Forum Replies Created
-
AuthorPosts
-
bearishgurl
Participant[quote=CONCHO] . . . With a low enough mortgage and enough equity in the property it shouldn’t be too difficult to build up the reserves in case you have to mitigate a termite/roach/meth lab infestation. It’s still less scary than throwing your money into the Wall St. casino IMO.
Thanks for the tips, they make a lot of sense.[/quote]
Concho, be careful in medium-sized cities/towns and rural areas of OK and MO. The mid-nineties “Lakeside, CA” problem has migrated to these places and is difficult for their far-and-few between sheriff’s offices to eradicate. These areas don’t have a noisy “Dianne Jacob” advocating for Federal and State funding for a “Meth Strike Force,” like we in SD County did. They’re also not 10 mi. from the border with NTF and DEA personnel at their disposal.
If you decide to purchase in these areas (which incidently are lovely and full of lakes) get a LOCAL hands-on mgr. and STRICTLY FORBID the parking of any tractor trailers, mobile homes or any other trailers but perhaps horse or boat/jet-ski trailers on the property. Do NOT install a gas stove or cooktop. If one is there, replace it and terminate the gas valve.
I feel SO SORRY for the children led out of these h@llholes by social services personnel. I have seen it firsthand and it is disgusting and so SAD!
Participant[quote=CONCHO] . . . With a low enough mortgage and enough equity in the property it shouldn’t be too difficult to build up the reserves in case you have to mitigate a termite/roach/meth lab infestation. It’s still less scary than throwing your money into the Wall St. casino IMO.
Thanks for the tips, they make a lot of sense.[/quote]
Concho, be careful in medium-sized cities/towns and rural areas of OK and MO. The mid-nineties “Lakeside, CA” problem has migrated to these places and is difficult for their far-and-few between sheriff’s offices to eradicate. These areas don’t have a noisy “Dianne Jacob” advocating for Federal and State funding for a “Meth Strike Force,” like we in SD County did. They’re also not 10 mi. from the border with NTF and DEA personnel at their disposal.
If you decide to purchase in these areas (which incidently are lovely and full of lakes) get a LOCAL hands-on mgr. and STRICTLY FORBID the parking of any tractor trailers, mobile homes or any other trailers but perhaps horse or boat/jet-ski trailers on the property. Do NOT install a gas stove or cooktop. If one is there, replace it and terminate the gas valve.
I feel SO SORRY for the children led out of these h@llholes by social services personnel. I have seen it firsthand and it is disgusting and so SAD!
Participant[quote=HLS]Suggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.[/quote]I agree with HLS here, except that I favor investing in CA properties.
Yes, properties are cheaper in some areas of the south and center of the country, but so are rents. It’s not uncommon to be able to rent a 3/2/2 SFR in the midwest, south or southwest part of the country for $350 – $650 mo. As a landlord, you will also have to service A/C. Many jurisdictions in these states do not have zoning, esp. in smaller communities which have the asking prices that HLS is talking about. For example, your SFR may have a 1958 rusty John Deere tractor or cab from an old tractor-trailer that has been parked 4″ on their side of on the property line next door SINCE IT WAS NEW and that is legal. It’s not uncommon for multiple dilapidated “mobile-home” parks to be mixed in with “middle-class” SFR tracts. Many of these older trailers have old tires on their roofs in attempt to keep the wind from blowing their roof off. Mobile home parks typically are NOT fenced or walled off, like they are here in O’side, Spring Valley and Chula. This is prevalent in WY, OK, TX, NM, AZ and MO.
Your tenants won’t care about this because they are “used to it.” But conditions such as these keep property values stagnant, so if you ever need to sell, it will actually cost you to sell in the form of a RE commission.
Minor hijack: I don’t mean to come off as a “snob” – I’m actually headed on a road trip to 4 of the above-mentioned states next week. I have made this 3000+ mile round-trip many, many times. The citizens in those states are, for the most part, nice, friendly and helpful. But they are not people who purchase RE purely as an “investment.” They purchase it to live in, get rental income, operate their business on and put their livestock on. I have one relative who has been a REMAX broker since 1961 and is still working. I have another relative who has been a medium-sized tract builder since 1958 and is now retired and has deeded hundreds of acres of land to his children. I have another relative who is 85 now and still managing her 6-unit “court” apt. complex and drives her imron maroon 1976 Caddy convertible w/white leather (always been garaged) to collect the rent – LOL! (She also has a white [frequently mudstained] late-model Cad. Northstar that “talks.”) I have a half dozen other relatives there who became multimillionaries selling oil-drilling rights on their land or operating long-time well-established businesses. Several own large, lakefront vacation homes w/private boat docks, which are ONLY OCCUPIED sporadically by family members (left unoccupied when not in use because they don’t need the rental income). All have beautiful large newer brick homes, many on 5+ AC lots. But all these properties are worth as much (or LESS) than my home here in Chula on a 6800 sf lot. No one cares about this there. All their needs are provided for – in fine style, I might add. Their values regarding RE are different than ours.[end of hijack]
Concho, do you speak Spanish?? 91911 (Chula) and 92154 (Otay Mesa/Nestor) have many older 3/2/2 SFR’s in the $175K – $275K range. There is no MR or HOAs in the SFRs on the WEST side of the 805. Many tenants in those zips pay cash every month for rent and expect the landlord to come by and pick it up and give them a receipt. You can manage and do the repairs yourself.
