All Forum Posts by: Allen Maris

Hi Heather, I'm in SY, I'm thinking I might know the property, 2nd? The market should soften some, but everything I hear from the experts is unless things really go sideways not to expect too much of a hit. At the end of the day, you have to look to see where you think your money is best served. If you don't believe in the market you're in, it's tough to love a property. Also make sure you include the increase in property tax when calculating if you haven't. I've talked to a few people that forget to include the higher taxes on a higher purchase as part of the equation. 

Hi Denver, I'm in Santa Ynez. Solvang is crazy expensive and same issue as SB city here. Prices are too high for rents. Finding renters is a bit of a challenge. Either they can't afford it or they're looking for more of a family set up for a house. Buellton is somewhat cheaper but has gotten 700+ with lower rents. 

I start to get more time again in mid-August so for sure will make some later this year. I'll show you some pics of the reno on the 48 unit I'm involved with. It was in bad shape!

Hey Baird, adding to my calendar, hopefully, I can make it down. 

Hi @David Maldonado, hope you're keeping well. I'm starting the ADU process on a property in LA. Apparently a 8-9 month permit period! I can only image what they're going to do down there with SB9 or 10. Frustrating. But the lot is too small anyway, so won't be going that route.

@Lucas Martinez hi Lucas, what part is it legal? As far as I’ve read, unless it’s commercial or certain AG zoning or it’s part of your primary, it’s not legal. I live in unincorporated SBC and it’s illegal as well as the cities around me are too. 

@Dylan Grieve - Thanks for sharing, even if it's painful. You have a short-term problem first and foremost. If you decided to keep it, how do you get out of that high-interest debt asap so it doesn't bleed you to death? Doing a cash-out refi will get you 75%-80% LTV (not sure exactly what lenders are doing at the moment, but I was at 75% 6 months ago) So that means you have a chunk of cash that's at 4% and some that's at 12%. Are your negative cash flow calculations taking that into account?

The next question, assume your negative cash-flow those numbers above, can you afford it? 

On my first property in 2005, I was naive and took too much bad advice and bought a house at the height of the market that broke even with a tenant renting back. Only to find out the tenant was paying way too much and when they moved out, I'd be losing $500 a month. The market soon dropped and I was underwater. I was stuck, but I worked and paid that difference. I still own the property today. It cash flows and has appreciated well above any money I've put into it.

If you can afford to support the property, it's hard to stop appreciation if you have a long view. Especially with the inflation, we're seeing. 

My 2 cents, yrmv!

Thanks, can't make it this month.