[earlyretirement]

[quote=The-Shoveler]

Property Taxes in TX can be very high and Texas cities are becoming just as traffic logged and Smog is becoming a real problem now in most TX cities.[/quote]

Yep. Many people forget to mention this point. I lived in Texas for many years. In fact, I moved there straight out of graduating University. It was a great place to build up wealth and net worth with no state income taxes.

However, it should be emphasized how brutal the property taxes are there. People often neglect to mention that fact when they are only talking about cheaper homes. Property taxes in some areas approach almost 3% a year! And it’s not as if nice areas there aren’t expensive.

Go to the best areas of Dallas like Highland Park and University Park and you will spend more on a house than you would in San Diego.

Plus your utility bills in the summer can be brutal! I lived there a while ago and even then on my 5 bedroom house my electricity bills in the summer could approach $1,000 a MONTH. You’re talking about 100+ degree weather in the summer often times for 40+ days in a row. Just brutal.

And traffic in Dallas is just brutal now. I don’t care what time it is every time I go back it seems like I’m stuck in traffic. I-635, I-75, Tollway. It doesn’t matter.

You have to weigh the upsides and downsides of each area. San Diego and much of Coastal California are paradise. Even at the higher cost of living and high taxes for many people, IMHO. Everyone has to evaluate their own situations.

[earlyretirement]

[quote=spdrun]I’d rather have the software that runs on MY computer — I’m not f–king exposing personal financial data to the “cloud” more than I have to. The more personal data online, the more opportunities for privacy-rape. Yeah, yeah, bank accounts are already accessible online; but they’re not all in one place with the same login/password combo.

This being said, I use Excel and the fill-in PDF tax forms, then send them via snail-mail. If it costs the gov’t more to process them, good. Maybe there will be a few less bucks in the pockets of the bloated defense and over-militarized law enforcement industries.[/quote]

I will never send in paper snail mail tax forms again. True story. Back about 6 years ago I sent in a paper snail mail tax return. You can imagine my surprise when I got a letter from the IRS that said I had $700,000 due. I got audited due to this. I knew it had to be wrong as I didn’t even make nearly that amount for that tax year!!!

It turns out that the IRS lost several pages of my Schedule D -1 forms. That year I did monster trading and I had a few dozen pages of D1 forms. I don’t know how they lost them but they just calculated my cost basis on my trades as $0. It was a nightmare.

After that I just have filed electronically. I will never send in paper forms again after that. Yes the IRS makes mistakes and loses paperwork.

I can’t tell you how much time and aggravation I spent on that one. In the end I had to pay about $3,700 more which was no big deal. But once you get audited, you can get audited again in the future. After that I got audited 2 more times. But didn’t have to pay more and in one of the times I get $9 back.

[earlyretirement]

Yep. Interesting. We’ve mentioned her on a few different threads now. I’ve read a ton of posts from various publications and I think it’s safe to say the vast majority of people (based on comments on the comments section) don’t feel sorry for her.

And I think most people would clearly say that the “brain tumor made me do it” excuse no one is buying. She is still an intelligent woman that managed to hide her addiction from the general public for many years. Lots of degenerate gamblers that have that addiction manage to do the same thing with help from “enablers”.

Lots of excuses from the death of her husband and death of friends, to her dad being a bookie, to her brain tumor. She is a smart woman. She should own up to it, admit her horrible gambling addiction and try to pick up the pieces of her life and move on.

One thing I think needs to be said is shame on her family and friends that knew about her addiction. I mean she sounds very close to her twin sister (who was also a trustee in the charitable foundation which she ROBBED of $2+ million bucks). So many people seemed to enable her and help her hide this hideous addiction. No way she spent that much time in the casinos and they didn’t know about this problem.

Besides her twin sister, there was another trustee in that charitable foundation. That trustee also dropped the ball and had to have known she robbed millions out of it. If not, then why? They were totally asleep at the wheel and I hope they aren’t a trustee in any other foundations.

