[temeculaguy]

[quote=desmond]Cat,

I think the next few months really do matter, and if I were you I would wait to see how they play out. This blog is now controlled by the PIGS, not the PIGS your thinking of, Port, Ire, Greece,& Spain, but the Rancho CA pigs, the old renter, the Realtor and even the Grand Puba Rick (although his last article was hard for him to write). They have a biased agenda, they bought or are selling, and now want everybody else to buy. I think it is going to crater, not just remain flat, crater. In 6 months you can call me an idiot or buy me a drink.[/quote]

Which one am I? Who’s rick? who’s the old renter?

I love a challenge, wagering drinks is a bit pedestrian, shaving things, embarrasing tan lines by way of spray on tans, something fun, let’s put the six month crater challenge to the test. Mid August, I like it, I hate those that predict things three years from now. Just for those of interested in wagering, define crater.

[temeculaguy]

[quote=desmond]Cat,

I think the next few months really do matter, and if I were you I would wait to see how they play out. This blog is now controlled by the PIGS, not the PIGS your thinking of, Port, Ire, Greece,& Spain, but the Rancho CA pigs, the old renter, the Realtor and even the Grand Puba Rick (although his last article was hard for him to write). They have a biased agenda, they bought or are selling, and now want everybody else to buy. I think it is going to crater, not just remain flat, crater. In 6 months you can call me an idiot or buy me a drink.[/quote]

Which one am I? Who’s rick? who’s the old renter?

I love a challenge, wagering drinks is a bit pedestrian, shaving things, embarrasing tan lines by way of spray on tans, something fun, let’s put the six month crater challenge to the test. Mid August, I like it, I hate those that predict things three years from now. Just for those of interested in wagering, define crater.

[temeculaguy]

[quote=desmond]Cat,

I think the next few months really do matter, and if I were you I would wait to see how they play out. This blog is now controlled by the PIGS, not the PIGS your thinking of, Port, Ire, Greece,& Spain, but the Rancho CA pigs, the old renter, the Realtor and even the Grand Puba Rick (although his last article was hard for him to write). They have a biased agenda, they bought or are selling, and now want everybody else to buy. I think it is going to crater, not just remain flat, crater. In 6 months you can call me an idiot or buy me a drink.[/quote]

Which one am I? Who’s rick? who’s the old renter?

I love a challenge, wagering drinks is a bit pedestrian, shaving things, embarrasing tan lines by way of spray on tans, something fun, let’s put the six month crater challenge to the test. Mid August, I like it, I hate those that predict things three years from now. Just for those of interested in wagering, define crater.

[temeculaguy]

[quote=desmond]Cat,

I think the next few months really do matter, and if I were you I would wait to see how they play out. This blog is now controlled by the PIGS, not the PIGS your thinking of, Port, Ire, Greece,& Spain, but the Rancho CA pigs, the old renter, the Realtor and even the Grand Puba Rick (although his last article was hard for him to write). They have a biased agenda, they bought or are selling, and now want everybody else to buy. I think it is going to crater, not just remain flat, crater. In 6 months you can call me an idiot or buy me a drink.[/quote]

Which one am I? Who’s rick? who’s the old renter?

I love a challenge, wagering drinks is a bit pedestrian, shaving things, embarrasing tan lines by way of spray on tans, something fun, let’s put the six month crater challenge to the test. Mid August, I like it, I hate those that predict things three years from now. Just for those of interested in wagering, define crater.

[temeculaguy]

Ignoring all debate about inflation/deflation and the out of state landlord issue, the basic fundamental of a 500k house that draws 2k in rent makes it not pencil out, no matter where it is or where the owner is. 250x rent multipliers should be avoided when 100-150x rent multipliers are abundant. If the OP mentioned a place that costs 200k-300k and pulled 2k rent, then we would have a real discussion on our hands.

I got a phone call this weekend from a friend asking my opinion if he should buy his $1500 a month rental from his landlord for 160k, I told him “absolutely, do it yesterday.” I didn’t ask if he was going to rent it out in the future, what he thought about hyperinflation, unemployment, or any other marcoeconomic issues. Simple questions is all that is needed, will it cost the same or less than rent?

It’s simple, ignore the taxes and insurance, ignore the maintenance and vacancy, also ignore the income tax deduction and the downpayment. Just use the purchase price with todays rates for a 30 yr fixed on a basic loan calculator to see where it pencils out, you can get into the details later.