An area out of county I am watching is South Lake Tahoe, city proper, in El Dorado Co. (CA side). There have in recent months been 30-50 year old 3/2/2 SFR’s on 6,000 – 12,000 sf lots avail (mostly “ranches”) from $175K to $275K. Most are on the free bus line to Heavenly Resort. You can turn the property over to mgmt. because this area is zoned for day/week/month rentals. Your mo. mgmt. fee will likely be higher than the customary 10% however, due to frequent tenant turnover, cleaning/linen service and utilities (which could be high in the winter). If the snow is good, you could very well get $5K or more per mo. rent for 3-4 mos. year minus expenses (mgmt. fee, repairs/replacements and cleaning/linen svc.)
In the summer, you can get boating-family tenants because public boat-launches are very close by. Hopefully, you could get $4K to $8K rent minus expenses for the summer months. In the spring or fall (more likely Apr/May), you may have a two-week vacancy block and can go up and stay there yourself, go hiking and smell the pines and do repairs for the next ski season. You will never have to wrap the pipes if it is a cold winter, because the house will be filled. If it’s not a very snowy winter, it won’t be filled as much but it won’t be cold enough to have to wrap the pipes. If you purchase the property without a hot tub, you will have to at least purchase a portable one and set it out on the deck or patio. Skiing tenants there expect this.
If you snag a cosmetic-fixer foreclosure, make sure the deck and any stairs leading to it are safe and termite free. You may have to fix and paint. Put ceramic tile or “pergo” on the flr. and rubber-backed rugs. DON’T INSTALL CARPET! Put the TV on a wall shelf, stand or armoire and lock it down. Chain the DVD player to a wall stud or armoire. Get newish clean furn/futons and spray the upholstered pieces with scotchguard. Attach 12 pegs to the wall to prop up six sets or skis/boards if not already done. Buy new “closeout” mattresses (pillowtop in MBR). Your mgmt. co will tell you what to buy or what they do about the rest of the stuff. Bring from or buy all the big stuff here or in LA/RIV/SanBern and haul it in. There aren’t those kinds of stores up there except in Reno, which is about 47 mi. away.
See: http://www.laketahoerealestateblog.com/Neighborhoods/Bijou/statistics.html
If you find yourself hassled by the day/week/mo. thing, just rent it to a local family or retirees (yr. round) or ski-area employees (5 mos. yr).
Sorry for the long post. Just wanted to get you started “thinking outside the `condo’ box”
When you retire from work, Concho, your Tahoe property will hopefully be paid off and you can tell everyone you’ve been long meaning to to take a flying leap and move in there yourself 😉
Participant[quote=HLS]Suggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.[/quote]I agree with HLS here, except that I favor investing in CA properties.
Yes, properties are cheaper in some areas of the south and center of the country, but so are rents. It’s not uncommon to be able to rent a 3/2/2 SFR in the midwest, south or southwest part of the country for $350 – $650 mo. As a landlord, you will also have to service A/C. Many jurisdictions in these states do not have zoning, esp. in smaller communities which have the asking prices that HLS is talking about. For example, your SFR may have a 1958 rusty John Deere tractor or cab from an old tractor-trailer that has been parked 4″ on their side of on the property line next door SINCE IT WAS NEW and that is legal. It’s not uncommon for multiple dilapidated “mobile-home” parks to be mixed in with “middle-class” SFR tracts. Many of these older trailers have old tires on their roofs in attempt to keep the wind from blowing their roof off. Mobile home parks typically are NOT fenced or walled off, like they are here in O’side, Spring Valley and Chula. This is prevalent in WY, OK, TX, NM, AZ and MO.
Your tenants won’t care about this because they are “used to it.” But conditions such as these keep property values stagnant, so if you ever need to sell, it will actually cost you to sell in the form of a RE commission.