It seems like lots of people are trying to justify why she did it. No one can justify what she did. You take some random person that robs $2 million and they would be in jail for a long time. But she will never see a day in jail for robbing $2 million from people that so desperately needed it.

And to people that try to make excuses for her. The only thing I’d say is I doubt you would be making excuses if she robbed $2 million from YOU or your family or if your kid depended on some life saving surgery that the foundation could have funded.

Shame on her. Shame on her enablers. I mean come on! I took the IRS to be the ones that unraveled this addiction and theft!

[earlyretirement]

[quote=rent4now]I didn’t realize you could try it out for free. Thats a great idea.
If I get back more from turbo vs our cpa im gonna demand a refund! :)[/quote]

Yep. They make it SUPER easy now where you don’t even need to download any software. Best of all, you can just use a gmail account to figure out your taxes and don’t have to pay anything until you file. You can use a few different email addresses if you want to make some different scenarios and you don’t even need to buy the program if you don’t want.

I’ve been using Intuit products for years and they are great! I don’t think it gets much better than Turbo Tax. Great program.

As others mentioned, the toughest part of taxes I think is getting together all your stuff. But even that is not too difficult if you just start doing it yourself. What I’ve found helpful is making a spreadsheet with everything you would need. The various bank accounts, investment accounts, etc. Just entering the data from the 1099’s, etc.

Then once you do it one year, you will have all the data entry points you will need for the following year. Sure, things might change with the law but as UCGal mentioned, Turbo Tax’s interview process will typically alert you to any changes.

Also, I really believe that doing your own taxes helps empower you to understand your tax situation more. Once you take a good look how everything ties together I just believe it makes you more aware about your finances.

And these days it’s easier than ever because before you had to wait until all your banks, investment companies mailed you out the forms. But now it’s all online and Turbo Tax will automatically pull the data from almost all banks and investment firms. Couldn’t be easier and not much to enter at all compared to many years ago.

[earlyretirement]

[quote=spdrun]Why would a seller give a flying spaghetti frig about some sappy letter? It’s a commercial transaction. The purpose is to obtain cash. The firstest with the mostest wins this game.

The people writing the letters should save their time.[/quote]

I totally agree. Maybe a VERY few times it might work if a few people are offering the same amount and the seller has a strong emotional attachment to their place and it’s either paid off or the amounts are all the same. I’ve heard of a few cases where someone thought their letter helped. (But who knows if it actually worked).

I’ve written letters before but not sappy letters. They were to the point letters where I offered to buy their place, was able to pay cash, offer a quick close and they could avoid realtor’s fees. I also agreed to reimburse them for any legal fees if they wanted to consult with their lawyer. Sometimes I agreed to pay for a professional mover to move their stuff out after the closing.

I once slid a letter under every single condo in a building. I wanted to try to buy the entire building and convert it to a hotel. The letter helped me buy 9 out of the 50 units but none of the others wanted to sell. Letters can work but not those sappy type letters.

I’ve purchased dozens of properties with those “to the point” type letters. They can and do work.

[earlyretirement]

[quote=rent4now]We use to live 2 blocks from an elementary school with a large field/park next to that was used on the weekends for soccer, flag football etc.
When we first moved in during the winter we couldn’t hear the noise because we kept our dual pane windows closed. As spring/summer rolled around and our windows were partially opened, we soon found the noise from the field nearly unbearable.
The sound of kids and especially the referee whistles blowing every 10 seconds really carries even 2 blocks away! The worst part is they start at 7am on saturdays and goes till it gets dark.
We have since sold the house and now live nowhere near a school and are very happy.[/quote]

Yep. This was the point I was trying to make. I know when we pick up our kids it’s quite loud with kids yelling and screaming. As mentioned, I wouldn’t want to live with my backyard facing it.

Even if you don’t mind it, when you go to sell your house, the future buyers might want want to deal with it. I think if you live a few blocks away it’s great but no way I’d live right with my backyard facing it for reasons rent4now mentioned.

