All Forum Posts by: Brian Ploszay

Beware of turnkey properties being sold in some midwestern locations.   I'd definitely stick to California, despite some of the problems.  The supply of housing is artificially constricted and is a good protection of value in the long run.   Housing is super competitive, so the demand is solid.  The state is creative and has wealth.

Carpet does not hold up at all.  

I have been looking at Tucson.   Like it a lot except for the low rents.  I now know where Coolridge is.  

Impressive accomplishments.

I'd like to add a few words of caution to other readers of his post.  First, buying over 200 units takes a significant amount of capital that most of us do not initially have.  Second, that level of acquisition rarely comes from a beginner.  Deep experience with rental properties helps.  

My growth was much slower.  It wasn't only about accumulating units, but also better business wisdom on executing the whole rental platform.  In time, I was ready to do bigger deals.

That falls within normal wear and tear.  This is (most likely) not the tenant's fault.

I grew up in SoCal, so I have a few things to say.

The main reason for the exodus is the cost of living.  And the main item for high cost of living is expensive real estate.

Analysis:  For the last 30 years, California has been unable (or unwilling) to add new housing stock to keep up with demand,  to keep up with the growth in population.  This artificial scarcity shot the prices up very high, which places a huge burden on middle class earners.  

The house I grew up in, cost around $380K in today's dollars.  But today it's worth perhaps $1.5 million.  The median price of a house in Los Angeles today is $859K.  That's more than double the price of an average home in Dallas.

Further, there is a homeless surge in California due to the shortage in housing.  In most markets, affordable housing is older housing stock.  In California, it gets rehabbed and repositioned into middle class housing because of the shortage.

California was rated as the most difficult place to develop real estate in the country.  Zoning laws prohibit larger buildings to go up - which is needed for mature larger cities.  

There are many other annoying things going on in California.  But it is offset by an attractive climate, surroundings and strong job market.  So it is the cost of living that is driving people away.

The Bay Area is even worse by the way.  The median home there is almost one million.

I never drive my nice car to properties.  Usually in business, you want to signal success.  In landlording, you want to hide it.  

For the hands on landlord, getting a truck or van is the way to go.

The Aurora area seems like a good place to find a rental property, if that is what you are seeking.  The properties are somewhat affordable and the rental demand seems to be solid there.

Yes.  I've bought off of Hubzu.  Solid company.  Frequently check their website for properties.

Are your other properties in Chicago?