Minor hijack: I don’t mean to come off as a “snob” – I’m actually headed on a road trip to 4 of the above-mentioned states next week. I have made this 3000+ mile round-trip many, many times. The citizens in those states are, for the most part, nice, friendly and helpful. But they are not people who purchase RE purely as an “investment.” They purchase it to live in, get rental income, operate their business on and put their livestock on. I have one relative who has been a REMAX broker since 1961 and is still working. I have another relative who has been a medium-sized tract builder since 1958 and is now retired and has deeded hundreds of acres of land to his children. I have another relative who is 85 now and still managing her 6-unit “court” apt. complex and drives her imron maroon 1976 Caddy convertible w/white leather (always been garaged) to collect the rent – LOL! (She also has a white [frequently mudstained] late-model Cad. Northstar that “talks.”) I have a half dozen other relatives there who became multimillionaries selling oil-drilling rights on their land or operating long-time well-established businesses. Several own large, lakefront vacation homes w/private boat docks, which are ONLY OCCUPIED sporadically by family members (left unoccupied when not in use because they don’t need the rental income). All have beautiful large newer brick homes, many on 5+ AC lots. But all these properties are worth as much (or LESS) than my home here in Chula on a 6800 sf lot. No one cares about this there. All their needs are provided for – in fine style, I might add. Their values regarding RE are different than ours.[end of hijack]
Concho, do you speak Spanish?? 91911 (Chula) and 92154 (Otay Mesa/Nestor) have many older 3/2/2 SFR’s in the $175K – $275K range. There is no MR or HOAs in the SFRs on the WEST side of the 805. Many tenants in those zips pay cash every month for rent and expect the landlord to come by and pick it up and give them a receipt. You can manage and do the repairs yourself.
An area out of county I am watching is South Lake Tahoe, city proper, in El Dorado Co. (CA side). There have in recent months been 30-50 year old 3/2/2 SFR’s on 6,000 – 12,000 sf lots avail (mostly “ranches”) from $175K to $275K. Most are on the free bus line to Heavenly Resort. You can turn the property over to mgmt. because this area is zoned for day/week/month rentals. Your mo. mgmt. fee will likely be higher than the customary 10% however, due to frequent tenant turnover, cleaning/linen service and utilities (which could be high in the winter). If the snow is good, you could very well get $5K or more per mo. rent for 3-4 mos. year minus expenses (mgmt. fee, repairs/replacements and cleaning/linen svc.)
In the summer, you can get boating-family tenants because public boat-launches are very close by. Hopefully, you could get $4K to $8K rent minus expenses for the summer months. In the spring or fall (more likely Apr/May), you may have a two-week vacancy block and can go up and stay there yourself, go hiking and smell the pines and do repairs for the next ski season. You will never have to wrap the pipes if it is a cold winter, because the house will be filled. If it’s not a very snowy winter, it won’t be filled as much but it won’t be cold enough to have to wrap the pipes. If you purchase the property without a hot tub, you will have to at least purchase a portable one and set it out on the deck or patio. Skiing tenants there expect this.
If you snag a cosmetic-fixer foreclosure, make sure the deck and any stairs leading to it are safe and termite free. You may have to fix and paint. Put ceramic tile or “pergo” on the flr. and rubber-backed rugs. DON’T INSTALL CARPET! Put the TV on a wall shelf, stand or armoire and lock it down. Chain the DVD player to a wall stud or armoire. Get newish clean furn/futons and spray the upholstered pieces with scotchguard. Attach 12 pegs to the wall to prop up six sets or skis/boards if not already done. Buy new “closeout” mattresses (pillowtop in MBR). Your mgmt. co will tell you what to buy or what they do about the rest of the stuff. Bring from or buy all the big stuff here or in LA/RIV/SanBern and haul it in. There aren’t those kinds of stores up there except in Reno, which is about 47 mi. away.
See: http://www.laketahoerealestateblog.com/Neighborhoods/Bijou/statistics.html
If you find yourself hassled by the day/week/mo. thing, just rent it to a local family or retirees (yr. round) or ski-area employees (5 mos. yr).
Sorry for the long post. Just wanted to get you started “thinking outside the `condo’ box”
When you retire from work, Concho, your Tahoe property will hopefully be paid off and you can tell everyone you’ve been long meaning to to take a flying leap and move in there yourself 😉
Participant[quote=HLS]Suggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.[/quote]I agree with HLS here, except that I favor investing in CA properties.
