Sell

[Coronita]

Today im going to look at a few properties for rentals and Im going to put in offers that are all cash, 5-7% above ask, 10 days or less close of escrow, free 30 day rentbacks…

I figure 5-7% premium i pay will balance out with the 100-130% gain on my other properties from 2009-2011 if i do get it….

…And if i dont get it…just like in the show Storage Wars where often times one of the people bid up the price of the locker they really dont want just to make it more expensive for everyone else…by participating in the party, even if i dont get the property, I made it more difficult and expensive for everyone else who wants to participate in the game right now, and possibly some of these people might end up as excellent short sales candidates 10-12 years from now..Plus in the short term, I need to do my part push up prices higher so my other rentals appreciate more too , heh heh…

Crypto Baby!

[scaredyclassic]

[quote=Coronita]Today im going to look at a few properties for rentals and Im going to put in offers that are all cash, 5-7% above ask, 10 days or less close of escrow, free 30 day rentbacks…

I figure 5-7% premium i pay will balance out with the 100-130% gain on my other properties from 2009-2011 if i do get it….

…And if i dont get it…just like in the show Storage Wars where often times one of the people bid up the price of the locker they really dont want just to make it more expensive for everyone else…by participating in the party, even if i dont get the property, I made it more difficult and expensive for everyone else who wants to participate in the game right now, and possibly some of these people might end up as excellent short sales candidates 10-12 years from now..Plus in the short term, I need to do my part push up prices higher so my other rentals appreciate more too , heh heh…

Crypto Baby![/quote]

All sd real estate holdings seems a bit undiversified.

I’ve had some luck with EQR lately. Doesn’t this seem less risky than buying one hut?

Not leveraged, prob no big upside…but 3 perc. Div.

[Coronita]

[quote=scaredyclassic]

All sd real estate seems a bit undiversified.

I’ve had some luck with EQR lately. Doesn’t this seem less risky than buying one hut?

Not leveraged, prob no big upside…but 3 perc. Div.[/quote]

not sure…. maybe.

My 401k plan has a fidelity REIT i think fsrnx… i guess i just like the real thing. like i like physical gold versus the paper gold.

One condo looked ok , the other one that was more looked and smelled like a dump.

ill put an offer for the for the first one. its still much less than the other property i cancelled escrow on because i got cold feet.

[scaredyclassic]

[quote=Coronita][quote=scaredyclassic]

All sd real estate seems a bit undiversified.

I’ve had some luck with EQR lately. Doesn’t this seem less risky than buying one hut?

Not leveraged, prob no big upside…but 3 perc. Div.[/quote]

not sure…. maybe.

My 401k plan has a fidelity REIT i think fsrnx… i guess i just like the real thing. like i like physical gold versus the paper gold.

One condo looked ok , the other one that was more looked and smelled like a dump.

ill put an offer for the for the first one. its still much less than the other property i cancelled escrow on because i got cold feet.[/quote]

EQR is just residential real estate, if that feels more landlordy to you. 50k into that seems wayless scary than throwing 50k into a down payment into a smelly condo.

[Coronita]

[quote=scaredyclassic][quote=Coronita][quote=scaredyclassic]

All sd real estate seems a bit undiversified.

I’ve had some luck with EQR lately. Doesn’t this seem less risky than buying one hut?

Not leveraged, prob no big upside…but 3 perc. Div.[/quote]

not sure…. maybe.

My 401k plan has a fidelity REIT i think fsrnx… i guess i just like the real thing. like i like physical gold versus the paper gold.

One condo looked ok , the other one that was more looked and smelled like a dump.

ill put an offer for the for the first one. its still much less than the other property i cancelled escrow on because i got cold feet.[/quote]

EQR is just residential real estate, if that feels more landlordy to you. 50k into that seems wayless scary than throwing 50k into a down payment into a smelly condo.[/quote]

The property I got cold feet on was in an area i didnt know too well, and I started to have concerns after I made a test for rent post on Zillow while in escrow. I learned $2900/month was a more realistic rent price, not $3100 i was initially thinking, and even at $2900, i wasnt getting as high a frequency of new tenants interest as i was use to seeing at Mira Mesa. There also seems to be a lot more rental supply there. So i decided I should stick to what i know…

Some of the condos Im considering are in the same complex as the ones i have now so its a known known. i think i’ll double check but one of my tenants wanted to move up to a 2/2 so i’ll give a slight discount, and the 1/1 he is in should be easy to rent once i have someone post in the Qualcomm internal website. its worked out well so far (knock on wood) and I think I’ve gotten my process dialed in pretty good. i dont think QC is going anywhere especially as their 5G biz picks up…Also, Once I know of a colleague that works at Apple here, maybe i can do the same thing.

