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In your run, center your platform on AirBNBs on every block, up to five renters per bedroom (ten per converted garage), parties OK as long as they start to quiet down by 3am, and making Temecula the official SoCal pre-Burning Man event.

HUGE economic boost. HUGE popularity. Peace Love Unity Respect.

I will help you rack up a landslide by having hundreds of burners register to vote in your AirStream trailer. They need to live there at least 90 days, so warn the taco shop to stock up.

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Scaredy: our left-wing Pigg lives in Temecula?!?

Flyer: I speak Spanish and love Mexico. But also not a fan of the traditional rice/tortilla carby food. Tortilla factories also smell awful. Beans are fine in moderation, and the meat dishes are good.

That wouldn’t deter me from moving there, Mexicans are embracing sushi and Italian food, and to a smaller extent tapas and vegetarian and “New American.” They also have plenty of junkfood Chinese, but I avoid them in any country. Never seen a nice Chinese restaurant there.

About two miles past the old tourist downtown area in TJ, by the fancy Plaza Rio mall, is a newer area that feels like gaslamp with dozens of bars that focus on strong high end beers and fancy cocktails. I didn’t like it, too crowded and loud, but shows more Americanization of food and drink culture.

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If this does pass, the Coastal Commission can block it or at least make it less bad. Happened in Del Mar already. So write them too if it passes!

http://www.sandiegouniontribune.com/communities/north-county/sd-no-short-rentals-20180614-story.html

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I knew anecdotally that most AirBNBs are owned by people who have 10-100 units. The law will restrict people to just their primary home plus one more. So suddenly you’ll have them in some cases selling, in other cases scrambling for renters, in other cases even giving them up to banks or short-selling.

The market seems healthy enough right now that I don’t think it will crash or anything. But we could easily see the past few years of 7% property value growth fall back to 0% or 3%. And very sad for all the jobs lost.

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In an efficient market, you won’t make *significantly* more with short-term rentals. The rents will certainly be more, but the cost in time and expenses will be too. For one thing, you have to pay the utilities, and short-term tenants won’t be economizing on them either. Short term renters will also cause more wear and tear to the house.

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Nate I also do not do yearly rental increases, but when you hit the 5-year mark moving them from 20% under market to 12% under with plenty of notice seems reasonable.

I do know people who don’t even raise after 10 years and get to be 30-40% under market. I don’t think they are all irrational. The most common situation is that there are maintenance issues the current tenant has accepted but a new one likely wouldn’t. They might also not have the energy to deal with even a medium-maintenance tenant and don’t want to lose the money associated with a property management company.

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I don’t see a RE crash happening in China. The people buying when they know rents will be low are aware of it, and buying anyway. Mortgages are pretty conservative there, with lots of cash sales and lots of 50% down sales.

More likely a really long period of prices being flat to up 1% against a background of 5-7% inflation.

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Property manager handles all this, or should do so.

Hope you aren’t paying 10% fees to them and then you have to find a tenant and have the tenant contact you about repairs.

You are lucky to find a two-year tenant in such an expensive place. Most people who can afford the 5 or 6k in rent are much better off buying and getting the tax deduction.

With all the questions you have, I suggest you find another property manager. There are many of them out there, including some with a PB headquarters.

I won’t answer all 75 of your questions, but staging a rental with temporary furniture sounds needlessly expensive, and pets are large risks in rentals and most people do not allow them.

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Here’s some specifics on China’s very high prices compared to rents:

Home rental yields in Chinese cities, which at certain levels can signify a property price bubble, continued to fall in the past quarter.
SCMP Today: HK Edition

The yields in 13 cities slipped below 2 per cent, suggesting an accumulation of risk in the market.

The rental yields in all the first-tier cities – Beijing, Shanghai, Guangzhou and Shenzhen – dropped under 2 per cent, while nine second-tier cities joined them, according to Shanghai-based E-house China R&D Institute, which compiles the data for 50 cities.

The average yields are below the level in major global cities such as New York on 4.7 per cent and Tokyo on 4.3 per cent.

The coastal city of Xiamen recorded the lowest average rental yield of just 1 per cent, meaning investors can expect to wait 100 years to recover their initial investment if they solely rely on rent. Rental yield in Beijing touched 1.4 per cent, the lowest among the first-tier cities, meaning a property’s price is on average 71.4 times its annual rent.

I’d guess San Diego condos are about 20 times annual rents. So a $500,000 place in San Diego would go for about $2100 a month but a $500,000 place in Beijing would rent for $580 a month.

Rents in China of course are likely to increase faster than in the USA because they have a 5-7% long term GDP growth compared to our 2.0-2.5%. But it will take a looooong time for $580 to catch up with $2100 (and slowly growing).

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The book claims:

“The real class divide is not between the upper class and the upper middle class: it is between the upper middle class and everyone else.”

The reality of income and wealth statistics say otherwise.

And for political power, the permanent part of the 2017 tax bill raises taxes on most of the upper middle class and greatly lowers it on the 1%, and even more on the 0.1%.

It does seem like that top 20% or so, those with degrees from selective colleges or stable small business ownership, are pulling away from the rest in some ways. But this is just a much smaller phenomenon as the extremely rapid and dramatic increase in income and wealth at the very top.

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When I did this I had a mortgage broker (who I did not use to get the mortgage) do the sale documents and disclosures for $1500 (split 50/50) and the title/escrow company do the rest for their normal fees.

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Throw in one blood orange to give your OJ a pretty deep red color.

Get a Sodastream and you can carbonate it.

I have a plum tree and it makes great fruit but half the time winter is too warm for them to form so it is like a lottery.

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Milkweed will attract Monarch butterflies and grows well in all soils and lights with pretty orange flowers. Once a month I have to remove aphids from them by hand, takes 10 minutes to do 20 plants. It feels great to help preserve them as they are endangered, population in California is down 95% from the 1980s.

For edible plants, insects can be a major problem, so I change things up. Broccoli and chard grow well and fast enough you can consume them before pests become a problem. Melons and squash grow well here, but take up a lot of space for the yield and don’t look too attractive. But if you have a big canyon lot, they would be a good choice.

Cherry tomatoes are great. With full size, 6 worms in a plant might ruin 6/10 tomatoes, but with cherries just 6/200.

Guava trees grow faster than citrus and produce multiple rounds a fruit per year.

Kiwis grow well in NZ which has a California type climate, I am thinking of trying that out.

I’ve always failed at grapes and berries, a lot of effort for a tiny yield.

Tomatillos immediately got insects really badly.

Basil, mint, dill, oregano, thyme, and rosemary are the herbs the grow most easily. Parsley and cilantro get eaten by pests.

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Low and stable inflation, year after year. Another reason the USA is a great place to invest.

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The cause of increasing rates is a booming economy and growing incomes.

I think rates will go back down. They are so much lower in Europe and Japan. The reason was this is that they expected the dollar to weaken and eliminate the benefit of the extra interest. In fact in has been the opposite.

Large Euro and Japanese investors holding onto their local bonds at negative or 0/1% interest rates year after year is as dumb as when they were loaning us money for Option ARMS that S&P promised were “AAA.”

Their own local stock markets are also much better investments than their bonds. But the best investments in the developed world remain in the USA and Canada.

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