Yes, properties are cheaper in some areas of the south and center of the country, but so are rents. It’s not uncommon to be able to rent a 3/2/2 SFR in the midwest, south or southwest part of the country for $350 – $650 mo. As a landlord, you will also have to service A/C. Many jurisdictions in these states do not have zoning, esp. in smaller communities which have the asking prices that HLS is talking about. For example, your SFR may have a 1958 rusty John Deere tractor or cab from an old tractor-trailer that has been parked 4″ on their side of on the property line next door SINCE IT WAS NEW and that is legal. It’s not uncommon for multiple dilapidated “mobile-home” parks to be mixed in with “middle-class” SFR tracts. Many of these older trailers have old tires on their roofs in attempt to keep the wind from blowing their roof off. Mobile home parks typically are NOT fenced or walled off, like they are here in O’side, Spring Valley and Chula. This is prevalent in WY, OK, TX, NM, AZ and MO.
Your tenants won’t care about this because they are “used to it.” But conditions such as these keep property values stagnant, so if you ever need to sell, it will actually cost you to sell in the form of a RE commission.
Minor hijack: I don’t mean to come off as a “snob” – I’m actually headed on a road trip to 4 of the above-mentioned states next week. I have made this 3000+ mile round-trip many, many times. The citizens in those states are, for the most part, nice, friendly and helpful. But they are not people who purchase RE purely as an “investment.” They purchase it to live in, get rental income, operate their business on and put their livestock on. I have one relative who has been a REMAX broker since 1961 and is still working. I have another relative who has been a medium-sized tract builder since 1958 and is now retired and has deeded hundreds of acres of land to his children. I have another relative who is 85 now and still managing her 6-unit “court” apt. complex and drives her imron maroon 1976 Caddy convertible w/white leather (always been garaged) to collect the rent – LOL! (She also has a white [frequently mudstained] late-model Cad. Northstar that “talks.”) I have a half dozen other relatives there who became multimillionaries selling oil-drilling rights on their land or operating long-time well-established businesses. Several own large, lakefront vacation homes w/private boat docks, which are ONLY OCCUPIED sporadically by family members (left unoccupied when not in use because they don’t need the rental income). All have beautiful large newer brick homes, many on 5+ AC lots. But all these properties are worth as much (or LESS) than my home here in Chula on a 6800 sf lot. No one cares about this there. All their needs are provided for – in fine style, I might add. Their values regarding RE are different than ours.[end of hijack]
Concho, do you speak Spanish?? 91911 (Chula) and 92154 (Otay Mesa/Nestor) have many older 3/2/2 SFR’s in the $175K – $275K range. There is no MR or HOAs in the SFRs on the WEST side of the 805. Many tenants in those zips pay cash every month for rent and expect the landlord to come by and pick it up and give them a receipt. You can manage and do the repairs yourself.
An area out of county I am watching is South Lake Tahoe, city proper, in El Dorado Co. (CA side). There have in recent months been 30-50 year old 3/2/2 SFR’s on 6,000 – 12,000 sf lots avail (mostly “ranches”) from $175K to $275K. Most are on the free bus line to Heavenly Resort. You can turn the property over to mgmt. because this area is zoned for day/week/month rentals. Your mo. mgmt. fee will likely be higher than the customary 10% however, due to frequent tenant turnover, cleaning/linen service and utilities (which could be high in the winter). If the snow is good, you could very well get $5K or more per mo. rent for 3-4 mos. year minus expenses (mgmt. fee, repairs/replacements and cleaning/linen svc.)
In the summer, you can get boating-family tenants because public boat-launches are very close by. Hopefully, you could get $4K to $8K rent minus expenses for the summer months. In the spring or fall (more likely Apr/May), you may have a two-week vacancy block and can go up and stay there yourself, go hiking and smell the pines and do repairs for the next ski season. You will never have to wrap the pipes if it is a cold winter, because the house will be filled. If it’s not a very snowy winter, it won’t be filled as much but it won’t be cold enough to have to wrap the pipes. If you purchase the property without a hot tub, you will have to at least purchase a portable one and set it out on the deck or patio. Skiing tenants there expect this.
If you snag a cosmetic-fixer foreclosure, make sure the deck and any stairs leading to it are safe and termite free. You may have to fix and paint. Put ceramic tile or “pergo” on the flr. and rubber-backed rugs. DON’T INSTALL CARPET! Put the TV on a wall shelf, stand or armoire and lock it down. Chain the DVD player to a wall stud or armoire. Get newish clean furn/futons and spray the upholstered pieces with scotchguard. Attach 12 pegs to the wall to prop up six sets or skis/boards if not already done. Buy new “closeout” mattresses (pillowtop in MBR). Your mgmt. co will tell you what to buy or what they do about the rest of the stuff. Bring from or buy all the big stuff here or in LA/RIV/SanBern and haul it in. There aren’t those kinds of stores up there except in Reno, which is about 47 mi. away.