Engineers starting out make great tenants. High enough income, high credit score(usually), usually pretty low PITA factor. Knock on wood…I haven’t had any major problems with engineers renting from me in the past 10 years. They seem to stay for a long time and are trouble free. Maybe as reliable as an old miata.

[scaredyclassic]

Why the desire for real property v. Etf.

It does seem wonderful to have some actual, in the world.

Is there any advantage to reality reality v virtual reality?

[Coronita]

[quote=scaredyclassic]Why the desire for real property v. Etf.

It does seem wonderful to have some actual, in the world.

Is there any advantage to reality reality v virtual reality?[/quote]

i guess for me a few reasons.

i can 1031 exchange property. not sure if you can do the same with reits.

if i need money, i can do a cash out refi and borrow against it. I think schwab does allow something called pledged assets, where you could borrow against it. but it just seems sort of messed up to do that, and i think the loan rate from pledged assets isnt a fixed rate loan, nor would it be as low as a 30 year fixed mortgage.

i have direct control over the performance, versus an reit im at the mercy of the institution.

i have a lot more control over what i can deduct as operating costs. More variables to adjust my net income each year.

If my kid is lucky enough to go to a college here locally, i dont need to worry about college living costs while physically giving them the proper physical distance.

and if they go elsewhere, maybe i can do a 1031 exchange into something near where they go…

[scaredyclassic]

[quote=Coronita][quote=scaredyclassic]Why the desire for real property v. Etf.

It does seem wonderful to have some actual, in the world.

Is there any advantage to reality reality v virtual reality?[/quote]

i guess for me a few reasons.

i can 1031 exchange property. not sure if you can do the same with reits.

if i need money, i can do a cash out refi and borrow against it. I think schwab does allow something called pledged assets, where you could borrow against it. but it just seems sort of messed up to do that, and i think the loan rate from pledged assets isnt a fixed rate loan, nor would it be as low as a 30 year fixed mortgage.

i have direct control over the performance, versus an reit im at the mercy of the institution.

i have a lot more control over what i can deduct as operating costs. More variables to adjust my net income each year.

If my kid is lucky enough to go to a college here locally, i dont need to worry about college living costs while physically giving them the proper physical distance.

and if they go elsewhere, maybe i can do a 1031 exchange into something near where they go…[/quote]

Ok, I guess that’s kind of reasonable. Sort of.

[Coronita]

The other thing is, because I still have a W2 job and have passive income from dividends, interest, cap gains after tax….I don’t mind buying more properties now that in the short term are mild losses on paper but potentially generate more income in the future when I don’t have a W2 income. You can’t do that with a REIT…

Ideally, right now, while I still have my W2 income, I’d rather do things so my net rental income across all my properties is $0….. so I don’t pay additional income taxes above my w2 income…provided those actions can potentially generate more income for me in the future when i don’t have a W2 income, and my total taxable income is roughly the same or less when I had my W2 income… In theory, I can do this by “racking and stacking” more properties such that rental income now pays for itself so the net rental income is $0 and I don’t need to dip into my W2 income to pay for rental expenses…This allows me to keep my current standard of living and expenses for my own life, while building (hopefully) a larger future passive income stream when I’m no longer working..

Ideally, it would be even nicer if a net rental income loss could be used to offset income from other sources, like a W2 income. If that was case, I would buy more properties and make sure I have a net rental income loss in the short term while I was working, so I could use that rental loss to lower my taxable W2 income…..But the IRS doesn’t generally allow you to do this with the exception of 2 cases…otherwise, your losses are simply carried over to the next year and can only be used to offset rental income in the future, which isn’t very useful in my case. I can make rental income go positive or negative very easily but if it can’t offset my W2 income, there’s no point doing it beyond making it close to $0.

The 2 exceptions where the IRS allows you to use rental income losses to offset other income sources are (to my knowledge, and correct me if I’m wrong people)

1. You can claim you are a real estate professional. But there are strict IRS litmus tests for thi.But if you could claim you were a real estate professional, IE you’re a realtor or broker, than your rental income losses are not considered passive, and they can be used to offset your income elsewhere.
https://www.thetaxadviser.com/issues/2014/jul/skarbnik-july2014.html

or

2. Your AGI is $100k-150k or less, you can use up to $25,000 of rental income losses to offset income elsewhere…
https://www.irs.gov/instructions/i8582
https://www.thetaxadviser.com/issues/2010/nov/casestudy-nov10.html

Disclaimer: I’m an enginerd not a finance guy, this isn’t tax advice. You need to find your own CPA to validate or disprove anything said here. I’m just an enginerd hobbiest that likes to screw around with the system within the legal confines and keep myself from boredom from staring at code all day.

[scaredyclassic]

I wonder how much financial benefit all this fussing about yields.

Trump allegedly would’ve been far wealthier had he thrown his inheritance into an index fund.

Of course, where’s the fun in that? Also, no presidency. So I guess if it keeps one engaged, it’s worth it. Or is it?

