[earlyretirement]

I missed this thread first time around. I posted an OT thread but reposting here as this thread is interesting and this video pertains to this topic.

http://www.youtube.com/watch?v=EpEtsREAQgk

[earlyretirement]

[quote=sdduuuude]I love it. Very educational.

I agree that answering the simple question of citizenship does not strip you of your rights. If you were being detained without probable cause, that would be.

I think what these videos make clear is that the checkpoints are not actually unconstitutional but the officers aren’t always quite clear on the law. The police want to put up a front of being in control, but the reality of the situation is that they aren’t.

The supervisors get it but the worker-bees seem to be reluctant to let go of the power trip when confronted with the real limits of their authority. I love the guy that said “I order you to pull over to secondary.” He didn’t really get it.

So even I agree isn’t worth the hassle to avoid answering the simple citizenship question but I love the fact that these guys made the videos. They were sort-of being jerks, but did it to proving a point, and a very important one.

Consider it a reminder to all that these are voluntary check-point after all.

Well done ![/quote]

sdduuuude,

I do agree with you it was educational. I’m still sure that there aren’t a lot of people out there that do that but as you mentioned, they were making a video to make a point. And also I’m sure there were LOTS of cases where they did get hassled or inconvenienced and forced into the secondary areas. They just showed the times they were let go. Nature of YouTube videos.

Still, I agree with you that it was interesting in all those cases where the supervisors just let them go. I’m sure it was probably because a video camera was clearly shoved in their faces.

I also think the videos are a way to show how powerful technology is these days. Before these guys might have gotten pulled out and beaten to a pulp by the police and due to the cameras/videos everywhere these days it reigns in abuse.

The videos were definitely educational.

[earlyretirement]

[quote=bearishgurl]ER, we’ve discussed this issue in the past. Off the top of my head, here are a couple of threads but there may be more:

http://piggington.com/cross_country_road_trip_anyone?page=4

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

Certainly, ER, you’re previously having resided in TX … you know the drill. You must have driven between there and here at one point . . .[/quote]

Ah sorry…I missed them. I didn’t read the board previously as much as I am now.

Yes, I lived in Texas before but never drove from there to here. I’m not the road trip type. I’d rather fly. But if I did get stopped I would just say I’m a US citizen and be on my way.

[earlyretirement]

[quote=bearishgurl][quote=zk]BG, your staunchest supporter writes a well-crafted, gentle post with constructive criticism, and your response is to point out where you think she’s wrong. And where other Piggs are worse than you. My question is this: Do you know you’re an insufferable boor and you don’t care? Or do you think other people are overreacting to you? Or do you see it some other way? I’m genuinely curious. [/quote]

I have personally turned in a Pigg for continual “stalking” and they were subsequently banned from the forum. And they weren’t stalking me and it isn’t who you might think it is.

Another Pigg posted behavior here that could be construed to be stalking by a third Pigg and subsequently quit doing it within 24 hrs. And again, I was not the victim but was nevertheless horrified that they would post here exactly what they did, even if they DID do it unbeknownst to the victim, who undoubtedly later read it and never posted here again.

Both of these instances were comprised of actions which occurred both on and off the internet.

[/quote]

Yikes! I haven’t been on here long enough to know all the personalities. But this stuff you’re describing sounds very creepy!!

My philosophy is anytime stuff like this happens or you have these kinds of problems on an internet message board it typically signals it’s time to step back and take some time away from it. (temporarily or permanently).

Message forums should be a positive, educational and enjoyable experience. Not a creepy, weird and stressful experience. If stuff like this is happening it’s not good and probably means things are unhealthy in some way.

JMHO.

[earlyretirement]

Oh yeah spdrun. I’m not talking about answering tons of questions but I think anyone would agree just confirming your US citizenship doesn’t strip you of any privacy and it’s much quicker than being a jerk about it.

[earlyretirement]

[quote=FlyerInHi]

ER, I own property in a tourrist destination and want to rent it out on VRBO or something like that.

