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  • January 31, 2011 at 9:01 AM #660082
    Ren
    Participant

    [quote=ctr70]3. I do worry about the effect of gas prices on rents and values especially in the far flung regions of Riverside Co. Esp if they get up to $5-$6 a gallon. This fear favors buying close in SD condos.[/quote]

    I wouldn’t worry about the price of gas. Your Temecula tenants will probably work locally, because taking gas into account, Temecula rents are actually comparable to north county inland. People who do commute to San Diego can easily afford to buy in Temecula, because it’s not like they’re commuting an hour to a $10/hour job.

    [quote]What do investors think of condos in San Diego vs. SFR’s in Riverside Co.? Obviously San Diego is a much better rental market and more premium location than Riverside Co., but SFR’s are a more desirable asset b/c NO HOA risks. The cash flow numbers work for a lot of condos in SD County, and in good locations. The numbers do not work great for SFR’s in SD, even SFR’s in rougher neighs.

    Personally I would only go SFR’s in Riverside. If I’m going to buy a condo I would go SD over Riverside in a heartbeat.[/quote]

    In general, Temecula condos cash flow as well or better than anything in San Diego, and you’ll get a much newer condo in Temecula compared to one with similar cash flow in San Diego. HOAs in Riverside county also tend to be much more reasonable (there’s no excuse for a $300-$400 HOA with exactly the same coverage and amenities you can get for $200 HOA in Temecula). The only investments I’m considering at this point are Temecula and San Marcos condos and Temecula SFRs. The SFRs don’t cash flow as well as the condos, but it’s a good idea to have both. Don’t forget to add in the SFR maintenance items that are covered with condo HOAs – like decades of yard maintenance, exterior paint, fencing, a new roof or two, etc.

    [quote]Any thoughts on Vegas and Phoenix? I know both are hurting bad. But like Riverside Co. you can buy way below construction costs and get new built SFR’s that cash flow. Yes I know there are crappy areas in both cities, but if you are careful you can pick the better areas. I hear they do rent up if you are very, very careful on neighborhood selection.[/quote]

    You have to know the area extremely well or have an agent you trust. Just search Craigslist for rentals in those cities and you’ll see how saturated the market is. As attractive as the prices are, they should also scare you a little – if someone can’t qualify for a $300 mortgage, do you really want them as a tenant?

    [quote]My personal goal is to get 6-10 houses paid off in 15 years as my personal pension plan. I have the down payments and can get 8 more conventional loans (I have 2 rentals already). I’m 40 yrs old right now. My plan is 20%-25% down on each and get them paid off in 15 years. Just need to choose where and what to buy!![/quote]

    Similar to my own goals, except I’m not eager to get them paid off so quickly. You also may not be able to get 20% financing on investment properties, depending on the lender and your income/assets. I was told flat out “no way” to that by several banks, even though we easily qualify otherwise. I’m planning on 30%.

    January 31, 2011 at 9:10 AM #661223
    peterb
    Participant

    As a landlord, finding reliable, rent paying people is your number one priority. Retired and section 8 are good bets as they are backed by the govt.

    Appreciation is a future event that no one can be sure of the outcome. Ask yourself if you don’t mind being a landlord for at least 5 years?

    You may want to run some ads and see how the response unfolds. This may give you some insight in real-time.

    January 31, 2011 at 9:10 AM #660754
    peterb
    Participant

    As a landlord, finding reliable, rent paying people is your number one priority. Retired and section 8 are good bets as they are backed by the govt.

    Appreciation is a future event that no one can be sure of the outcome. Ask yourself if you don’t mind being a landlord for at least 5 years?

    You may want to run some ads and see how the response unfolds. This may give you some insight in real-time.

    January 31, 2011 at 9:10 AM #660892
    peterb
    Participant

    As a landlord, finding reliable, rent paying people is your number one priority. Retired and section 8 are good bets as they are backed by the govt.

    Appreciation is a future event that no one can be sure of the outcome. Ask yourself if you don’t mind being a landlord for at least 5 years?

    You may want to run some ads and see how the response unfolds. This may give you some insight in real-time.

    January 31, 2011 at 9:10 AM #660087
    peterb
    Participant

    As a landlord, finding reliable, rent paying people is your number one priority. Retired and section 8 are good bets as they are backed by the govt.

    Appreciation is a future event that no one can be sure of the outcome. Ask yourself if you don’t mind being a landlord for at least 5 years?

    You may want to run some ads and see how the response unfolds. This may give you some insight in real-time.

    January 31, 2011 at 9:10 AM #660150
    peterb
    Participant

    As a landlord, finding reliable, rent paying people is your number one priority. Retired and section 8 are good bets as they are backed by the govt.

    Appreciation is a future event that no one can be sure of the outcome. Ask yourself if you don’t mind being a landlord for at least 5 years?

    You may want to run some ads and see how the response unfolds. This may give you some insight in real-time.

    January 31, 2011 at 9:58 AM #660107
    SD Realtor
    Participant

    Agree with the strategy of acquisition of rentals for passive income down the road. If done carefully it can be rewarding and you guys seem to be going about it in the right manner with an eye on cash flow. Your big risk is depreciation but if the goal is for passive income later in life, you seem to understand what is happening.

