All Forum Posts by: Debbie Holland

Thank you all for your comments. 

I haven't sold my properties. I have just pulled some cash out of them in order to try to figure out my next move. They still cash flow even if the rents had to come down a little bit. I do understand that investing out of state would probably make sense, but I am not willing to relinquish that much control. I have a great team here in SoCal...lawyer, accountant, realtor, property management company. I know the area, the schools, the tenant pool, HOA fees, what areas have mello roos, etc.. A new high school is opening this year which has had a big impact on the entire community. The entire community is being split down the middle. Most of the time, I know exactly what a home's layout is before I even walk it b/c I've walked other homes in that same development in prior years.

I will continue to look for some value plays, but am very curious to see what will happen this winter and especially next winter leading up to the 2020 elections...the end of a 10-year run paired with a heated election. It could be another great opportunity if you play your cards right.   

Obviously we can't predict it completely, but there are indicators...the Yield Curve, the ABI (Architectural Billings Index), Consumer Sentiment, the Federal Reserve Bank of New York's Recession Probability Model. They are all pointing to a recession that will probably correspond to the elections heating up in 2020. 

I have not been able to find multi-family out there. There is very little except un-permitted 2nd houses on one lot. 

Thank you Mike. I unfortunately got very burned trying to invest out of state before. I'm a bit of a control freak. LOL. I've read so many books where the numbers that the author's are analyzing are so much lower than here in SoCal. Sometimes I wish I lived in a location where $80k homes were a reality. All my deals are long term buy and holds that cash flow. Deals are very hard to find here in Southern California. The number of investors that you are competing against is daunting. Bank auctions and tax sales end up going for $5-10k under market value. I am just trying to be smart about positioning myself to weather the next storm (I am also a residential architect) and at the same time be able to take advantage of possible deals during the next downturn.   

I invest in Southern California, more specifically the Perris, Moreno Valley and Hemet areas of Riverside County. This area is one of the most volatile real estate markets in the entire country. Median home values in this area went from $80k in '00, to $400k in '06, to $140k in '09, to 320k today. Due to it's volatility, this market has been extremely good to me. However, I am seeing the writing on the wall and have taken and am currently holding a cash position. I wanted to see what other investors thoughts are about the market.

I invest in Southern California, more specifically the Perris, Moreno Valley and Hemet areas of Riverside County. This area is one of the most volatile real estate markets in the entire country.  Median home values in this area went from $80k in '00, to $400k in '06, to $140k in '09, to 320k today. Due to it's volatility, this market has been extremely good to me. However, I am seeing the writing on the wall and have taken and am currently holding a cash position. I wanted to see what other investors thoughts are about the market.   

Invest as soon as you can, have cash reserves, double or triple repair estimates and know the value of your time and energy...great advice. 

I thought it would be a great conversation to see what that one piece of advice fellow investors wish they had before their first purchase. 

I think for me, I would've used a Property Management Company sooner. I think in the long run it would've even actually saved me money. Tenants tend to take advantage of owner landlords vs a company.