A friend’s friend is doing that in Florida and is apparently successful. His customers are repeat snowbirds who come vacation in Florida every year.

Thanks for bring it up. Sounds like a good opportunity.[/quote]

Hi FlyerinHi.

You are certainly welcome. I realize that the vast majority of property owners don’t want to hassle with short-term rentals vs. a traditional rental but if done properly, the ROI is MUCH MUCH greater than a traditional renter. Plus if you structure it properly you don’t have to really worry about problem tenants as most of them are in for one week or less on average.

You CAN get corporate executives that do rent longer term but this is also a GREAT type of clientele because you will find they are mostly in the apartment to sleep and shower and that is it. I have some properties that I own that I rent out to corporate executives or corporations and the places look brand new even after several years of rentals.

I found that most of these types are in their office all day. They typically work late and come home to sleep and shower and around on the weekends but that’s it.

And tourists as well are mostly out all day.

If you do it, I’d recommend a few things that have really helped.

-Have a formal contract that covers all the bases including releasing you from ALL liability in the event of ANY accident in the property.

– Clear policy that the tenant will pay for any damages in the property. And best to get them to agree to leave a credit card form signed that clearly states they will pay for any damages.

– Have a detailed inventory that lists all the contents of the property and have a client sign it at the check-in. Make it mandatory that they let you know within 24 hours if something is missing. Part of having a great property manager is making sure that whatever is listed is there at the check-in and also there at the check-out. Make sure that the inventory has a replacement value of each item so that both sides are clear on what price will be charged in the event something is damaged or missing (and make sure the price is fair and reasonable).

– Make sure the photos are representative of the property and “what you see is what you get. I’d even recommend getting to-scale floor plans of the property so they can get a visual sense of what the property is like. It goes a LONG way and separates yourself from the competition. (But I DO recommend to get professional photographs taken by a photographer that specializes in real estate or properties. Best investment you can make).

– Detail on your VRBO listing exactly what is included or the main features of each room in the property and also the amenities in the building (if it’s a condo).

– Make a VERY detailed welcome guide that explains everything in detail. Make it idiot proof so that a kid could understand it. It will save a LOT of hassles. Explain things like where the fuse box is, what the internet network name and password, how to reset the code on the safe, any instructions for getting into the building, using the pool, gym, etc.

Also, basic things like including the address, phone number to the property, maps, how to use each electronic in the property (stove, microwave oven, telephone, AC/heat, etc. The more detailed the better. Even things like having a channel guide with the channels and the stations in each bedroom goes a long way. (And it’s a GREAT idea to email them the PDF welcome guide before they arrive and also have a bounded copy in the property). Think of every small detail and how you can improve their experience/stay with you in your property.

– The higher end the property and the nicer it’s furnished the more you can obviously charge and typically higher end properties attract people that will take better care of it.

– It might cost more with a property manager but have them do a formal check-in and also a formal check-out so you can meet the people and also be there at the check-out. It’s also a good idea to have them fill out a guest survey so you can see what they really liked or what they didn’t like. If there was any problems, FIX it ASAP so the next guest doesn’t experience any problems. Be proactive.

– Make sure you are clear on the front end what is NOT allowed. i.e. NO smoking in the property, loud parties, music, maximum occupancy, etc. The more clear you are on the front end the better things will be.

– It’s a good idea to include a programmable safe in each bedroom if possible. They aren’t expensive and people really appreciate them if they are on vacation.

– Have very clear terms of the cancellation policy and have them sign and agree to it when they are making their deposit.

– Take advantage of ALL the possible places to advertise. You will typically find that the ones that you pay for yield better results. But you can list free on several sites. Check out ALL the possibilities including:

– Craigslist in your City
– VRBO.com
– Homeaway.com
– Flipkey.com
– Airbnb.com
– HomeExchange.com (you can do home exchanges but also advertise as a rental as well).

