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ParticipantA few general principles:
1) Once government gets into something, it will never get out of it (until it eventually collapses under its own weight).
2)Any time the government tries to provide “affordable” XYZ, you can be sure that the price of XYZ will increase.
3) Borrowing and spending money that doesn’t exist will debase the value of the currency eventually. That money has to end up somewhere, often where you least expect it.
Ignore these at your own peril. You may be totally correct as you wander the streets of SD 40 years from now, shouting at passersby – “It’s the damn government intervention! That’s why your houses all cost 10 billion dollars!” They’ll shake their heads and ignore you as they head back to their 10 billion dollar crappy condos in Normal Heights, maybe stopping to pick up a thousand dollar six pack of beer on the way.
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ParticipantThe government will get out of the housing business when it gets out of the medical business, the war business, the energy business, the education business, the food business, the air travel business, and too many more for me to remember.
It will eventually get out of all of these, but not by choice. It could be next week, it could be 80 years from now. Rome had a 400-year slow-motion collapse.
Ya gotta live somewhere. Might as well get an FHA loan, I say.
blahblahblah
ParticipantThe government will get out of the housing business when it gets out of the medical business, the war business, the energy business, the education business, the food business, the air travel business, and too many more for me to remember.
It will eventually get out of all of these, but not by choice. It could be next week, it could be 80 years from now. Rome had a 400-year slow-motion collapse.
Ya gotta live somewhere. Might as well get an FHA loan, I say.
blahblahblah
ParticipantThe government will get out of the housing business when it gets out of the medical business, the war business, the energy business, the education business, the food business, the air travel business, and too many more for me to remember.
It will eventually get out of all of these, but not by choice. It could be next week, it could be 80 years from now. Rome had a 400-year slow-motion collapse.
Ya gotta live somewhere. Might as well get an FHA loan, I say.
blahblahblah
ParticipantThe government will get out of the housing business when it gets out of the medical business, the war business, the energy business, the education business, the food business, the air travel business, and too many more for me to remember.
It will eventually get out of all of these, but not by choice. It could be next week, it could be 80 years from now. Rome had a 400-year slow-motion collapse.
Ya gotta live somewhere. Might as well get an FHA loan, I say.
blahblahblah
ParticipantThe government will get out of the housing business when it gets out of the medical business, the war business, the energy business, the education business, the food business, the air travel business, and too many more for me to remember.
It will eventually get out of all of these, but not by choice. It could be next week, it could be 80 years from now. Rome had a 400-year slow-motion collapse.
Ya gotta live somewhere. Might as well get an FHA loan, I say.
blahblahblah
ParticipantThere are probably more stories like this that can be counted. The Easter Islanders died out after deforesting their island. Although they were descendants of the amazing seafaring Polynesian culture, they eventually destroyed so many of their trees that they could no longer manufacture large oceangoing ships. At that point they were trapped on tiny Easter Island. The Easter Islanders eventually resorted to cannibalism and were living in stone age conditions by the time the Spanish arrived.
blahblahblah
ParticipantThere are probably more stories like this that can be counted. The Easter Islanders died out after deforesting their island. Although they were descendants of the amazing seafaring Polynesian culture, they eventually destroyed so many of their trees that they could no longer manufacture large oceangoing ships. At that point they were trapped on tiny Easter Island. The Easter Islanders eventually resorted to cannibalism and were living in stone age conditions by the time the Spanish arrived.
blahblahblah
ParticipantThere are probably more stories like this that can be counted. The Easter Islanders died out after deforesting their island. Although they were descendants of the amazing seafaring Polynesian culture, they eventually destroyed so many of their trees that they could no longer manufacture large oceangoing ships. At that point they were trapped on tiny Easter Island. The Easter Islanders eventually resorted to cannibalism and were living in stone age conditions by the time the Spanish arrived.
blahblahblah
ParticipantThere are probably more stories like this that can be counted. The Easter Islanders died out after deforesting their island. Although they were descendants of the amazing seafaring Polynesian culture, they eventually destroyed so many of their trees that they could no longer manufacture large oceangoing ships. At that point they were trapped on tiny Easter Island. The Easter Islanders eventually resorted to cannibalism and were living in stone age conditions by the time the Spanish arrived.
blahblahblah
ParticipantThere are probably more stories like this that can be counted. The Easter Islanders died out after deforesting their island. Although they were descendants of the amazing seafaring Polynesian culture, they eventually destroyed so many of their trees that they could no longer manufacture large oceangoing ships. At that point they were trapped on tiny Easter Island. The Easter Islanders eventually resorted to cannibalism and were living in stone age conditions by the time the Spanish arrived.
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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]Hahaha you just described me to a tee, I am a control freak.
I just did some searches in a couple of out-of-state areas and I see what you’re talking about. It is a bit unnerving imaging what sort of tenants you’ll have paying $500/mo to live in BFE, but hey there are good people at all levels I guess. I can definitely see how 4 units would be a sweet spot, you can handle a couple of vacancies and still be allright. 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.
blahblahblah
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]Hahaha you just described me to a tee, I am a control freak.
I just did some searches in a couple of out-of-state areas and I see what you’re talking about. It is a bit unnerving imaging what sort of tenants you’ll have paying $500/mo to live in BFE, but hey there are good people at all levels I guess. I can definitely see how 4 units would be a sweet spot, you can handle a couple of vacancies and still be allright. 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.
blahblahblah
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]Hahaha you just described me to a tee, I am a control freak.
I just did some searches in a couple of out-of-state areas and I see what you’re talking about. It is a bit unnerving imaging what sort of tenants you’ll have paying $500/mo to live in BFE, but hey there are good people at all levels I guess. I can definitely see how 4 units would be a sweet spot, you can handle a couple of vacancies and still be allright. 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.
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