of the advantages that come from investing in rental real estate so that you can have confidence in knowing that right now is the best time for you to invest.

Advantage #1 – You Will Have Fixed Expenses

With any other business that you could start there’s always going to be expenses and is most cases those expenses will not be fixed expenses.

The good news with real estate investments is that you will enjoy fixed expenses and you may be able to start seeing positive monthly cash flow from the first month.

Example: Let’s say that you purchase a condo in San Diego and your expenses are your mortgage, property taxes, HOA fees and possibly water/sewer/trash, and your total monthly expenses average $2000 per month.

The good news is that if the condo that you purchased rents for $2,100 per month, you’re going to enjoy $100 positive monthly cash flow that will only grow each year that you own that condo since the average rent appreciation is around 3% per year.

Advantage #2 – You Will Own an Appreciating Asset

Unlike other businesses or investments, when you invest in real estate you will own an appreciating asset that will only continue to increase during the years that you own it plus your monthly cash flow will continue to grow each year when you raise the rent.

Advantage #3 – Real Estate Is A Great Asset to Pass Down to Your Heirs

Last of all, but most important, when you invest in real estate, you’re buying something that you can ultimately pass down to your heirs. Very few people are able to leave behind assets when they pass away. Your heirs will have an asset that will continue to appreciate in value for them while they own it while producing positive monthly cash flow.

Property Management Makes Owning Rental Properties Easy

After purchasing rental real estate in San Diego, Phoenix or Las Vegas the best thing to do is hire a GoldenWest Management to manage those properties for you because we will save you the time, money and hassle of managing those rentals yourself.

To learn more about the services we can offer you contact us today at (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

California Legislate News – Learn more About the Laws Affecting Landlords and Rentals

After Proposition 10 was defeated in the November 2018 elections many landlords thought that the battle over rent control in California was over but sadly that’s not been the case.

The defeat of Prop 10 only put the battle on “pause” as our elected officials in California went back to the drawing board to create more legislation that will bring statewide rent control to the Golden State in one way or another.

Here’s a breakdown of the laws that will make the rental market tougher for landlords in California if they are approved.

AB-330 – Legislation That Will Increase Court Fees for Most Landlords

With AB-330, select courts across California would appoint attorneys for tenants who aren’t able to afford legal representation when they come to court for landlord-tenant or other civil issues.

Even though the goal of AB-330 is also to provide victims of domestic violence with a court-appointed attorney, the reality is that the cost of this bill will be astronomically high, especially for landlords who live in rent-controlled areas, and are not able to raise rents to keep up with their rising costs.

AB-1482 – Rent Control Comes Back

Besides AB-330, another bill to be on the lookout for in California is AB-1482. This bill seeks to cap rents across the Golden State at 5% plus the cost of living and it would nullify Costa Hawkins, the 1995 rent control act.

If it reaches his desk, Governor Newsom has promised to sign any rent control legislation so we can count on the battle over this contentious issue reaching a fever pitch in the coming months.

Sadly, if AB-1482 is approved it’s projected that we will see a further decline in rental housing construction in California because there will be fewer companies that would build here due to rent control.

The problem with affordable housing in California doesn’t just have to do with high rents, it has everything to do with supply and demand. If there are fewer properties available for rent this will naturally increase the cost of the housing supply that’s left.

Landlords across California should call their elected representatives to protest these bills and stay on top of the efforts to enact statewide rent control because it’s already a reality in Oregon and if owners, landlords, and tenants don’t continue to fight it, we could see statewide rent control here sooner rather than later.

Contact GoldenWest Management

To learn more about what’s happening with rent control in California, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

Eviction Mistakes That You Don’t Want to Make

It doesn’t matter how long you own rental properties, there will be instances where you may have to evict a tenant and when those times come, there are eviction mistakes that you don’t want to make.

In this article, we will break down the most common eviction mistakes and the things that you can do to avoid making them.

Eviction Mistake #1 – Not Having A Formal Lease

The first eviction mistake that you don’t want to make is not having a formal lease in place because without a lease you literally don’t have a legal leg to stand on.

Some of the most common questions that should be covered in a lease include:

  • How much is the monthly rent?
  • When should rent be paid?
  • How should rent be paid?
  • What happens when rent is not paid by the due date?
  • How much will the late fees be, and how should they be paid?
  • What happens when the lease expires? Will it renew automatically?

Don’t operate your business on a handshake, hire an attorney and have a lease created that’s unique for your business. You won’t regret it.

Eviction Mistake #2 – Getting Emotional

Owning rental properties should be treated as a business and that means you cannot get emotional regarding any aspect of managing them.

Sadly, many owners are emotionally tied to their rentals because one of their properties may be a former family home or they invested money into improvements that they would like in the rental property.

When you remove the emotional attachment to your rental properties you will see more ROI from your investment properties because you will be handling your properties as an actual business and make sound business decisions that will help you to earn higher profits from your investments.

Eviction Mistake #3 – Playing Favorites

Last of all, but most important, don’t play favorites with your tenants. Make sure that you have a formal processes in place or every area of your business, especially when it comes to governing eviction procedures.

If you have formal procedures in place and follow those same procedures every time, you will ensure the long-term success of your business.

Get Property Management Here

For property management in Las Vegas, Phoenix or San Diego, contact GoldenWest Management today by calling us at (866) 545-5303 or connect with us online.

 

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904