If you are in a very desirable destination you can do VERY well. One thing you will quickly see if your place is high end, furnished nice and in the best location is there will ALWAYS be wealthy/affluent people that are willing to rent a high end place vs. an expensive and small hotel room.

I own several properties in different countries and been renting them out for over a decade now and my ROI has been incredible.

The higher end you go typically the better. For example, I put in $1,600 dollar mattresses in each bedroom, use high end sheets and towels, expensive furniture, fully furnished in the kitchen with just about everything you can think of. The key is to think of everything you would use in your home and include it and more in the rental property.

Don’t cheap out. For example, if you have a large property and you have wi-fi. Make sure you have a very good package that is fast. And if the signal is weak in one part of the house, don’t hesitate to put in multiple routers so the connection is very fast everywhere. Remember to think of every detail like this.

I go with the latest technology in the property with high end TVs in each bedroom. DVD players, Apple TV, ipad/iphone alarm clock radios in each room, laptop, and in a few properties even include iPads. Remember your security deposit covers you in the event they break something. I’ve dealt with tremendous numbers of clients over the years and I’ve never had any problems except for minor type stuff and they have always paid for what they broke.

It’s also helpful to include a cellphone or at least a SIM card with a local #. Almost every city (even cities outside of the USA have pay as you go SIM cards) so you can include a local cellphone number which many people appreciate, especially when they are traveling abroad. Also, you can include a VoIP phone so they can call pretty much any landline phone across the USA, Canada, Europe all for free.

If you think outside of the box a bit and offer incredible properties and service you can make a small fortune doing these types of rentals. Part of the key is not only to be in a desirable city but also the most desirable neighborhoods of these cities where people want to hang out.

A good rule of thumb is just look where some of the highest end 5 star hotels are and try to buy within a few blocks radius. That’s typically a recipe for success if you set the property up right.

You will find the most successful short-term rental owners are the ones that don’t view other rentals as their competition but look more at the 5 star hotels as their competition. If you can tap into some of the 5 star hotel clientele there is a lot of money to be made. When I look for clients to stay in my higher end properties I’m NOT looking for John Doe cheapo tenant that might not take good care of my property.

I’m looking for the guy that would typically stay in a nice hotel but the hotel can’t offer what I can offer at that price and size. The average hotel room is less than 350 sq. feet so play on that advantage. The typical 5 star hotel tries to nickel and dime you for everything. Make a local call? $1 a minute. Take out a bottled water? $5. Internet? $25 a night. Use these things to your advantage.

The key is to think of it as a VERY organized business and have excellent property managers and take super good care of the clients. NOT everyone has the patience, mindset and ability to do this. But if you do it right you will typically have repeat clients and they will stay with you each year they come back.

I have some clients that have rented with me for 10 years in a row and several of them stay with me several times a year. You can bet when their friends or family come, they also stay with me.

Owners that are able to do these things above is what separates the successful from the VERY successful property owners.

Good luck.

[earlyretirement]

[quote=SD Realtor]As I have always said, statistics can be presented in any manner needed to make things seem okay. You are told inflation has been tame to non existent for the past few years yet if you look at the price of food year over year it has gone up substantially. How about the number of people underemployed? How about the number of people who have given up working altogether? I am not saying the economy is not improving because it is. However I just do not gulp down whatever the govt tells me and smile and say yep everything is great![/quote]

EXACTLY. NO doubt the economy is improving and employment numbers are getting better but governments are always able to manipulate numbers the way they want them to come out.

The USA is much better about it vs. other countries. It’s comical in other countries like Argentina where the government says true inflation is 9% a year even though it’s really more like 25% to 30% a year. And when economists put out their own numbers, the president has them threatened to get fined and arrested.

[earlyretirement]

[quote=moneymaker][quote=bearishgurl]

I agree with all of this. The summer of 2010 (after the tax credits expired) until the spring of 2012 (and maybe later, if using all cash) was a great time to buy both investment RE and a residence in SD County.

