[sdsurfer]

[quote=bearishgurl][quote=Kingside]My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

Very sound advice, Kingside. You were very fortunate to recently pick up that triplex for <$200K. I am situated in an urban "sea of WWII boxes and mid-century ranches" owned by the "mostly-over-65 set" here in South County. Many of these owners are original owners who also own nearby sfr’s, sm apt complexes, parking lots and comm’l bldgs (acquired/purchased long ago). Yes, most of these properties ARE “walking distance” from their residences. However, some of these owners are VERY old now so can no longer manage their own properties. In some cases, their children are managing them. The ones that I have spoken to extensively have stated to me that they would only invest in areas they know very well and that is their local area.

Of course these properties cash flow for them because they are either paid-off or have a very low encumbrance against them. I have no doubt that even 40 years ago, they cash-flowed. Having a mo PITI of $138 or $168 and a mo rental income of $225 to $250 is cash flow. It’s all relative.

It is difficult to find this kind of deal today.[/quote]
Its absolutely all relative. My Grandparents have a couple condos on the water at Bristol Cove in Cbad that they bought for 75k, but if you ask them they will say that 75k was a lot in the 70s when they bought them.

My opinion of cash flow is simply bringing in more than my monthly payment,maint,tax, etc. I know this number will go up over the years and eventually pay for my retirement down the road. Of course it is difficult to pull off because if it was easy everyone would do it. It is one of the great things about living here in the US that you can work your ass off to save a few bucks then learn what to do with that money so that it works for you one day.

I just want to make the smartest decision I have with the information I have or can gain. I really appreciate everyone that has chimed in on this to help me gain a better understanding of the various options and better my chances of accomplishing my long term goals!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]

^ This.

Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.

If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.

Thank you Ren. Much appreciated!

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=Kingside][quote=sdsurfer][quote=Kingside]I also live in Encinitas and have investment property in both Encinitas and Escondido.

I agree with the statement that Encinitas is easier to self manage than Escondido.

I would not consider currently buying a SFR in Encinitas for investment based on current prices since they don’t really cash flow, even with the current record low rates.

I think it is a mistake to think in terms of only SFRs if part of your thinking is that you want to invest in a place that you yourself would consider living in. That is a false comfort zone. Also, if you are new and not sure you are comfortable being a landlord, going very low end might be less risk if you decide you don’t like being a landlord and want to bail. The lower end is a bit more liquid of a market.

So I would not only be looking at condos, but would be looking at 2-4 unit multifamily as well. There are a lot of older 2-4 multi=family properties in Escondido. They tend to cash flow much better than SFRs, if you can buy right.[/quote]
Thanks for the sound advice Kingside. Having done it in both areas would you say the peace of mind or closer to it is a good trade off for the additional cash flow from the Escondido properties? I just had a look and there actually are a couple triplexes out there in the 4s that would cash flow better, but they look pretty old. The ones I noticed were on the fruit streets (grape & orange) and appeared to cash flow pretty good from day one. Any experience in those areas yourself? Thank you![/quote]

My Encinitas investments were as a result of being a moveup buyer who did not sell my old properties. I still think this is a great way to go for first time investors in general.

My Escondido investments are a long complicated story which do not pertain to the average investor. I did pick up a triplex in Escondido earlier this year for under $200K. I tend not to look at triplexes priced in the 4’s, but that is just me.

For Encinitas, I manage them myself. For Escondido, I have a manager. What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
Wow…a triplex for under 200k? now we’re talking, but I get the impression that was a special scenario.

Thanks so much for sharing your insight

[sdsurfer]

[quote=bearishgurl][quote=ljinvestor]Since this is your first one I would recommend purchasing closer to home. Also, be patient and wait for a great deal. Don’t go in thinking that the place is you buy is going to go down the next few years. Find a deal that is 20% lower than comps now so you have some safety net.[/quote]

Good advice, ljinvestor. I kind of like the idea of having rental properties within five minutes of where one lives … even walking distance.

