All Forum Posts by: Stephen Masek

Watch out, some HOAs do not allow rentals. 

Why not get both equity and cash flow?

We've been investing since the early 2000s, mostly outside of California.  We sold most of our investments prior to the crash, including two in California which had doubled.  We resumed buying in 2011.  We have no debt.  We currently have 14 rental houses, just one in California (Victorville). 

We are selling one in Florida, shopping to buy one more this week, and will buy another after the Florida property sells.

You have to manager the managers, but the total time should not be an average of four to six hours per house per year. 

We've gotten excellent appreciation in several different states, with at least one doubled in value, several others close to double, and have even gotten good appreciation on two houses in Austin, TX.  

Few people know that you can move when older and still keep the Proposition 13 protection in California.  However, Proposition 13 is definitely under attack in California.  The radical leftists hate it, so they want to start by eliminating it for commercial real estate.  That would be very interesting in places such as LA with rent control, as it would cause massive numbers of foreclosures on apartment buildings.  The up-coming radical increase in California gasoline and vehicle taxes are being challenged by a recall campaign which is likely to be successful.   

Shawn, that looks good, just be sure to keep all of that lead-based paint in good condition ;)

I bought a house in Toledo for $25,000, had work done on it, and have a total of $34,000 in it.  The thing has appreciated to $60,000 on paper, although I wonder how many real buyers exist?  At least the Jeep factory is safe for quite a few more years, as they are soon coming out with the new design. 

Once the Trump tax cuts and new trade deals take effect, it seems likely there will be more and better jobs in the mid-west.  I'm hoping it is even better than the boom which followed the Reagan tax cuts.   

We own 14 houses (outright, no loans) in seven states, just one in California.  You have to manage the property managers, but it should not even be one hour per month per house.            

FSBO's will attract all kinds of low-ball offers, wasting your time. The reality is that the real estate agents control the marketplace, so you will be hurting yourself if you do not use one.

It is illegal for contractors to do lead-based paint inspections in California!  Since 1993, California has had a license (Certification) for lead inspectors/risk assessors.  I own an environmental consulting company and have had that certification since then. You need to find a god consultant (too small of a project for my company), and have the unit (or better the entire building) properly inspected.  Lead-based paint in good condition a nd probably covered by many layers of non-lead paint is only a hazard if disturbed or deteriorated. 

Indeed, it is well past time for a Texas version of California's Proposition 13.  Of course, property taxes have never been a good idea, as the tax has almost no relationship to the amount of government services provided.   

If you add the cost of cooling, property taxes, and so forth, the total cost of living in Texas is a wash with the total cost of living in coastal southern California.  We pay the huge California income tax, but just $4,000 per year in property taxes on our 4 bedroom, 3 bathroom house in southern California worth $1,000,000, and an average of just $200 per month for water, gas and electricity.   

Would you be interested in a Podcast on Environmental and related matters:  Phase I Environmental Site Assessments (and why the liabilities of owners and lenders are very different), Asbestos, Lead, Mold, Other Regulated Materials, Remediation and Selecting Remediation Contractors, Property Condition Assessments?      

I'm president of an environmental consulting Corp.  Did you examine the building permit files?  They may show the tank location.  Did you obtain  a Phase I Environmental Site Assessment?  If so, the consultant should have examined the building permit files, and ordered and reviewed a search of government databases.  The potential liability includes the possibility that the tank leaked into groundwater, perhaps groundwater extending beyond the subject property boundary.   How large is the building and how large is/was the tank?     

Trees do not grow to the ionosphere, so why do people think California RE can only go up?  Are incomes going up?  Are taxes going down (consider both the upcoming large new fuel and car taxes, and the possible federal tax cuts)?  Is California becoming more landlord friendly, continuing to be very landlord hostile, or possibly becoming more landlord hostile?