All Forum Posts by: Christine I.

@Andrew Syrios and @Kim Tucker Thank you both for great advice in exercising caution when investing out of state. I'm currently exploring Ohio and realizing I may not be cut out for long distance RE investment. I want to see with my own eyes. 

@Basit Siddiqi I'm very aware of the step-up basis which makes a huge difference in my life. I've already turned the past two years of my tax returns over to the new accountant that I hired who I'm told has a lot of experience working with RE investors. Am also preparing to do Form 706 and split the trust. I had to get all property appraised. Who knew how expensive that would be. One of my main concerns is the fear of people taking advantage of me. The financial and legal aspects are complicated and I don't always understand everything. So right now I have a financial expert on my side, a new attorney who will help me make decisions about how to fund both trusts and a new CPA who hopefully will keep me on the straight and narrow with my taxes. Lots of people looking over my shoulders

@Curtis Mears I can't know if he will follow through with agreement. Eviction is not cancelled if he is not out on Friday at 4:30pm. He has a lot to lose if he is not out. He may be too dumb to understand this, though. 

@David P. I’m in Ventura county. And I accepted the deal. This is my second eviction for non-payment since Covid restrictions ended. Over the years I’ve had to do evictions and I think I can remember one case where we actually got payment of expenses from an evicted tenant. This was about cutting my loses. I truly hate the thought that he’s been saving up for first and a deposit so he can repeat this behavior on some unsuspecting landlord. I have one more to get out. The cost of doing business in California. 

@Manny Vasquez Thanks for your reply but mainly wanted to thank you for your expertise on STR market. I'm a computer idiot and somehow lost what you wrote but did read it! For now I am sitting on the side lines waiting for less worrisome time to invest in expensive property and saving my pennies so I can be more prepared to jump when I see a potential property. Thank you.

@Cameron Pendergraft Not sure why my message to you did not show up. Just wanted to thank you for your advice! 

@Cameron Pendergraft

Deadbeat tenant who lived with his mother. The mother passed due to Covid and that was the last rent that I saw for that unit. He did apply for the California Covid rental relief and I did get money to bring him up to date. As soon as I could file for eviction I did. He requested a trial which is set for July 5, 2022. His only defense is Covid-related which is no longer valid so pretty sure he will lose and it takes about 2 weeks for a lock-out date. That means he will be out mid-late July. At this time he owes $3000. He has contacted an attorney who has offered me a deal. Deadbeat tenant will be out June 24. Leave the place broom clean for what that's worth. He gets a free pass as I will not be able to send him to collections (probably no money anyway, not sure if he is working) and no record of an eviction. I hate the thought that he will move on to the next landlord and repeat. Obviously the advantage is I will have possession of the apartment a lot sooner if I agree. Would you accept this deal?

Thanks to everyone for furthering my education here!  Talked to loan service at Wells Fargo Bank today and their limit on investment properties is 2M but I would also have to keep 1M in reserve to complete the requirements. I'll continue looking to see if a loan is even possible for me in this situation. 

@Jon Martin Thanks for the reality check and putting some numbers in. 

@Victor Steffen Thanks for the encouragement and advice. Your management cost is excellent!

@Joshua Messinger To get into the 250K range I will have to leave the area. Not opposed to that but deciding on that area, finding a realtor and hiring a management company comes with issues too.

@Matt M. and @Bruce Woodruff I consider my 70 unit building sexy too. But not as sexy as possibly owning a beach house. ;-P

@Zambricki Li and @Rick Albert Really important advice! I understand the rules can change without much notice. 

@Jordan Moorhead  We can never know the future. I'm hanging on to the thought that we Americans will never give up on travel and vacations. 

@Carlos Ptriawan Thanks for those numbers. The specifics really help.

@Dan H. Thanks for that info on PM companies. It may well be that I have to look else where for a reasonable investment.

Appreciate the comments! This venture has not been worked out completely. Why ocean front? In the two beach neighborhoods that I am looking at there are many houses but probably only 10% of them are ocean front. Completely different experience between having a house at the beach vs. on the water. One could watch the kids from the deck play in the sand. No roads to cross to get to the beach. The most amazing views of the ocean, Channel Islands and sunsets. It would be a unique vacation rental. The downside is that it would be very expensive to rent and I realize that would limit the clientele. Everyone wants to rent at the beach but most can not afford it. 

Obviously the most important part of the equation is can I make a good income? Not sure yet. Property management is 18%. Cost of money could be 6%.  Tax implications? Really not sure. Exploring that with my financial expert. 

While I would not self manage, there is comfort to know that I can at least drive by every once in a while and make sure it still stands. My other option is investing out of state which I'm sure comes with it's own headaches. 

@Manny Vasquez @Bruce Woodruff @Matt M.