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HOA fees 545 but I will pay 60-70k for a 2 bedroom upstairs unit with wood floors soon to be #2 red oak unfinished @ 1.59 sq ft at lumber liquidators. Add kitchen cabinets high end with granite and some red salito tile and a new heat pump and buy a golf cart and away we go Alice. They have a yachyt ( can’t even spell on) free if you join the club . Will take advise and rent but January is season I will be checking it out. I like the idea of a highrise which includes meals in the 2k month. Who knows where we will be when and if we ever need meals and in house nurse staff. Can think of no better set up for golden years.Motown

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You had me at “me thinks”. How about a stock? Gave up when ONT devoured by Google. “Best codec ever” at best time ever can’t miss , and it was a ammo supplier. Just need something to buy a few shares of to get me involved again. Great post.Motown

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Thanks OCRENTER for such a wise and detailed reply.
Only reason considering Laguna Woods is the used to be 40k 700 sf 1 bedrooms now 60k and the now 75k 2 br 1000 sf units. What has me stopped is the wife not too crazy about condo living. I want to putz around some plumbing jobs in that area and just got licensed in California. I would drive a van and want to have advertising on it. For this reason I look outside those gates. I will visit the area in January and will drive east on Laguna Canyon Rd and look. Just looking for a decent quality of life. I really love San Clement after staying at the Days Inn and walking to the ocean and pier daily. Maybe I will just rent a room for 2100 per month whenever I want a taste of a beautiful way of life. Lord knows it would never pay to plop down 500k to own a 2 br condo in pier bowl or small house west of El Camino Real. Any advice would be appreciated.

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Thanks everyone, I do not understand what 5% cap rate is. But that said, I thank Flu for remembering my daughter and her great idea.I should be out there Jan 8 to meet 1st grandchild. Plan on looking at areas only able to see on computer. The builder wants to have me sign a purchase agreement for 246.5k with a contingency to split the property into 2 lots. Claims he needs P.A. signed to take to city for written blessing on split,that will take him 5 days he says, then close in 40 days , all cash he says (why?) then he will give tenant 30 days to vacate. Tenant has no lease and is month to month @1495 and has no idea to my knowledge. I have a vacancy she can move in if need be. That said, I plan on getting a lawyer to review the P.A. and the closing paperwork. But this cash idea scares me , any ideas on how to do this and how to deal with tenant if this gets approved in 5 days (7)?

I can buy more here but do not want to deal with 800 mo tenants. Builder will put 2 500k homes up which will net him aprox 75k ea. I could do this but I would need to involve a bank and that is out of question. No more banks for me. So hopefully I will be a cash buyer out there in January. Motown

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Don’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown

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God bless you Richard. There is no coil in 1982 furnace. Homeowners association will not give ok since eyesore (condenser on Garage roofs) so after searching and cool weather comming , they are leaning towards taking the rent reduction for the year and portable a/c. Thanks for offer. If they do stay I want to do a heat exchanger leak test and check the gas lines. Please send me a message (private) and I will give you the son in laws number.
He is local 230 as well. Motown

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from your link: you can’t go back until 1985 when you lived there from 1985 till you rented it in 2000-2012 but in my link that period is used in equation which is right? I need 3rd interpretation
Reduced Exclusion for Second Home Also Used as Primary Home

As of January 2009, new tax rules require that, if you sell a home that you sometimes used as a vacation or rental property and sometimes as your primary residence, you’re eligible for only that portion of the capital gains exclusion that corresponds to the amount of time you actually lived there as your primary residence. (The rest of the time is called “non-qualifying use.”) Note that the calculation is made over more than a mere five-year period — it applies right back to January of 2009. What’s more, if, during the five years before the sale, you never actually made the home your primary residence, you’re likely disqualified from using the exclusion. (You won’t be surprised to hear that this new rule was meant to generate additional tax revenue, to offset some other tax cuts.)

