[bearishgurl]

desmond, I don’t think paramount needs to worry about whether the property he’s selling is his “official residence,” or not. Any Pigg tax people correct me if I’m wrong, but he would have to make a least a $250K profit upon sale over the price he paid for each house in order to need an “official residence.”

I don’t think he’s owned either one of them very long.

[bearishgurl]

[quote=desmond]Sell one, move into the other until that home becomes your official residence, then try to sell that one. … [/quote]

I like desmond’s plan the best, paramount. Don’t worry about where to move away to right now. Just wait until your tenants’ lease is just about up and give them 30 days notice to vacate. Then spruce up that house a little and list it vacant.

If your tenants are on a month-to-month rental agreement, then give them a 30-day letter to vacate on May 1.

Don’t move your family and list your primary unless something really does happen with your job. In the meanwhile, try to save as much money as you can.

You’ll have the proceeds from the sale of your rental house in the bank to help you if you need it while you are getting your primary ready to list, listing it for sale and all the way through COE until your stuff is packed up.

If you leave the area for a distant job, I would just rent first in the new area before deciding to buy as you really won’t know at that time if you will like the new job, the new job will like you or if you will like the locale.

Don’t sell your primary and move if you haven’t yet lost your job, that is, unless you don’t mind moving back into your rental and can do so cheaply. Then my former suggestions (above) would be reversed. If you do it this way, you would then be stuck living in your old house if your job was spared and would have the proceeds from the sale of your primary in the bank.

I just remember posts from you that you didn’t really like the neighbors around your rental house when you were living there. Perhaps they have mostly all changed now … the former ones having been foreclosed upon, given keys for cash, or sold short.

[bearishgurl]

[quote=kev374]LMAO, the weekend hasn’t even started and it’s already sold!!! Unbelievable!

http://www.redfin.com/CA/San-Diego/7666-Canyon-Point-Ln-92126/home/4543161

Redfin is unable to take you out on tour to see this home because the sellers have accepted an offer and the property is now pending or under contract[/quote]

LYAO, what does this tell you, kev?

Have you gotten your list together and contacted your agent for showings yet?

[bearishgurl]

Remember, kev, that after selling, I, too, have to live somewhere. But at that point, I will be a cash buyer … that is, unless I move to the SF Bay area. If I decide to buy there, I will take out a very small mortgage.

The “inventory shortage” is much more pronounced up there but I’m not worried that I won’t be able to find something. Why? I will accept a fixer as long as it is structurally sound. In addition, I’m not as “picky” about neighborhood as a lot of Pigg “helicopter parents” seem to be. And, even if I had my kid living with me (currently in HS), I won’t be bothering to check the Megan’s Law website to check a listing I’m placing an offer on. Why? Because I don’t care and neither does my kid! A PC 290 registrant can be living across the street with a telescope in their window and it won’t bother me a bit.

For example, in the absence of an inspection, the following listing (which took me all of two minutes to find online) appears to be acceptable to me to make an offer on. And I might even be willing to inspect a listing myself or with a knowledgeable friend and waive a “professional inspection” with a completed termite clearance in hand and proof of recent pest control services contracted by the seller.

http://www.realtor.com/realestateandhomes-detail/730-Norvell-St_El-Cerrito_CA_94530_M23399-96997?row=1#axzz2QHorZPrH

There are few more acceptable properties to me in this area to choose from.

kev, if you don’t yet have a principal residence and need one in the OC, I think you should rethink making offers in those nice, stable, convenient ‘hoods in the OC that you consider to be “blue collar.” WTH is wrong with your kids (if you have any) being able to ride their bikes to CA Adventure Park? I carefully perused the $400K listing which NSR posted here on your thread:

http://piggington.com/tons_of_inventory_in_san_diego_none_in_orange_county#comment-228533

http://www.redfin.com/CA/Anaheim/1401-W-Dogwood-Ave-92801/home/3196204

http://www.redfin.com/CA/Anaheim/1401-W-Dogwood-Ave-92801/home/3196204#quickMap

…and on the surface (without an inspection), it appears to be perfectly acceptable with a largish flat lot. In addition, it appears to be a stone’s throw from a major hospital and could be rented to medical professionals VERY steadily for YEARS, IMO, should you decide to move out and turn it into a rental.

