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surveyor
Participant[quote=wanttobuy]As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?[/quote]
San Diego (and the major California cities) enjoy a very low vacancy rate among rentals, whether SFR or condos or multi-units. However, because of this, the price of units in San Diego is very high, usually around $150k or more per unit.
Other locations outside these markets tend to have a higher vacancy rate. However, their per unit cost is much lower than San Diego. Some areas can go for $50k per unit or even less. However, they are not high rental areas and so sometimes you will go several months with a vacancy.
For example, perhaps you will be able to get a San Diego SFR for around $250k or so. Maybe if you’re lucky you can get one for $180k. It will probably pencil out as an investment.
However, in other locations you can get a 4 unit for about $120k to about $200k. These 4 units are available in pretty major cities. Your vacancy rate in these properties would run to around 10%.
Other advantages of other markets? Well, if your San Diego rental goes vacant, you are out the complete mortgage payment (maybe $1000 a month). For the 4 unit, you will theoretically still have 1 to 3 tenants paying the bill. So maybe you’re not hurt as much.
My own situation, I’ve been lucky with the rentals in other markets except one. In the beginning, my South Carolina 4 unit had a vacancy for awhile, but only for the first year. After that it has been continually rented. I’ve had some tenants go but the property manager has been able to get it rented in less than a month. My Alabama 4 unit property has been more problematic, it’s had quite a few vacancies (once it had three vacancies). However, since it cost only $115k, the mortgage payment was not difficult to handle (about $700 without tax and insurance). The one market that has proven difficult to rent in is surprisingly Denver, which is a fairly major city, but it has been having deep economic problems for awhile now and there is intense competition for tenants in that market.
I’ve been sitting pat on my investments for awhile, mostly focusing on getting them to perform better. However, I no longer look at San Diego to invest in because a) that’s what everyone wants to do and b) I’d rather purchase a $100k 4 unit property than a $200k San Diego SFR.
Hope that helps.
Participant[quote=wanttobuy]As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?[/quote]
San Diego (and the major California cities) enjoy a very low vacancy rate among rentals, whether SFR or condos or multi-units. However, because of this, the price of units in San Diego is very high, usually around $150k or more per unit.
Other locations outside these markets tend to have a higher vacancy rate. However, their per unit cost is much lower than San Diego. Some areas can go for $50k per unit or even less. However, they are not high rental areas and so sometimes you will go several months with a vacancy.
For example, perhaps you will be able to get a San Diego SFR for around $250k or so. Maybe if you’re lucky you can get one for $180k. It will probably pencil out as an investment.
However, in other locations you can get a 4 unit for about $120k to about $200k. These 4 units are available in pretty major cities. Your vacancy rate in these properties would run to around 10%.
Other advantages of other markets? Well, if your San Diego rental goes vacant, you are out the complete mortgage payment (maybe $1000 a month). For the 4 unit, you will theoretically still have 1 to 3 tenants paying the bill. So maybe you’re not hurt as much.
My own situation, I’ve been lucky with the rentals in other markets except one. In the beginning, my South Carolina 4 unit had a vacancy for awhile, but only for the first year. After that it has been continually rented. I’ve had some tenants go but the property manager has been able to get it rented in less than a month. My Alabama 4 unit property has been more problematic, it’s had quite a few vacancies (once it had three vacancies). However, since it cost only $115k, the mortgage payment was not difficult to handle (about $700 without tax and insurance). The one market that has proven difficult to rent in is surprisingly Denver, which is a fairly major city, but it has been having deep economic problems for awhile now and there is intense competition for tenants in that market.
I’ve been sitting pat on my investments for awhile, mostly focusing on getting them to perform better. However, I no longer look at San Diego to invest in because a) that’s what everyone wants to do and b) I’d rather purchase a $100k 4 unit property than a $200k San Diego SFR.
Hope that helps.
Participant[quote=wanttobuy]As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?[/quote]
San Diego (and the major California cities) enjoy a very low vacancy rate among rentals, whether SFR or condos or multi-units. However, because of this, the price of units in San Diego is very high, usually around $150k or more per unit.
Other locations outside these markets tend to have a higher vacancy rate. However, their per unit cost is much lower than San Diego. Some areas can go for $50k per unit or even less. However, they are not high rental areas and so sometimes you will go several months with a vacancy.
