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surveyor
ParticipantI’ve been keeping track, and I’ve heard that the fire missed 4S Ranch. It burned a lot of north Rancho Bernardo, and that it didn’t quite get to the unconstructed houses west of 15.
As for anybody returning, no word yet.
ParticipantThere’s a community pool at the park where the baseball field, tennis court, hockey arena, and football fields are. It’s a City of San Diego park.
Head south on 4S Ranch Parkway, right on Dove Canyon Road, and it’s there.
ParticipantThere’s a community pool at the park where the baseball field, tennis court, hockey arena, and football fields are. It’s a City of San Diego park.
Head south on 4S Ranch Parkway, right on Dove Canyon Road, and it’s there.
ParticipantThe “land use planning excess” reason might explain why prices in San Diego are rated a 6 unaffordability ratio vs. a 3 for everyone else. However, the rest of the 4.5 can probably be attributed to the loose lending and speculative bubble that occurred in San Diego.
Are the land use rules part of why San Diego costs so much? Sure. Is it the only reason? Nope.
ParticipantThe “land use planning excess” reason might explain why prices in San Diego are rated a 6 unaffordability ratio vs. a 3 for everyone else. However, the rest of the 4.5 can probably be attributed to the loose lending and speculative bubble that occurred in San Diego.
Are the land use rules part of why San Diego costs so much? Sure. Is it the only reason? Nope.
October 17, 2007 at 4:56 PM in reply to: Question regarding pay capital gains or buy property #89723Participant1031 exchange….
I would certainly recommend going the route which pays less taxes. Still, if you are going to invest in California, it will probably be about equal – you pay the $200k in taxes or watch your investment eat up $200k (in cash flow costs and depreciation).
I would recommend investing the money in different areas of the country.
If you are interested, you can call the people at http://www.pacblueinvestments.com and tell them that you have so-so amount of money and you are thinking of doing a 1031 exchange. They might be able to help you out and give you some options. They can show you some real estate markets around the U.S. that are cash flowing right now and can point you in the right direction as to what your future plans are.
Not every place is in the same cycle as California.
Congrats though on having such an enviable problem…
October 17, 2007 at 4:56 PM in reply to: Question regarding pay capital gains or buy property #89731Participant1031 exchange….
I would certainly recommend going the route which pays less taxes. Still, if you are going to invest in California, it will probably be about equal – you pay the $200k in taxes or watch your investment eat up $200k (in cash flow costs and depreciation).
I would recommend investing the money in different areas of the country.
If you are interested, you can call the people at http://www.pacblueinvestments.com and tell them that you have so-so amount of money and you are thinking of doing a 1031 exchange. They might be able to help you out and give you some options. They can show you some real estate markets around the U.S. that are cash flowing right now and can point you in the right direction as to what your future plans are.
Not every place is in the same cycle as California.
Congrats though on having such an enviable problem…
Participantit sounds like one of those nigerian scams where they say they need to withdraw money but need funds of thousands of dollars so that they can pay you a million dollars.
my advice: stay away…
Participantit sounds like one of those nigerian scams where they say they need to withdraw money but need funds of thousands of dollars so that they can pay you a million dollars.
my advice: stay away…
Participantfunny
Funny but my lender did not ask me for a lease when I bought an SFR for rental. Of course, that was probably in the “good old days.”
Just wanted to chime in that SFR’s do have their advantages for investment purposes (they are easier to sell, has some advantages for renting, and the people renting a SFR tend to be more stable), you should really consider purchasing a multi-unit, preferably four units. There is maybe a little bit more work to get the property, but your per unit costs can be lowered (for example, buying a $175k SFR has a per unit cost of $175k, but buying a $350k four unit has a per unit cost of $87.5k).
Also, when you are renting your SFR, you are either fully occupied or not. However, you are still on the hook for the mortgage and other expenses for the time it is vacant. For a four unit, maybe one tenant leaves, you still have three others paying and they will still contribute to the expenses of the property, leaving you with a little better cash flow. Also, multi-units can provide cheaper rent to the tenants and on a cost basis have more people available to rent it.
My two cents.
Participantfunny
Funny but my lender did not ask me for a lease when I bought an SFR for rental. Of course, that was probably in the “good old days.”
Just wanted to chime in that SFR’s do have their advantages for investment purposes (they are easier to sell, has some advantages for renting, and the people renting a SFR tend to be more stable), you should really consider purchasing a multi-unit, preferably four units. There is maybe a little bit more work to get the property, but your per unit costs can be lowered (for example, buying a $175k SFR has a per unit cost of $175k, but buying a $350k four unit has a per unit cost of $87.5k).
Also, when you are renting your SFR, you are either fully occupied or not. However, you are still on the hook for the mortgage and other expenses for the time it is vacant. For a four unit, maybe one tenant leaves, you still have three others paying and they will still contribute to the expenses of the property, leaving you with a little better cash flow. Also, multi-units can provide cheaper rent to the tenants and on a cost basis have more people available to rent it.
My two cents.
Participantfast sale here too
My next door neighbor had his house for sale for two weeks and then a SOLD sign went up, prompting a “wtf?” from me when I walked by it. I haven’t seen him yet, but I wanted to ask him details about his sale. I didn’t even see his house hit the MLS.
=shrug= I should probably sell my house, but I think it’ll be a harder sell. Also I hate moving. Also there are too many things that need to be done to the house…
(My neighborhood is carmel mountain ranch, and it’s all tract homes here)
Participantfast sale here too
My next door neighbor had his house for sale for two weeks and then a SOLD sign went up, prompting a “wtf?” from me when I walked by it. I haven’t seen him yet, but I wanted to ask him details about his sale. I didn’t even see his house hit the MLS.
=shrug= I should probably sell my house, but I think it’ll be a harder sell. Also I hate moving. Also there are too many things that need to be done to the house…
(My neighborhood is carmel mountain ranch, and it’s all tract homes here)
ParticipantGeez, someone’s up early reading this thread…
If a property produces good cash flow, it will certainly improve the ROE, but it becomes difficult to really account how to best use the money up to a certain point. You can start paying back some of the loan early (increasing your loan reduction portion of the ROE) or just accumulate it until you get enough to buy another property, or just keep it in your rainy day fund. It’s akin to tracking your dividends for stocks, where after awhile you just lose track of them. While I try to keep up with my paperwork, it is best to just keep the number as simple as you can.
The ROE number itself has so many components and there are so many ways to approach your real estate investing. You can concentrate on certain parts, like the cash flow and the tax basis in order to get a true calculation. At the beginning, the ROE is a useful “generic” number that can help you choose properties based on their potential. Later on, when you purchase the property and start working through it, you can re-calculate the ROE and see how it actually performed.
And each part of the ROE can change over time or have specific calculations unique to certain properties. For example, properties in the Hurricane Katrina hit zone can be depreciated faster, so their tax basis is different than any other property around the country.
As far as equity going up to infinity and all, the downpayment portion of the ROE will always stay generally the same, because that is what you put into the property at the beginning. Everything else after that becomes part of the return. Even if you pay off the donwpayment, the results of that will show up on the cash flow portion (because the loan interest you’ve been paying on the downpayment part would be part of the cash flow). There are programs where you can put 10% or 5% down, and that can increase your ROE to a huge degree.
Anyways from dictionary.com:
equity – the monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc.
Paper equity or not, it is still a real value but it does and will fluctuate or time.
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