I’m looking forward to Rich’s upcoming graphs, as well.[/quote]

Actually I think the best time to buy was in the Spring of 2009 with the $8000 tax cedit, as I was fortunate enough to do.[/quote]

Hmm.. I’m not so sure about that. I don’t know how things were like here in San Diego back then. But prices sure fell quite a bit after the tax credit expired in other areas. For example, I remember making an offer on a house in Plano, Texas back then before it expired. On a big 5 bedroom house in a nice area in a good school district they were asking $339,000.

I offered $300,000 cash. They felt offended and said no way. I remember at the time explaining to them that once the home housing tax credit program expired, prices were going to plummet. And they did at least there.

A few months had gone by and I forgot about the house. I remember getting an email from my realtor and he emailed me asking me if I was still interested as now the seller’s realtor was interested in my $300,000 offer. I had already purchased another property so I said no.

Well the house ended up going for something like $289,000 several months later. Waiting for the credit to expire in that neck of the woods was a much smarter move vs. paying $8,000 “less” before it expired.

Sometimes less is not more. 🙂

[earlyretirement]

[quote=CA renter]BG,

I really enjoy your more general posts, but sometimes cringe when you try to paint a complete picture of someone with only one or two data points. Then, you tend to insist that the picture you’ve painted is the true picture of their lives. IMHO, that’s what annoys people.

Just because people put (some) information about their situations on the internet doesn’t mean they want to be stalked.

.[/quote]

+1. I agree. Your posts I enjoy the most are the general posts. Definitely agree with that.

[earlyretirement]

[quote=SD Realtor]Poway is very tight as is the rest of the I15 corridor. Anything priced accurately will sell quickly.[/quote]

Yep. I totally agree. Just based on some friends that listed their home and sold in a few days I’d say the market is definitely a seller’s market again.

It will be interesting to see what happens in this area over the next 2 or 3 years in the near-term.

[earlyretirement]

Welcome to the “club”.

[earlyretirement]

[quote=UCGal]
ITA. Well said, ER.

There are plenty of people on this board that annoy me regularly. But every now and then they post something that makes me think, or see an alternate perspective. I’m sure I annoy plenty of people, myself.

I wouldn’t come here to read/discuss if I felt I knew everything about everything, already.[/quote]

Exactly UCGal. As much as some people think they know it all. They don’t. Each of us learns something new everyday. (or at least I do). That’s the great thing about life. You never stop learning if you keep an open mind and willing to learn.

I’ve been on several boards (some of which I helped moderate) and it’s too boring when everyone has totally homogenous thoughts/posts. It’s almost like everyone is slapping one another on their backs agreeing. That’s many times good but sometimes it just causes “herd mentality” where no one has any differing opinions on anything.

I don’t mind reading people that disagree with me as long as they are disagreeing intelligently and not just diarrhea of the mouth or spam. If they are passionate about why they think the way they do and giving an intelligence discourse then I totally appreciate it. Even if I disagree with them it typically gives me food for thought, even if I still disagree with them.

I don’t always agree with all of BG’s posts, but to me it’s clear she is passionate about the way she feels. She has a LOT of life experiences and clearly an intelligent person. Yes, I have different opinions on some things and don’t always agree with her sometimes but that is ok as well.

The world would be a VERY boring place if we all thought the same thing and acted the same way.

Also, one thing I also learned is some people can’t be changed. They are who they are and they will say what they want to say. They haven’t changed in decades and they aren’t going to change now. I have lots of people I know that are like that and I love/hate them for it. (although sometimes it can get annoying).

So my choices are to (a) accept them as they are; or (b) cut them out of my life. I’ve done both options. On message boards the way to cut people out of your lives is the ignore key.

[earlyretirement]

[quote=patb]I think anyone who wants to buy small scale out of state rental property should have their head examined.

No agent will ever do a good job, and the distance makes it a bad idea.