For example, perhaps you will be able to get a San Diego SFR for around $250k or so. Maybe if you’re lucky you can get one for $180k. It will probably pencil out as an investment.
However, in other locations you can get a 4 unit for about $120k to about $200k. These 4 units are available in pretty major cities. Your vacancy rate in these properties would run to around 10%.
Other advantages of other markets? Well, if your San Diego rental goes vacant, you are out the complete mortgage payment (maybe $1000 a month). For the 4 unit, you will theoretically still have 1 to 3 tenants paying the bill. So maybe you’re not hurt as much.
My own situation, I’ve been lucky with the rentals in other markets except one. In the beginning, my South Carolina 4 unit had a vacancy for awhile, but only for the first year. After that it has been continually rented. I’ve had some tenants go but the property manager has been able to get it rented in less than a month. My Alabama 4 unit property has been more problematic, it’s had quite a few vacancies (once it had three vacancies). However, since it cost only $115k, the mortgage payment was not difficult to handle (about $700 without tax and insurance). The one market that has proven difficult to rent in is surprisingly Denver, which is a fairly major city, but it has been having deep economic problems for awhile now and there is intense competition for tenants in that market.
I’ve been sitting pat on my investments for awhile, mostly focusing on getting them to perform better. However, I no longer look at San Diego to invest in because a) that’s what everyone wants to do and b) I’d rather purchase a $100k 4 unit property than a $200k San Diego SFR.
Hope that helps.
ParticipantOh, gandalf, have we gotten to the name-calling already? It’s not even page 2! That just proves to me that you’ve lost the argument.
You put this article out there, without any real analytical thinking, and you parrot the inane and superficial conclusions of that article without any questioning and proceed to demonize a whole segment of the population.
I, and others, have proceeded to utterly destroy your arguments and because of that, I’m sad? Because I put up a rebuttal? And even more you accuse me of parroting a party line?
As I’ve said many times, you can accuse me of being any sort of things, but it doesn’t change the facts that I’ve put up.
And when you can’t argue that, all you have is name-calling.
ParticipantOh, gandalf, have we gotten to the name-calling already? It’s not even page 2! That just proves to me that you’ve lost the argument.
You put this article out there, without any real analytical thinking, and you parrot the inane and superficial conclusions of that article without any questioning and proceed to demonize a whole segment of the population.
I, and others, have proceeded to utterly destroy your arguments and because of that, I’m sad? Because I put up a rebuttal? And even more you accuse me of parroting a party line?
As I’ve said many times, you can accuse me of being any sort of things, but it doesn’t change the facts that I’ve put up.
And when you can’t argue that, all you have is name-calling.
ParticipantOh, gandalf, have we gotten to the name-calling already? It’s not even page 2! That just proves to me that you’ve lost the argument.
You put this article out there, without any real analytical thinking, and you parrot the inane and superficial conclusions of that article without any questioning and proceed to demonize a whole segment of the population.
I, and others, have proceeded to utterly destroy your arguments and because of that, I’m sad? Because I put up a rebuttal? And even more you accuse me of parroting a party line?
As I’ve said many times, you can accuse me of being any sort of things, but it doesn’t change the facts that I’ve put up.
And when you can’t argue that, all you have is name-calling.
ParticipantOh, gandalf, have we gotten to the name-calling already? It’s not even page 2! That just proves to me that you’ve lost the argument.
You put this article out there, without any real analytical thinking, and you parrot the inane and superficial conclusions of that article without any questioning and proceed to demonize a whole segment of the population.
I, and others, have proceeded to utterly destroy your arguments and because of that, I’m sad? Because I put up a rebuttal? And even more you accuse me of parroting a party line?
As I’ve said many times, you can accuse me of being any sort of things, but it doesn’t change the facts that I’ve put up.
And when you can’t argue that, all you have is name-calling.
ParticipantOh, gandalf, have we gotten to the name-calling already? It’s not even page 2! That just proves to me that you’ve lost the argument.
You put this article out there, without any real analytical thinking, and you parrot the inane and superficial conclusions of that article without any questioning and proceed to demonize a whole segment of the population.
I, and others, have proceeded to utterly destroy your arguments and because of that, I’m sad? Because I put up a rebuttal? And even more you accuse me of parroting a party line?