See: http://www.laketahoerealestateblog.com/Neighborhoods/Bijou/statistics.html
If you find yourself hassled by the day/week/mo. thing, just rent it to a local family or retirees (yr. round) or ski-area employees (5 mos. yr).
Sorry for the long post. Just wanted to get you started “thinking outside the `condo’ box”
When you retire from work, Concho, your Tahoe property will hopefully be paid off and you can tell everyone you’ve been long meaning to to take a flying leap and move in there yourself 😉
Participant[quote=HLS]Suggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.[/quote]I agree with HLS here, except that I favor investing in CA properties.
Yes, properties are cheaper in some areas of the south and center of the country, but so are rents. It’s not uncommon to be able to rent a 3/2/2 SFR in the midwest, south or southwest part of the country for $350 – $650 mo. As a landlord, you will also have to service A/C. Many jurisdictions in these states do not have zoning, esp. in smaller communities which have the asking prices that HLS is talking about. For example, your SFR may have a 1958 rusty John Deere tractor or cab from an old tractor-trailer that has been parked 4″ on their side of on the property line next door SINCE IT WAS NEW and that is legal. It’s not uncommon for multiple dilapidated “mobile-home” parks to be mixed in with “middle-class” SFR tracts. Many of these older trailers have old tires on their roofs in attempt to keep the wind from blowing their roof off. Mobile home parks typically are NOT fenced or walled off, like they are here in O’side, Spring Valley and Chula. This is prevalent in WY, OK, TX, NM, AZ and MO.
Your tenants won’t care about this because they are “used to it.” But conditions such as these keep property values stagnant, so if you ever need to sell, it will actually cost you to sell in the form of a RE commission.
Minor hijack: I don’t mean to come off as a “snob” – I’m actually headed on a road trip to 4 of the above-mentioned states next week. I have made this 3000+ mile round-trip many, many times. The citizens in those states are, for the most part, nice, friendly and helpful. But they are not people who purchase RE purely as an “investment.” They purchase it to live in, get rental income, operate their business on and put their livestock on. I have one relative who has been a REMAX broker since 1961 and is still working. I have another relative who has been a medium-sized tract builder since 1958 and is now retired and has deeded hundreds of acres of land to his children. I have another relative who is 85 now and still managing her 6-unit “court” apt. complex and drives her imron maroon 1976 Caddy convertible w/white leather (always been garaged) to collect the rent – LOL! (She also has a white [frequently mudstained] late-model Cad. Northstar that “talks.”) I have a half dozen other relatives there who became multimillionaries selling oil-drilling rights on their land or operating long-time well-established businesses. Several own large, lakefront vacation homes w/private boat docks, which are ONLY OCCUPIED sporadically by family members (left unoccupied when not in use because they don’t need the rental income). All have beautiful large newer brick homes, many on 5+ AC lots. But all these properties are worth as much (or LESS) than my home here in Chula on a 6800 sf lot. No one cares about this there. All their needs are provided for – in fine style, I might add. Their values regarding RE are different than ours.[end of hijack]
Concho, do you speak Spanish?? 91911 (Chula) and 92154 (Otay Mesa/Nestor) have many older 3/2/2 SFR’s in the $175K – $275K range. There is no MR or HOAs in the SFRs on the WEST side of the 805. Many tenants in those zips pay cash every month for rent and expect the landlord to come by and pick it up and give them a receipt. You can manage and do the repairs yourself.
An area out of county I am watching is South Lake Tahoe, city proper, in El Dorado Co. (CA side). There have in recent months been 30-50 year old 3/2/2 SFR’s on 6,000 – 12,000 sf lots avail (mostly “ranches”) from $175K to $275K. Most are on the free bus line to Heavenly Resort. You can turn the property over to mgmt. because this area is zoned for day/week/month rentals. Your mo. mgmt. fee will likely be higher than the customary 10% however, due to frequent tenant turnover, cleaning/linen service and utilities (which could be high in the winter). If the snow is good, you could very well get $5K or more per mo. rent for 3-4 mos. year minus expenses (mgmt. fee, repairs/replacements and cleaning/linen svc.)
