All Forum Posts by: Harish V.

If inflation keeps high causing rates to rise, home prices may stall and rents may start rising. Its important to be flexible with your strategy and not rely only on appreciation. However in case of sharp recession both may go down for little time, hence important to keep Cash aside to ride the storm (if any).

1 Vote

Quote from @Dan H.:

I fear if you try to collect what is due, they will simply stay the extra month. How will that benefit you? Am I missing something? You want them out and they are willing to move out early and you are asking if you should make them stay for the additional month specified in the lease?

Seems like an easy decision to me.

I had a high maintenance tenant once (I suspect she also was bipolar) that for some reason had more than their fair share of legit problems with the unit as well as a slew of other items that they complained about or was of their own doing. It seemed best for both of us for them to leave before the lease expiration. I offered to let them leave early and they took me up on the offer. I think it was good for both parties; I know it was good for us.

The next tenant in that unit had zero issues for an extended duration (until they had the mother of all issues, the front of the unit caught fire and took 12 months to rebuild). I would have kept this tenant, if possible, but we had no empty unit to relocate him (the fire took out two of our units).

Having the high maintenance tenant move out worked out well for me. I think you should not look the gift horse in the mouth.

good luck

You are not loosing rent. They will not pay when not staying. I think it's win-win. Go for it.

1 Vote

San Diego, California

When looking for my first property, we had agent driving us arround in a BMW 5 series, while good to sit. Every time I would say to myself, this is all coming from my money. I think, a decent clean car is a good enough.

1 Vote

Quote from @Bruce Woodruff:

I would take advantage of the opportunity if only because CA is severely tenant friendly and likely to become more so as they follow the path they're on. Plus you'll probably make more $$ in the long run...

The Market in CA, more importantly bay area is messed up. I see properties with Zillow estimate of 1.5M+ with rental estimate of < 4K. Thats a 2% return before property tax and property tax will eat up 50% of it for sure, if purchase was made today. Dont think anyone can buy for investment anymore. Any existing rental properties are going to be neglected. Rental rates are going to sky rocket 2-3 years from now.

0 Votes

Quote from @Twana Rasoul:

@Vamsi Pan Hi There! Is there a reason that you want to sell other than your tenants moving out and you feeling like your returns are not that great?

More often than not, selling is not the best option in San Diego/not necessary. You are making $17,000 a year in cashflow, how much has your property increased in value, how long have you had it and how much did you put down to initially buy the property.

Without knowing more details, I'd have a hard time believing that your returns have not been great, especially if you have held for more than 5 years.

@17k for a mil you are having cash flow of 1.7%. You can surely get better in Austin/San Antonio. Besides, considering that inflation is going higher. Rents will be higher while Rates can be locked. You may want to be net borrower in high inflation environment. Just be careful to keep some money aside for emergency. Choose better areas so you get both income and equity gain.

1 Vote

Quote from @Bruce Woodruff:

Quote from @Jordan Tinning:

My question is, will this get any traction? Doesn't seem to make any logical sense and will actually limit supply even further but incentivizing investors to hold instead of sell.

I live in WA state, but bad policy like this tends to start in CA and then travel north to OR and WA unfortunately.

There have been a lot dumber ideas that gained traction in California.....take your pick.....

If it goes to polls, it will pass for sure. Tax payers are a minority in CA. Beneficiaries of these crazy policies are majority.

2 Votes

Looks like govt. does not like that people update homes. They want only builders to make homes.

0 Votes

Quote from @Kevin Phu:

@Harish Verma right?? It's not even targeting only investors. It's also targeting anyone that isn't a first time home buyer or just your average Joe who sold a home to buy a bigger home for their family and then decided to sell within 7 years for different home or to move out of state for whatever personal non speculative reason.

We should kick out any politician who can have such crazy ideas. Nip them in the bud.

1 Vote

Los Angeles County, California

Quote from @Kevin Phu:

@Alan DeRossett found the bill and reading now...

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1771&search_keywords=Speculation

How do they come up ideas to inflict maximum pain on investors and still survive?

1 Vote

Los Angeles County, California

Proposition 19 Fact Sheet (ca.gov) BoE says what you said. You are right the person may or may not be correct. Good luck.

0 Votes

Los Angeles County, California

All Forum Posts by: Harish V.

Harish V. has started 3 posts and replied 183 times.

Post: A recession is coming and maybe as early as summer

Post: Problem tenants are offering to break lease early

Post: Real Estate Agent's car

Post: San Diego or Austin ?

Post: San Diego or Austin ?

Post: CA lawmakers want an additional 25% cap gains tax for flippers

Post: CA lawmakers want an additional 25% cap gains tax for flippers

Post: New CA bill would impose 25% gain tax on house flippers >3yrs

Post: New CA bill would impose 25% gain tax on house flippers >3yrs

Post: California Prop 19 and primary residency length of time