As I’ve said many times, you can accuse me of being any sort of things, but it doesn’t change the facts that I’ve put up.
And when you can’t argue that, all you have is name-calling.
Participant[quote=pri_dk]On the other hand, filling an entire page with the names of various taxes doesn’t really make for a meaningful rebuttal.
[/quote]Assertion: “Businesses taxed too much? Not really…”
Rebuttal: A list of approximately 200 taxes businesses pay (a lot of which are not paid by individuals).
Conclusion: OWNED.
Participant[quote=pri_dk]On the other hand, filling an entire page with the names of various taxes doesn’t really make for a meaningful rebuttal.
[/quote]Assertion: “Businesses taxed too much? Not really…”
Rebuttal: A list of approximately 200 taxes businesses pay (a lot of which are not paid by individuals).
Conclusion: OWNED.
Participant[quote=pri_dk]On the other hand, filling an entire page with the names of various taxes doesn’t really make for a meaningful rebuttal.
[/quote]Assertion: “Businesses taxed too much? Not really…”
Rebuttal: A list of approximately 200 taxes businesses pay (a lot of which are not paid by individuals).
Conclusion: OWNED.
Participant[quote=pri_dk]On the other hand, filling an entire page with the names of various taxes doesn’t really make for a meaningful rebuttal.
[/quote]Assertion: “Businesses taxed too much? Not really…”
Rebuttal: A list of approximately 200 taxes businesses pay (a lot of which are not paid by individuals).
Conclusion: OWNED.
Participant[quote=pri_dk]On the other hand, filling an entire page with the names of various taxes doesn’t really make for a meaningful rebuttal.
[/quote]Assertion: “Businesses taxed too much? Not really…”
Rebuttal: A list of approximately 200 taxes businesses pay (a lot of which are not paid by individuals).
Conclusion: OWNED.
Participanthttp://www.realclearmarkets.com/articles/2008/08/do_corporations_really_pay_no.html
“It shouldn’t be necessary to remind reporters and editors who cover such matters that businesses pay taxes on their profits, not sales. But I often read stories in which a reporter confuses the two, saying that a business “made” $50 million when the writer is referring to the company’s sales. Much of the press that the GAO report received revolves around blurring the distinction between these two. As Michigan Senator Carl Levin, a frequent critic of corporations, said of the study, “Twenty-five percent of the largest U.S. corporations [those with more than $50 million in revenues] had $1.1 trillion in gross sales in 2005 and yet paid no federal income taxes.” That statement suggests that Levin is either trying to mislead us or that he has made it into the world’s most exclusive club, the U.S. Senate, without knowing the difference between earnings and sales.
The difference, of course, can be enormous. For one thing, many industries have extremely small profit margins because as soon as it gets too easy to make a buck in a free-market system, you’re sure to get plenty of competitors crowding in, driving down your margins. The average net margin in the supermarket business is just 1 to 2 percent of sales, for instance, which means that a company with $50 million in sales (to use the study’s definition of large businesses) would earn, on average just $500,000-to-$1 million annually and pay taxes on that money. Many firms in the industry, of course, would be below that average, and some would lose money in any year.
Many businesses we regard as successful operate on small profit margins. After paying $5.8 billion in taxes in 2005, Wal-Mart earned $11.7 billion—a nice chunk of change. But those earnings were on revenues of $312 billion, a mere 3.4 percent net profit margin. Exxon Mobil earned $36 billion in 2005 after paying $23.3 billion in taxes on revenues of $371 billion. Looking at that result you realize that in America today, a ‘windfall’ profit is one that amounts to less than 10 percent of revenues.”