In the summer, you can get boating-family tenants because public boat-launches are very close by. Hopefully, you could get $4K to $8K rent minus expenses for the summer months. In the spring or fall (more likely Apr/May), you may have a two-week vacancy block and can go up and stay there yourself, go hiking and smell the pines and do repairs for the next ski season. You will never have to wrap the pipes if it is a cold winter, because the house will be filled. If it’s not a very snowy winter, it won’t be filled as much but it won’t be cold enough to have to wrap the pipes. If you purchase the property without a hot tub, you will have to at least purchase a portable one and set it out on the deck or patio. Skiing tenants there expect this.
If you snag a cosmetic-fixer foreclosure, make sure the deck and any stairs leading to it are safe and termite free. You may have to fix and paint. Put ceramic tile or “pergo” on the flr. and rubber-backed rugs. DON’T INSTALL CARPET! Put the TV on a wall shelf, stand or armoire and lock it down. Chain the DVD player to a wall stud or armoire. Get newish clean furn/futons and spray the upholstered pieces with scotchguard. Attach 12 pegs to the wall to prop up six sets or skis/boards if not already done. Buy new “closeout” mattresses (pillowtop in MBR). Your mgmt. co will tell you what to buy or what they do about the rest of the stuff. Bring from or buy all the big stuff here or in LA/RIV/SanBern and haul it in. There aren’t those kinds of stores up there except in Reno, which is about 47 mi. away.
See: http://www.laketahoerealestateblog.com/Neighborhoods/Bijou/statistics.html
If you find yourself hassled by the day/week/mo. thing, just rent it to a local family or retirees (yr. round) or ski-area employees (5 mos. yr).
Sorry for the long post. Just wanted to get you started “thinking outside the `condo’ box”
When you retire from work, Concho, your Tahoe property will hopefully be paid off and you can tell everyone you’ve been long meaning to to take a flying leap and move in there yourself 😉
Participant[quote=HLS]Suggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.[/quote]I agree with HLS here, except that I favor investing in CA properties.
Yes, properties are cheaper in some areas of the south and center of the country, but so are rents. It’s not uncommon to be able to rent a 3/2/2 SFR in the midwest, south or southwest part of the country for $350 – $650 mo. As a landlord, you will also have to service A/C. Many jurisdictions in these states do not have zoning, esp. in smaller communities which have the asking prices that HLS is talking about. For example, your SFR may have a 1958 rusty John Deere tractor or cab from an old tractor-trailer that has been parked 4″ on their side of on the property line next door SINCE IT WAS NEW and that is legal. It’s not uncommon for multiple dilapidated “mobile-home” parks to be mixed in with “middle-class” SFR tracts. Many of these older trailers have old tires on their roofs in attempt to keep the wind from blowing their roof off. Mobile home parks typically are NOT fenced or walled off, like they are here in O’side, Spring Valley and Chula. This is prevalent in WY, OK, TX, NM, AZ and MO.
Your tenants won’t care about this because they are “used to it.” But conditions such as these keep property values stagnant, so if you ever need to sell, it will actually cost you to sell in the form of a RE commission.
Minor hijack: I don’t mean to come off as a “snob” – I’m actually headed on a road trip to 4 of the above-mentioned states next week. I have made this 3000+ mile round-trip many, many times. The citizens in those states are, for the most part, nice, friendly and helpful. But they are not people who purchase RE purely as an “investment.” They purchase it to live in, get rental income, operate their business on and put their livestock on. I have one relative who has been a REMAX broker since 1961 and is still working. I have another relative who has been a medium-sized tract builder since 1958 and is now retired and has deeded hundreds of acres of land to his children. I have another relative who is 85 now and still managing her 6-unit “court” apt. complex and drives her imron maroon 1976 Caddy convertible w/white leather (always been garaged) to collect the rent – LOL! (She also has a white [frequently mudstained] late-model Cad. Northstar that “talks.”) I have a half dozen other relatives there who became multimillionaries selling oil-drilling rights on their land or operating long-time well-established businesses. Several own large, lakefront vacation homes w/private boat docks, which are ONLY OCCUPIED sporadically by family members (left unoccupied when not in use because they don’t need the rental income). All have beautiful large newer brick homes, many on 5+ AC lots. But all these properties are worth as much (or LESS) than my home here in Chula on a 6800 sf lot. No one cares about this there. All their needs are provided for – in fine style, I might add. Their values regarding RE are different than ours.[end of hijack]
Concho, do you speak Spanish?? 91911 (Chula) and 92154 (Otay Mesa/Nestor) have many older 3/2/2 SFR’s in the $175K – $275K range. There is no MR or HOAs in the SFRs on the WEST side of the 805. Many tenants in those zips pay cash every month for rent and expect the landlord to come by and pick it up and give them a receipt. You can manage and do the repairs yourself.
