Investment property…Coastal vs. Escondido

[SD Realtor]

Yes my sfr in sd is rented to a family with a child. My condo is not. My out of state rentals have two families and one couple woth no kids. I have been a landlord for 9 years now and have never had anyone skip out on rent or have any party animal tenants that you referred two. Prior to getting out of state sfrs I rented exclusively to single people or couples without kids and never had any problems. By far the homes with children have required more work when turnover occurs.

This is based on experience rather then speculation.

[bearishgurl]

[quote=SD Realtor]Yes my sfr in sd is rented to a family with a child. My condo is not. My out of state rentals have two families and one couple woth no kids. I have been a landlord for 9 years now and have never had anyone skip out on rent or have any party animal tenants that you referred two. Prior to getting out of state sfrs I rented exclusively to single people or couples without kids and never had any problems. By far the homes with children have required more work when turnover occurs.

This is based on experience rather then speculation.[/quote]

My experience with renting to families was also that they required more work. There was often crayon on the wall, stains on the floors (due to crafts/paint), playdoh stuck to the carpet, a “snuck-in” cat who tore up the blinds/drapery, marbles in the garbage disposer which ruined it, paint spilled on the patio, carbuereter cleaned with “Gumout” on the LR floor. Often the parents didn’t clean up when they moved and I kept their deposit, which they didn’t care about. Back then, I could only collect about $650 in damage deposit. When I tried to ask for more, I didn’t get any applications. Upon move-outs, I usually spent between $75 – $150 to rent a carpet cleaner and the rest on missing parts, repair items and dump fees. The other $500 paid me for my time (often 2 full wknds and 2-4 weeknights of cleaning, painting and making repairs between tenants. I also worked 40 hrs per week during the day back then and my spouse was often deployed.

After nine years of this, I was tired, sold at a break even/small loss and called it a day. Landlording isn’t for everyone. I DID take several tenants to small claims court for excess damages and was able to collect only about $360 or so. The rest of them were VERY problematic to collect on.

Fortunately, typical damage deposits are MUCH higher today and a prospective landlord can run a credit report on a tenant-applicant and also now see online whether they have had a local unlawful detainer action filed against them. This was not possible back then. Upon receiving a “qualified” application, I just called “previous landlords” (after being given their phone numbers by my applicants), verified their employment and checked the civil register in person for UD’s (if the applicants were “local”). For all I know, I was probably talking to their “relatives,” lol (instead of former landlords). Some of my tenants transferred to SD thru the military from out of state.

[bearishgurl]

[quote=SD Realtor]Yes my sfr in sd is rented to a family with a child. My condo is not. My out of state rentals have two families and one couple woth no kids. I have been a landlord for 9 years now and have never had anyone skip out on rent or have any party animal tenants that you referred two. Prior to getting out of state sfrs I rented exclusively to single people or couples without kids and never had any problems. By far the homes with children have required more work when turnover occurs.

This is based on experience rather then speculation.[/quote]

My experience with renting to families was also that they required more work. There was often crayon on the wall, stains on the floors (due to crafts/paint), playdoh stuck to the carpet, a “snuck-in” cat who tore up the blinds/drapery, marbles in the garbage disposer which ruined it, paint spilled on the patio, carbuereter cleaned with “Gumout” on the LR floor. Often the parents didn’t clean up when they moved and I kept their deposit, which they didn’t care about. Back then, I could only collect about $650 in damage deposit. When I tried to ask for more, I didn’t get any applications. Upon move-outs, I usually spent between $75 – $150 to rent a carpet cleaner and the rest on missing parts, repair items and dump fees. The other $500 paid me for my time (often 2 full wknds and 2-4 weeknights of cleaning, painting and making repairs between tenants. I also worked 40 hrs per week during the day back then and my spouse was often deployed.

After nine years of this, I was tired, sold at a break even/small loss and called it a day. Landlording isn’t for everyone. I DID take several tenants to small claims court for excess damages and was able to collect only about $360 or so. The rest of them were VERY problematic to collect on.

