All Forum Posts by: JJ P.

I'd file a PUC complaint... a Public Utility Complaint.  Also monitor the meter, is it happening again this month?  

I have rentals in several counties with several water companies, and every single one of them will come after me for the water bill payment if the tenant defaults.  They will put a lien on the property via the tax bill.  

I vote for renting it.   Yes, there might be a hassle or two, or three, but you live in the house and already have an idea of its weak spots.  If it all works well, no quirks, it's likely to keep working for another couple of years.  If it doesn't, call the repair guy in and get it fixed.   It's not as onerous as it's made out to be.    You might already have a repair guy, since you've lived there for a while.   You can hop on a cheap flight and spend the weekend there, if you have to.   Pick/screen your tenant well, and that will go a long way towards happy landlording.  

Just a gentle reminder: San Diego has some staggering home prices compared to Texas, maybe 4x or more, and a well priced multi unit building is a really hot, scarce commodity in most areas of the county. It could be challenging to nab one in this hot hot market with a VA loan.

You will have the magic of capital gains in 2 places that you will have lived in for 2 out of the past 5 years, making it possible to do a hopscotch move via 1031 exchanges. I think, combined with the VA loans, our service men and women have an amazing opportunity to build wealth while being stationed here and there across the nation. You can get in cheaply, live for 2 or more years, and sell within 5 if you so choose.

We have some amazing military bases in our county. Due to the high cost of living, you will also have one of the highest housing stipends in the military.   I think Camp Pendleton is the very highest in the nation, or close to it.    

We have both lenders and realtors that specialize in VA purchases.

Good luck, and welcome to one of the best places to live in the world! 

Wow, under a week on the market at all price points.   That's amazing.  Who's selling? Mostly second homes?

As usual, @Joe Splitrock, your advice is spot on and the clear voice of someone who has actually done these things and can speak from experience.  

You can 1031 part of the portfolio, without doing the whole kit and kaboodle. You could list them all and 1031 the ones that fit into the timeline easily. I think the discount and ease of sales would depend on the size of the portfolio and the return on investment for the new buyer. Our littlest condos in SD can be $350K+, so a portfolio might be very large and offer a lackluster ROI. Lots of investors are looking further afield for the exact same reasons that you are. The end user Owner Occupant is always going give you your top sales price.

Reserves are imperative to get property owners over bumps in the road, I don't think the intended meaning is to float nonpaying tenants for months or a year due to huge drops in income.  I'd rather keep the income and outgo in balance.  But in this instance, what are reserves, exactly?  In my book, it's a way to say that you're using your savings to cover a loss of income/expected revenue/unexpected expenses.  I don't think most people expected "reserves" to change their entire business income structure for long periods of time.   The pandemic has caused (some landlords) catastrophic loss of income on a scope more similar to things we'd get insurance for.   I have reserves, and I'm prepared to use them when necessary, but I'd far rather have no loss of income and call those reserves my money.  

Craigslist, Facebook Marketplace and the consignment stores are great options.   Find a theme for your decor and stick with it.   You can get amazing, high quality used furniture at 10 cents on the dollar in our area.   Also home stagers will often sell their inventory.    Look for sale items and estate sales in the high rent districts, like La Jolla.   My daughter just got some fantastic designer items at bargain prices from a home that sold in Carlsbad.   They needed the place cleared out.  

I think, at the end of the day, we're in a housing shortage that isn't going away any time soon.   If there's no rentals on the market and no inventory for home buyers, where exactly are we going to be in a year or three? 

 I do think the CDC made a huge error when they enacted eviction moratoriums with no payment guarantees.   The mom and pop (owners) and the average tenant will all end up losing in the long run when the huge number of mom and pop owners exit the market due to legislation, income loss, hassle and demoralization.  Couple these hassles/losses with record shattering year over year (over year over year) equity appreciation, and why shouldn't they sell and simplify their life?  This could be a retirement fund or huge financial boost for many, and I think we can all agree that the future has seemed uncertain at best.  If the equation is- Keep Deadbeat tenants/watch your bills mount/face hardships vs.  Sell now ( they can legally terminate tenancies) and dance all the way to the bank-- many will bail.   One by one, the landlord demographic is changing.   I think it's worse in places like LA or Portland, where the rent control laws were restrictive under the best of times.  One of the landlords in the article is selling 9 houses in Portland that she's had for over 20 years.  

 When REITs and large mega-management companies control the rents, rents will rise.  When they control a larger percentage of the market, it will be like the airlines... fare wars disappeared when the competition dwindled.   

  I add a human element to my tenant/landlord interactions.   In tough times, I work with them, like most mom and pops do.   Yet... I'm taking risks, I saved my butt off to get here, I keep the bills paid and the water on.   My insurance, utilities and taxes haven't gone down.   My rewards have accumulated over decades of growth, focus and effort, it's a business, and I built it.    I really can't afford to house people for free.  

You might get lots of free help here on the thread if you gave more details.  

Anybody around for a Coos County meetup April 6 or 7th?

We 1031'd last year from San Diego into the central Oregon Coast.   We sold one and bought three, and doubled our cash flow.   It's a somewhat rural area, with minimal industry, but rental demand is very strong.   

  The cash flow was far better east of the Mississippi, but we opted for easier access in a place that we wanted to go.   It's a long day's drive or a quick flight.    If we'd had any draw (relatives in the area, etc)  to a place like Kansas City, or Ohio, we would have chosen there instead since the cash flow can't be beat.