    The financing is the tricky part though. Lenders (at least in my experience) are harsh on rental income. As you guys know they basically use 75% of it. Harsher though is that many lenders consider seasoning important. That is, if you purchased a home and are renting it out, they may not consider ANY of the rental income unless you have that home declared on your taxes. Some lenders may even want 2 years worth of seasoning! Again, I am not rock solid on this information.

    Anyone who has found a lender with less stringent seasoning requirements, if you could speak up that would be helpful.

    January 31, 2011 at 9:58 AM #661243
    SD Realtor
    Participant

    Agree with the strategy of acquisition of rentals for passive income down the road. If done carefully it can be rewarding and you guys seem to be going about it in the right manner with an eye on cash flow. Your big risk is depreciation but if the goal is for passive income later in life, you seem to understand what is happening.

    The financing is the tricky part though. Lenders (at least in my experience) are harsh on rental income. As you guys know they basically use 75% of it. Harsher though is that many lenders consider seasoning important. That is, if you purchased a home and are renting it out, they may not consider ANY of the rental income unless you have that home declared on your taxes. Some lenders may even want 2 years worth of seasoning! Again, I am not rock solid on this information.

    Anyone who has found a lender with less stringent seasoning requirements, if you could speak up that would be helpful.

    January 31, 2011 at 9:58 AM #660912
    SD Realtor
    Participant

    Agree with the strategy of acquisition of rentals for passive income down the road. If done carefully it can be rewarding and you guys seem to be going about it in the right manner with an eye on cash flow. Your big risk is depreciation but if the goal is for passive income later in life, you seem to understand what is happening.

    The financing is the tricky part though. Lenders (at least in my experience) are harsh on rental income. As you guys know they basically use 75% of it. Harsher though is that many lenders consider seasoning important. That is, if you purchased a home and are renting it out, they may not consider ANY of the rental income unless you have that home declared on your taxes. Some lenders may even want 2 years worth of seasoning! Again, I am not rock solid on this information.

    Anyone who has found a lender with less stringent seasoning requirements, if you could speak up that would be helpful.

    January 31, 2011 at 9:58 AM #660170
    SD Realtor
    Participant

    Agree with the strategy of acquisition of rentals for passive income down the road. If done carefully it can be rewarding and you guys seem to be going about it in the right manner with an eye on cash flow. Your big risk is depreciation but if the goal is for passive income later in life, you seem to understand what is happening.

    The financing is the tricky part though. Lenders (at least in my experience) are harsh on rental income. As you guys know they basically use 75% of it. Harsher though is that many lenders consider seasoning important. That is, if you purchased a home and are renting it out, they may not consider ANY of the rental income unless you have that home declared on your taxes. Some lenders may even want 2 years worth of seasoning! Again, I am not rock solid on this information.

    Anyone who has found a lender with less stringent seasoning requirements, if you could speak up that would be helpful.

    January 31, 2011 at 9:58 AM #660774
    SD Realtor
    Participant

    Agree with the strategy of acquisition of rentals for passive income down the road. If done carefully it can be rewarding and you guys seem to be going about it in the right manner with an eye on cash flow. Your big risk is depreciation but if the goal is for passive income later in life, you seem to understand what is happening.

    The financing is the tricky part though. Lenders (at least in my experience) are harsh on rental income. As you guys know they basically use 75% of it. Harsher though is that many lenders consider seasoning important. That is, if you purchased a home and are renting it out, they may not consider ANY of the rental income unless you have that home declared on your taxes. Some lenders may even want 2 years worth of seasoning! Again, I am not rock solid on this information.

    Anyone who has found a lender with less stringent seasoning requirements, if you could speak up that would be helpful.

    January 31, 2011 at 11:44 AM #661293
    ltokuda
    Participant

    I’m also thinking about investing in Riverside rental properties. My basic idea would be to buy a fixer-upper in cash. Do some basic improvements, then rent it out. However, I would like to pull equity out of the house as soon as possible so that I can use the money to buy another property.

    Anyone know how soon I could do this after getting a renter moved in? Can you think of any problems I might run into trying to do this?

    January 31, 2011 at 11:44 AM #660962
    ltokuda
    Participant

    I’m also thinking about investing in Riverside rental properties. My basic idea would be to buy a fixer-upper in cash. Do some basic improvements, then rent it out. However, I would like to pull equity out of the house as soon as possible so that I can use the money to buy another property.

    Anyone know how soon I could do this after getting a renter moved in? Can you think of any problems I might run into trying to do this?

    January 31, 2011 at 11:44 AM #660220
    ltokuda
    Participant

    I’m also thinking about investing in Riverside rental properties. My basic idea would be to buy a fixer-upper in cash. Do some basic improvements, then rent it out. However, I would like to pull equity out of the house as soon as possible so that I can use the money to buy another property.

    Anyone know how soon I could do this after getting a renter moved in? Can you think of any problems I might run into trying to do this?

    January 31, 2011 at 11:44 AM #660824
    ltokuda
    Participant

    I’m also thinking about investing in Riverside rental properties. My basic idea would be to buy a fixer-upper in cash. Do some basic improvements, then rent it out. However, I would like to pull equity out of the house as soon as possible so that I can use the money to buy another property.

    Anyone know how soon I could do this after getting a renter moved in? Can you think of any problems I might run into trying to do this?

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