[earlyretirement]

It’s GREAT. Typically very powerful. Obviously if you enter in garbage you will get garbage out. Unless your taxes are extremely complicated (and even then) you can typically get it all entered and it will get all the deductions.

Try it out free! http://turbotax.intuit.com/personal-taxes/get-started/questionnaire.jsp?priorityCode=3468337910&productid=&abtest=random%3D40751

Just click on whatever one you want and plug in your numbers. Just plug in this year’s numbers (or even try last years) and see how close it comes. A tip I always recommend is to get ALL your forms from your accountant last year and make sure that you look at all of them and compare them to the TurboTax to see how close it comes.

But it’s really a powerful program and probably will save you a ton of money vs. accountant.

[earlyretirement]

Do each of the property owners have their own separate code? Or do all property owners use the same code to enter? And your contractors… do you just give them the main code or does each get a separate one?

I own in a few buildings that do it different ways. I guess it depends how advanced the system is and if it has the ability to track each code. Also, is there a security camera at the entrance that records each visitor?

In one of the buildings I have they don’t change it too often but each property owner has their own code and code for their guests. And it has the ability to track which codes were used to enter and also a security camera so they don’t change it too often.

Where I live now they just changed the system last year where they can issue electronic transponder stickers that just stick on the window. With that they can track EACH visitor and entry and it can be activated for a set amount of time or you can always call to deactivate it.

The system is great but I imagine it was expensive to implement. The stickers work in various entrances around the development so you can use it to enter each entrance. And they can electronically track each entry to know who entered by the sticker #.

And they were pretty smart about the set up. They started deactivating the stickers for those that are not current on their HOA bills or late many months behind. I found that interesting and a good idea. They also shut off their internet/cable which is included in the monthly HOA bill.

[earlyretirement]

As you mentioned the big advantage if you have young kids is it’s so easy for them to walk to school. We live in a gated community so not affected by traffic but one potential negative I’d say if you’re right across the school or within a block or so is traffic can be bad in the morning and also in the afternoon when parents are picking up their kids.

I wouldn’t say the traffic is a huge deal because you can typically try to avoid those streets but if you lived right across the street, there won’t be any avoiding the traffic. Cars can be snaked around the block on some of these streets. Or they will have student/kid crossing guards with signs who tend to hold intersections forever so if you can’t avoid these streets you can get stuck with traffic.

Plus during drop off and pick up times there simply aren’t enough spaces in the school parking lot so you’ll have people parking in front of your house. Not a big deal probably unless you are having some function or guests arriving at these times.

I don’t think noise would be a big issue unless you’re right across the street from an Elementary school. These elementary schools all typically have multiple playgrounds outside and young kids scream while they are playing so that probably could get annoying if you’re right across the street.

No way I’d want my backyard facing a playground. Just too much noise. And some of these elementary schools have ESS (Extended School Services) programs where they have daycare until 6 PM and as late as 4:30 PM they are playing outside. Young pre-school age kids are loud.

I’d say noise and traffic are going to be the main disadvantages. I’d think twice about your backyard facing a playground. When I pick my daughter up at Willow Grove Elementary, it’s very loud with kids screaming in the playground. And the thing is that you have various classes all taking turns playing out on the play ground so it’s not even like the noise is concentrated a few hours in the morning or afternoon.

I don’t think the school rank is going to matter when it comes to noise levels. 10 rated school kids will be as loud as 7 rated school kids. LOL.

[earlyretirement]

[quote=ctr70]I have never ventured into buying trustee sales. That game is full of sharks and for the super, super experts. There are a TON of pitfalls. I would do some serious education before even thinking of trustee sales, and honestly I do not think they are worth it anymore. From what I hear there is way too much competition and properties are getting bid up to almost retail prices. You have to REALLY do your homework and know what you are doing or you can get killed.[/quote]

Me neither. I just had no interest in it. I have several friends that are definitely experts on the subject. They tried getting me in this game 2 years ago but I just never would have interest buying a place that I couldn’t go in and see.

