San Bernardino BK

[Paul Soto]

I have been evaluating purchasing single family rental property in the city of San Bernardino. Just last week it was announced that the city is seeking bankruptcy protection. In addition to possible criminal allegations being filed, part of the recovery plan advocated by the city government is to increase transfer tax by 500%. I am guessing this will effectively kill any RE investment in this city. Furthermore, even renters may seek somewhere else to live. Any feedback?