Of course prospective wanna-be homeowners today always have the option of “waiting for a better day” before they decide to make offers.

Good luck with that, kev. If you’re wishing and hoping for 2009/10 again in CA coastal counties before you decide to make any offers, you may very well find yourself a lifelong renter. If that’s your goal, more power to you.

In a nutshell, today’s buyer’s should be completely realistic in their househunt and get out there (preferably with a knowledgeable construction friend), to see what’s available to buy NOW. Fantasies of a particular “lifestyle” have no business in a young family’s househunt who needs a house ASAP. Especially not in the househunt of a FTB, IMHO. Buyers today also need to be decisive and act forthwith when they see an acceptable listing or they may very well find themselves fence-sitting into oblivion.

[bearishgurl]

[quote=The-Shoveler]… Also a lot of times the High Tech company, started as as small company next to the Rich guy’s home who started it, you’er average worker engineer needs to drive unless he wants to live in a condo (mostly what he can afford there and these can run 500K-700K for a 2 bed 2 bath in some area’s in L.A.)[/quote]

Yes, I recently checked, shoveler, and was shocked to discover that 1 br condos in Long Beach are now being listed in the $500K range. That is absolutely astounding in my book.

[bearishgurl]

[quote=The-Shoveler]”Since good jobs are almost everywhere in LA County, this requirement can likely be met ”

Not so much,

you’re starting an urban legend I think…[/quote]

That was not my intention, shoveler. I’m referring to FIRE industry jobs and law. I’m a paralegal but am also qualified to work in escrow, title cos, property mgmt or the insurance industry. These jobs are nearly EVERYWHERE in LA County, as well and Orange and Ventura Counties. Ventura County is actually the insurance capital of SoCal.

CAR is right. The east-west thoroughfares of LA County are VERY lo-o-o-ong and I have found a couple of them (Figueroa St is my fav) to have synchronized traffic lights.

Length 25.00 mi (40.23 km)

http://en.wikipedia.org/wiki/Figueroa_Street

Although I don’t know all the secret “ins and outs,” of LA County (as CAR does), I DO know where many of them are in SF and Alameda Counties. Most of them are in the form of completely unmarked (or signed behind large trees) freeway entrances and underpasses :=0

[bearishgurl]

[quote=Jazzman]All makes sense. Over supply of rentals is going to depress rent price. Doesn’t matter where it is?

BG can you explain your comment “If you need a home for your family now, ignore it at your peril.”? Do you expect home prices to increase dramatically soon, and if so what perils are you so fearful of. With so many complaints from buyers of no inventory, and prices rising pretty quickly, I’d continue to rent especially if rents are softening.[/quote]

The perils of the wanna-be Pigg buying crowd (yourself included in the first two categories, Jazzman :)) are threefold, in order of impact:

-waited too long to buy due to being overly picky

-perceived inventory shortages, leading to less ability to be picky

-interest rates could gradually rise, leading to even less ability to be picky, and even possibly being eventually shut out altogether

All the current buying problems can be fixed if today’s homebuyers were “less picky.” I didn’t say that they should “lower their standards.” I said they should be “less picky.”

“Pickiness” and lack of being able to see the forest for the trees on the part of many buyers is the elephant in the room here … not “lack of inventory.”

As a prospective seller in the coming year, I have no fears. I will either receive one or more acceptable offers, one of which I will accept or place my home into rental service.

And I don’t have any fear whatsoever of finding a qualified tenant for it.

How is it do you think “rent softening” in some areas is going to affect resale values, Jazzman? And would you personally buy a home for yourself which had been a former rental or buy a personal residence located within a sea of former rentals which were now listed for sale due to “rent softening?”

*********************************************************

I didn’t think so.

[bearishgurl]

[quote=The-Shoveler]In defense of the commuters, people who have worked in L.A. for any length of time., an Hour commute is just on the long side of normal, 40 minutes is average).

