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bearishgurl
Participant[quote=sdrealtor]RP will do well because it is well established and far less leveraged than newer areas.[/quote]
Again, sdr bolstering the main point I have been trying to make here.
sdr, can you tell us if the new (Carlsbad?) dev. to be built by Pulte or the existing high-priced Copperwood Dev. viewed by pjwal lies within a MR Community Facilities District??
If so, these bonds go up with every new development, due to increasing construction costs. IMO, this is a HUGE negative financial repercussion to think about, pjwal, if you leave your old (seemingly decent) ‘hood in order to buy into new construction.
Participant[quote=sdrealtor]RP will do well because it is well established and far less leveraged than newer areas.[/quote]
Again, sdr bolstering the main point I have been trying to make here.
sdr, can you tell us if the new (Carlsbad?) dev. to be built by Pulte or the existing high-priced Copperwood Dev. viewed by pjwal lies within a MR Community Facilities District??
If so, these bonds go up with every new development, due to increasing construction costs. IMO, this is a HUGE negative financial repercussion to think about, pjwal, if you leave your old (seemingly decent) ‘hood in order to buy into new construction.
Participant[quote=DWCAP] . . . The resulting bounce since then has convinced them to hold on till they can get out for even.
There isnt too much room to expand. I dont understand all of it, but it was gonna cost him like a quarter mil+ to put a second story on it. . .
. . . They make great $$$, and if they really wanted to make it up, they could just cut back on the lifestyle alittle. But they dont so they have chosen to remain stuck. . .
It was just an example of how family housing inheritances can sometimes not be optimal. [/quote] (emphasis added)
I believe the way your parents left the RE was FAR MORE VALUABLE than them or the estate liquidating the RE in order to be able to distribute cash. Our wonderful “Prop. 13” makes it so.
DWCAP, I don’t feel condos are currently benefitting from any “bounce” in the market right now or will appreciate at all in the foreseeable future.
Well, your post just illustrates that an heir can’t have it both ways. If one chose to occupy mom and dad’s house instead of selling because of the Prop 13 treatment, all the while knowing how big the property was and then subsequently “grow out of it,” one either has to live in it as it is or, like you said, “go up” if there’s no room. I believe your brother can save at least $100K by doing as much of the second-story himself as possible and build it for $125 – $150K. Here, of course, the family might be inconvenienced for more than a year.
DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.
Participant[quote=DWCAP] . . . The resulting bounce since then has convinced them to hold on till they can get out for even.
There isnt too much room to expand. I dont understand all of it, but it was gonna cost him like a quarter mil+ to put a second story on it. . .
. . . They make great $$$, and if they really wanted to make it up, they could just cut back on the lifestyle alittle. But they dont so they have chosen to remain stuck. . .
It was just an example of how family housing inheritances can sometimes not be optimal. [/quote] (emphasis added)
I believe the way your parents left the RE was FAR MORE VALUABLE than them or the estate liquidating the RE in order to be able to distribute cash. Our wonderful “Prop. 13” makes it so.
DWCAP, I don’t feel condos are currently benefitting from any “bounce” in the market right now or will appreciate at all in the foreseeable future.
Well, your post just illustrates that an heir can’t have it both ways. If one chose to occupy mom and dad’s house instead of selling because of the Prop 13 treatment, all the while knowing how big the property was and then subsequently “grow out of it,” one either has to live in it as it is or, like you said, “go up” if there’s no room. I believe your brother can save at least $100K by doing as much of the second-story himself as possible and build it for $125 – $150K. Here, of course, the family might be inconvenienced for more than a year.
DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.
Participant[quote=DWCAP] . . . The resulting bounce since then has convinced them to hold on till they can get out for even.
There isnt too much room to expand. I dont understand all of it, but it was gonna cost him like a quarter mil+ to put a second story on it. . .
. . . They make great $$$, and if they really wanted to make it up, they could just cut back on the lifestyle alittle. But they dont so they have chosen to remain stuck. . .
It was just an example of how family housing inheritances can sometimes not be optimal. [/quote] (emphasis added)
I believe the way your parents left the RE was FAR MORE VALUABLE than them or the estate liquidating the RE in order to be able to distribute cash. Our wonderful “Prop. 13” makes it so.