…
“the U.S. has the second highest corporate tax rate among 30 countries in the Organisation of Economic Co-Operation and Development. That matters because, as economists for the OECD recently concluded, the corporate tax is the most harmful to economic growth of all the levies most commonly used by member nations. ”
Let’s also not forget that as part of the cost of doing business, corporations have to pay at least some of these taxes:
1. Accounts Receivable Tax
2. Accounting and Tax Preparation (cost to taxpayers $300 billion)
3. Accumulated Earnings Tax
4. Accumulation Distribution of Trusts
5. Activity Fee (Dumping Permit Fee)
6 . Air Tax (PA coin-operated vacuums)
7. Aircraft Jet Fuel Tax
8. Aircraft Excise Tax
9 . Alcohol Fuels Tax
10. Alcoholic Beverage Tax
11. Alternative Minimum Tax – Amt
12. Ambulance Services (Air Ambulance Services, SD)
13. Ammunition Tax
14. Amusement Tax (MA, VA, MD)
15. Animal Slaughter Tax (WI, others, Per Animal)
16. Annual Custodial Fees (Ira Accounts)
17. Ballast Water Management Fee (Marine Invasive Species)
18. Biodiesel Fuel Tax
19. Blueberry Tax (Maine)
20. Bribe Taxes (Pay If You Dare)
21. Brothel licensing fees
22. Building Permit Tax
23. Capital Gains Tax
24. California Interstate User Diesel Fuel Tax
25. California Redemption Value (Can and Bottle Tax)
26. CDL License Tax
27. Charter Boat Captain License
28. Childhood Lead Poisoning Prevention Fee
29. Cigarette Tax
30. Cigarette Tax Stamp (Acts) (Distributors)
31. Compressed Natural Gas Tax
32. Commercial Activity Tax (OH – for Service Providers)
33. Corporate Income Tax
34. Court Fines (Indirect Taxes)
35. County Property Tax
36. Disposable Diapers Tax (Wisconsin)
37. Disposal Fee (Any Landfill Dumping)
38. Dog License Tax
39. Duck Hunting Tax Stamp (PA, others)
40. Electronic Waste Recycling Fee (E-Waste)
41. Emergency Telephone User Surcharge
42. Environmental Fee (CA – HazMat Fees)
43. Estate Tax (Death Tax, to be reinstated)
44. Excise Taxes
45. Facility Fee (CA – HazMat Fees)
46. FDIC tax (insurance premium on bank deposits)
47. Federal Income Tax
48. Federal Unemployment Tax (FUTA)
49. Fiduciary Income Tax (Estates and Trusts)
50. Fishing License Tax
51. Flush Tax (MD Tax For Producing Wastewater)
52. Food License Tax
53. Fountain Soda Drink Tax (Chicago – 9%)
54. Franchise Tax
55. Fresh Fruit (CA, if Purchased From A Vending Machine)
56. Fuel Gross Receipts Tax (Retail/Distributor)
57. Fuel Permit Tax
58. Fur Clothing Tax (MN)
59. Garbage Tax
60. Gasoline Tax (475 Cents Per Gallon)
61. Generation-Skipping Transfer Tax
62. Generator Fee (Recycled Waste Fee)
63. Gift Tax
64. Gross Receipts Tax
65. Habitat Stamp (Hunting/Fishing in some states)
66. Hamburger Tax
67. Hazardous Substances Fees: Generator, Facility, Disposal
68. Highway Access Fee
69. Household Employment Taxes
70. Hunting License Tax
71. Illegal Drug Possession (No Carolina)
72. Individual Income Tax
73. Inheritance Tax
74. Insect Control Hazardous Materials License
75. Insurance Premium Tax
76. Intangible Tax (Leases Of Govt. Owned Real Property)
77. Integrated Waste Management Fee
78. Interstate User Diesel Fuel Tax
79. Inventory Tax
80. IRA Rollover Tax (a transfer of IRA money)
81. IRA Early Withdrawal Tax
82. IRS Interest Charges
83. IRS Penalties (Tax On Top Of Tax)
84. Jock Tax (income earned by athletes in some states)
85. Kerosene, Distillate, & Stove Oil Taxes
86. Kiddie Tax (Child’s Earned Interest Form 8615)
87. Land Gains and Real Estate Withholding
88. Lead Poisoning Prevention Fee (Occupational)
89. Lease Severance Tax
90. Library Tax
91. Liquid Natural Gas Tax
92. Liquid Petroleum Gas Tax
93. Liquor Tax
94. Litigation Tax (TN Imposes Varies With the Offense)
95. LLC/PLLC Corporate Registration Tax
96. Local Income Tax
97. Lodging Taxes
98. Lump-Sum Distributions