Like I said you buy your first home 15 minutes from work, 5 years later you’re driving an hour to get to your next gig, it’s fairly normal there (unless you want to buy another home every five years, some do).

I actually drive to Santa Ana airport (from north county), it’s a little further mile wise but the drive is much nicer than going down to San Diego airport.

L.A. is not a bad place to live actually (most won’t admit that) but most of my friends I grew up with moved out only to move back and plan to retire there.

(there are places I would not drive even during the daytime however)[/quote]

Yeah, shoveler, there are a lot of places I would live in LA County. As long as one isn’t freeway dependent five days per week, living there is very convenient. Some of the suburbs are heavily treed and very beautiful. The bulk of it is more established than metro San Diego. If I lived there, I just wouldn’t accept a new job which would render me freeway dependent. I would take jobs only in my general area. Since good jobs are almost everywhere in LA County, this requirement can likely be met … unlike SD County.

And moving every five years or so (if in high tech) is probably okay, too, for a lot of workers.

I feel the same way about the SF bay area but commuting nightmares are even more pronounced up there because its counties are not contiguous to one another. The terrain in ALL of the SF Bay counties is more interesting and naturally beautiful than that in SoCal, IMO, because it is not considered “irrigated desert” up there.

I love the pines on the freeways in NorCal.

[bearishgurl]

kev, just like this thread, you recently started this other thread but then did not participate in it.

Just like your previous thread, I believe your assumptions are in error here.

http://piggington.com/tons_of_inventory_in_san_diego_none_in_orange_county

Your Forbes article mentions LA County but not SD County. It doesn’t really matter though, because if bulk investors have to piecemeal sell any of their CA coastal rental inventory as leases expire and they can’t easily fill the units, then they are poised to make a GREAT profit!

Remember that these investors bought these (previously distressed apt bldgs?) dirt cheap and rehabbed many of them themselves. I’m sure their investors will be plenty happy upon COE of these slow rental projects and trickling them out into the market isn’t going to affect RE prices one way or another, especially the CA coastal SFR market.

Please feel free to correct me if I have this wrong, but by this thread and your last one (which you didn’t participate in yourself), you seem to be suggesting that the SoCal coastal housing market is poised for an imminent “crash” of sorts.

Are you actually a wishful prospective buyer looking for a principal residence? If so, I would implore you to log off your computer, hit the streets and get busy placing offers on homes before you will no longer be able to.

This suggestion isn’t coming from a “pollyanna” . . . far from it. If you need a home for your family now, ignore it at your peril.

[bearishgurl]

[quote=earlyretirement][quote=bearishgurl]ER, your assumptions about me are incorrect but I do like reading your posts 🙂 However, I will pm you so as not to hijack this thread any further.[/quote]

Sorry BG. Thanks for the PM. I’ll take a look at it tonight and respond via PM. Also, I didn’t want to give the wrong idea about people commuting. I’m NOT trying to justify it at all and it’s not even like I mean it’s normal or there are a lot of people doing it.

I just mentioned it to give an idea how bad the job market is here for some. I only know 3 people doing it so I didn’t want to give anyone the wrong idea about that or that I justify it at all. I mentioned the few people I know doing it because I wanted it to indicate how tough of a time they are finding a job here in SD.

BG I also enjoy your posts.[/quote]

I agree the job market AND pay in SD County isn’t what it is in other CA coastal counties. My kid(s) will attest to that. My last kid (in HS) is currently eager to leave SD for college and greener pastures elsewhere.

I very well might be right behind them.

I say more power to them. And stay successful so their parents can go away to “retire.”

This “independence” makes it easier for a tired parent like me to make a choice to sell or rent the homestead and do what I want to, for a change 🙂

[bearishgurl]

[quote=The-Shoveler]Funny I was in San Jose two weeks ago and my colleague was telling me that BlackStone was buying SFH on the open market in the area (Sunnyvale, san Jose, mountain view etc…) (there virtually are no distress sales there these days).

I thought that’s crazy, also I can tell you the start-up’s up there are going ballistic. I am seeing guy’s in their 50’s and working for large companies who have been there 10-15 years leave for start-up’s.
It’s crazy.[/quote]

WOW, if I could move NOW, I would start interviewing in SV for a great job if old people are actually being hired in SV!