Fortunately, typical damage deposits are MUCH higher today and a prospective landlord can run a credit report on a tenant-applicant and also now see online whether they have had a local unlawful detainer action filed against them. This was not possible back then. Upon receiving a “qualified” application, I just called “previous landlords” (after being given their phone numbers by my applicants), verified their employment and checked the civil register in person for UD’s (if the applicants were “local”). For all I know, I was probably talking to their “relatives,” lol (instead of former landlords). Some of my tenants transferred to SD thru the military from out of state.

[bearishgurl]

[quote=SD Realtor]Yes my sfr in sd is rented to a family with a child. My condo is not. My out of state rentals have two families and one couple woth no kids. I have been a landlord for 9 years now and have never had anyone skip out on rent or have any party animal tenants that you referred two. Prior to getting out of state sfrs I rented exclusively to single people or couples without kids and never had any problems. By far the homes with children have required more work when turnover occurs.

This is based on experience rather then speculation.[/quote]

My experience with renting to families was also that they required more work. There was often crayon on the wall, stains on the floors (due to crafts/paint), playdoh stuck to the carpet, a “snuck-in” cat who tore up the blinds/drapery, marbles in the garbage disposer which ruined it, paint spilled on the patio, carbuereter cleaned with “Gumout” on the LR floor. Often the parents didn’t clean up when they moved and I kept their deposit, which they didn’t care about. Back then, I could only collect about $650 in damage deposit. When I tried to ask for more, I didn’t get any applications. Upon move-outs, I usually spent between $75 – $150 to rent a carpet cleaner and the rest on missing parts, repair items and dump fees. The other $500 paid me for my time (often 2 full wknds and 2-4 weeknights of cleaning, painting and making repairs between tenants. I also worked 40 hrs per week during the day back then and my spouse was often deployed.

After nine years of this, I was tired, sold at a break even/small loss and called it a day. Landlording isn’t for everyone. I DID take several tenants to small claims court for excess damages and was able to collect only about $360 or so. The rest of them were VERY problematic to collect on.

Fortunately, typical damage deposits are MUCH higher today and a prospective landlord can run a credit report on a tenant-applicant and also now see online whether they have had a local unlawful detainer action filed against them. This was not possible back then. Upon receiving a “qualified” application, I just called “previous landlords” (after being given their phone numbers by my applicants), verified their employment and checked the civil register in person for UD’s (if the applicants were “local”). For all I know, I was probably talking to their “relatives,” lol (instead of former landlords). Some of my tenants transferred to SD thru the military from out of state.

[bearishgurl]

[quote=SD Realtor]Yes my sfr in sd is rented to a family with a child. My condo is not. My out of state rentals have two families and one couple woth no kids. I have been a landlord for 9 years now and have never had anyone skip out on rent or have any party animal tenants that you referred two. Prior to getting out of state sfrs I rented exclusively to single people or couples without kids and never had any problems. By far the homes with children have required more work when turnover occurs.

This is based on experience rather then speculation.[/quote]

My experience with renting to families was also that they required more work. There was often crayon on the wall, stains on the floors (due to crafts/paint), playdoh stuck to the carpet, a “snuck-in” cat who tore up the blinds/drapery, marbles in the garbage disposer which ruined it, paint spilled on the patio, carbuereter cleaned with “Gumout” on the LR floor. Often the parents didn’t clean up when they moved and I kept their deposit, which they didn’t care about. Back then, I could only collect about $650 in damage deposit. When I tried to ask for more, I didn’t get any applications. Upon move-outs, I usually spent between $75 – $150 to rent a carpet cleaner and the rest on missing parts, repair items and dump fees. The other $500 paid me for my time (often 2 full wknds and 2-4 weeknights of cleaning, painting and making repairs between tenants. I also worked 40 hrs per week during the day back then and my spouse was often deployed.

After nine years of this, I was tired, sold at a break even/small loss and called it a day. Landlording isn’t for everyone. I DID take several tenants to small claims court for excess damages and was able to collect only about $360 or so. The rest of them were VERY problematic to collect on.

