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December 20, 2016 at 9:11 AM in reply to: Finally dipping our foot in- Thoughts about Rent-Back? #804551
(former)FormerSanDiegan
Participant[quote=Ribbles]We are in this situation right now in Temecula, except we’re the renters. I don’t think you have a whole lot to be concerned with, considering they were owners and are buying a new house – i.e., on the surface it sounds like they’re responsible enough. In our case, we sold to a pair of Chinese retirees, all cash. We needed to rent for 45 days until our new construction is complete, and worked out all the terms in the contract (no deposit, 45 days rent in advance, with an option for more time at market rate if needed). They aren’t nitpicking us about anything (haven’t even heard from them or their pm since closing, in fact), which we really appreciate. Funny thing is, because we still have a bit of an attachment to the place, I’m the one worried about them taking care of it. “They do know they need to hire a gardener asap, right?” We’re taking the same good care of it we always have, and we’ll leave it spotless when we go.[/quote]
So your gardener is no longer caring for the property ?
Do the terms of the lease say that the tenant (you) are to care for the lawn or the landlord ?
Just an example of what should be in the agreement.December 19, 2016 at 7:28 PM in reply to: Finally dipping our foot in- Thoughts about Rent-Back? #804548ParticipantWe did a rent-back agreement with the sellers for 10 days after buying our house. No issues. However, that period was short enough to not fall into the issue of being considered a rental property.
If you do a lease back, make sure you are covered as a landlord in terms of insurance, charge market rent, and have a definitive lease end date.
Also, get professional/legal help to review your lease agreement.ParticipantI wouldn’t assume all real estate will benefit.
My “local” favorite REIT is off about 5% since the election.
Realty Income
Symbol: OWas pretty frothy and benefitted from low interest rates. With interest rates increasing or normalizing some of the froth has to come out. Higher growth and higher interest rates might spell the end of the long bull run for commercial REIT investors and yield chasers… for now.
ParticipantThe BG trip with CA deplorables going to NV campaign reminded me of something …
What the hell is Bernie Sanders doing all over billboards in California promoting a proposition in California that impacts Californians.
Did he move here or is he just getting paid as a spokeman ?
ParticipantWe bought a new LEAF when it was introduced in 2011. It was our second car and quickly became our primary car we used when we were out and about. 5+ years later we still love it… Won;t ever buy a purely gas-powered vehicle again.
After 5 years the range has dropped by about 15%. Doesn’t impact us much as 95% of the time we are within a 15-mile radius of home in a largely congested urban area in LA.As for depreciation, it does seem poor. However, it might be impacted by the older, smaller battery packs used in the initial versions, and the impact of Government incentives.
For example, our 2011 was “priced” at ~ $33K, but we received $7500 federal tax credit and $5000 state tax rebate. So, the real out of pocket price for us was ~$20K.I’m estimating that we saved about $8000 in fuel costs over the five years. Also, our maintenance costs have totaled less than $800 over those 5 years.
I don’t think the current Government subsidies are as generous today, but for us it’s been the least expensive car we have owned in terms of total cos over the initial 5 years (incl. fuel, maintenance, depreciation). Worth it even it depreciates to $0 over 8 or 10 years
ParticipantIf you are super savers and can afford it, it’s a no-brainer.
ParticipantI don;t have any good ideas for you, but someday I will escape the LA basin and change mine to
Former FormerSanDieganParticipant[quote=scaredyclassic]changing your name is lame.[/quote]
… so says walterwhite
ParticipantIf I were you I would sell the condo within the next 2 years to qualify for tax free gains.
Buy your home this fall.. prices are typically flat from midyear through December historically in San Diego.
Sell your rental in before Spring of 2018 or hold it forever.
ParticipantI have a slightly different take on this. These sellers are difficult to work with, which in the long run reduces the value they will get for their property. The property has dropped out of escrow before, which I would attribute to them being idiots and making hard-line demands which scare away buyers like you. It seems to me that they think they are drawing a hard line and negotiating. But, they are just going to lose another buyer and further taint their property. TO get a max price and gain form a home sale the seller needs to be accommodating and open, at least that was my approach in the past when selling and I think we extracted max profit when selling.
Use this to your advantage. Be willing to walk away, and don’t assume that their take-it-or leave-it caps on closing costs are set in stone.
Once you get an appraisal, ask for whatever the hell you want. If they have demands that don’t line up with your needs, then move on. Their loss.ParticipantInteresting recent article on triple-leveraged ETFs, such as sqqq:
Basic premise is that over long periods you may make the right call and still lose.
Example Nasdaq declined 1.6% from beginning of year through May.
What did the triple-short sqqq do over that period ? It declined 5.3%.http://www.wallstreetdaily.com/2016/05/30/triple-leveraged-etf-3x-bull-bear/
Participant[quote=ltsdd]
This is strictly a short-term play and I’ll liquidate before the week ended. I don’t hang on ETFs more than a few days at a time regardless whether I am in the black or not.[/quote]
Hopefully you cut your losses before today…
sqqq down 2% today and 3% since June 20.
You can blame Apple for sucking less than expected.
ParticipantThe SDDT site stopped actively covering business news on Oct. 19, 2015.
ParticipantLet’s turn this around:
If you had $275K to invest and were looking for a $350K property would you rather:
a). Take 5 years of up-front rent payments to cover the rest of the purchase price in exchange for i)forfeiting rents in years 6 through 9 (on average); ii) freezing the liquidity of the investment; iii) the possibility that you forfeit rent for years 10- 20 if the person survives into their 90’s; and iv) depend on the person with the free rent paying expenses for which they have no down side if they cease paying (other than possibly eviction… good luck with that)
or
b) Take a loan for 75K and have immediate cash flow of maybe $600 – 700 per month.
for me it seems like a steep price for the investor to pay for such little benefit. We’re talking $75K here.
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