All Forum Posts by: Nadia O.

@Yvonne Acosta i owned a condo. I've rented out my place as STR first and the law changed, therefore, i converted my place as LTR. So I can share some pros and cons

pros:

- HOA takes care of all the maintenance in exterior areas. That's a big plus. We have huge amenities such over 20 pools, tennis courts, playgrounds, and many more. Everything is beautifully maintained. So HOA def doing a great job.
- Condo is a lot more affordable if you're on a budget. however the resale value doesn't get as high as SFH which is a con. I purchased my condo in a class A neighborhood. I wouldn't be able to afford SFH. So in this case it was a great buy. The rental rate in our city increases every year.
- Condo is a great rental due to the amenities...well at least mine is.

cons:

- HOA fee gets a raise almost every 2 years. There's nothing you can do to prevent it. And it is an added cost to your monthly mortgage payment. it sux. However, my renter pays whenever it increases. i just tag in to their monthly payment which is a pro.
- There are pretty much restrictions & fees for everything...i mean it. you better know and read all the rules before you purchase. Fees....for having certain plants (yup...you heard it right!), patio looks diff than others, garage untidy, too noisy after 10pm, and many more. When things look diff and effect the exterior of the house, HOA gets involve
- no STR allowed...not anymore in our city. LTR still ok
- Our community is old. We have plumbing issues in our community...almost everyone. The recent big one for me was upstairs toilet leaking and went undetected. it leaked to the bottom unit. Now i'm responsible for all damages...other unit as well. Its a big headache. Imagine paying damages for both units...it's a lot! I'm ready to sell my place due to this problem.

if i knew what i know now, i would stay away from purchasing a condo. SFH accumulates bigger equity each year and in a much faster rate than condo. for $100k more you get SFH, I would do it. you don't need 25% down payment. 20% is enough or even 10%. Yes, you may be hit with PMI but at least PMI disappears after you get 20% of home values. HOA stays forever. Also you need to reserve at least 6 month worth of mortgage payments just in case. So in that case, you really cannot down 25%.

You need to shop around. Call other mortgage loan companies. Tell them what the other companies' rate. make them fight for your business.

Sell it. Property value is at all time high. You lived there for 2 yrs within 5, therefore, you are exempt from paying capital gain tax if it’s under $250k. I would hold on to that money. Wait until the next real estate corrections...should be in a few years 

I agree with short term rentals will give you better return. Do be very selective in choosing your renters since you have children. Not everyone will try to destroy your property or throw crazy parties. In fact since you're living in the main home, 100% they will absolutely not throw a party lol...only a dummy will. Your best bet is advertising using airbnb or vrbo. This way you have double protections for damages & cancelations. Also will make your life easier in organizing any bookings. Only booked anyone with reviews...again you have children so you have to be very careful in choosing your future tenants

@John D. absolutely! It's all about having that positive cash flow. Personally if I'm buying another property, it will be for LTR or STR purposes. And throwing over asking bid in an already super inflated market, it doesn't put me in a good position. As an investor, I cannot get my emotions the best of me. I'm simply buying to make money. And as for now, I haven't find the deal in California that can bring positive cash flow yet...at least not places that I loooked at. Now I cannot say about different states. Sure I can probably get a bigger home for cheaper price. But that's not my target area.

Again this is my personal position in this pandemic situation. And I can assure my money isn’t seating in sideline doing absolutely nothing. It is invested highly in the index, stocks, crypto 😆 ....the list goes on.

@JJ P. so did you buy this year?

@Michael Encoy i didn't buy yet. Prices are still high. Just like stock market, i only buy on the dip never on the high. The fed might raise interest rate by 2023. if that happens, a crash is coming. not sure in real estate but for sure in stock market. But my gut is telling me, evictions & foreclosures are on the rise. I'll wait till next year to make a move in RE. Definitely no FOMO here

Wow! Reading all the threads here make me think twice about buying another rental property. My renters are exiting their lease in summer. Perhaps it is time to sell & venture elsewhere. Thank you all for sharing your stories. And I’m sorry to hear your hardships 

@Edward Arias get to know your neighbors. pay them a little fee for such an easy job

do both. Use $30k to fix your home because maybe later on u wanna tap into cash refi. Use your 20k invest in stock market. My stocks have grown 37% in a year. We are due for price corrections as well. So definitely buy on the dip & load up. 

Look up Cathy woods from ARK investments. Whenever she buys, market will rise up next day.

@Amanda Jacobellis i agree! big bear is super inflated right now. we were in the market to purchase in big bear lake. We were subjected to multiple bidding wars. And it wasn't just $10-20k overasking, It was over $50k!.Obviously we didn't get one. We did not ,however, consider sugarloaf as part of our areas for STR investment. For us, it is too far from the main ski resorts & overall it is a lower class neighborhood. @Trist Baylon i would definitely wait until prices are calmed down. if you're looking to airbnb, you definitely need prime location.

From my research, non-covid occupancy was only 30%...of course depending on areas. Some rentals did better than others if they have nicer home decors & prime location. We knew a relative recently sold her cabin in moonridge. And she did exceptionally well during COVID times. Even then, she knew to sell her cabin because....yup prices are super inflated! Definitely not a buyer marker!