All Forum Posts by: Darnell Kramer

I currently have two condos in my portfolio, one in VA and one in HI. I purchased the VA one already rented, at a discount, and the HI I lived in while stationed there.

I have had the VA condo for almost ten years now, and while it has only gained some 50% in equity I have consistently increased rents and have very little vacancy loss. While I am only at 200 cashflow right now I know the only large CAPEX is the A/C which was replaced a few years back. Technically the HOA is my CAPEX though. The HI condo is very similar.

What I do like is that, though they are both far away, I know that the common area maintenance and such is taken care of. While both PM's are great its an additional level of assurance the place is taken care of. 

The converse is that buying a condo does not, in my mind, leave as much room for improvement. My San Diego holdings are all SFR's for that reason.

As with any investment if you account for all the numbers and they work for your investment plan then go for it.

Wish you success on your next investment either way!

To make and extreme point about the 3 day eviction I will use a fake scenario.

Tenant has ebola.  Is 3 days too short?

Eviction though does seem the wrong answer.  If the Health department is ordering evacuation, then someone would seemingly have to step in and foot the bill, If the apartments were deemed uninhabitable.  IF the tenants had renters insure that may cover the expenses while the repairs are done.

I would think they would have evacuated them for the time it would take to clean the area, then the tenants would be allowed back in.

Just a thought.

@Ross Bernard

Image can be powerful, depending. 

My wife and I both owned Toyota Tacoma's.

When our first child was coming we sold my Tacoma and bought a Porsche for safety, and the ability to get kids in and out of the back seat.

Image can be powerful.  Drive up in a Porsche and tenants may think something.

So I take the wife's Toyota FJ to work on properties and such.

So yes, be yourself, but we all pre judge, even if we soon realize that we did and consider it.

Ps.  we paid 21k for the Cayenne. Even through my friend paid 45k for his Jeep, which car do you think people would judge?  

@Mike Wallace

Wow.  great area.  

@Christine P.  

@Chris K. 

 Complete agree.

Heading to Lake A this weekend. Some family have a cabin up there that we use now and then. Big caution as with all HOA. Assosiation up there can be super steep.

@Peter Whitaker 

Consulting a CFP can be good, but the advisors are usually geared towards products of the company that they work for. IF you do go that route find a fee based adviser as they are not tied to product commissions.

I am in the Navy and dropped contributions to my TSP. I do suggest for many to keep the TSP, as otherwise they would just spend the money. TSP holders cannot withdraw TSP money till you get out, die, or take a loan. I moved all my contributions to my normal Roth IRA, which will move into a self-directed IRA that will invest in property. Personally that is what I found would be the best way to grow that portion of savings for investing.

San Diego is a different approach.  The entry cost is higher, but there are other great advantages and dis-advantages to the area.  I was always taught that you invest in areas that have a few things. 1. Good jobs. 2. Good schools. 3. Good lifestyle.  These will keep people moving to the area, working in the area, and needing your rentals. On the other side cost of entry, and California laws, but I digress.

Good luck out there and whatever route you take keep working towards it.

@Ronnie Sparrow  If the properties are in Texas I believe that you do not have to keep the money in a separate account, but I would check the local laws.

@Account Closed  Size would only depend on legal entities.  Whether you are a 1 unit or 1000 unit you cannot co mingle funds fro a business with personal accounts.  Money is an easy way to pierce the corporate vail when it comes to legal proceedings.

@Nazz Wang CA law found here:

http://housing.ucsc.edu/cro/pdf/CCC_security-depos...

I am not a lawyer/attorney and this should in no way be construed as advice.

Also California is regulated in the tax increase by Prop 13, (1978).  I am not sure if other states have something similar.

Like @Nazz Wang @Account Closed mentioned check the county historical data from the tax collector website to get the best idea.

@Brad Fithian Jr

Congratulations, keep up the perseverance!

@Nazz Wang 

I sent my real estate lawyers email.  She is in San diego.