DWCAP, I don’t feel condos are currently benefitting from any “bounce” in the market right now or will appreciate at all in the foreseeable future.
Well, your post just illustrates that an heir can’t have it both ways. If one chose to occupy mom and dad’s house instead of selling because of the Prop 13 treatment, all the while knowing how big the property was and then subsequently “grow out of it,” one either has to live in it as it is or, like you said, “go up” if there’s no room. I believe your brother can save at least $100K by doing as much of the second-story himself as possible and build it for $125 – $150K. Here, of course, the family might be inconvenienced for more than a year.
DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.
Participant[quote=DWCAP] . . . The resulting bounce since then has convinced them to hold on till they can get out for even.
There isnt too much room to expand. I dont understand all of it, but it was gonna cost him like a quarter mil+ to put a second story on it. . .
. . . They make great $$$, and if they really wanted to make it up, they could just cut back on the lifestyle alittle. But they dont so they have chosen to remain stuck. . .
It was just an example of how family housing inheritances can sometimes not be optimal. [/quote] (emphasis added)
I believe the way your parents left the RE was FAR MORE VALUABLE than them or the estate liquidating the RE in order to be able to distribute cash. Our wonderful “Prop. 13” makes it so.
DWCAP, I don’t feel condos are currently benefitting from any “bounce” in the market right now or will appreciate at all in the foreseeable future.
Well, your post just illustrates that an heir can’t have it both ways. If one chose to occupy mom and dad’s house instead of selling because of the Prop 13 treatment, all the while knowing how big the property was and then subsequently “grow out of it,” one either has to live in it as it is or, like you said, “go up” if there’s no room. I believe your brother can save at least $100K by doing as much of the second-story himself as possible and build it for $125 – $150K. Here, of course, the family might be inconvenienced for more than a year.
DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.
Participant[quote=DWCAP] . . . The resulting bounce since then has convinced them to hold on till they can get out for even.
There isnt too much room to expand. I dont understand all of it, but it was gonna cost him like a quarter mil+ to put a second story on it. . .
. . . They make great $$$, and if they really wanted to make it up, they could just cut back on the lifestyle alittle. But they dont so they have chosen to remain stuck. . .
It was just an example of how family housing inheritances can sometimes not be optimal. [/quote] (emphasis added)
I believe the way your parents left the RE was FAR MORE VALUABLE than them or the estate liquidating the RE in order to be able to distribute cash. Our wonderful “Prop. 13” makes it so.
DWCAP, I don’t feel condos are currently benefitting from any “bounce” in the market right now or will appreciate at all in the foreseeable future.
Well, your post just illustrates that an heir can’t have it both ways. If one chose to occupy mom and dad’s house instead of selling because of the Prop 13 treatment, all the while knowing how big the property was and then subsequently “grow out of it,” one either has to live in it as it is or, like you said, “go up” if there’s no room. I believe your brother can save at least $100K by doing as much of the second-story himself as possible and build it for $125 – $150K. Here, of course, the family might be inconvenienced for more than a year.
DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.
Participant[quote=DWCAP]My parents did this. They bought many properties in Santa Barbara back in the day, with two houses (side by side) for their sons. My brother bought his in 2001, just before the market went on a tear.
Problem is, the house isnt huge, and two growing girls take up alot of it. (Not supprisingly the biggest problem they face in a house full of girls is that there isnt enough closet space.) But he is kinda stuck because he inherited my dads property tax. It is STUPID low. . . (it doesnt help that he is underwater on a condo he bought as a rental. It is sucking up his extra $$)
[/quote]Hijack: DWCAP, if the lot is big enough, you can suggest to him that he add on a room addition to make the house work better for his family.
If he’s short on cash and needs to free up $$, suggest to him to wait for his tenants’ lease to expire and not to renew it. Entice the tenant to remain month-to-month by crafting a *new* rental agreement lowering the rent with the provision that tenant will keep it ready to show with 24 hrs. notice. Then “strategically” default on the condo while possibly collecting rent and then list it as a “short sale” before the NOD is hung. The lender will be more willing to “play ball” since he’s in default. If it doesn’t sell, he will have to let it go.
(Before he does this, tell him open a credit acct. with Home Depot or Lowes so he can get 6 mos. 0% int. on building mat’ls).
