[Coronita]

[quote=gzz]I think the bigger costs/hassle of renting a SFH may be offset by the better appreciation. The number of SFHs on non-shared lots goes down every single year in central and coastal San Diego as multi-family slowly replaces them.[/quote]

Definitely true.

[Coronita]

[quote=Hatfield]
On the other hand, your mutual fund will never call you on a Friday night and tell you the water heater is broken.[/quote]

True, but you usually won’t log into your account holding your rental income and seeing it down by 15-20% in a week because of some analyst downgraded you and/or some hedge fund went heavy into a short position and spends considerable amount of time trashing the company on PR newswire. Ever since I see how some of these hedge fund companies play, I really don’t like buying individual stocks anymore.

[Coronita]

[quote=svelte]After helping my father with his rentals when we were college students, my wife and I decided we never wanted to own rental units. The crap my dad put up with was unbelievable. I actually ended up serving papers for him a few times. And the filth people left behind I wouldn’t have believed if I didn’t see it with my own eyes.

As it turns out now, if we had them I think relatives would have been wanting to rent if we owned one, then things would get even stickier if they fell behind on rent/maintaining the premises.

Reflecting on it all, I think I might have owned rentals if my wife wouldnt/couldnt work full time. Having her deal with the phone calls to rent and maintain the properties would be a way to have her earn money while being at home. As it is, she works full time like I do so neither of us want to deal with rental hassles.[/quote]

Rentals aren’t for everyone. And I use to think the same way. But after lengthy conversations with sdrealtor in the past, it really got me thinking on a few things, and I changed my mind a bit. I think what helped me out a lot is where the clientele is and the type of property, because with the right property, the “pain in the ass” factor drops off significantly.

There’s probably an inverse relationship between maximizing cash flow/rental returns versus “tenant pain in the ass factor”. And for me, it was trying to figure out where I felt comfortable playing in my own little world.

From what I’m experiencing, renting small condos in a good prime location with a lot of professionals helps out a lot to reduce the PITA factor. First for small condos, there’s not a lot of things that can go wrong. And renting to professionals, one typically doesn’t have to deal with people who aren’t going to pay. The cashflow isn’t as good as if you can get a good SFH, just because of the higher costs with a condo (HOA/etc)…But, the SFH is a bigger pain in the ass for me, because especially if prices get really high, tenants expect the world from you, but fortunately it’s in a decent place of professionals, so there is less of a problem with people not paying.

Some people here have claim that there isbetter cash flowing property in other areas, areas that I would consider to have a much bigger PITA factor than I am comfortable with, so I’m not interested. So as long as your honest with yourself as to the level of “pain in the ass” you’re willing to deal with, it’s all good. That level might be 0% for some people, which is fine.

The other thing that helps out a lot is if you use a trustworthy property manager. Sure it costs money, but it saves you a lot time and saves you a lot in the PITA factor too.

sdrealtor has been great for helping find good properties and spotting opportunity. He’s been a great friend and advisor. For that, I am thankful for the opportunities I have now.

urbanrealtor has been great for helping me manage the condo that I don’t want to deal with logistically. And I am thankful that I don’t have to go deal with everything that breaks or needs attention down south.

[Coronita]

[quote=lookingagain]flu,

Does your Daughter still go to OA? I asked Mr. Stanley, the grounds staff and my Daughters 4th grade teacher and no one has heard of these new rules.[/quote]

No they never went to ocean air. I live in the ghettos of Carmel Valley, so she doesn’t go to ocean air.

[Coronita]

[quote=bobby][quote=spdrun]Fiat 124 will have a turbo.[/quote]
1.4L turbo from the abarth
http://www.roadandtrack.com/car-shows/los-angeles-auto-show/news/a27376/2017-fiat-124-spider-official-photos/%5B/quote%5D
100 lb penalty too

[Coronita]

If you want to read about poor taste, read this one.

Boston Marathon bomb ‘victim’ admits to scam – CNN.com
http://www.cnn.com/2015/11/13/us/boston-marathon-bomb-victims-fraud/

[Coronita]

Forgot to mention that the policy also includes:

$50,000 “other structures” with a 15 % deductible
$250,000 personal property with a 15% deductible
$100,000 Lose of use with no deductible

[Coronita]

I see a lot of homes off of 56. Is affordability more of the issue?

[Coronita]

[quote=scaredyclassic][quote=flu]Nope. you are all wrong…

1. Kids can’t sit on the grass because their is a concern that the gophers will bite the kids and that there are bees that might sting the kids. Has anyone ever heard of being bitten by a gopher?

2. Full court basketball is restricted to 1 day, because they are concerned that in a highly competitive environment, kids might end up getting into a physical confrontation, so it has to be supervised by an adult, just in case.

Yeah… Must all elementary school gang members in Carmel Valley!

Well anyway, I’m walking to school with my kid. I better not sit on the grass, otherwise I might get ticketed![/quote]

This school is for castrated males…not pussies…testicle free zone. Is referring to eunuched untestosteroned policies misogynistic?

