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Ren
ParticipantThe trashout people need to advertise a “garage sale” on the day they go to work. Have one guy out front taking money, the rest bring everything out and set aside the good stuff. Worth a shot.
It’s a good business to be in these days and in the coming few years, along with property management.
No matter how tragic they try to make these stories sound, I still can’t bring myself to be empathetic. When these people were buying these homes, the smallest amount of research on their part would have made them think twice.
ParticipantThe trashout people need to advertise a “garage sale” on the day they go to work. Have one guy out front taking money, the rest bring everything out and set aside the good stuff. Worth a shot.
It’s a good business to be in these days and in the coming few years, along with property management.
No matter how tragic they try to make these stories sound, I still can’t bring myself to be empathetic. When these people were buying these homes, the smallest amount of research on their part would have made them think twice.
ParticipantThe trashout people need to advertise a “garage sale” on the day they go to work. Have one guy out front taking money, the rest bring everything out and set aside the good stuff. Worth a shot.
It’s a good business to be in these days and in the coming few years, along with property management.
No matter how tragic they try to make these stories sound, I still can’t bring myself to be empathetic. When these people were buying these homes, the smallest amount of research on their part would have made them think twice.
ParticipantThe trashout people need to advertise a “garage sale” on the day they go to work. Have one guy out front taking money, the rest bring everything out and set aside the good stuff. Worth a shot.
It’s a good business to be in these days and in the coming few years, along with property management.
No matter how tragic they try to make these stories sound, I still can’t bring myself to be empathetic. When these people were buying these homes, the smallest amount of research on their part would have made them think twice.
Participant[quote=peterb]
I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.
[/quote]I’m with you in that I won’t buy now just because of my plans for leveraging rental property.
However, the point is that once the cost of owning so thoroughly beats the cost of renting (as it does in Temecula), it doesn’t matter that it’s depreciating. You’re paying $100/sq and $1,500/month for a beautiful house. Why would you need lots of available cash if things get worse? The economy and housing market can be in the toilet, but you’ve still got a beautiful house, and you’re still only paying $1,500/month for it.
Participant[quote=peterb]
I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.
[/quote]I’m with you in that I won’t buy now just because of my plans for leveraging rental property.
However, the point is that once the cost of owning so thoroughly beats the cost of renting (as it does in Temecula), it doesn’t matter that it’s depreciating. You’re paying $100/sq and $1,500/month for a beautiful house. Why would you need lots of available cash if things get worse? The economy and housing market can be in the toilet, but you’ve still got a beautiful house, and you’re still only paying $1,500/month for it.
Participant[quote=peterb]
I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.
[/quote]I’m with you in that I won’t buy now just because of my plans for leveraging rental property.
However, the point is that once the cost of owning so thoroughly beats the cost of renting (as it does in Temecula), it doesn’t matter that it’s depreciating. You’re paying $100/sq and $1,500/month for a beautiful house. Why would you need lots of available cash if things get worse? The economy and housing market can be in the toilet, but you’ve still got a beautiful house, and you’re still only paying $1,500/month for it.
Participant[quote=peterb]
I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.
[/quote]I’m with you in that I won’t buy now just because of my plans for leveraging rental property.
However, the point is that once the cost of owning so thoroughly beats the cost of renting (as it does in Temecula), it doesn’t matter that it’s depreciating. You’re paying $100/sq and $1,500/month for a beautiful house. Why would you need lots of available cash if things get worse? The economy and housing market can be in the toilet, but you’ve still got a beautiful house, and you’re still only paying $1,500/month for it.
Participant[quote=peterb]
I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.
[/quote]I’m with you in that I won’t buy now just because of my plans for leveraging rental property.
However, the point is that once the cost of owning so thoroughly beats the cost of renting (as it does in Temecula), it doesn’t matter that it’s depreciating. You’re paying $100/sq and $1,500/month for a beautiful house. Why would you need lots of available cash if things get worse? The economy and housing market can be in the toilet, but you’ve still got a beautiful house, and you’re still only paying $1,500/month for it.
Participant[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.
The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.
Participant[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.
The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.
Participant[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.
The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.
Participant[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.
The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.
Participant[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.
The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.
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