All Forum Posts by: Kenton LeVay

I think claiming political ideology as the reason people are leaving California is intellectually lazy because the situation is much more complex than that. I don't think people are moving from SF to Austin so they can carry guns in public places. As a former CA resident myself, I can speak to some of this.

When you look at CA, there are multiple areas/cultures you can look at (Northern, Southern, Central Valley, etc.)...it's almost like states within a state.

It's no secret that CA is expense to live just about anywhere. Because SO MANY people have moved to CA over the last several decades housing prices have always been high due to high demand. Couple that with high paying tech and venture capital in SF it's nearly impossible to save up for a house in a nice area unless your company IPOs. The cost of living is just higher, it has been like that for a long time but people are questioning whether the quality of life is worth the high cost of living.

Enter COVID-19. More and more jobs have the ability to work remote. A big reason people move to CA is for job opportunities and now when you're working from home indefinitely, it makes sharing a 4-bedroom apartment in the city much less desirable than moving to somewhere with land and a lower cost of living.

Yes, income taxes are higher in CA but there are also WAY MORE people in CA than any other state, so the state needs a lot of revenue. That said, property taxes are relatively low/capped if I'm not mistaken. In order for companies to retain labor they have needed to pay more so their employees can afford to live there. This is why you are seeing companies diversify their workforce to lower-cost areas, like Texas.

When I moved out of CA 3 years ago (for a job opportunity in NC), I remember reading articles about the "mass California Exodus". California is the most populous state so when people move out, it's considered an exodus by the other 49 states' standard. Do I think California will be a ghost town in a few years? Absolutely not, there are still great job opportunities, phenomenal weather, geography, etc. California's not going anywhere, that is until there's an earthquake that breaks it off so it can chill with Hawaii.

Just my two cents.

Well any basement can be waterproof with proper drainage and waterproofing technology (vapor barrier, proper underlayment, etc.). I have a few questions though:

Is the ceiling high enough to create a finished space? I believe the ceiling needs to be at least 7 ft in order to be considered livable, but check your local codes.

Is there the possibility to have separate access to the basement? Even if it's not currently a walk-out basement, you could make it one by digging a hole for egress and installing doors and stairs to the main level.


I ask all this because I'm wondering if you could finish the space and rent it out separately. A separate unit is likely to get more rent than an unfinished basement. Just finish it with some attractive finishes and separate access and BOOM(!) you have another rental you bought for like $50k. But if all that sounds like too much work/uncertainty you could just put a curtain around the shower and toilet and the tenet can use that space for storage, game room, workshop, etc.

I would think that if the lease ends, which happens each month in a month-to-month lease, you have the right as the landlord to not re-sign the lease. You're not "evicting" them if the lease is lawfully complete and both sides fulfilled their end of the contract. But I would definitely contact a local attorney before making any moves.

Hey Britta, I graduated from THE Ohio State a few years ago. I'm familiar with the area but don't own any property there myself so my knowledge is somewhat anecdotal.

Ohio State and Capital aren't really the same market. Ohio State is just north of downtown and the trendy Short North. I'd assume the market is rock solid because the university is so large and there is a constant pool of tenants needing to rent close to campus. The best opportunities to buy will be just east (between High St and N 4th St) and south (between 11th Ave and King Ave) of campus. I'd imagine prices are higher in these areas but that's likely due to it's proximity to campus and rental demand.

I'm not as familiar with the Capital/Bexley area but I'd imagine it's more similar to the other near suburbs of downtown (Grandview, Upper Arlington, etc.) which is to say that it's solid. The benefit of renters here is that it's more likely you'll find a non-student tenant. I'm 99.999% sure the renter in the areas I mentioned above would be a student which means high turnover and potentially high maintenance expenses every school year (depending on your tenant screening ;))

Yeah I agree with Mark. I wouldn't overcomplicate things, just make sure you're tracking each investment and have enough liquid reserves to cover in the event you need it.

Congrats! I'm currently doing a long-term live 'n flip and it has been a LOOOOONG and painful process. I started doing work myself and ended up hiring it out because I lacked the skills and patience to do work well enough to sell. So props to you for sticking to it and your net worth will thank you!

I find it hard to believe that the US Avg appreciation for one year is near 10%.

I believe the metros in this list are 1-6%, but I can't believe the top 85...

Some things to consider:

• - Is this just SFH? or are there Multi-family? The chart doesn't specify
• - Does "Home Value" mean sale price or Zestimate? Because those can be wildly different
• - To the point above, if this is based off sale price it would include flips which I would argue artificially increase appreciation at the metro-level (especially in the short term)

To be honest, I don't know if that would work because if the property is inherited the children probably just want cash...Obviously there are exceptions for everything but I'd be interested to see what the BP community can come up with!

An underrated gem could be Reno, NV! Sits right at the base of the Sierra's, close to Lake Tahoe, 0% state income tax and relatively cheap real estate with opportunities for CF and appreciation.

I would recommend you sell it. Even if you aren't able to qualify for a capital gains tax exclusion, you could still defer those taxes via a 1031 Exchange and use your $250k profit to buy one (or multiple) rental properties in a market that will give you good cash flow, if that's what you're after. I guess I don't know your market, but if you went all out on the renovation (meaning it lasted for 10 months), it doesn't make much sense to just rent it out.

All that being said, I am not a CPA and you should check with one first before you follow this advice.