from my link:The amendment states “gain shall be allocated to periods of non-qualified use based on the ratio which (i) the aggregate periods of non-qualified use during the period such property was owned by the taxpayer, bears to (ii) the period such property was owned by the taxpayer.”
How does this affect your second home planning? Suppose the married taxpayer exchanged into an investment property and rented it for four years, then moved into it and lived in it for two years. The taxpayer then sold the residence and realized
$300,000 of gain. Under prior law, the taxpayer would be eligible for the full exclusion and would pay no tax.
Under the new law, the exclusion will have to be prorated as follows: four-sixths (4 out of 6 years) of the gain, or $200,000, would be taxable and thus would be ineligible for the exclusion. Two-sixths (2 out of 6 years) of the gain, or only $100,000, would be eligible for the exclusion.
Importantly, non-qualified use prior to January 1, 2009, is not taken into account in the allocation for the non-qualified use period but is taken account for the ownership period. Thus, suppose the taxpayer had exchanged into the property in 2007, and rented it for three years until 2010,and then converted the property into a primary residence. If the taxpayer sold the residence in 2013, after three years of primary residential use, only one year of rental, 2009, would be considered in the allocation for the non-qualified use. Thus, only one-sixth (1 out of 6 years) of the gain would be ineligible for the exclusion.
Page | 3
Realty Exchange Corporation
Your Nationwide Qualified Intermediary for Tax-Deferred Exchange of Real Estate Since 1990
800-795-0769 ● http://www.1031.us
In general, the allocation rules only apply to time periods prior to the conversion into a principal residence and not to all time periods after the conversion out of personal residence use. Thus, if a taxpayer converts a primary residence to a rental and never moves back in but otherwise meets the two-out-of-five year test under Section 121, the taxpayer is eligible for the full exclusion when the rental is sold. This rule only applies to non-qualified use periods within the five-year look-back period of Section 121(a) after the last date the property is used as a principal residence.
This great tax strategy is still available, but Congress has created new rules, so it is important taxpayers get good advice before making any moves.
Bill Horan, a Certified Exchange Specialist®, is President of Realty Exchange Corporation,

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landlord counter offer: 1495 only if signing 3 year lease and we put in air / furnace and he wants a warranty on install? Help needed in Michigan 2 year max lease term, what is limit in Ca? What now?Motown

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from cool website
You general plan of moving into each house for two years prior to selling may or may not work anymore due to a fairly recent tax change that took effect in 2009 that impacts how taxes are calculated on real estate that for some time are not a primary residence.

Your alternate plan of transferring ownership of the house to your kids should be compared to other possibilities such as holding onto the properties until death and letting the houses pass to your heirs by way of inheritance, or selling the houses yourself. Each has slightly different tax treatments. By working through these scenarios you and your tax adviser can figure out which tactic will work best for each property.

William Perez
Guide to Tax Planning
taxes.about.com
About.com | Guidance. Not Guesswork.

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Update: After searching frantically for 1 week to find a rental, (scarce) I was told by my daughter that they wanted to stay and thus proposed a counter off based on some advice from beautiful posters here. The counter offer, presented in writing yesterday at noon had 3 requests:
Give them 4 -1 year options to renew the lease at the reduced $100 off (offered by landlord who refused to install air or get quotes) ($6000 savings over present lease terms if full 60 months utilized)
Give them permission to upgrade furnace and add central air if they so decide.
This would help with the cost of 4 grand they would pay to improve the landlords townhouse.
We wait, and have until 3rd to pay rent due yesterday. I think I will keep looking for plan “B” .
They are out moving expenses, 3 weeks of rent in old place due to new place requiring immediate move in as well as stress for a 7 month pregnant gal working full time to achieve their dream. God bless the posters that take time to help another here. Motown

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Great Idea, maybe counter with 200 off rent month to month while waiting for a unit to open meeting her needs and her budget. Great learning experience. Thanks to the beautiful people this will be turned into a positive experience.

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Thanks , I like “walk away”. I am going to talk her into Carmel Valley or Del Mar. 1875 or 2 bedroom with 1317 sf as opposed to Mira Mesa @ 1595 for 1050 sf. I will just subsidize her 300 a month for a year until her husband gets raise. I hope the landlord makes her whole for moving expense and refunds the security as well as the 1 week in Sept. without air.
Anybody know of a place? Anyone know of a agent?
Only criteria is washer , dryer, air. I wonder if any other locations seem a value to anyone reading this . Their new day care starting in March will be in Clairmont . She works in Del Mar. Thanks all.God bless the beautiful people here.Motown

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I have a Michigan HVAC License (#71-09303)
I worded my question carefully. “Air conditioning” could mean humidification as well. That said , not being a native of your great State, which I have come to love, as well as this forum and it’s beautiful people,I ask what Californians believe the term means and as expected most use the common sense definition. Thanks for all the time and interest I will update as soon as I learn outcome. Motown

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Not to mention my new friends (sincere) here at this site who guided me in helping children settle in San Diego, God bless all here and especially bearishgurl
motown

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great responses, thanks and God bless all here.
I agree the biggest question is: Now that the race to bottom for American Manufacturing has produced a equal or greater counterpart-race to middle class for 3rd world countries- what will they do with their new found wealth and how do I finally use my 62 year old experienced brain to figure out what to buy 5 to 7 years before they “need ” it and will pay 10 times more than I paid. (Lumber, which commodities? roof shingles. freon,real estate, gold or like the bible says-food? and which vehicle , stocks in the sector chosen.? Motown

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