All Forum Posts by: Lorraine Hadden

I have always lived in California. It's the Golden City - beautiful beaches, Hollywood Glamor,  it's the SUN, SAND, SURF AND MOUNTAINS --- that WEST COAST Vibe! 

You can go to the BEACH in the morning, SKI in the evening and go MOUNTAIN HIKING all day long --- We get it all - but with that comes the fires, floods, winds & yes - don't let that song fool you that IT NEVER RAINS IN SOUTHERN CALIFORNIA - it RAINS here!  

It's all apart of being a CALIFORNIAN - We have always bounced back --- but this time it feels different! 

@Sebastian Albors 
Congrats on starting on your real estate journey. My response will focus on your option #3 "Continuing to rent where we live, and buy a separate property to rent out"

A while back I lived in rental property but owned rentals in another state. Those rentals debt serviced and also covered my California monthly rent (I know some of you may question paying someone else's mortgage) but at that time, I preferred the renting lifestyle which placed me much closer to work, my family, my clients, and friends.

Live where you want and invest in real estate where it makes sense!

I have client who are try to wait for interest rates to come down rather than buying what they can afford for the best rate and hold. All while home prices are slowly rising.

It wasn't long ago that mortgage rates dipped below 3%.  Actually, during COVID (January 2021), mortgage interest rates dropped to historically low levels, reaching 2.65%.

Wondering how long will I have to wait for rates to dip below 3% again? Will mortgage rates ever drop below 3% anytime soon?

@Victor Tofilski Hi Victor, I agree with the posts above. Also, I don't see any discussion about your rental being property managed. I'm going to suggest you contact a property manager to help with get the property rented. I use hemlane. (check them out @ http://www.hemlane.com./for-landlords/Although they're here in California, they manage our out-of-state properties.

As we close out 2024 and look forward to 2025, NAR released its 2025 list of top performers in 10 metro markets. NAR considered job growth, financing, renter who plan to purchase a home, migration to these metro markets, number of renters who are planning to buy as well as homeowners who plan to move.

If you plan to actively invest in 2025, see if you can name ONE city/metro region that made the NAR's 2025 TOP PERFORMERS LIST!

I'll start --- Phoenix-Mesa-Chandler, Arizona - MADE THE 2025 LIST!

I use the 1% rule to quickly assess if a property is likely to generate enough income to cover its costs and potentially provide a profit - it's a guideline - so, don't miss out on good investment property by being rigid when applying the "guideline" to rental properties. The rule says the monthly rent should be at least 1% of its purchase price

Remember that the rule does not consider all the costs associated with owning and operating a rental property and it's a GUIDELINE!

As long as the buyer prioritize lower monthly payments and is confident that they can manage the long-term cost of a 40-yr loan - If the buyer plans to stay in the property for a long time.

Also, be sure to weigh these two drawbacks to a 40-year loan (paying significantly more interest over the life of the loan and building equity slower as compared to a shorter loan term). What's the buyer's exit strategy?

Although 2024 was generally considered a seller's market, based on what's going on in the new and the real estate market --- Do you think 2025 will be a buyer's market or continue to be a seller's market? Pick one and tell me why you selected buyer or seller!

Not calculating maintenance expense could end up being a nightmare.

I always estimate (using either the 50%, 1% or square footage rule) the annual maintenance / first year of maintenance fees for a ALL rental property.