500k=2700 mo -700 mo =bad
160k=850 mo +650 mo =good

Don’t pay 500k for a place you can rent for 2k, simple.

[temeculaguy]

Ignoring all debate about inflation/deflation and the out of state landlord issue, the basic fundamental of a 500k house that draws 2k in rent makes it not pencil out, no matter where it is or where the owner is. 250x rent multipliers should be avoided when 100-150x rent multipliers are abundant. If the OP mentioned a place that costs 200k-300k and pulled 2k rent, then we would have a real discussion on our hands.

I got a phone call this weekend from a friend asking my opinion if he should buy his $1500 a month rental from his landlord for 160k, I told him “absolutely, do it yesterday.” I didn’t ask if he was going to rent it out in the future, what he thought about hyperinflation, unemployment, or any other marcoeconomic issues. Simple questions is all that is needed, will it cost the same or less than rent?

It’s simple, ignore the taxes and insurance, ignore the maintenance and vacancy, also ignore the income tax deduction and the downpayment. Just use the purchase price with todays rates for a 30 yr fixed on a basic loan calculator to see where it pencils out, you can get into the details later.

500k=2700 mo -700 mo =bad
160k=850 mo +650 mo =good

Don’t pay 500k for a place you can rent for 2k, simple.

[temeculaguy]

Ignoring all debate about inflation/deflation and the out of state landlord issue, the basic fundamental of a 500k house that draws 2k in rent makes it not pencil out, no matter where it is or where the owner is. 250x rent multipliers should be avoided when 100-150x rent multipliers are abundant. If the OP mentioned a place that costs 200k-300k and pulled 2k rent, then we would have a real discussion on our hands.

I got a phone call this weekend from a friend asking my opinion if he should buy his $1500 a month rental from his landlord for 160k, I told him “absolutely, do it yesterday.” I didn’t ask if he was going to rent it out in the future, what he thought about hyperinflation, unemployment, or any other marcoeconomic issues. Simple questions is all that is needed, will it cost the same or less than rent?

It’s simple, ignore the taxes and insurance, ignore the maintenance and vacancy, also ignore the income tax deduction and the downpayment. Just use the purchase price with todays rates for a 30 yr fixed on a basic loan calculator to see where it pencils out, you can get into the details later.

500k=2700 mo -700 mo =bad
160k=850 mo +650 mo =good

Don’t pay 500k for a place you can rent for 2k, simple.

[temeculaguy]

Ignoring all debate about inflation/deflation and the out of state landlord issue, the basic fundamental of a 500k house that draws 2k in rent makes it not pencil out, no matter where it is or where the owner is. 250x rent multipliers should be avoided when 100-150x rent multipliers are abundant. If the OP mentioned a place that costs 200k-300k and pulled 2k rent, then we would have a real discussion on our hands.

I got a phone call this weekend from a friend asking my opinion if he should buy his $1500 a month rental from his landlord for 160k, I told him “absolutely, do it yesterday.” I didn’t ask if he was going to rent it out in the future, what he thought about hyperinflation, unemployment, or any other marcoeconomic issues. Simple questions is all that is needed, will it cost the same or less than rent?

It’s simple, ignore the taxes and insurance, ignore the maintenance and vacancy, also ignore the income tax deduction and the downpayment. Just use the purchase price with todays rates for a 30 yr fixed on a basic loan calculator to see where it pencils out, you can get into the details later.

500k=2700 mo -700 mo =bad
160k=850 mo +650 mo =good

Don’t pay 500k for a place you can rent for 2k, simple.

[temeculaguy]

Ignoring all debate about inflation/deflation and the out of state landlord issue, the basic fundamental of a 500k house that draws 2k in rent makes it not pencil out, no matter where it is or where the owner is. 250x rent multipliers should be avoided when 100-150x rent multipliers are abundant. If the OP mentioned a place that costs 200k-300k and pulled 2k rent, then we would have a real discussion on our hands.

I got a phone call this weekend from a friend asking my opinion if he should buy his $1500 a month rental from his landlord for 160k, I told him “absolutely, do it yesterday.” I didn’t ask if he was going to rent it out in the future, what he thought about hyperinflation, unemployment, or any other marcoeconomic issues. Simple questions is all that is needed, will it cost the same or less than rent?

It’s simple, ignore the taxes and insurance, ignore the maintenance and vacancy, also ignore the income tax deduction and the downpayment. Just use the purchase price with todays rates for a 30 yr fixed on a basic loan calculator to see where it pencils out, you can get into the details later.