After all, I’m not dead yet :=0

I’m wondering what Blackstone is really buying in Santa Clara County. I can’t in my wildest dreams imagine that it is SFRs. Even as high as the rents are there, the acquisition cost and taxes of only a modest SFR are very, very high there.

Could it be condos or row homes? Or could it actually be on the other side of the Dumbarton Bridge (Fremont) or around the east side along the Nimitz fwy to SJ.

I’ll believe it when I see it.

There are still plenty of SFR’s to buy up in BK’d Stockton.

[bearishgurl]

Thanks, SK, for clarifying the difference between a “hedge fund” and a private-equity REIT. I read the links CAR provided on this thread below (repeated by livinincali here) but didn’t possess your body of knowledge to actually determine if leverage was actually used in Blackstone’s and Santa Monica-based Colony Capital’s acquisitions (for example) or the degree at which these (SFR) acquisitions could have later been leveraged.

February 2013 Resale Data Rodeo (Graphs Only)

My understanding is that properties within coastal CA counties are not included in the (previously distressed) buy-and-hold portfolios of these two giant REITs. I am unclear if Blackstone has actually made any bulk acquisitions in CA. My understanding from the two e-mail messages I rec’d to start the thread below is that Colony had purchased up distressed SFR’s in bulk in the inland Counties of San Bernardino, Riverside, Kern, Fresno, Merced, San Joaquin, Sacramento and possibly Stanislaus.

http://piggington.com/as_predicted_frannie_is_beginning_to_sells_blocks_of_assets_in_b?page=1

It doesn’t seem as if there would be a good reason for lenders or Fannie/Freddie to unload in bulk SFR’s which are situated in urban CA coastal counties at deep discounts to REITs. My reasoning is that these REO’s were/are very salable due to having a good local job market and also traditionally having an otherwise “captive audience.”

[bearishgurl]

ER, your assumptions about me are incorrect but I do like reading your posts 🙂 However, I will pm you so as not to hijack this thread any further.

[bearishgurl]

I think CSU must have “dumbed down” their FT-student status in recent years (from 12 to 6 sem units) due to budget cuts. It’s now practically impossible for a CSU junior or senior attending the most popular urban campuses to obtain more than 2 classes at a time (6 units) in their major emphasis of study.

Hence, the “career student” (by default and necessity) is born!

The CSU “system” is now endeavoring to keep all students attending for 6-8 years (and paying $2536++ every semester) so they can eventually graduate with a Bachelor Degree.

[bearishgurl]

[quote=Essbee][quote=bearishgurl]
btw, I love the houses in Alvarado Estates. Is that where you grew up, Essbee?[/quote]

No, but my parents live in 92115, and I’ve gone jogging there before. Even though gated, it was pretty easy to get in/out as a pedestrian.

The SDSU president’s house is somewhere in there.
Here’s an article about “too much spending on university president’s houses while tuitions rise.”

http://abclocal.go.com/kgo/story?section=news/state&id=8680455

From a list in that article:
“San Diego State University: President Elliot Hirshman lives in University House in Alvarado Estates, not far from campus.
Square feet: 5,216
Bedrooms: 4
Bathrooms: 4
Built: 1962
Sales price: $1.2 million (in 2000)
Renovations: The university spent $257,000 using a combination of donor funds, lease revenue and catering revenue to renovate University House, including interior and exterior painting, replacement of large windows, a kitchen renovation, new carpet, pool replastering, a catering kitchen and more. “[/quote]

Very interesting, Essbee. Here is the accompanying article about SDSU’s president’s home:

http://www.10news.com/news/sdsu-president-s-home-renovation-questioned

CSU’s rates are now $1587 for ONE 3-unit (incomplete or previously-failed) class and $2736 for 6 semester units (now considered “FT”).

Tuition at CSU (“fees” in CA), have risen eight times since 2004!

http://www.calstate.edu/budget/student-fees/fee-rates/

I’m beyond gratified to hear that SDSU President Hirshman has a remodeled kitchen.

[Author]

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