My friend bought 30 properties last year. And the year before that I think he bought more. He is just an individual but he has an entire team he works with. Renovation/contractor team, etc.

He told me it’s impossible now because the institutional guys have entered the playing field. He said it’s almost impossible now.

[earlyretirement]

[quote=spdrun]

Even in cities like NYC and Paris where many of our friends rent out, it’s easy to bypass rules if you know what you’re doing. You can let guests know ahead of time and also the MOST important person is typically the doorman.

If there is a doorman. Plenty of nicer non-doorman buildings in NY.

This being said, if the building is a co-op which doesn’t allow subleasing and the board gets a bug up its collective butthole about you, you could conceivably lose the place. Highly unlikely – they’re more likely to fine you or send you a nasty letter signed by an atty – but theoretically possible. Co-op isn’t real property: you’re buying shares in a nonprofit that owns the building and leasing your apt back for the cost of common charges, basically.[/quote]

Oh yeah in the co-ops it’s VERY risky and we don’t rent co-op places even though I have friends that do it successfully but they are mostly renting to the same people. For example, I have a good friend and he has a co-op but he rents to an executive that is always in NYC on business. He introduced him to his neighbor as his “brother” so he never has any problems. In fact, he has quite a dilemma now as this guy has become very close friends with his neighbor and the lie has gone on now a few years and they are debating whether to tell him he isn’t his brother.. LOL.

In Paris very few of the apartments we’ve rented had doormen. Mostly it’s a system where there is an electronic code to enter the main door and then a key to enter the interior door. We just stayed a month in the 7th in Paris and it was fabulous!

It’s really the way to go when traveling. You totally feel like a local vs. staying in a hotel. We haven’t been to a city yet where renting an apartment/house wasn’t possible.

[earlyretirement]

[quote=flu]

I’m the biggest idiot out of everyone. But get sympathy help from smarter people than me…

But in all seriousness. When you start seeing Pardee $600k-$700k homes in MM selling well, which are basically the same exact homes that sold in Carmel Valley as “Carriage Run” for $800k, to me that tells me something is going on in the hood…

FWIW: I recall when these homes were first announced by pardee, almost all of us were skeptical..A lot of us were like no frickin way…Is Pardee insane???….
I was one of them….

I think there was only one person who actually said they would sell well…And called it as it happened.

You can dig it up who it was….It wasn’t AN either (initially)…

http://piggington.com/new_tract_in_mira_mesa%5B/quote%5D

My feeling is you NEVER stop learning and there are always people smarter than me/you/etc. You never stop learning and you should always want to learn a bit each day. At least that’s what I try to do.

I can’t understand some of the prices that some of these places are going for in MM.

While it’s not for me, it obviously looks like it is for other people. My personal thought and something I told myself a long time ago is I’d never buy an investment property in an area I personally wouldn’t want to live in or could see myself living in.

While I admit that MM is conveniently located for many people. I just can’t see the appeal, especially at today’s prices. (flu’s example of Pardee homes going for 700k is a good example). I don’t get it but still willing to hear why someone else feels they are worth it.

I’ve stuck with that philosophy and it’s paid off very well for me over the years. I don’t care if an area is renting out well. If I couldn’t see myself living there..it was a no go.

But then again if I could pick up a rental property for only $125k in SD and rent it for $1,450 per month….. I’d be singing a different tune! LOL.

[earlyretirement]

[quote=spdrun]I know people who rent out their NYC apartments when they travel. Via Craigslist, not VRBO or AirBnB … why the hell would one pay someone a cut to do what Craigslist does for free? Generally not super short term, but more like a month in summer. (Theoretically the legal minimum in NY.)

.[/quote]

Oh yeah. I think technically short term rentals are illegal in NYC. Paris too. But it’s very difficult to police it because guests can say their friends/family is using it. Some buildings in NYC are really tough but we’ve rented places there. Amazing places!

