[quote=bearishgurl]IN SD County, I think you, as a landlord, need to manage your rental propertie(s) yourself to make the numbers work out, unless:
You paid cash for the property, OR
you bought the property more than 15 yrs ago and never removed equity.
For best cash flow (incl inevitable vacancies):
You should have no MR, AND
if you have HOA dues, they are less than $60 mo (SFR) and $160 mo (condo).
I don’t think it matters what area it is located in. “Good” tenants can be found for every area and “lower-quality tenants” likely means you paid much less for the property, so have less at stake if it is trashed or squatted in before you are able to legally evict your tenants. And don’t think for a minute that this can’t happen in a $3000+ mo rental!
Also bear in mind that Section 8 and other gov’t-administered rental-assistance programs pay at least 80% of the montly rent REGULARLY, so it might be prudent to get approved for them. These types of rent programs are not dependent upon the whims of your tenant’s employer and cause tenants to stay much longer than the average tenant.
Bottom line is if buying rental properties in CA TODAY, buy local properties only and manage them yourself.[/quote]
Excellent post BG! I would add when much better deals could be had on the CA coast back in late 2008-end 2011, you could still make a condo cash flow very nicely even with a $250 hoa, since rates are so low and prices back then had over corrected back to 1999/2000 in some cases (yet getting 2013 rents!). And with a condo you have lower home insurance and much lower monthly maintenance costs (no landscape, exterior painting, roof, etc…).
