Investment property…Coastal vs. Escondido

[Ren]

[quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[bearishgurl]

[quote=Kingside]My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

Very sound advice, Kingside. You were very fortunate to recently pick up that triplex for <$200K. I am situated in an urban "sea of WWII boxes and mid-century ranches" owned by the "mostly-over-65 set" here in South County. Many of these owners are original owners who also own nearby sfr’s, sm apt complexes, parking lots and comm’l bldgs (acquired/purchased long ago). Yes, most of these properties ARE “walking distance” from their residences. However, some of these owners are VERY old now so can no longer manage their own properties. In some cases, their children are managing them. The ones that I have spoken to extensively have stated to me that they would only invest in areas they know very well and that is their local area.

Of course these properties cash flow for them because they are either paid-off or have a very low encumbrance against them. I have no doubt that even 40 years ago, they cash-flowed. Having a mo PITI of $138 or $168 and a mo rental income of $225 to $250 is cash flow. It’s all relative.

It is difficult to find this kind of deal today.

[bearishgurl]

[quote=Kingside]My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

Very sound advice, Kingside. You were very fortunate to recently pick up that triplex for <$200K. I am situated in an urban "sea of WWII boxes and mid-century ranches" owned by the "mostly-over-65 set" here in South County. Many of these owners are original owners who also own nearby sfr’s, sm apt complexes, parking lots and comm’l bldgs (acquired/purchased long ago). Yes, most of these properties ARE “walking distance” from their residences. However, some of these owners are VERY old now so can no longer manage their own properties. In some cases, their children are managing them. The ones that I have spoken to extensively have stated to me that they would only invest in areas they know very well and that is their local area.

Of course these properties cash flow for them because they are either paid-off or have a very low encumbrance against them. I have no doubt that even 40 years ago, they cash-flowed. Having a mo PITI of $138 or $168 and a mo rental income of $225 to $250 is cash flow. It’s all relative.

It is difficult to find this kind of deal today.

[bearishgurl]

[quote=Kingside]My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

Very sound advice, Kingside. You were very fortunate to recently pick up that triplex for <$200K. I am situated in an urban "sea of WWII boxes and mid-century ranches" owned by the "mostly-over-65 set" here in South County. Many of these owners are original owners who also own nearby sfr’s, sm apt complexes, parking lots and comm’l bldgs (acquired/purchased long ago). Yes, most of these properties ARE “walking distance” from their residences. However, some of these owners are VERY old now so can no longer manage their own properties. In some cases, their children are managing them. The ones that I have spoken to extensively have stated to me that they would only invest in areas they know very well and that is their local area.

Of course these properties cash flow for them because they are either paid-off or have a very low encumbrance against them. I have no doubt that even 40 years ago, they cash-flowed. Having a mo PITI of $138 or $168 and a mo rental income of $225 to $250 is cash flow. It’s all relative.

It is difficult to find this kind of deal today.

[bearishgurl]

[quote=Kingside]My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

Very sound advice, Kingside. You were very fortunate to recently pick up that triplex for <$200K. I am situated in an urban "sea of WWII boxes and mid-century ranches" owned by the "mostly-over-65 set" here in South County. Many of these owners are original owners who also own nearby sfr’s, sm apt complexes, parking lots and comm’l bldgs (acquired/purchased long ago). Yes, most of these properties ARE “walking distance” from their residences. However, some of these owners are VERY old now so can no longer manage their own properties. In some cases, their children are managing them. The ones that I have spoken to extensively have stated to me that they would only invest in areas they know very well and that is their local area.

Of course these properties cash flow for them because they are either paid-off or have a very low encumbrance against them. I have no doubt that even 40 years ago, they cash-flowed. Having a mo PITI of $138 or $168 and a mo rental income of $225 to $250 is cash flow. It’s all relative.

It is difficult to find this kind of deal today.

[Author]

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