He’s in a good place with Prop 13 benefits. Who with a family to support would want to mess that up?? Won’t his credit have time to recover before his kids leave the nest?
This may not sound too “moral” but lots of folks seem to be getting away with it. It’s just a strategic maneuver to think about.
Participant[quote=DWCAP]My parents did this. They bought many properties in Santa Barbara back in the day, with two houses (side by side) for their sons. My brother bought his in 2001, just before the market went on a tear.
Problem is, the house isnt huge, and two growing girls take up alot of it. (Not supprisingly the biggest problem they face in a house full of girls is that there isnt enough closet space.) But he is kinda stuck because he inherited my dads property tax. It is STUPID low. . . (it doesnt help that he is underwater on a condo he bought as a rental. It is sucking up his extra $$)
[/quote]Hijack: DWCAP, if the lot is big enough, you can suggest to him that he add on a room addition to make the house work better for his family.
If he’s short on cash and needs to free up $$, suggest to him to wait for his tenants’ lease to expire and not to renew it. Entice the tenant to remain month-to-month by crafting a *new* rental agreement lowering the rent with the provision that tenant will keep it ready to show with 24 hrs. notice. Then “strategically” default on the condo while possibly collecting rent and then list it as a “short sale” before the NOD is hung. The lender will be more willing to “play ball” since he’s in default. If it doesn’t sell, he will have to let it go.
(Before he does this, tell him open a credit acct. with Home Depot or Lowes so he can get 6 mos. 0% int. on building mat’ls).
He’s in a good place with Prop 13 benefits. Who with a family to support would want to mess that up?? Won’t his credit have time to recover before his kids leave the nest?
This may not sound too “moral” but lots of folks seem to be getting away with it. It’s just a strategic maneuver to think about.
Participant[quote=DWCAP]My parents did this. They bought many properties in Santa Barbara back in the day, with two houses (side by side) for their sons. My brother bought his in 2001, just before the market went on a tear.
Problem is, the house isnt huge, and two growing girls take up alot of it. (Not supprisingly the biggest problem they face in a house full of girls is that there isnt enough closet space.) But he is kinda stuck because he inherited my dads property tax. It is STUPID low. . . (it doesnt help that he is underwater on a condo he bought as a rental. It is sucking up his extra $$)
[/quote]Hijack: DWCAP, if the lot is big enough, you can suggest to him that he add on a room addition to make the house work better for his family.
If he’s short on cash and needs to free up $$, suggest to him to wait for his tenants’ lease to expire and not to renew it. Entice the tenant to remain month-to-month by crafting a *new* rental agreement lowering the rent with the provision that tenant will keep it ready to show with 24 hrs. notice. Then “strategically” default on the condo while possibly collecting rent and then list it as a “short sale” before the NOD is hung. The lender will be more willing to “play ball” since he’s in default. If it doesn’t sell, he will have to let it go.
(Before he does this, tell him open a credit acct. with Home Depot or Lowes so he can get 6 mos. 0% int. on building mat’ls).
He’s in a good place with Prop 13 benefits. Who with a family to support would want to mess that up?? Won’t his credit have time to recover before his kids leave the nest?
This may not sound too “moral” but lots of folks seem to be getting away with it. It’s just a strategic maneuver to think about.
Participant[quote=DWCAP]My parents did this. They bought many properties in Santa Barbara back in the day, with two houses (side by side) for their sons. My brother bought his in 2001, just before the market went on a tear.
Problem is, the house isnt huge, and two growing girls take up alot of it. (Not supprisingly the biggest problem they face in a house full of girls is that there isnt enough closet space.) But he is kinda stuck because he inherited my dads property tax. It is STUPID low. . . (it doesnt help that he is underwater on a condo he bought as a rental. It is sucking up his extra $$)
[/quote]Hijack: DWCAP, if the lot is big enough, you can suggest to him that he add on a room addition to make the house work better for his family.
If he’s short on cash and needs to free up $$, suggest to him to wait for his tenants’ lease to expire and not to renew it. Entice the tenant to remain month-to-month by crafting a *new* rental agreement lowering the rent with the provision that tenant will keep it ready to show with 24 hrs. notice. Then “strategically” default on the condo while possibly collecting rent and then list it as a “short sale” before the NOD is hung. The lender will be more willing to “play ball” since he’s in default. If it doesn’t sell, he will have to let it go.