99. Luxury Taxes
100. Make-Up Tax (Ohio, applying in a salon is taxable)
101. Marriage License Tax
102. Meal Tax
103. Medicare Tax
104. Mello-Roos Taxes (Special Taxes and Assessments)
105. Migratory Waterfowl Stamp (addition to hunting license)
106. Minnow Dealers License (Retail – For One Shop)
107. Minnow Dealers License (Distributor – For One+ Shops)
108. Mobile Home Ad Valorem Taxes
109. Motor Fuel Tax (For Suppliers)
110. Motor Vehicle Tax
111. Music and Dramatic Performing Rights Tax
112. Nudity Tax (Utah)
113. Nursery Registration (Buying and selling plants)
114. Occupancy Inspection Fees
115. Occupation Taxes and Fees (Various Professional Fees)
116. Oil and Gas Assessment Tax
117. Oil Spill Response, Prevention, and Administration Fee
118. Parking Space Taxes
119. Pass-Through Withholding
120. Pay-Phone Calls Tax (Indiana)
121. Percolation Test Fee
122. Personal Property Tax
123. Personal Holding Company (undistributed earnings)
124. Pest Control License
125. Petroleum Business Tax
126. Playing Card Tax (Al)
127. Pole Tax (TX – A $5 Cover Charge On Strip Clubs)
129. Property Tax
130. Property Transfer Tax (DE, ownership transfer between parties)
131. Prostitution Tax (NV – Prostitute Work Permits)
132. Poultry Registered Premises License (Sales License)
133. Rain Water Tax (Runoff after a Storm)
134. Rat Control Fee (CA)
135. Real Estate Tax
136. Recreational Vehicle Tax
137. Refrigerator and Freezer Recycling Fees
138. Regional Transit Taxing Authority (Trains)
139. Road Usage Tax
140. Room Tax (Hotel Rooms)
141. Sales Tax (State)
142. Sales Tax (City)
143. Sales And Use Tax (Sellers Permit)
144. School Tax
145. Service Charge Tax
146. Self Employment Tax
147. Septic And Drain Field Inspection Fees
148. Sex Sales Tax (UT, when nude people perform services)
149. Sewer & Water Tax
150. Social Security Tax
151. Sparkler and Novelties Tax (WV Sellers of Sparklers, etc)
152. Special Assessment Tax (Not Ad Valorem)
153. State Documentary Stamp Tax on Notes (FL RE Tax)
154. State Franchise Tax
155. State Income Tax
156. State Park Fees
157. State Unemployment Tax (SUTA)
158. Straight Vegetable Oil (SVO) Fuel Tax
159. Stud Fees (Kentucky’s Thoroughbred Sex Tax)
160. Tangible Personal Property Tax
161. Tattoo Tax (AR Tax On Tattoos)
162. Telephone 911 Service Tax (some states)
163. Telephone Federal Excise Tax
164. Telephone Federal Universal Service Fee Tax
165. Telephone Federal Surcharge Taxes
166. Telephone State Surcharge Taxes
167. Telephone Local Surcharge Taxes
168. Telephone Minimum Usage Surcharge Tax
169. Telephone Recurring Charges Tax
170. Telephone Universal Access Tax
171. Telephone Non-Recurring Charges Tax
172. Telephone State Usage Charge Tax
173. Telephone Local Usage Charge Tax
174. Tire Recycling Fee
175. Tobacco Tax (Cigar, Pipe, Consumer Tax)
176. Tobacco Tax (Cigar, Pipe, Dealer Tax)
177. Toll Road Taxes
178. Toll Bridge Taxes
179. Toll Tunnel Taxes
180. Tourism or Concession License Fee
181. Traffic Fines (Indirect Taxation)
182. Transportable Treatment Unit Fee (Small Facility)
183. Trailer Registration Tax
184. Trout Stamp (Addendum To Fish License)
185. Use Taxes (On Out-Of-State Purchases)
186. Utility Taxes
187. Unemployment Tax
188. Underground Storage Tank Maintenance Fee
189. Underpayment of Estimated Tax (Form 2210)
190. Unreported Tip Income (Social Security and Medicare Tax)
191. Vehicle License
192. Vehicle Recovery Tax (CO, to find stolen cars)
193. Vehicle Registration Tax
194. Vehicle Sales Tax
195. Wagering Tax (Tax on Gambling Winnings)
196. Waste Vegetable Oil (WVO) Fuel Tax
197. Water Rights Fee
198. Watercraft Registration Tax
199. Waterfowl Stamp Tax
200. Well Permit Tax
201. Wiring Inspection Fees
202. Workers Compensation Tax -
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