Unless you are close to retiring or moving, i’d forget it.

now if it’s reasonably close, sure.[/quote]

I don’t think you can make such blanket statements like this. Many people are successful at doing this. Granted, it’s not for everyone and can be a big hassle. But I don’t think you can say, “no agent will ever do a good job” either.

I agree probably most of the property management companies out there are crap. There are some good ones out there in various cities.

I also think the point people need to realize is you’re not going to get rich off of small scale rental properties when you only have 1 or 2. But you can make decent money/returns/cash flow just depending where you are at. 1 can become 2, which can become 3 which can become 4, 5, etc. After a while it all adds up.

[earlyretirement]

[quote=spdrun]Nope, just have multiple offers sitting in the short-sale bank-approval stage at this point. Eventually, one or two will go through — they’re all good properties, but I’m not in a giant hurry to buy. I already have a roof over my head and no plans for kids in the next year or two, so there’s every reason to relax and enjoy the ride.[/quote]

Ah. Good for you. Just from reading your posts it sounds like you do quite a bit of due diligence and have various areas scoped out well for areas that will produce a solid ROI. Your goals and situation are different vs. mine but definitely I can see what your goal and strategy is.

You don’t sound greedy, and it looks like you’re going into it for all the right reasons (cash flow) vs. potential capital appreciation potential or trying to flip it.

I personally think real estate investments by nature are best as long-term investments that potentially are owned for very long periods of time to forever (passed on to family members).

The time to do these kinds of things is when you’re young, single and have no obligations or big responsibilities. Because let me tell you, once you have kids and get married your responsibilities/obligations and risk level DRASTICALLY diminish. LOL.

I NEVER would have taken the time/hassles I’m quite sure if I tried to start after I was married and started having kids. Kids take a LOT of time, and money.

Like you, I started out when I was fairly young picking up properties. Never in any hurry at all but when you find good deals you move on them. Like you, I look for properties with good cash flow. However, rather than more affordable or more “blue collar” areas, I tend to prefer to buy in the best and most affluent areas as I’ve found there is always rental demand in those areas. No matter what the economy seems to be there will always be wealthy people out there looking to live.

Keep it up. My real estate investments were some of the greatest investments I ever made and now I’m to the point where the cash flow on all of them really makes it much easier for me to do what I want to do and work less in my regular job.

I do agree that being a landlord is NOT for everyone. In fact, it’s not for the majority of the people out there. LOTS of potential headaches. But if you know what you’re doing you can do very well.

Congrats spdrun. It sounds like you have a lot of patience as well. I never had the time or patience to deal with short-sales, etc. But it sounds like those that know what they are doing in that realm are cleaning house.

[earlyretirement]

[quote=EconProf]BearishGirl: Please reread and take to heart Ren’s comments about your posts. Your responses showed it had no impact on you. But it was constructive criticism and probably represents the feelings of many Piggs.
Anyone else agree?[/quote]

I’ve been posting on internet message forums since the Internet began. I’m very active on some and less on others.

My take is this…. you will ALWAYS have people that rub you the wrong way or that you disagree with or that disagree with you.

I’ve seen it all. The “know it alls”, “the crude and rude”, the “intelligent and polite and informative”, the “people that would write things they would never say to your face in person”, etc. All kinds and all types.

My philosophy is you can’t get too offended by ANYTHING someone writes. I don’t think some people care what others think of them while others do.

I’ve been on some message boards where people drive me absolutely crazy but typically I’ve never ignored anyone because it’s very rarely that I haven’t learned something or taken something positive out of posts from people. (Even if it was what NOT to do…).

I’m only speaking in generalities here but I think you have to take what anyone says with a grain of salt and not get too frazzled on these message boards.

My philosophy on internet message boards is anytime you get too frazzled or angry or stressed or worried from reading something, then it’s typically a time to take a step back and take some time off from it for at least a while.

You will always have people on the Internet that you disagree with or that annoy you. If it annoys you that much the ignore key is helpful.

[Author]

Posts