All of our actions and plans, are based on a desire to be a certain way, not just achieve a certain goal. To be seen a certain way. To be able to be seen a certain way, in every group we mix in. We don’t want things, we want to be a particular way.

. The same net financial result, with no visible effect in the world would not be 1/10 as satisfying.

I am definitely a person desperate to be seen a particular way. as is flyer. We are probably the two most glaring examples in this microscopic universe, smaller than a 7thgrade classroom, of naked desire for others positive perceptiin.

A desperate screaming cry for status.

I personally want to be seen as very clever, (tho often viewed as smarter by half), deeply insightful, authentically and deeply feeling, yet modest, thoughtful, introspective. Fit and fun and openminded….I’m also desperate for approval and love…

It’s not easy keeping up appearances.

All of life seems to be a desperate search for some form of status, a way to differentiate from others who are terrifyingly similar. Maybe thats what internet forums are.

I like your persistent and courageous effort, I must admit, in the face of so much competition. I hope that provided some small, micro endorphin boost.

I’m much less impressed with myself. I think I need a new aspirational identity be other than Sr citizen hipster. Either Buddhist monk, ruthless capitalist or … Shit, I’m running out of identities that look attractive. Maybe tax savvy landlord would fill the gap.

Really, I’ll take anything but aging hipster or tedious intellectual. Im too old for enginerd.

The posing continues even in the senior centers.

[Coronita]

[quote=scaredyclassic]I wonder how much financial benefit all this fussing about yields.

Trump allegedly would’ve been far wealthier had he thrown his inheritance into an index fund.

Of course, where’s the fun in that? Also, no presidency. So I guess if it keeps one engaged, it’s worth it. Or is it?

All of our actions and plans, are based on a desire to be a certain way, not just achieve a certain goal. To be seen a certain way. To be able to be seen a certain way, in every group we mix in. We don’t want things, we want to be a particular way.

. The same net financial result, with no visible effect in the world would not be 1/10 as satisfying.

I am definitely a person desperate to be seen a particular way. as is flyer. We are probably the two most glaring examples in this microscopic universe, smaller than a 7thgrade classroom, of naked desire for others positive perceptiin.

A desperate screaming cry for status.

I personally want to be seen as very clever, (tho often viewed as smarter by half), deeply insightful, authentically and deeply feeling, yet modest, thoughtful, introspective. Fit and fun and openminded….I’m also desperate for approval and love…

It’s not easy keeping up appearances.

All of life seems to be a desperate search for some form of status, a way to differentiate from others who are terrifyingly similar. Maybe thats what internet forums are.

I like your persistent and courageous effort, I must admit, in the face of so much competition. I hope that provided some small, micro endorphin boost.

I’m much less impressed with myself. I think I need a new aspirational identity be other than Sr citizen hipster. Either Buddhist monk, ruthless capitalist or … Shit, I’m running out of identities that look attractive. Maybe tax savvy landlord would fill the gap.

Really, I’ll take anything but aging hipster or tedious intellectual. Im too old for enginerd.

The posing continues even in the senior centers.[/quote]

Honestly scardey, you are probably correct. I think over time, there’s not really one decision that is significantly better than the other….For instance, part of my portfolio I just have index funds, and then I also have an active trading account.

Yes, there are some years my active trading account is way better, but other years (like this year) my passive account is way better. And I’m pretty sure if I do review dive deep into things my trading account probably does roughly the same (at best, maybe even underperform) my passive indexes over the course of 10-15-20 years….

But yet, I still try to actively trade part of my portfolio, a small percentage at least. Why? No rational reason. I guess it’s my version of going to Vegas… I hate vegas and don’t gamble normally…I do enough in my trading account, lol…

So to summarize, I don’t think you are missing much from all of us that are kidding ourselves that think we can beat the markets over the long period of time. Maybe some people here can, but definitely not me, I’ll admit. I think doing nothing is the wrong answer, but counting 100% on my arbitrage skills, probably also the wrong answer….

So i figure, try everything and see which one(s) stick….

So my real estate and my stock/fund/401k/IRA are roughly split 50/50, maybe real estate slightly higher now after the unexpected appreciation lately…but I don’t anticipate it to stay this way.

I’m not claiming to be an expert on this. I just like fvcking around with things and tweaking things. It’s alike tricking out a miata, but doing it with your investment portfolio to see what it can do. And just like tricked out miatas, sometimes they blow up and catch on fire…Hopefully, I’m not putting all my eggs in one miata…Which is exactly why I don’t drive a porsche.. If I did, and I ran one into a wall or blew one up, there’s only so many times I would be able to rebuild it. Miata gives me a few more opportunities to fvck it up and recover…

At the same time, if you don’t try to trick out your miata, you’re going to lose every single autocross and HPDE timed event all the time, unless you are really really disciplined and know how to drive the car very very well purely a momentum based car… I’m not, I’m really figidey so I need some extra tools to help me since I’m impatient, and irrational at times…So I need those extra tools just to keep up with the people that are much more disciplined than me. Doing nothing is not correct, but put in an amateur hand, a miata is still a slow car and guaranteed to lose, unless every other car in the class suddenly catches on fire and can’t cross the finish line. That one time doomsday scenario doesn’t usually happen, and planning for it, like any other doomsday scenario in real life as your main strategy probably not a winning strategy too.

