All Forum Posts by: Jason Hall

@Jason S. You're probably not gonna like this, and no one else has suggested it...but I would say move out of state for a while. Most of CA is a really tough RE market to break into. If your income is transferable, you could get back on your feet much more quickly by moving to cheaper, less competitive market out of state. Rent a nice place, have the kids visit during school breaks. Try it for six months to twelve months...see what happens. If it doesn't work...at least you know you tried.

If you plan to return, hang onto the house. No telling what will happen with CA real estate. Given the inadequate construction volume, it would be a nightmare to sell and not be able to buy back in. Having said that, it's also silly to keep all the cash locked in the property. I would take some cash out and purchase a 4-plex someplace where prices are lower. This way you can use the equity from your existing home to generate additional cash flow.

FYI the Houston area has a ton of wholesalers and rehabbers. It might be worth it to find a turnkey property. Of course, with SFR you run the risk of a vacancy eating into the cash flow substantially. Texas has a lot of fast growing cities, so there's tons of opportunity there. To be frank, if any of you are really serious about investing, you might want to consider moving. Unfortunately, I began evaluating the Houston RE market right before I had to move to Irvine , but I'm still working with a friend to generate prospects for wholesales in Texas. I've lived in TX and CA off and on for the past 10 years. TX has much lower cost of living and a robust job market. If you're not wedded to CA, I suggest moving.

My home is new construction and is padded up out of the flood plain.  Any home that has sufficient elevation can get a lower price, even if the home has flooded before. The older homes in my neighborhood pay over 2K, while mine is under $500 because of the increased elevation. NFIP is kinda silly like that. They go by the elevation and not the actual flood history. The flood zones are all identified online at: https://msc.fema.gov/portal/search.  If you believe the home is not in the flood plain, pay an engineer for an elevation cert to get a lower rate. Flooding in Houston has gotten worse over the past two decades since I've first arrived and will probably continue to worsen as the incidence of heavy rain events increases. I wouldn't purchase any buy and hold properties in an area with any history of flooding. IIRC insurers can easily see previous flood claims on prospective properties. Just ask before you buy.

https://www.sos.state.tx.us/corp/foreign_outofstate.shtml