Fortunately, typical damage deposits are MUCH higher today and a prospective landlord can run a credit report on a tenant-applicant and also now see online whether they have had a local unlawful detainer action filed against them. This was not possible back then. Upon receiving a “qualified” application, I just called “previous landlords” (after being given their phone numbers by my applicants), verified their employment and checked the civil register in person for UD’s (if the applicants were “local”). For all I know, I was probably talking to their “relatives,” lol (instead of former landlords). Some of my tenants transferred to SD thru the military from out of state.

[bearishgurl]

[quote=SD Realtor]Yes my sfr in sd is rented to a family with a child. My condo is not. My out of state rentals have two families and one couple woth no kids. I have been a landlord for 9 years now and have never had anyone skip out on rent or have any party animal tenants that you referred two. Prior to getting out of state sfrs I rented exclusively to single people or couples without kids and never had any problems. By far the homes with children have required more work when turnover occurs.

This is based on experience rather then speculation.[/quote]

My experience with renting to families was also that they required more work. There was often crayon on the wall, stains on the floors (due to crafts/paint), playdoh stuck to the carpet, a “snuck-in” cat who tore up the blinds/drapery, marbles in the garbage disposer which ruined it, paint spilled on the patio, carbuereter cleaned with “Gumout” on the LR floor. Often the parents didn’t clean up when they moved and I kept their deposit, which they didn’t care about. Back then, I could only collect about $650 in damage deposit. When I tried to ask for more, I didn’t get any applications. Upon move-outs, I usually spent between $75 – $150 to rent a carpet cleaner and the rest on missing parts, repair items and dump fees. The other $500 paid me for my time (often 2 full wknds and 2-4 weeknights of cleaning, painting and making repairs between tenants. I also worked 40 hrs per week during the day back then and my spouse was often deployed.

After nine years of this, I was tired, sold at a break even/small loss and called it a day. Landlording isn’t for everyone. I DID take several tenants to small claims court for excess damages and was able to collect only about $360 or so. The rest of them were VERY problematic to collect on.

Fortunately, typical damage deposits are MUCH higher today and a prospective landlord can run a credit report on a tenant-applicant and also now see online whether they have had a local unlawful detainer action filed against them. This was not possible back then. Upon receiving a “qualified” application, I just called “previous landlords” (after being given their phone numbers by my applicants), verified their employment and checked the civil register in person for UD’s (if the applicants were “local”). For all I know, I was probably talking to their “relatives,” lol (instead of former landlords). Some of my tenants transferred to SD thru the military from out of state.

[ctr70]

I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage+taxes+insurance+vacancy+repairs+credit loss, etc…

I agree with sdrealtor & kingside that small condos in good locations with low hoas look good. Condo prices have fallen further than SFR’s so the numbers can be better AND the locations are much better.

The SFR’s tend to not pencil that well in SD County and you have to buy a major fixer “disaster” in a rougher “C” neighborhood (like the flippers do) to get a below market deal. Those are 50-90 year old houses that require a lot of fix are likely a lot of maintenance over the years. What might work is if you found a SFR with a variance with an extra in-law unit to juice the cash flow numbers. SFR’s also makes your cash investment higher because you have 20% down + another big chunk of change to fix it up. The condos many times need almost no fix work & they are less expensive so the 20% down is less. So your out of pocket is less. There are plenty of condos that are finance-able.

For units you have to go into rougher areas to make the numbers work, “C” neighborhoods. The numbers for units don’t work well even B neighborhoods in SD, certainly not A neighborhoods. Most of the units will be very old maintenance intense properties too. And you have to pay the water bill (vs. tenant pays it SFR and hoa pays it in a condo). It’s one thing to own a SFR in a rough neighborhood b/c SFR will always get a better tenant even in a rougher hood. But you have to make sure you have the stomach for managing units in rougher areas. There could be lots of turnover and credit loss.

SFR’s in Inland Empire CA, Phoenix, Vegas do pencil well and properties are much newer. Just have to be real picky in neighborhoods. And the worry is can you keep them rented?

