[ljinvestor]

Look at current debt and future responsibilities you would like to cover such as raising kids or making sure loved ones could transition comfortably. 20yr plans typically offer the best bang for your buck unless you feel pretty comfortable that you are only protecting a 10 or 15yr need. 25 & 30yr plans get a little expensive IMO.

What carrier did you get approved with? Check their conversion options as many carriers allow evidence free conversions to permanent product in the first 20yrs up to age 70 or 75, but with so many products out there some may not have any conversion option or just allow for the first 10 years. A good conversion option helps if you have major health issue or become un-insurable during the initial term and want to continue coverage after that term at reasonable rates.

If you are younger and got approved at a good health class where rates are cheap then I would consider going for a higher death benefit amount when estimating your need, especially if the contract allows for future face reduction which most should. Pricing by the carriers is usually banded at $250k, $500k, & $1,000,000 so you can get better price per $1k when you hit those. Hope that helps.

[ljinvestor]

Personally I wouldn’t care about buyer interest, just how many transactions there are. How many SFR homes are available in La Jolla right now under $1.5MM that are at least 1500sf, don’t have HOA fees, and not short sales?

Just 8 and 4 of those are on less desirable roads. Activity in La Jolla is pretty hot up to $2MM right now and sizzling up to $1.5MM

[ljinvestor]

I would say a few investors are getting a little aggressive in the PB and La Jolla area. No chance at flipping this flip for $400k more but who knows the real reason they put it right back on. When the market is hot everyone wants to invest in real estate, many assume its easy, and those that don’t plan well will get caught long term. Need to be very cautious with expectations when flipping busy street properties.

I don’t see the owner of this beryl st property losing money, but if they truly purchased to flip I personally don’t see enough upside. Perhaps they were going to hold it for 10+ years as a rental but thought they would test this hot market…as I mentioned we will probably never know true intention.

[ljinvestor]

If you do go with Whole Life, find a solid company that offers a high early cash value product. Not sure if they all offer but look into companies such as Mass Mutual, New York Life, Guardian, MetLife.

Usually less fees/surrender charges and greater accumulation in early years in case you change your mind. Agents don’t get paid near as much on these high early cash products but better for client as it provides more flexibility

[ljinvestor]

I wouldn’t consider it a trend, its just what flippers & developers do. I doubt these sellers will get anywhere near $2MM. Beryl is very busy street, home is under 3,000 sf and is on regular 6300 sf lot. Only thing it has going for it are views and finishes. Both those positives come with lots of traffic noise.

The house next to it (1712 Beryl) just sold after nice remodel for $1.3MM. I’m sure the finishes are not as nice but it looked good. Flippers purchased that one in July 2013 for $945k and sold for the $1.3 in Jan of this year. Perhaps this listing could justify up to $1.5 right now?

Best time to sell a home on busy street is in a hot market with low inventory. In a regular or slow market these are the properties that sit a long time or sell well below neighboring comps.

[ljinvestor]

I sent you a PM

[ljinvestor]

How much do you like the specific area/development? Do you really like your street and especially the lot? A great lot on nice quiet street in area you love would be a keeper in my mind.

If you decide to keep, you might want to refi 5yr ARM to new 7 or 30yr before you leave.

[ljinvestor]

Spartaflex through Perkins Custom Coatings. I’ve used them twice and have been very satisfied.

[ljinvestor]

Maybe HLS can chime in? A year ago I got a couple of deals through in 21 days through a broker. One was in house then sold to ING & the other he used Union Bank, but todays volume might make it tough. You will need a complete application and file ready to go on day 1 and a good broker to quarterback it through the process. Good Luck.

[ljinvestor]

Check out the credit unions. Penfed.org has a 3.75%variable HELOC with closing costs promo. Up to 80% LTV with max of $400k on owner occ, or they have a 5/5 HELOC product up to 75% LTV where the rate only changes every 5 years.

I’ve used them a couple of times on a 1st and once for a HELOC. Pretty easy to do business with.

[ljinvestor]

If you think the home could increase by 19% the next year then you should stay, but nobody has that crystal ball.

[ljinvestor]

If you have a large gain after fees it might be worth sticking it out until you have lived in it 2yrs as your primary.

If the taxable gain is minimal, why not sell when the market is hot. Life is too short to not enjoy the area your living in.

[ljinvestor]

Both LJ & CV schools are good so if San Diego is where you want to be once the kids are out, then I would choose the area you like best between those two.

Not sure if you can get a SFR with at least 3BR & 2BA in the walkable areas of La Jolla for $1.2mm right now as the market has gone crazy the last 6mo. Those that are close to $1.2 or perhaps even under are most likely on very busy street or need lots of work.

Good luck with the search

[ljinvestor]

If you have lived in it as your primary for at least 2 out of last 5 years and it would max out the tax free gain of $250k for individual or $500k for couple then I would seriously consider selling especially since your not excited about the idea of being a landlord.

As you have heard from others their are many advantages to holding but I understand its not for everyone.

Where would you reinvest the gain if you sell?

[ljinvestor]

aimloan.com or a local mortgage broker

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