500k=2700 mo -700 mo =bad
160k=850 mo +650 mo =good

Don’t pay 500k for a place you can rent for 2k, simple.

[temeculaguy]

While I don’t share pat’s optimism, he and mojo are right. If it is a certainty that your stay here will be short, don’t buy, that holds true for anywhere. A 5 year window is too short for real estate unless it is on the upswing, nowhere is on the upswing right now, flat is considered optimistic these days. R/E works best as a buy and hold, it’s transaction costs and lack of liquidity are it’s weakeness vs most other investments.

Save your money for the place you will be moving to, make sure to spread it around to hedge inflation. Depending on where it is and your current financial situation, you may want to shorten that 5 year window. If i knew my extended vacation was nearing an end and needed to move back to someplace like miami, phoenix or vegas, I’d leave now.

[temeculaguy]

While I don’t share pat’s optimism, he and mojo are right. If it is a certainty that your stay here will be short, don’t buy, that holds true for anywhere. A 5 year window is too short for real estate unless it is on the upswing, nowhere is on the upswing right now, flat is considered optimistic these days. R/E works best as a buy and hold, it’s transaction costs and lack of liquidity are it’s weakeness vs most other investments.

Save your money for the place you will be moving to, make sure to spread it around to hedge inflation. Depending on where it is and your current financial situation, you may want to shorten that 5 year window. If i knew my extended vacation was nearing an end and needed to move back to someplace like miami, phoenix or vegas, I’d leave now.

[temeculaguy]

While I don’t share pat’s optimism, he and mojo are right. If it is a certainty that your stay here will be short, don’t buy, that holds true for anywhere. A 5 year window is too short for real estate unless it is on the upswing, nowhere is on the upswing right now, flat is considered optimistic these days. R/E works best as a buy and hold, it’s transaction costs and lack of liquidity are it’s weakeness vs most other investments.

Save your money for the place you will be moving to, make sure to spread it around to hedge inflation. Depending on where it is and your current financial situation, you may want to shorten that 5 year window. If i knew my extended vacation was nearing an end and needed to move back to someplace like miami, phoenix or vegas, I’d leave now.

[temeculaguy]

While I don’t share pat’s optimism, he and mojo are right. If it is a certainty that your stay here will be short, don’t buy, that holds true for anywhere. A 5 year window is too short for real estate unless it is on the upswing, nowhere is on the upswing right now, flat is considered optimistic these days. R/E works best as a buy and hold, it’s transaction costs and lack of liquidity are it’s weakeness vs most other investments.

Save your money for the place you will be moving to, make sure to spread it around to hedge inflation. Depending on where it is and your current financial situation, you may want to shorten that 5 year window. If i knew my extended vacation was nearing an end and needed to move back to someplace like miami, phoenix or vegas, I’d leave now.

[temeculaguy]

While I don’t share pat’s optimism, he and mojo are right. If it is a certainty that your stay here will be short, don’t buy, that holds true for anywhere. A 5 year window is too short for real estate unless it is on the upswing, nowhere is on the upswing right now, flat is considered optimistic these days. R/E works best as a buy and hold, it’s transaction costs and lack of liquidity are it’s weakeness vs most other investments.

Save your money for the place you will be moving to, make sure to spread it around to hedge inflation. Depending on where it is and your current financial situation, you may want to shorten that 5 year window. If i knew my extended vacation was nearing an end and needed to move back to someplace like miami, phoenix or vegas, I’d leave now.

[temeculaguy]

davelj, I think you are right, of all the fakers I’ve known, most have already been flushed out, including the mini trumps. I did a little case study on an old neighborhood of mine where I knew all the names and the stories so I could follow up easily, these were pre-bubble buyers who refied their lifestyle. Out of about 16, 4 would qualify as fakers. 3 are already forclosed on/repo’d luxo autos, etc. and one is in escrow selling short as I type and has already downgraded cars, etc. I know it’s a small study, but it hit your 75% exactly.

Newtosandiego, I’m not sure a bad economy makes divorce rates skyrocket, it may just seem that way because of the timing. Sure, there are probably some marriages held together by baubles and bangles but there are many more that are staying together because of the limited opportunities, probably an equal amount. As a connoisseur of divorcees, I have noticed an abundance of trophy wives on the open market and it’s kinda fun to see them frustrated with the lack of takers.

[Author]

Posts