For some, the reason why they play this game, is because they want buy a very expensive car so they drive in on the street and let people know how “successful” they are…They are they types of people that buy a really fast car but never put it on the track. Like buying a M3 that never sees track time…For them, there would be no difference if they were driving an M3 or a 330i with a M appearance package, since they never would put the car to it’s limits to be able to tell the difference… Whatever floats their boats i guess.

Me? I do what I do, because I know I have permanent weak point in my vehicles that will need a lifelong maintanence, and I do what I do so I can keep running the race I enjoy running, and really don’t give a shet what other people have or say or do so long as I can figure out a formula to allow me to continue…

It’s amazing that you a can take the principles of tricking out a miata into just about every aspect of life.

[flyer]

Scaredy, I think we’re all fine, just as we are. Like us, many who post share infinite details about their business and other ventures, their successes, and other aspects of their lives, which, to me, is very interesting, and does not indicate a desperate screaming cry for status. We’re simply sharing these aspects of the lives we’re living with others.

I would think your quest to live your life in the “Persona du Jour” mode is an extremely interesting way to live. Your aspirations to achieve multiple identities will definitely keep your life interesting. No need to settle on just one–you can embrace all of them–as you choose. In fact, you may even want to start your own blog in this vein, which might reveal to you some kindred spirits. At the very least, it could be an impressive psychological experiment.

[scaredyclassic]

We’re not sharing, we are all performance artists now. Or always were. I think Instagram just made it crystal clear for everyone.

Do I subscribe to and read THE NEW YORK REVIEW OF BOOKS faithfully because I independently desire to. Am I actually interested in the publication or do I just want to be the sort of person who would read it.Or do I think such behavior will make me be or appear to be a certain way? What if no one knows? Why doi want the things I want?

Everything we do is cultivating persona. We are all actors. I want to assume the role of the smartest guy in the room, at least in dumber rooms.

I. Think my parents valued that party trick.

Except I think I might actually like nyrb. Not like it independently of my entire brainwashed upbringing, but within that context, I kinda enjoy it.

I think.

[sdrealtor]

I just bought some Doge Coin. Trying to appear young and hip

[Coronita]

[quote=scaredyclassic]We’re not sharing, we are all performance artists now. Or always were. I think Instagram just made it crystal clear for everyone.

I think.[/quote]

I hate instagram. I mean, i’m convinced it’s contributing to the decline of GenerationZ. It’s basically faking Hollywood (everything I hate about the entertainment industry) on steroids.

Basically, you have a bunch of posers on IG trying to convince others how (fake) successful they are with their “side hustle” as they call it..Terms they like to through around “six figure income in months” , “easy”, “quick” , “no hard work required…”

And a lot of GenerationZ actually believe this shit. Maybe that’s why stats are showing GenerationZ is quickly becoming the depressed generation. Because what they are told and believe from IG are so out of touch with what really ends up happening in their life….

My god, I was looking at some of IG accounts, I see so many people talking about “how I easily made money in real estate with no money down…” It’s an enter new generation of Rich Dad/Poor Dad Fake Robert K, Carlton Sheets, and Tom Vu ,and Don Lapre..Just on a different media. Some of these younger spawns of the former actually are pushing some of the exact same material that their ancestors pushed….

A lot of this bullshit comes out of SoCal LA..Last week I ran into a guy talked about how he has a killer side hustle selling vitamins etc, and how big a house he has in LA and how this is crap, this is so low class, this is not good enough for him…A friend of mine knows this guy and says he’s full of it. Lives in a rented 1/1 in San Pedro… (nothing wrong with that…but just weird he would talk so big when I barely knew him…probably trying to push his stupid vitamin pills onto me, lol).. Annoying as fuck.. and then there was this other guy talking about how we was going to open one of them franchises boba places that are really popular and dropped a few name… Again, full of shit…Because a lot of those franchise boba places…There’s based in Taiwan, and they don’t let anyone who is not in their immediate circle franchise, and I know they aren’t related to those owners…MeetFresh, etc, all have a very tight control on who can franchise here in the US… And if you work for them, they make you sign some many layers of NDAs and agreements that you won’t go off and start a similar place for the next 2 years after you quit. And if you do, or try to copy what they do, they totally will go after you in court..They already have for many people that tried…and those people got into deep shit.

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