I would definitely manage a property myself if it is a SFR and only in Escondido and I lived in Encinitas. It is not that hard. And you save so much on cash flow over the years. I manage myself a SFR rental I own in another state and it’s not that big of a deal. I have probably saved $10,000+ in property management costs over the last 7 or so years. The main thing you need is a couple of really good local handymen you can call if something breaks. Do the tenant screening and leasing all yourself. There’s no fertilizer like a farmers shadow:)

[ctr70]

I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage+taxes+insurance+vacancy+repairs+credit loss, etc…

I agree with sdrealtor & kingside that small condos in good locations with low hoas look good. Condo prices have fallen further than SFR’s so the numbers can be better AND the locations are much better.

The SFR’s tend to not pencil that well in SD County and you have to buy a major fixer “disaster” in a rougher “C” neighborhood (like the flippers do) to get a below market deal. Those are 50-90 year old houses that require a lot of fix are likely a lot of maintenance over the years. What might work is if you found a SFR with a variance with an extra in-law unit to juice the cash flow numbers. SFR’s also makes your cash investment higher because you have 20% down + another big chunk of change to fix it up. The condos many times need almost no fix work & they are less expensive so the 20% down is less. So your out of pocket is less. There are plenty of condos that are finance-able.

For units you have to go into rougher areas to make the numbers work, “C” neighborhoods. The numbers for units don’t work well even B neighborhoods in SD, certainly not A neighborhoods. Most of the units will be very old maintenance intense properties too. And you have to pay the water bill (vs. tenant pays it SFR and hoa pays it in a condo). It’s one thing to own a SFR in a rough neighborhood b/c SFR will always get a better tenant even in a rougher hood. But you have to make sure you have the stomach for managing units in rougher areas. There could be lots of turnover and credit loss.

SFR’s in Inland Empire CA, Phoenix, Vegas do pencil well and properties are much newer. Just have to be real picky in neighborhoods. And the worry is can you keep them rented?

I would definitely manage a property myself if it is a SFR and only in Escondido and I lived in Encinitas. It is not that hard. And you save so much on cash flow over the years. I manage myself a SFR rental I own in another state and it’s not that big of a deal. I have probably saved $10,000+ in property management costs over the last 7 or so years. The main thing you need is a couple of really good local handymen you can call if something breaks. Do the tenant screening and leasing all yourself. There’s no fertilizer like a farmers shadow:)

[ctr70]

I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage+taxes+insurance+vacancy+repairs+credit loss, etc…

I agree with sdrealtor & kingside that small condos in good locations with low hoas look good. Condo prices have fallen further than SFR’s so the numbers can be better AND the locations are much better.

The SFR’s tend to not pencil that well in SD County and you have to buy a major fixer “disaster” in a rougher “C” neighborhood (like the flippers do) to get a below market deal. Those are 50-90 year old houses that require a lot of fix are likely a lot of maintenance over the years. What might work is if you found a SFR with a variance with an extra in-law unit to juice the cash flow numbers. SFR’s also makes your cash investment higher because you have 20% down + another big chunk of change to fix it up. The condos many times need almost no fix work & they are less expensive so the 20% down is less. So your out of pocket is less. There are plenty of condos that are finance-able.

For units you have to go into rougher areas to make the numbers work, “C” neighborhoods. The numbers for units don’t work well even B neighborhoods in SD, certainly not A neighborhoods. Most of the units will be very old maintenance intense properties too. And you have to pay the water bill (vs. tenant pays it SFR and hoa pays it in a condo). It’s one thing to own a SFR in a rough neighborhood b/c SFR will always get a better tenant even in a rougher hood. But you have to make sure you have the stomach for managing units in rougher areas. There could be lots of turnover and credit loss.

SFR’s in Inland Empire CA, Phoenix, Vegas do pencil well and properties are much newer. Just have to be real picky in neighborhoods. And the worry is can you keep them rented?

