California Rental Property Calculator & Real Estate ROI

Investor guide

What rental investors should know about California

California rentals usually have low Cap Rates but strong long-term appreciation. The two things that most surprise out-of-state investors are Prop 13 (which keeps your property tax low but resets on purchase) and AB 1482, the statewide rent cap.

Key California costs for landlords

• Property tax: Prop 13 caps the rate at roughly 1.0–1.25% of your purchase price, with only 2% annual increases. Great once you own — but expect a big jump from the prior owner's assessed value.
• Insurance & fire risk: In wildfire zones many carriers have pulled out; you may end up on the FAIR Plan with premiums 2–3× normal. Get a real quote for the specific address before you underwrite the deal.
• Landlord rules: AB 1482 caps annual rent increases at CPI + 5% (max 10%) on most buildings 15+ years old, and just-cause eviction rules apply. Cities like LA, SF, and Oakland add stricter local rent control.

Frequently asked questions (California real estate)

What is the baseline California Documentary Transfer Tax?

The baseline California state transfer tax rate is $0.55 per $500 of property value, which equates to $1.10 per $1,000 (or 0.11%). However, local charter cities across California frequently add their own municipal transfer taxes on top of this baseline.

How do Los Angeles Measure ULA thresholds work?

Measure ULA applies only within the City of Los Angeles and is paid by the seller. Sales between $5.4 Million and $10.9 Million face a 4% tax, and sales of $10.9 Million or more a 5.5% tax. Once a threshold is crossed the rate applies to the entire sale price, not just the amount above the threshold. The thresholds are re-indexed annually.

Who pays title and escrow fees in Northern vs. Southern California?

California real estate customs are split geographically. In Southern California (e.g., Los Angeles, San Diego), the seller pays for the owner's title policy and local transfer taxes. In Northern California (e.g., San Francisco, San Jose), the buyer typically covers title insurance and escrow fees.

Agents: turn this estimate into a client-ready seller proceeds report with your name and brokerage on it.