[yipla]

Thanks for your opinions! I wish I could tell them take a hike, this is all happening after signing the lease. Now I’m locked in with them for 12 months, and there have been SO many more requests. I chose them because I felt I had to as they were the highest income applicants, but I’m really wishing I had gone with other applicants who I had a sense would be more chill.

[yipla]

Thanks, sdrealtor. I am leaning towards letting this one go as it would be an investment property, so not owner-occupied. I think that is making it even harder to find insurance.

[yipla]

gzz, I don’t need cash, but I’m often dinged on tax benefits for having too much income. As a landlord, I can’t take losses against my other income. So, if step-up-in basis is killed even in part, I bet it will get me.

My approach to mortgage’s has been leverage to the max at lowest 30yr rates possible and keep excess money in the stock market.

sdrealtor, the cap gains exclusion only saves like 20% on gains, right? Assuming my gains on either place are about the same, I’m not sure it really changes the overall calculus much between UC and Clairemont? It would be a good chunk of change either way.

I think I need to do a bunch of math to decide whether hold or sell is better, and this is all better to be done after we see what the new tax laws end up as.

But outside of financials, stress is high and managing rentals is like, this background worry that something could pop up at a bad time. And a bad neighbor is part of that. I will probably feel less stressed and more appreciative of cash flow if I early retire in a couple years…

[yipla]

Yes, that’s right I can’t take cap gains on Clairemont. What’s are good reasons for holding long term? Long term is not work-free… Rents commanded are not a ton more than my mortgage and maintenance costs. In fact, I don’t think I’ve yet broken even with the maintenance I had to do in the years I’ve rented it out. Perhaps those deferred maintenance issues are done now, and I won’t have as many large expenses anymore. If I sell, even without cap gains exclusion benefits, I would still cash out a decent chunk and could just dump it into the stock market. Maybe I’ll wait and see if Build Back Better actually passes and kills step-up in basis at death. Or maybe I just hold until these times of massive appreciation stop/slow.

I agree on UC. Plus our neighbor there is a real thorn.

[yipla]

Not sure if this is the right thread for this, but wondering what people here would advise me to do. I bought a 3/2 SFR in Clairemont in 2014 and a 3/2 SFR in south University City in 2017. We’ve just got a new place on an acre a little further north that we think will be the place we stay long-term. We never expected prices to go up so much on our prior homes. It’s tempting to sell them now or soon. What do you all think?

[yipla]

an, I’m looking into a potential project like this. Just PMd you for firm names, if you’re able to recall!

[yipla]

Ha, the quotes I have been receiving are much worse than this so far, though the quotes are for licensed surveyors who will come find the markers and record the marker with the county. I don’t quite understand the details of recording yet.

Anyway, still looking for specific recommendations if anyone has one!

[yipla]

Thanks, NotCranky! That’s interesting and helpful. I thought maybe forms of wood siding would be too prone to termites here. I put up vinyl siding when I was young in the Northeast, but realize now that it’s not very attractive either. Nobody seems to use it here at all, but I see some beautiful narrow lap siding in older houses in North Park.

[yipla]

I will note for Hobie, that we should not forget the main reason China’s emissions are so high is that all of US manufacturing has been moved there. They make all our products for us. If we internalized that environmental cost, all our iphones and christmas presents would be a lot more expensive.

So, maybe instead of all Americans blaming China for emissions, we should all stop buying Chinese products and see where that gets us… The results would be painful, I assure you. The blame for Chinese emissions is largely on US consumers, making our per capita emissions THAT much higher than they already are. It would be fair for the US to take on more responsibility given this situation.

[yipla]

I also looked into putting up a yurt on property in San Diego recently. There were some articles about yurts being taken down after inspectors said the yurts could not meet fire code.

[yipla]

Yes, our decision to buy at this time is driven by a need to live somewhere. That means, renting at fairly high prices, or buying. I’m not really counting on appreciation in the short term, but hopefully there will be some appreciation over the long term.

[yipla]

On schools, right now we’re just not that concerned because we don’t have kids. When the time comes, we might re-evaluate and move to another neighborhood. Or do the private school thing.

On HOAs, I also just can’t stand them. I come from a family that does not like neighborly intrusions on our business. And I can’t stand the idea of making a monthly payment for the rest of my life, without building any equity, and with little control over the amount of the payment.

[yipla]

SD Realtor, speaking of sellers giving up and deciding to relist later, the house I made an offer on and was rejected for just delisted after sitting for over 2 months. Might have had something to do with a surprisingly rough Redfin housing insight, too.

[yipla]

Hey, thanks everyone for the useful comments!

Supagyrl88, I think the time for deals like yours is done for now! I’d love to pick up a home for sub $400k, but anything going that low in the last 6 months seems to have needed massive work and been picked up by a flipper.

SD Realtor, I think once we get there, I will make a bunch of lowball offers and see what sticks. Sellers might balk, though. But maybe I’ll get lucky! I think I would be happy enough in a number of the homes currently on the market. But, I suppose maybe if I wait until the spring, rates will have gone up by then and maybe prices will come down a little. Hard to say whether rates going up will have enough of an effect to counteract higher seasonal buying activity.

bewildering, it’s helpful to hear your perspective on the types of renters in the different neighborhoods and the recent rents. We are definitely warming to the idea of living in Clairemont.

[yipla]

spdrun, when buying activity is slower and few things are sold, does that mean prices actually drop or does it mean sellers will just refuse to sell to lower offers? Does activity pick up again in the fall, or does it stay low until next spring? Maybe I can time my purchase well and get a good price!

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