- Joined
- Sep 14, 2004
- Professional Status
- Certified Residential Appraiser
- State
- California
George's analysis is correct, used to do something similar all the time. This subject is near and dear to my heart. Back in the day when I was cranking a couple of hundred grand a year appraising (yes all true but worked solo 14 hour days for 20 years or so and had no life but I was into it) I could get control of an income property for a song and eventually ended up with nine doors or about 2.5 million in market value here in the Sacramento region. Fast forward to about six years ago I ditched my appraisal career to take care of my mom (only child and no living relatives) and found myself confronted with a bunch of real estate that required renovating. So far I have done all of them for the most part to the tune of anywhere between $45 and $70K each and that's with me doing a hell of a lot the work. I am glad that I did so because now nearly all rents are at market which makes for a tidy sum every month. As an example I had a long term tenant recently vacate who was paying $800 per month for a 958 sf 2/1 and after renovations I am getting $1,450. This statewide measure is relatively mild and I had feared much worse. The powers that be in this state don't seem to have much self awareness in that they are the ones that have in some respects caused the gentrification wave that we find ourselves in and rent control is their way of blaming someone for the problem which in this case is landlords. I know this is off topic a little bit and rambling but don't get to talk to my old colleagues much anymore so apologize in advance. Since appraisers largely use historical data to render an opinion the poster shouldn't worry so much as the market will show the way. The impact on market values will be relatively mild in my opinion as the rent control measure is about ten years too late to have any real effect.