An area out of county I am watching is South Lake Tahoe, city proper, in El Dorado Co. (CA side). There have in recent months been 30-50 year old 3/2/2 SFR’s on 6,000 – 12,000 sf lots avail (mostly “ranches”) from $175K to $275K. Most are on the free bus line to Heavenly Resort. You can turn the property over to mgmt. because this area is zoned for day/week/month rentals. Your mo. mgmt. fee will likely be higher than the customary 10% however, due to frequent tenant turnover, cleaning/linen service and utilities (which could be high in the winter). If the snow is good, you could very well get $5K or more per mo. rent for 3-4 mos. year minus expenses (mgmt. fee, repairs/replacements and cleaning/linen svc.)
In the summer, you can get boating-family tenants because public boat-launches are very close by. Hopefully, you could get $4K to $8K rent minus expenses for the summer months. In the spring or fall (more likely Apr/May), you may have a two-week vacancy block and can go up and stay there yourself, go hiking and smell the pines and do repairs for the next ski season. You will never have to wrap the pipes if it is a cold winter, because the house will be filled. If it’s not a very snowy winter, it won’t be filled as much but it won’t be cold enough to have to wrap the pipes. If you purchase the property without a hot tub, you will have to at least purchase a portable one and set it out on the deck or patio. Skiing tenants there expect this.
If you snag a cosmetic-fixer foreclosure, make sure the deck and any stairs leading to it are safe and termite free. You may have to fix and paint. Put ceramic tile or “pergo” on the flr. and rubber-backed rugs. DON’T INSTALL CARPET! Put the TV on a wall shelf, stand or armoire and lock it down. Chain the DVD player to a wall stud or armoire. Get newish clean furn/futons and spray the upholstered pieces with scotchguard. Attach 12 pegs to the wall to prop up six sets or skis/boards if not already done. Buy new “closeout” mattresses (pillowtop in MBR). Your mgmt. co will tell you what to buy or what they do about the rest of the stuff. Bring from or buy all the big stuff here or in LA/RIV/SanBern and haul it in. There aren’t those kinds of stores up there except in Reno, which is about 47 mi. away.
See: http://www.laketahoerealestateblog.com/Neighborhoods/Bijou/statistics.html
If you find yourself hassled by the day/week/mo. thing, just rent it to a local family or retirees (yr. round) or ski-area employees (5 mos. yr).
Sorry for the long post. Just wanted to get you started “thinking outside the `condo’ box”
When you retire from work, Concho, your Tahoe property will hopefully be paid off and you can tell everyone you’ve been long meaning to to take a flying leap and move in there yourself 😉
Participant[quote=sdrealtor]jp
In NJ the attorneys take the place of the escrow companies. They handle the closings not the contracts. As for the 6% commission, that changed long ago and there are lots of other models going on out there.sdr[/quote]
sdr, I think the attorney-office closings are a good plan. I believe it is the past-practice or model of WY and OK as well. I know attorneys personally perform the abstract/title work for RE closings in both of these states.
This might be a little more exp. than an escrow/title fee (maybe not, as seller pays CLTA in CA and could feasibly split the atty costs).
The vast majority of agents in CA can do a very simple transaction but if ANYTHING AT ALL happens to “trip it up,” they have to seek help from another agent/broker in order to close the deal because they have neither the education or experience. IMO, the bar is set way too low to obtain a RE Salesperson license in CA.
Participant[quote=sdrealtor]jp
In NJ the attorneys take the place of the escrow companies. They handle the closings not the contracts. As for the 6% commission, that changed long ago and there are lots of other models going on out there.sdr[/quote]
sdr, I think the attorney-office closings are a good plan. I believe it is the past-practice or model of WY and OK as well. I know attorneys personally perform the abstract/title work for RE closings in both of these states.
This might be a little more exp. than an escrow/title fee (maybe not, as seller pays CLTA in CA and could feasibly split the atty costs).
The vast majority of agents in CA can do a very simple transaction but if ANYTHING AT ALL happens to “trip it up,” they have to seek help from another agent/broker in order to close the deal because they have neither the education or experience. IMO, the bar is set way too low to obtain a RE Salesperson license in CA.
Participant[quote=sdrealtor]jp
In NJ the attorneys take the place of the escrow companies. They handle the closings not the contracts. As for the 6% commission, that changed long ago and there are lots of other models going on out there.sdr[/quote]
sdr, I think the attorney-office closings are a good plan. I believe it is the past-practice or model of WY and OK as well. I know attorneys personally perform the abstract/title work for RE closings in both of these states.
