All Forum Posts by: Jay Hinrichs

@Mike Gennaro 

  Sounds like these other RV parks are only allowing self contained units.. with no dump facility.. you would need to check with your city to see if that is allowed... Its common in the RV business to have one central dump. and no hook ups at the pads.

Also common for all RV's to be self contained and they need to drive to a dump station.

There are two sides to both Washington and Oregon.. the wet side of the cascades and the dry side... one can pick either.  Bend Oregon  is very nice,,, So is Wenantchee WA. Sun 4 seasons great out door activities year round...

either way its a personal preference.. and west coast from Vancouver BC to San Deigo is pretty hard to beat compared to the heat and humidity of anything East of the Rockies.

For me Napa Valley was the spot I lived there 10 years and I would suffer CA tax's etc to move back in a heart beat.. I was just there last weekend and it was fab. 

And yes the original post is talking about Net sheet from an MLS program.. But not net profit. YOu would need to add in all expenses and you can play with depreciation write offs and get to a net..

The big point is If you roll those dollars to cash flow rentals in the mid west or texas. the Chance that you could buy today and sell in 3 years and NET 75k profit after all costs is slim to none you may make a tad more cash flow but the tax's will eat it up.. And if your foundation goes haywire you will never recover.

@Account Closed 

for all the reasons you suggest is why Oregon and Washington are one of the great escapes for CA residences.

I agree with the post about trying to hard to avoid paying cap gains... Taxs have to be paid at some point.. and I agree with his statement take profit and buy trust deeds. Much easier to mange and will make more money over the long haul than non appreciating rentals.

Most investors that have CASH not leverage will eventually gravitate to trust deed investing.  You don't have the 3 T's... In my consulting gig we started selling TK houses and sold maybe 6 in a year but we also do financing for TK operators NON recourse and we then sell the TD's to investors... When our investors are offered both 97% choose the trust deed over the asset and all the risk... But these are people with lots of cash and are older demographic and have already been down the nightmare of owning out of state rentals.

@Ben Hughes 

  your climatized.. I can hardly walk to my hotel from the parking lot in that weather.

the year I spent in the south was an eye opener weather wise .... playing golf I would go through 3 shirts and as many gloves, the locals hardly broke a sweat.  And it sure does not affect the kids they don't know anything else!!

@Waylon Themer 

For this very reason I sold my Atlanta properties one year ago... we bought them right and the hedge funds were just crazy for Atlanta,, and they were fine with 6 caps... my Atlanta though was b to strong b ...

@Jarrod Weaver 

  plus deficiency judgments on foreclosures  us west coast folks don't know anything about that one.....

I have commuted to Jackson ms and Bham through dallas and Houston for the last 10 years or so in my lending days  getting off the plane in either city one is  met with a heat blast and smell of mold  :)  at least from our nice clean air here in Oregon.

But I am sure there are those that are doing quite well and will continue to do so... And feeding off the herd mentality on the front end is one good place to be...

Once an investor buys a long term rental and does not realize the foundation needs watering or their house has cracked like a humpty dumpty egg and its 10 to 30k to fix it.. that's when they go through the learning curve.... OUt of area investor really need to hook up with local RE folks not marketers that have no real knowledge of the intricacies of the markets.

@Johnson H. 

  The other issue with Texas is they SUE on the notes so if one was to sign a PG  your screwed. The one company I worked for in the BAY area in the 80's this happened to them they lost their equity investment plus got a 1.5 mil judgement against the principals.. It was a huge mess for them.

I know of another PDX apartment owner that rolled up his apartments here cash ed them out got 20 mil leveraged that in Vegas and bought 100 mil in apartments and lost them all in the crash.. when he could have just kept his nice 6% cap rate pdx stuff that just pays and pays and pays.

For those reasons the only thing I have done in Texas is transactional funding for flippers and some NON recourse 5 year loans for those that want to own rentals. But I won't go more than 50% loan to their Cost..

I am sure there are others that are doing just fine in Multi in Texas now a days.  But there is the risk of crash and burn there as opposed to the very stable WEst coast multi market.

I had personal friend that also did the same thing sold her 60 units here in PDX and rolled that into 300 units in Oklahoma city.. It got so bad she had to move there and run the joint herself... she has been there 5 years now and is miserable.

@Leslie A. 

actually in my experience in the state of Oregon it was the opposite.. Because RV's generally dump very toxic stuff into the system from their self contained systems. As opposed to residences who just have the normal grey water... When your doing your own on site system you also need to have room for and build an over flow or replacement drain field as well... Now our system was light a giant septic system.. NOt a self contained seweage system ( package plant) like you see in other areas especially in Hawaii

@Aaron Mazzrillo 

  One of the few people I have ever heard say they prefer Texas environment to the Bay Area environment.. Pretty hard to go jogging when its 100 degrees and 95% humidity :)

Having spent one year in the South I would NEVER in a thousand years choose to live there the heat and oppressive environment is just too much for me.. Plus traffic ( which the bay has its share especially were you live if you want to get to SF) But going from air conditioning to air conditioning 7 months out of the year is not for me.

But the jobs are there.  YOu should check with a 1031 expert on all the ramifications of the transaction... You may want your debt in place instead of refi. Not sure but I am thinking there was something to that and how much debt you need to carry over so you don't have boot.

I made a loan on a RV park and ended up owing it .... 40 pads  on site septic system was degraded and basically useless.. redesign and to build a new one was about 250k all in.

Water was private well water so we got that up and running fairly easy.  When I sold my Mobile home park in Vancouver WA  the new buyer hooked it up to city sewer and will only buy parks that have city sewer... maintaining private systems is a real pain.. unless they are old and grandfathered in. But that's not the case when your building one in todays environment as has been stated above in great detail and is spot on based on my personal experience.