(Before he does this, tell him open a credit acct. with Home Depot or Lowes so he can get 6 mos. 0% int. on building mat’ls).
He’s in a good place with Prop 13 benefits. Who with a family to support would want to mess that up?? Won’t his credit have time to recover before his kids leave the nest?
This may not sound too “moral” but lots of folks seem to be getting away with it. It’s just a strategic maneuver to think about.
Participant[quote=DWCAP]My parents did this. They bought many properties in Santa Barbara back in the day, with two houses (side by side) for their sons. My brother bought his in 2001, just before the market went on a tear.
Problem is, the house isnt huge, and two growing girls take up alot of it. (Not supprisingly the biggest problem they face in a house full of girls is that there isnt enough closet space.) But he is kinda stuck because he inherited my dads property tax. It is STUPID low. . . (it doesnt help that he is underwater on a condo he bought as a rental. It is sucking up his extra $$)
[/quote]Hijack: DWCAP, if the lot is big enough, you can suggest to him that he add on a room addition to make the house work better for his family.
If he’s short on cash and needs to free up $$, suggest to him to wait for his tenants’ lease to expire and not to renew it. Entice the tenant to remain month-to-month by crafting a *new* rental agreement lowering the rent with the provision that tenant will keep it ready to show with 24 hrs. notice. Then “strategically” default on the condo while possibly collecting rent and then list it as a “short sale” before the NOD is hung. The lender will be more willing to “play ball” since he’s in default. If it doesn’t sell, he will have to let it go.
(Before he does this, tell him open a credit acct. with Home Depot or Lowes so he can get 6 mos. 0% int. on building mat’ls).
He’s in a good place with Prop 13 benefits. Who with a family to support would want to mess that up?? Won’t his credit have time to recover before his kids leave the nest?
This may not sound too “moral” but lots of folks seem to be getting away with it. It’s just a strategic maneuver to think about.
Participant[quote=AN]So you think places that has dropped 50%+ from peak and are at ~2000 nominal price is a worse investment than a house in NCC that’s west of the 5? I beg to differ.[/quote]
AN, I can’t go around and around about this, but you still gotta sell that property someday that just sunk to +-2000 lows. What will it bring in 2015? 2020? What kind of profit can you make fixing it up and selling it as opposed to a well-located property in NCC west of the 5??
More fundamentally, why did its neighborhood sink to “2000 lows” in the first place?? Ask yourself that question before you make an offer. If you are buying for appreciation from “sweat equity,” then think twice before making an offer. If you are buying for cash flow and will never live there, then examine the local rents and if it cash-flows after PITI, then BUY IT! Bear in mind the calibur of tenants you will attract, because, after all, the ‘hood has “sunk to 2000 lows.”
A property in a neighborhood that has sunk to “2000 lows” is NOT a “keeper” in the way that sdcellar is referring to. It is a property purchased for rental income or a leg-up for a moderate-income first-time buyer family that needs a stable home for their kids.
Think about it.
Participant[quote=AN]So you think places that has dropped 50%+ from peak and are at ~2000 nominal price is a worse investment than a house in NCC that’s west of the 5? I beg to differ.[/quote]
AN, I can’t go around and around about this, but you still gotta sell that property someday that just sunk to +-2000 lows. What will it bring in 2015? 2020? What kind of profit can you make fixing it up and selling it as opposed to a well-located property in NCC west of the 5??
More fundamentally, why did its neighborhood sink to “2000 lows” in the first place?? Ask yourself that question before you make an offer. If you are buying for appreciation from “sweat equity,” then think twice before making an offer. If you are buying for cash flow and will never live there, then examine the local rents and if it cash-flows after PITI, then BUY IT! Bear in mind the calibur of tenants you will attract, because, after all, the ‘hood has “sunk to 2000 lows.”
A property in a neighborhood that has sunk to “2000 lows” is NOT a “keeper” in the way that sdcellar is referring to. It is a property purchased for rental income or a leg-up for a moderate-income first-time buyer family that needs a stable home for their kids.
Think about it.
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