Rental property in San Diego vs Irvine

[joec]

How do dentists even survive? I see so many pop up and it’s not a required medical thing and insurance benefits are limited (like 1k to 1.5k)…

Seems like so much competition and a cleaning pays nothing…

Also, people with no money won’t/can’t afford the more expensive treatments.

[Coronita]

[quote=joec]How do dentists even survive? I see so many pop up and it’s not a required medical thing and insurance benefits are limited (like 1k to 1.5k)…

Seems like so much competition and a cleaning pays nothing…

Also, people with no money won’t/can’t afford the more expensive treatments.[/quote]

They don’t make money off of cleaning per se. It’s the teeth whitening, the deep cleaning, the fillings, the extraction, etc,etc,etc…

And there’s Denti-Cal.

[RoyceKemp]

wannbelord, what’s your stated goal for this investment? You want a place to park $100K? Then liquidate in 10 years to pay for children’s tuition (<--- which by any metric is currently a rip-off)? This is a reasonable amount of time to Buy and Hold, and potentially yield some appreciation, tax benefits, and cashflow. Carmel Valley, UTC, Irvine, these are more appealing to a high earning demographic. Mira Mesa, not so much. The riskier the demographic, the high the cashflow generally. I own condos in UTC, Oceanside, and San Marcos. I make the most money in the lowest demographic in San Marcos, but have the least headaches with my UTC tenants. It's a tradeoff, so that's why I diversified. San Diego and OC are both tough markets to buy at market prices and then immediately cashflow, but it's doable. You're competing with average buyers who will pay a premium to be in nice area, something that counters the investor's approach. The other thing to find out is if you will receive any tax benefits by purchasing a rental property. Many people automatically assume they will, but if your income is too high, many of those benefits dissipate. There are pros and cons to owning an SFR vs Townhome/Condo. With an SFR, the entire property is your responsibility which can bring some unexpected large expenses: roofs, decks, irrigation, exterior painting, etc, and usually with less amenities to offer renters: no pool, spa, fitness center, no water bill, etc. Of course, you're paying a monthly HOA, so it's a tradeoff. If you want to be "cheap", your new place will quickly look just that after 5 years, which will then affect the demographic that will want to subsequently rent there. Of course, that will then affect resale value, so choose your land-lording approach wisely. I opt to keep my units in tip-top shape. Most have remodeled and present very well, and I command top dollar and quality tenants who appreciate that type of rental. Show that you don't care about your property, and the tenant will follow suit. Ultimately, you just have to choose what style of landlord/investor you are, then that will dictate the type of property you should buy.

[FlyerInHi]

[quote=AN][quote=scaredyclassic]the rich plumber is kind of a cliche, but goshdarn, we were talking to this plumber who did some work in our house the other day, had a couple helpers, and his combined take home (he couldve been exagerrating but i doubt it) was greater than my househole income.

the bigger question is not which rental to buy, but why college?

maybe the money shoudl be put into starting a small business not for the poster, but the kids…

a real plan involves making kids selfsufficient.[/quote]There’s a lot of risk and hard work to start your own business. It’s not easy and not many succeed in making your rich. I know many small biz owners. Many had many failed businesses before they found their successful ones. Some do find it on their first try but many don’t. It also require a lot more work than your standard 9-5 jobs. But of course, the ceiling is much higher for a small biz owners than a W-2 worker. There’s really no right or wrong answers. You can become wealthy as well being a W-2 earners. Just look at all the original Facebook employees or Instagram employees or Google employees or even Qualcomm’s employees. Bottom line is, just do what you love. Money is not everything.[/quote]

starting a plumbing business is a lot of work… your have to get dirty at the beginning and you have to manage low-brow people — people who smoke weed, can’t show up on time, etc…

Plus you have to be a good salesman talking to customers.

it’s not as comfortable as sitting in an airconditioned office.

I’ve remodeled several houses and have done the plumbing myself. Replaced water heater, new shower hardware, etc.. even ran new hot water line to patio for a shower outside. There’s a lot of profit in the plumbing business and it cannot be outsourced to China.

I think that I’m capable of becoming a plumber… or even a AC repairman.

Until you make it as a business owner and move to a fancy neighborhood, being a plumber is kind of a low-status profession.

money is not everything… but it’s better than none.

Overall, being a handy person is a great life skill. A middle class person can, over a lifetime, build a portfolio of a dozen rental properties to generate a nice stream of rental income at retirement. You have the income, you keep active (live longer), plus you have the wealth/equity in the properties.

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