Patience, negotiation and fix-up know-how will get you a good rental investment in today’s market.[/quote]

Thanks lj…I wholeheartedly agree to doing my best to get the discount now rather than waiting for it. Theres always opportunities right you just have to work to find them

Thank you too BG. I’m looking to put those exact three traits into play here…well I might get a contractor friend to do the fix up part. I could do it, but not as good as he can and he’s looking for work anyways. I do wonder about walking distance…while I do think it would be nice I’d rather just be out of the picture. It might seem weird, but I like the idea of my renters more or less being employees in a way that help pay off my mortgage, provide a little cash flow in the meantime and take care of the place in exchange for a reasonable landlord. I really would prefer not to see them everyday when I’m walking the dog.

[sdsurfer]

[quote=bearishgurl][quote=ljinvestor]Since this is your first one I would recommend purchasing closer to home. Also, be patient and wait for a great deal. Don’t go in thinking that the place is you buy is going to go down the next few years. Find a deal that is 20% lower than comps now so you have some safety net.[/quote]

Good advice, ljinvestor. I kind of like the idea of having rental properties within five minutes of where one lives … even walking distance.

Patience, negotiation and fix-up know-how will get you a good rental investment in today’s market.[/quote]

Thanks lj…I wholeheartedly agree to doing my best to get the discount now rather than waiting for it. Theres always opportunities right you just have to work to find them

Thank you too BG. I’m looking to put those exact three traits into play here…well I might get a contractor friend to do the fix up part. I could do it, but not as good as he can and he’s looking for work anyways. I do wonder about walking distance…while I do think it would be nice I’d rather just be out of the picture. It might seem weird, but I like the idea of my renters more or less being employees in a way that help pay off my mortgage, provide a little cash flow in the meantime and take care of the place in exchange for a reasonable landlord. I really would prefer not to see them everyday when I’m walking the dog.

[sdsurfer]

[quote=bearishgurl][quote=ljinvestor]Since this is your first one I would recommend purchasing closer to home. Also, be patient and wait for a great deal. Don’t go in thinking that the place is you buy is going to go down the next few years. Find a deal that is 20% lower than comps now so you have some safety net.[/quote]

Good advice, ljinvestor. I kind of like the idea of having rental properties within five minutes of where one lives … even walking distance.

Patience, negotiation and fix-up know-how will get you a good rental investment in today’s market.[/quote]

Thanks lj…I wholeheartedly agree to doing my best to get the discount now rather than waiting for it. Theres always opportunities right you just have to work to find them

Thank you too BG. I’m looking to put those exact three traits into play here…well I might get a contractor friend to do the fix up part. I could do it, but not as good as he can and he’s looking for work anyways. I do wonder about walking distance…while I do think it would be nice I’d rather just be out of the picture. It might seem weird, but I like the idea of my renters more or less being employees in a way that help pay off my mortgage, provide a little cash flow in the meantime and take care of the place in exchange for a reasonable landlord. I really would prefer not to see them everyday when I’m walking the dog.

[sdsurfer]

[quote=bearishgurl][quote=ljinvestor]Since this is your first one I would recommend purchasing closer to home. Also, be patient and wait for a great deal. Don’t go in thinking that the place is you buy is going to go down the next few years. Find a deal that is 20% lower than comps now so you have some safety net.[/quote]

Good advice, ljinvestor. I kind of like the idea of having rental properties within five minutes of where one lives … even walking distance.

Patience, negotiation and fix-up know-how will get you a good rental investment in today’s market.[/quote]

Thanks lj…I wholeheartedly agree to doing my best to get the discount now rather than waiting for it. Theres always opportunities right you just have to work to find them

Thank you too BG. I’m looking to put those exact three traits into play here…well I might get a contractor friend to do the fix up part. I could do it, but not as good as he can and he’s looking for work anyways. I do wonder about walking distance…while I do think it would be nice I’d rather just be out of the picture. It might seem weird, but I like the idea of my renters more or less being employees in a way that help pay off my mortgage, provide a little cash flow in the meantime and take care of the place in exchange for a reasonable landlord. I really would prefer not to see them everyday when I’m walking the dog.

[Author]

Posts