This might be a little more exp. than an escrow/title fee (maybe not, as seller pays CLTA in CA and could feasibly split the atty costs).
The vast majority of agents in CA can do a very simple transaction but if ANYTHING AT ALL happens to “trip it up,” they have to seek help from another agent/broker in order to close the deal because they have neither the education or experience. IMO, the bar is set way too low to obtain a RE Salesperson license in CA.
Participant[quote=sdrealtor]jp
In NJ the attorneys take the place of the escrow companies. They handle the closings not the contracts. As for the 6% commission, that changed long ago and there are lots of other models going on out there.sdr[/quote]
sdr, I think the attorney-office closings are a good plan. I believe it is the past-practice or model of WY and OK as well. I know attorneys personally perform the abstract/title work for RE closings in both of these states.
This might be a little more exp. than an escrow/title fee (maybe not, as seller pays CLTA in CA and could feasibly split the atty costs).
The vast majority of agents in CA can do a very simple transaction but if ANYTHING AT ALL happens to “trip it up,” they have to seek help from another agent/broker in order to close the deal because they have neither the education or experience. IMO, the bar is set way too low to obtain a RE Salesperson license in CA.
Participant[quote=sdrealtor]jp
In NJ the attorneys take the place of the escrow companies. They handle the closings not the contracts. As for the 6% commission, that changed long ago and there are lots of other models going on out there.sdr[/quote]
sdr, I think the attorney-office closings are a good plan. I believe it is the past-practice or model of WY and OK as well. I know attorneys personally perform the abstract/title work for RE closings in both of these states.
This might be a little more exp. than an escrow/title fee (maybe not, as seller pays CLTA in CA and could feasibly split the atty costs).
The vast majority of agents in CA can do a very simple transaction but if ANYTHING AT ALL happens to “trip it up,” they have to seek help from another agent/broker in order to close the deal because they have neither the education or experience. IMO, the bar is set way too low to obtain a RE Salesperson license in CA.
Participant[quote=SkyRanchOwner] . . . Also, all being equal and comparing apples to apples, LJ and Carmel Valley are not there yet for the same size lot, with view, no neighbors across the street or looking into your backyard facing you, size of house, etc. . . [/quote]
SRO, I was referring to your statement about how easy the commute was on the 52 from Santee to LJ and SV. I stated that residents of LJ (already there) and CV (practically there) did not need a freeway to commute to themselves.
SRO, in CA, there is absolutely NO SUBSTITUTION for location and never will be. LOCATION trumps the dwelling, lot size, landscaping and furniture in a lesser location EVERY TIME. That’s just the way it is.
I personally wouldn’t prefer living in Carmel Valley or working in Sorrento Valley but both of those communities beat Santee HANDS DOWN in the location, location, location contest. This has been a long-accepted FACT in the local real estate community. Views of Gillespie Field, furniture, landscaping and bonus occasional rattlesnakes would not be able to promote Sky Ranch in this regard.
I want to add that I’m not saying the quality of life is better or worse in CV than Santee. This is subjective, IMO. What I AM saying is that the PROPERTY VALUES ARE LOWER in Santee than Carmel Valley, for a few very good reasons. But, if you are happy, then I am happy for you 🙂
Participant[quote=SkyRanchOwner] . . . Also, all being equal and comparing apples to apples, LJ and Carmel Valley are not there yet for the same size lot, with view, no neighbors across the street or looking into your backyard facing you, size of house, etc. . . [/quote]
SRO, I was referring to your statement about how easy the commute was on the 52 from Santee to LJ and SV. I stated that residents of LJ (already there) and CV (practically there) did not need a freeway to commute to themselves.
SRO, in CA, there is absolutely NO SUBSTITUTION for location and never will be. LOCATION trumps the dwelling, lot size, landscaping and furniture in a lesser location EVERY TIME. That’s just the way it is.
I personally wouldn’t prefer living in Carmel Valley or working in Sorrento Valley but both of those communities beat Santee HANDS DOWN in the location, location, location contest. This has been a long-accepted FACT in the local real estate community. Views of Gillespie Field, furniture, landscaping and bonus occasional rattlesnakes would not be able to promote Sky Ranch in this regard.
I want to add that I’m not saying the quality of life is better or worse in CV than Santee. This is subjective, IMO. What I AM saying is that the PROPERTY VALUES ARE LOWER in Santee than Carmel Valley, for a few very good reasons. But, if you are happy, then I am happy for you 🙂
-
AuthorPosts