I would definitely manage a property myself if it is a SFR and only in Escondido and I lived in Encinitas. It is not that hard. And you save so much on cash flow over the years. I manage myself a SFR rental I own in another state and it’s not that big of a deal. I have probably saved $10,000+ in property management costs over the last 7 or so years. The main thing you need is a couple of really good local handymen you can call if something breaks. Do the tenant screening and leasing all yourself. There’s no fertilizer like a farmers shadow:)

[ctr70]

I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage+taxes+insurance+vacancy+repairs+credit loss, etc…

I agree with sdrealtor & kingside that small condos in good locations with low hoas look good. Condo prices have fallen further than SFR’s so the numbers can be better AND the locations are much better.

The SFR’s tend to not pencil that well in SD County and you have to buy a major fixer “disaster” in a rougher “C” neighborhood (like the flippers do) to get a below market deal. Those are 50-90 year old houses that require a lot of fix are likely a lot of maintenance over the years. What might work is if you found a SFR with a variance with an extra in-law unit to juice the cash flow numbers. SFR’s also makes your cash investment higher because you have 20% down + another big chunk of change to fix it up. The condos many times need almost no fix work & they are less expensive so the 20% down is less. So your out of pocket is less. There are plenty of condos that are finance-able.

For units you have to go into rougher areas to make the numbers work, “C” neighborhoods. The numbers for units don’t work well even B neighborhoods in SD, certainly not A neighborhoods. Most of the units will be very old maintenance intense properties too. And you have to pay the water bill (vs. tenant pays it SFR and hoa pays it in a condo). It’s one thing to own a SFR in a rough neighborhood b/c SFR will always get a better tenant even in a rougher hood. But you have to make sure you have the stomach for managing units in rougher areas. There could be lots of turnover and credit loss.

SFR’s in Inland Empire CA, Phoenix, Vegas do pencil well and properties are much newer. Just have to be real picky in neighborhoods. And the worry is can you keep them rented?

I would definitely manage a property myself if it is a SFR and only in Escondido and I lived in Encinitas. It is not that hard. And you save so much on cash flow over the years. I manage myself a SFR rental I own in another state and it’s not that big of a deal. I have probably saved $10,000+ in property management costs over the last 7 or so years. The main thing you need is a couple of really good local handymen you can call if something breaks. Do the tenant screening and leasing all yourself. There’s no fertilizer like a farmers shadow:)

[ctr70]

I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage+taxes+insurance+vacancy+repairs+credit loss, etc…

I agree with sdrealtor & kingside that small condos in good locations with low hoas look good. Condo prices have fallen further than SFR’s so the numbers can be better AND the locations are much better.

The SFR’s tend to not pencil that well in SD County and you have to buy a major fixer “disaster” in a rougher “C” neighborhood (like the flippers do) to get a below market deal. Those are 50-90 year old houses that require a lot of fix are likely a lot of maintenance over the years. What might work is if you found a SFR with a variance with an extra in-law unit to juice the cash flow numbers. SFR’s also makes your cash investment higher because you have 20% down + another big chunk of change to fix it up. The condos many times need almost no fix work & they are less expensive so the 20% down is less. So your out of pocket is less. There are plenty of condos that are finance-able.

For units you have to go into rougher areas to make the numbers work, “C” neighborhoods. The numbers for units don’t work well even B neighborhoods in SD, certainly not A neighborhoods. Most of the units will be very old maintenance intense properties too. And you have to pay the water bill (vs. tenant pays it SFR and hoa pays it in a condo). It’s one thing to own a SFR in a rough neighborhood b/c SFR will always get a better tenant even in a rougher hood. But you have to make sure you have the stomach for managing units in rougher areas. There could be lots of turnover and credit loss.

SFR’s in Inland Empire CA, Phoenix, Vegas do pencil well and properties are much newer. Just have to be real picky in neighborhoods. And the worry is can you keep them rented?

I would definitely manage a property myself if it is a SFR and only in Escondido and I lived in Encinitas. It is not that hard. And you save so much on cash flow over the years. I manage myself a SFR rental I own in another state and it’s not that big of a deal. I have probably saved $10,000+ in property management costs over the last 7 or so years. The main thing you need is a couple of really good local handymen you can call if something breaks. Do the tenant screening and leasing all yourself. There’s no fertilizer like a farmers shadow:)

[bearishgurl]

[quote=ctr70]I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage + taxes + insurance + vacancy + repairs + credit loss, etc…[/quote]

ctr70, I only “broke even” in 9 years time because the area I purchased in, during the pendency of my ownership, became a haven for the PCP trade, in both cigarette and “grass” form. The area wasn’t this way when we purchased. SDPD “Community Policing” program eventually cleaned this up and all the local phone booths were ripped out as well. There was also a (later) intermittent problem with pimping and prostitution in the immediate area. This was cleaned up significantly (after we sold) by the SDPD Vice Squad.