My kid was watching a cool episode of futurama,with a hard ass female military commander saying cliches in feminine, like ” those jerks really bust my vulva”…etc.

Seemed,relevant?[/quote]

I find the direction of some of these public school quite interesting. On one hand, you have Michele Obama going on tours telling educators they should encourage kids to get more fit and exercise more. On the other hand, you’ve got school administrators coming up with suck wacky rules, that hinder kids from being active.

[Coronita]

Nope. you are all wrong…

1. Kids can’t sit on the grass because their is a concern that the gophers will bite the kids and that there are bees that might sting the kids. Has anyone ever heard of being bitten by a gopher?

2. Full court basketball is restricted to 1 day, because they are concerned that in a highly competitive environment, kids might end up getting into a physical confrontation, so it has to be supervised by an adult, just in case.

Yeah… Must all elementary school gang members in Carmel Valley!

Well anyway, I’m walking to school with my kid. I better not sit on the grass, otherwise I might get ticketed!

[Coronita]

When I see an Audi commercial these days, it’s sort of funny what the last marketing line says: “Truth in Engineering”. Looks like they’ll be looking for a new marketing line.

[Coronita]

You know, I would probably call him and wish him a good day. The only problem is if I do and speak to him longer than 15minutes, he’s probably going to send me an invoice for billable hours. 🙂

[Coronita]

Have fun guys. Arguing for the sake of arguing over something no one really knows what the magnitude of the pullback might be is just a big time waste that doesn’t put any more money into my wallet.

I’m out of this thread.

[Coronita]

[quote=Jazzman][quote=flu][quote=Jazzman]^^^I think you’ve given very good reasons for why things could go pear-shaped, but your conclusion seems more influenced by lost hope.[/quote]

And I think you will be wrong (again). But we’ll see. I’m not doubting there will be a correction, but you folks thinking of a massive correction I think will be disappointed (again), in as much some of you were trying to second guess the RE correction here in San Diego and thinking that the best coastal parts of SD would fall 30-40% during the RE meltdown, despite prices had already gone down 20-25% in those parts of town. Wrong there too. I find it funny you guys are so convinced of a doomsday scenario, it’s almost comical. Do you really think there won’t be some intervention if things start to do south (again)?

‘Lost hope?’ I don’t personally care either way, because personally my cost basis there is so low and I don’t care since I don’t plan on selling, ever.[/quote]
It is more rational to judge the size of a possible correction by the size of the bubble that precedes it. When prices are very high compared to historical norms it is reasonable to assume a commensurate correction. Don’t be fooled into to thinking that the previous correction was somehow to do with fundamentals of value. There were so many factors that prevented a bigger correction. It was the explicitly stated aim of the government to prevent house price falls at any cost. The reasons were considered justified at the time, but the consequences not fully realized.

Unlike you, I do care. Not about SF per se but about the consequences that follow and the perpetual resumption of conditions that seem determined to repeat themselves.[/quote]

Sure. If you say so.

[Coronita]

[quote=AN]I dunno. I don’t see how this can last. Even with your 25 years old cousin getting a windfall of $1.2M, that still can’t get him a 1600 sq-ft house in Cupertino, which is now going for around $1.8-2M. So, if he plow all $1.2M into the house, he would still need to get a $600-800k loan for a 1600 sq-ft house. You can get a much bigger house in Carmel Valley for $800k. So, even if you get a $200k windfall in SD, you’re still in a much better situation here. Not to mention the long term property tax difference. A $1.8M house in Cupertino would have yearly property tax of ~$21k and rising 2% each year, while the $800k house in Carmel Valley would have property tax of $9500. After 30 years, the Carmel Valley house would have a property tax of ~$17k while the Cupertino house would have property tax of $38k. At $38k/year in just property tax alone, I hope people in the bay save well and aren’t counting on SS.

I don’t know how high this will go, but definitely, right now, the bay area feel like 2006 in SD. I feel sorry for they young people who haven’t bought a house up there and aren’t lucky and hit an IPO lottery. For every LinkedIn, there are thousands of engineers who aren’t so lucky.[/quote]

I don’t think there’s a disagreement on there being a correction in the future. I’m doubting the magnitude of it that some apparently are convinced will happen, just as much as I doubted the magnitude of the correction we experienced here in SD in the areas where demand is generally stronger than other places.

And that cousin doesn’t *need* to live in a 1.8million+ place in Cupertino, he can live just fine in Santa Clara. It’s a tradeoff, that people make more so there than down here.

Regardless, when this new tech bubble does pop, guess who’s going to end up eating shit the most? Yup, retail stock “investors” who either bought these company stocks directly, or are indirectly holding onto them with a mutual fund, like the famous Fidelity Contrafund or OTC fund, that is in just about everyone’s 401k plan.. It won’t be all the employees and insiders of these companies that were given these shares as part of their employment package. Just like how was back in 2000/2001.

[Author]

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