[quote=bearishgurl]…those prices you mentioned for Carlsbad and SM (above) may have been in effect at the time you were “in the market” but I believe they are somewhat lower now.[/quote]
The prices are current. Check the MLS or Redfin for ~2100sf, 4/2.5 – 4/3 homes built in 1960-present.
[quote]However, it is telling that you believe Escondido (pop 147,514) and Vista (pop 97,513) are “mostly pits” (in comparison to Temecula [pop 105,029]). Actually, legally speaking, San Marcos is more poorly-zoned that either Vista or Escondido and zoning (or lack thereof) is what primarily determines the liveability of a community. As big as these two cities are, I can think of several areas in them that are VERY nice to live in. And I never even asked here if those Piggs considered the far-flung communities of Fallbrook and Bonsall before deciding to leave the county.[/quote]
I’ve lived all over SD county, including in the three cities I mentioned. I was raised in Escondido. Obviously there are nice areas everywhere – I know a guy who lives in an $800k home in Vista ($1.2m at peak, I tried to talk him out of it), and it is beautiful, but when he goes shopping he has to drive through and park in the “pit”. The grocery stores require full time security guards. With the exception of parts of Shadowridge and the expensive areas well north of 78, the majority of Vista is far from nice, and any crime map will reflect that. I stand by my assertion that they are mostly pits, and not a place I want to raise my kids. I want them to be able to walk downtown in their own city. I want them to be able to go to a public elementary school and not be afraid to go to the restroom. I’m also with TG in that I like my power lines buried and my sidewalks intact. I’m an HOA kind of guy. No chain link fences in the front yard and no tugboats in the driveway, please. We did consider Fallbrook, and quickly ruled it out.
[quote]Ren, your “retirement plans” while your kids are still minors, while admirable and ambitious, presumes many factors which may or may not be within your control:
You will remain in your current home for the duration;
you will (hopefully) be able to pay off the mortgage on your current home;
you will have job security and so will your spouse;
neither of your jobs will move further away than they currently are;
the cost of utilities will not raise appreciably;
you will stay married and will not otherwise be a party to any “involuntary” lawsuits;[/quote]
Again you’re making a lot of assumptions, including that we’re in a precarious position and that I haven’t done my homework. Believe it or not, some people in the world are just as financially savvy as you are. Retiring while our kids are still minors is the point. We want to be involved in their lives. Obviously we also envision sitting by the pool with a drink at noon on a weekday, but that goes without saying.
Not counting the 401k, we have cash reserves in the low six figures, which is a safety net and won’t be touched. I’m a contract technical writer and pretty good at marketing myself. I’ve never not had work, as it’s a profession where experience is more valued than dirt cheap new English/Journalism grads, because frankly, they can’t write. It’s a skill that definitely improves with age. English writers also cannot be outsourced (I’ve rescued a few companies who have tried). For those reasons, I don’t worry about my employment prospects and haven’t for many years. We also have a business on the side – a profitable and steadily growing online store. We actually expect my wife to quit her job in the next several years and run the business full time, as I’m perpetually exhausted from doing it all myself. The location of my job varies and is at home much of the time, although it’s looking like it may remain in Carlsbad for a while.
From the beginning, our current house was intended to become a rental, and was chosen and financed with that in mind. We’ll be buying several rentals in the next few years, after which we will buy our retirement house, followed by many more rentals, including a vacation rental in Greece (surprisingly affordable even before the collapse). We want our kids exposed to Europe in the summers. All of this is made possible by the many thousands we save every month, partly due to living in Temecula and partly from living within our means. A nice inheritance will be used to pay off the retirement property – at 65 and 450+ pounds, he’s only going one direction (thankfully his daughter isn’t built like him). At some point, we will either let one of the kids take over the business or sell it.
The marriage is not an issue, for reasons I won’t go into. Suffice it to say that we met late and we both give it an excellent chance of going the duration.
[quote]if you purchase rental properties (as you prev. stated was your plan), your tenants stay long-term, pay their rent on time every month, never damage your property beyond the amount of their deposit and you do NOT have frequent vacancies;[/quote]
You’re still assuming I’m clueless. I wish you’d stop that. The only landlords who have consistently bad experiences are those who consistently make the same mistakes. On average, you will have fewer vacancies and better experiences with tenants if you 1) choose the rental and location wisely, 2) price below market, and 3) check references.
[quote]you are able to unload any or all of your rental properties exactly WHEN you need to for the PRICE you want;[/quote]
I already addressed this in a previous post. It’s a non-issue.
[quote]and, no one in your family has any catastrophic health issues which max out your health care plan, etc.[/quote]
Even this is taken into account. No, I can’t anticipate a catastrophic illness or injury, but we will be in a position where we could get through it intact.
[quote]Ren, before moving away, had you ever considered buying a “dump” in SD County in a good area for $250-$300K and rehabbing it gradually so that you could eventually sell it after your kids leave and add another $300K or so to your “retirement plan?”
Or, do you think your present property in TV will appeciate by that much by the time you want to sell it and retire?[/quote]
There is currently no such thing as a dump in SD county in a good area for $250-$300K. Price is much more dependent on location than condition, and good locations are still overpriced. Don’t get me wrong – I have nothing whatsoever against buying in San Diego. It’s just not a good time to do so. We will consider selling a rental when we retire, if the market conditions are right.
We do not count on appreciation of any sort, for any of our properties, other than from possible inflation. That’s a common mistake.
If you can think of it, I assure you we already have, and more.
