Investing in rental properties

[permabear]

College rental.

If you’re heart-set on SD, there are several UCSD-area 2br/2ba condos in the 200k range that could be cashflow breakeven (not positive).

I’ve been thinking about the same thing… but then drove by UCSD the other day and they are completing MASSIVE new housing dorms. Wouldn’t surprise me if everyone could live on-campus (finally), which would kill the private rental market.

(Sidenote: I would never try to have a rental around SDSU, but UCSD kids are a different story. In general the state school vs university distinction is pretty valid anywhere.)

[investor]

[quote=paramount]Consider ‘investing’ in an investment grade property – which means a multi-family property.[/quote]
I agree. Less people buying 4/8 plexes to rent. Anyone have recent data on 4/8 plexes in SD? sdrealtor, any input?

[investor]

[quote=paramount]Consider ‘investing’ in an investment grade property – which means a multi-family property.[/quote]
I agree. Less people buying 4/8 plexes to rent. Anyone have recent data on 4/8 plexes in SD? sdrealtor, any input?

[investor]

[quote=paramount]Consider ‘investing’ in an investment grade property – which means a multi-family property.[/quote]
I agree. Less people buying 4/8 plexes to rent. Anyone have recent data on 4/8 plexes in SD? sdrealtor, any input?

[investor]

[quote=paramount]Consider ‘investing’ in an investment grade property – which means a multi-family property.[/quote]
I agree. Less people buying 4/8 plexes to rent. Anyone have recent data on 4/8 plexes in SD? sdrealtor, any input?

[investor]

[quote=paramount]Consider ‘investing’ in an investment grade property – which means a multi-family property.[/quote]
I agree. Less people buying 4/8 plexes to rent. Anyone have recent data on 4/8 plexes in SD? sdrealtor, any input?

[investor]

[quote=infoseeker]Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.[/quote]
Well, good points. First, I agree with another investor blogger in that you should only invest for cash flow, not taking into account depreciation. Although depreciation is a nice bonus, it should not be taken into the cash flow study when you buy. I’m not sure about being more difficult to get your home back if you sell it. Cali has pretty strong tenant laws. I believe that it might be easier to get a home back though non-payment of the mortgage than eviction from non-payment of rent. The fact that people have less attachment to rentals is a positive for being the mortgage holder rather than a renter. I always include that the tenent will kick in the first$100 on any repair as a way to reduce silly tenant calls.

[investor]

[quote=infoseeker]Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.[/quote]
Well, good points. First, I agree with another investor blogger in that you should only invest for cash flow, not taking into account depreciation. Although depreciation is a nice bonus, it should not be taken into the cash flow study when you buy. I’m not sure about being more difficult to get your home back if you sell it. Cali has pretty strong tenant laws. I believe that it might be easier to get a home back though non-payment of the mortgage than eviction from non-payment of rent. The fact that people have less attachment to rentals is a positive for being the mortgage holder rather than a renter. I always include that the tenent will kick in the first$100 on any repair as a way to reduce silly tenant calls.

[investor]

[quote=infoseeker]Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.[/quote]
Well, good points. First, I agree with another investor blogger in that you should only invest for cash flow, not taking into account depreciation. Although depreciation is a nice bonus, it should not be taken into the cash flow study when you buy. I’m not sure about being more difficult to get your home back if you sell it. Cali has pretty strong tenant laws. I believe that it might be easier to get a home back though non-payment of the mortgage than eviction from non-payment of rent. The fact that people have less attachment to rentals is a positive for being the mortgage holder rather than a renter. I always include that the tenent will kick in the first$100 on any repair as a way to reduce silly tenant calls.

[investor]

[quote=infoseeker]Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.[/quote]
Well, good points. First, I agree with another investor blogger in that you should only invest for cash flow, not taking into account depreciation. Although depreciation is a nice bonus, it should not be taken into the cash flow study when you buy. I’m not sure about being more difficult to get your home back if you sell it. Cali has pretty strong tenant laws. I believe that it might be easier to get a home back though non-payment of the mortgage than eviction from non-payment of rent. The fact that people have less attachment to rentals is a positive for being the mortgage holder rather than a renter. I always include that the tenent will kick in the first$100 on any repair as a way to reduce silly tenant calls.

[investor]

[quote=infoseeker]Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.[/quote]
Well, good points. First, I agree with another investor blogger in that you should only invest for cash flow, not taking into account depreciation. Although depreciation is a nice bonus, it should not be taken into the cash flow study when you buy. I’m not sure about being more difficult to get your home back if you sell it. Cali has pretty strong tenant laws. I believe that it might be easier to get a home back though non-payment of the mortgage than eviction from non-payment of rent. The fact that people have less attachment to rentals is a positive for being the mortgage holder rather than a renter. I always include that the tenent will kick in the first$100 on any repair as a way to reduce silly tenant calls.

[Author]

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