For people traveling with kids, staying in hotels isn’t convenient. Forget even if you are affluent and have money to spend on 5 star hotels and can book 2 adjoining rooms. We do that for short trips but for longer stays of at least a week, it is TOUGH to stay in hotels.

When you have young kids you need to cook and you really need a full washer and dryer. For us, it doesn’t even come down to a price factor. Hotels just aren’t convenient with 2 young kids.

Even in cities like NYC and Paris where many of our friends rent out, it’s easy to bypass rules if you know what you’re doing. You can let guests know ahead of time and also the MOST important person is typically the doorman. You tip the doorman a bit from each guest and you also tell the guests it’s a good idea to tip the doormen and these guys are making a fortune in tips. They won’t say anything and if anyone asks he says “family of the owners are staying”.

Of course you have to be careful in this situation with posting photos of the outside of the building or too much info on location. But you figure out quickly what works and what doesn’t.

Other places we’ve rented like in Paris, the owners have fed ex’ed us the keys ahead of the stay. Amazing places! Same thing in the French Riviera. Same thing in London, etc. etc.

It’s really the way to travel these days. If you book via sites like http://www.airbnb.com you’re totally protected because they don’t even pay the owner until 24 hours after the check-in to make sure it’s not a bait and switch. VRBO as well as Homeaway also offer insurance you can buy. And as long as you use your credit card you’re always protected anyone if there is a bait and switch. But after a while you just know which ones are legit or not. You can tell the owners that really have this down to a science.

And the thing is…..some of them are making a killing and very high ROI on it vs. traditional rentals.

[earlyretirement]

[quote=flu][quote=SK in CV][quote=flu][quote=SK in CV][quote=flu]
And as ER pointed out the value of upcoming “gentrification”, it’s pretty evident that is happening right now in MM, which is probably why there’s even more interest there…[/quote]

Uh…no. MM can get remodeled. City Heights can undergo gentrification. But MM not so much.[/quote]

ok. sure.[/quote]

The word has a specific meaning. Suburbs don’t qualify.[/quote]

Come on man.. You know what I meant…Higher income demographics pushing the hood upward, revitalizing hood,etc… Sorry. That’s why I’m a geek, and avoided other subjects… My writing sucks…. I could make an excuse about language not being my first language but that would be a lie…[/quote]

I agree with SK that true gentrification happens in the city. But I did know what flu was referring to. Mira Mesa isn’t my cup of tea but no doubt the area a few decades from now probably will change from what it is but not to the level true gentrification happens close to the heart of the city.

I’ve been coming to San Diego since I was a kid on vacations but mostly we spent time on the beach and I never hung out in areas like Hillcrest, Northpark, Mission Hills, etc. I don’t know what they were like 2 decades ago but I imagine MUCH different than what you see today. (i.e. true gentrification). Cool and hip restaurants and bars, more boutique stores, etc.

I’m still an SD real estate rookie. But just from the ‘outsider’ perspective I know what flu is talking about with Mira Mesa. While many might not want to live there, the younger generations are moving in or taking over from their family. Or other people moving to SD can’t afford some other areas so they go to MM and the younger generations have more pride in ownership.

Many older people don’t really care about their lawn, landscaping or that kind of stuff where the younger care more about that stuff. And it’s GREAT for neighborhoods when you see that happening. Higher incomes, fixing stuff up just snowballs and it causes more people to consider the area. Then stores come in, restaurants, etc.

It can snowball relatively fast in some areas.

[earlyretirement]

[quote=bearishgurl]
Yes, ER, I’m familiar with vrbo.com but never stayed in one myself. I’ve stayed in other people’s timeshares a few times, however, a week at a time, just by covering their HOA dues for that year.

I’m wondering about a few things, though.

The mgmt of a vrbo property seems like it must be labor-intensive … like lodging. Fresh sheets and towels, clean dishes and the like. Cleaning frequently in between tenants. Am I wrong on this?

