[quote=bearishgurl]EconProf, Ren essentially stated here that he thought the monthly income from out-of-state rentals which he intended to buy with mortgages were going to pay for all his current and future personal expenses.
[/quote]
Gotta love your straw man arguments – leaving out the part where we use a great deal of our own money as well.
[quote]
I stated at the end of my post that it was nothing personal. I was discussing that I felt that a family with minor children who are W-2 earner(s) could be voluntarily putting themselves in a position of potential hardship if they do this.
No insult was intended towards Ren. He has also repeatedly stated on here that he would like to move to SD County.
Who knows? Maybe Ren won the lottery and has a mil in cash stashed away to “play with.”
[/quote]
My finances are none of your business, but your number is close enough. We also have two white collar professional incomes, 750-820ish ficos, and no debt other than the primary mortgage. We buy Mazdas instead of BMWs (wifey has to reign me in on that one).
*SNIP* completely irrelevant anecdote of “VERY knowledgeable” families burying themselves via awful decisions…
[quote]
The two states Ren and others mentioned are trying to climb out of a VERY deep depression (FL especially, which went down in value 60-75% in most areas). The steady-paying, reliable and trustworthy tenants one (who is considering investing there) THINKS they will be able to repeatedly obtain are just not there, at least not consistently, IMHO. Ask yourselves, if a “rental grade” condo currently costs $20K to $70K in or near Orlando, FL and a “rental grade” house currently costs $70K to $220K in same location, why the locals who are currently renting there aren’t buying them. The REASON, IMO is because they have no credit established, they have credit issues AND/OR they don’t even have the necessary ~680ish FICO score and 3.5% FHA downpayment + closing costs with which to buy these low-priced properties.
Those are your available “prospective tenants” in that location.
[/quote]
Blanket statements like this are meaningless. As if there are no good tenants in an entire city, or strategies to location and pricing that attract good tenants, or reasons why an otherwise financially stable person would rent instead of buy (there are many, recently listed on this forum. I’m one of them).
[quote]
I feel that a family with minor children whose breadwinner(s) work in SD County and live in RIV County do so for a REASON. A family who has car payments has those payments for a REASON. 99% of the time, those reasons are financial. I don’t care how HOW MUCH their gross or net income from wages are. I just feel that this is NOT the type of individual who should be taking chances with their hard-earned cash buying out-of-state rental property.
[/quote]
Apparently your arrogance knows no bounds. How about this for a reason – we live in Riverside county because everything is cheap there, from child care to hair cuts. Even adjusting for fuel, we save many hundreds of dollars/month doing so. I would think that someone who lives on expired food would understand frugality.
[quote]
Call it “paternal” if you will but it is my opinion that persons in the same station in life as Ren…
[/quote]
If it wasn’t coming from an asperger’s sufferer, the class insults would really piss me off.
[quote]
If Ren or any other Pigg thinks I’m talking out my ass or giving bad advice, then they are free not to take it or post what they think is better advice.
[/quote]
We do that all the time. Of course any opinion that isn’t yours is wrong.
[quote]
WTR ALSO stated that having (two?) rentals in PHX were not EASY for him and that they involved WORK.
[/quote]
Gasp! Not WORK?! Say it isn’t so.
[quote=Ren] . . . You’re ignoring the enormous number of people who have been successful at rental investments, including those I know personally who did so in a variety of markets over the past 40 years. So they all just got lucky, and there’s no level of intelligence, knowledge, or income available that can give an advantage? That’s essentially what you’re saying, right? It’s a good thing we have you here to stop us from trying.[/quote]
[quote]
I’m ingoring no one, Ren. In CA, those `successful LL’s in a variety of markets over the past 40 years’ you speak of here bought their (SFR) rental properties for $20K to $90K and are currently paying $300 to $750 annual property taxes on them. Some inherited their rental properties, complete with low property taxes appurtenant thereto. They bought properties within 25 miles of their residence or the residence or business of a relative or longtime biz partner who is managing some or all of them…
[/quote]
I don’t like to use this term much, but… LOL. You have a bad habit of describing in excruciating detail (including weirdly exact ranges) what you think happens to people, then applying them to an entire county and generation, as if everyone went through the same scenario. I live over here in Real Life, where every situation is unique.