One of my tenants moved out in the middle of the night due to being broken into. This caused us to not only repair the door jamb but install wrought iron on the door and all the windows.

Under normal circumstances, during this time period, rental properties should have escalated in value.

Moral of this story: Never buy property across the street from a large “vacant lot.” This is a “breeding ground” for societal ills.

[bearishgurl]

[quote=ctr70]I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage + taxes + insurance + vacancy + repairs + credit loss, etc…[/quote]

ctr70, I only “broke even” in 9 years time because the area I purchased in, during the pendency of my ownership, became a haven for the PCP trade, in both cigarette and “grass” form. The area wasn’t this way when we purchased. SDPD “Community Policing” program eventually cleaned this up and all the local phone booths were ripped out as well. There was also a (later) intermittent problem with pimping and prostitution in the immediate area. This was cleaned up significantly (after we sold) by the SDPD Vice Squad.

One of my tenants moved out in the middle of the night due to being broken into. This caused us to not only repair the door jamb but install wrought iron on the door and all the windows.

Under normal circumstances, during this time period, rental properties should have escalated in value.

Moral of this story: Never buy property across the street from a large “vacant lot.” This is a “breeding ground” for societal ills.

[bearishgurl]

[quote=ctr70]I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage + taxes + insurance + vacancy + repairs + credit loss, etc…[/quote]

ctr70, I only “broke even” in 9 years time because the area I purchased in, during the pendency of my ownership, became a haven for the PCP trade, in both cigarette and “grass” form. The area wasn’t this way when we purchased. SDPD “Community Policing” program eventually cleaned this up and all the local phone booths were ripped out as well. There was also a (later) intermittent problem with pimping and prostitution in the immediate area. This was cleaned up significantly (after we sold) by the SDPD Vice Squad.

One of my tenants moved out in the middle of the night due to being broken into. This caused us to not only repair the door jamb but install wrought iron on the door and all the windows.

Under normal circumstances, during this time period, rental properties should have escalated in value.

Moral of this story: Never buy property across the street from a large “vacant lot.” This is a “breeding ground” for societal ills.

[bearishgurl]

[quote=ctr70]I wouldn’t buy anything to “break-even”. Why would you buy an investment to “break-even” and “hope” for appreciation with all the work and risk it takes to own rental property? Even if it does appreciate, to “realize” that appreciation and sell you pay a ton of taxes and costs anyway leaving you with 60 cents on the dollar of that appreciation. Yes you could 1031X and defer taxes, but that often happens at market peaks and you buy into another inflated property and you are forced to rush (I have heard of more horror stories of investors doing 1031X vs. just selling and paying the tax and depreciation recapture.) If you put 20% down & get a loan shoot for making $300+ per month TRUE positive cash flow after mortgage + taxes + insurance + vacancy + repairs + credit loss, etc…[/quote]

ctr70, I only “broke even” in 9 years time because the area I purchased in, during the pendency of my ownership, became a haven for the PCP trade, in both cigarette and “grass” form. The area wasn’t this way when we purchased. SDPD “Community Policing” program eventually cleaned this up and all the local phone booths were ripped out as well. There was also a (later) intermittent problem with pimping and prostitution in the immediate area. This was cleaned up significantly (after we sold) by the SDPD Vice Squad.

One of my tenants moved out in the middle of the night due to being broken into. This caused us to not only repair the door jamb but install wrought iron on the door and all the windows.

Under normal circumstances, during this time period, rental properties should have escalated in value.

Moral of this story: Never buy property across the street from a large “vacant lot.” This is a “breeding ground” for societal ills.

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