Loving BP and blown away by all the wisdom here! My husband and I became landlords without becoming investors (by buying new homes, and renting out the others). Code name: we knew nothing. We are now trying to turn this around and become more savvy investors! Loving the potential for greater retuens/cashflow out of state... and hating how little our return was on these.
Here are the stats... cash out/1031/heloc/rehab/other?
#1: value: 360-390K, owe 160K. Rents (below market) for 1750/mo. Long-term tenants (9yrs)... Market rent around 1950, up to 2150 w improvements. Zero maint/repairs for 2017... low maint tenants, built 2002.
#2: value 450-460K, owe 300K. fairly upgraded "Executive rental" rents for 2400. (Very High end of market). Before maint/repairs (currently turnkey) and assuming zero vacancy, a LOSS of $500/mo. Excellent schools, well appreciating area.
#3: newly inherited 1970 OC home. Value 650-700K. No mortgage, rents for 2450. Constant stream of repairs, and not local, so $$$ (and poor) property management. Since its newly inherited, no tax implications to 'cash out' and sell. Might have potential as a flip home, as most is original 1970.
Would love opinions!
What are the laws for Air BNB in OC?
The OC is great place to visit but as far as a rental you would most likely end up with very needy tenants. I had a friend rent out his first house in the OC but sold it because tenants were a bust.
Option two: flip the OC house and take that cash to invest in a class B neighborhood.
@AnthonyRodriquez we hadn't considered airbnb! Its a short drive to both disney and knotts, so we will check into it.
Our current tenants are exactly as you described.
It looks like you are getting less than 1% rents on all your properties. Not surprising since these properties are located in California.
If the OC property was recently inherited - The tax on sale may be minimal.
$650,000-$700,000 can go along way in other parts of the country.
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