How many weeks (realistically) could you rent a place out for per year? Is the demand there for all year-round in SD (minus cleaning days, of course)?

And do you friends who rent their homes out for special events ever live in them themselves? If so, do they take a trip or move in with relatives while their house is occupied? And what do they do with their personal belongings and valuables while they’re frequently and intermittently gone from home? Is it customary to lock off a room such as a personal study from vrbo guests?

It sounds like a bit of a hassle for the owner but I guess the money is there if your property is in the “right” location, depending on events going on ….[/quote]

Oh we LOVE VRBO! We travel around the world typically 100+ days each year and we almost always rent a house/apartment. We’ve used VRBO many times over the past decade. GREAT!

Look at this one in RSF – http://www.vrbo.com/174159#photos

$2,200 per NIGHT and they have only a minimum of 2 nights! They don’t even need to discount for weekly or monthly stays. LOL.

Yes, management of a short-term rental is NOT easy and very time intensive. It’s NOT for everyone. In fact, most property owners aren’t suited for it. Especially at the luxury level because these guests paying oodles of money per night demand a HIGH level of customer service.

Yep it’s alot of work but many of these owners might own a few properties in the same city. For example, I know a few people here locally and they own a few rental properties where they rent out short-term. They just have a maid (most times Mexican so you’re not talking an arm and a leg) on salary that cleans their home but also cleans the other homes. Some have additional staff. Or some houses might have a cottage on the grounds where they live free in exchange for working.

As far as check-ins you can utilize technology like this –

http://www.erentallock.com

http://www.gokeyless.com/product/522/schlage-link-be369gr-satin-nickel

Amazing what is available these days! Although personally I always have a staff member deal with rental guests. When people are paying that kind of money per night they don’t want to deal with a lock in a box. But I know many people that use lock boxes, electronic locks, welcome guides, phone/computer to do a “virtual check-in”.

As far as occupancy it’s going to be different for each property. It all depends as you have properties that have established clientele that will rent the property EVERY year. Plus they tell their friends and family about it and word of mouth sometimes really causes their rental to be full all the time. Pre Great Recession in some of them believe it or not I’d rent 25 days out of the month. Those were the glory days!

You don’t always have to offer maid service but you’ll find many times owners already have “staff” on the payroll so it makes sense to pamper your guest and provide it daily. It just depends.

Many owners of these short-term rentals operate it like a business. They don’t keep ANY of their personal stuff in it. It’s all for the guests. While others will keep an “owner’s closet” where they lock their stuff. It just depends how formal of a business you make it.

Even though I don’t have my stuff in it, I take the time and expense to put El Safe professional programmable safes in each bedroom. You can fit a laptop in it and each rental guest can put their valuables in it. While on vacation many times people vacation with friends or friends of friends.

Also, you have to consider that at that luxury end of the spectrum, the clientele type is NOT the type that will steal your toilet paper. LOL. I’ve rented for over a decade and not once have I ever had a guest take something. That’s why I like the upper end of the rental market vs. the low end where you deal with questionable cheapo types.

I own several properties in different countries and I don’t keep any personal belongings in any of them. I will only buy where I have family living however as I can’t trust anyone else besides family. It’s a LOT of work and almost impossible doing it remotely unless you have someone 100% dependable (which most people aren’t).

A few times I’ve moved family member to manage the property in another country if I own more than one in that city. It can make sense paying them vs. hiring an employee. Plus they have a steady “job” as I never plan on selling these properties.

But the ROI can be INCREDIBLE if you do it right.

Again, not for everyone and VERY expensive if you do it right. I have houses I’ve spend upwards of $150,000 furnishing on furniture, art, electronics alone. And studio apartments that I’ve spent $35,000 furnishing it. At the high end of the market they want great stuff.

I’m actually kind of in the process of maybe rolling out something here in San Diego in the future. Stay tuned.

[Author]

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