Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
Wanted to get some Californians’ prospectives on the real estate market and owning property here during this current political climate and the overall situation in this state.
I just informed my tenants we are selling their rental. Partially because the currents state of CA and partially because I can avoid paying taxes on it if I sell this year.
Anyways, there is a lot of turmoil in the state right now. The homeless issue, the illegal immigrants, tax hikes, failing infrastructure, mass exodus of people leaving the state, diseases popping up that we haven’t seen in ages, push for low income/affordable housing and the fact that it’s a tenant friendly state.
Has the tipping point been reached? People have finally had enough and we are actually seeing them leave. No more bluffing. Is it time to fire sale your ca properties? Are we destined for a major economic blow in the near future?
Just want to get others take on it. Am I being paranoid or are the concerns valid?
No more bluffing. Is it time to fire sale your ca properties? Are we destined for a major economic blow in the near future?
Absolutely, and be sure to give me a list of the properties you are intending to "fire sale" in San Diego along with the "fire sale" price you are selling for to the first person that offers that price. :) I'll blast it out to my rather substantial California "investor" mailing list after checking with a San Diego Realtor to ensure these are actually "fire sale" prices.
Planning on going out of state to some proven markets that cash flow and may offer some appreciation.
Either way, I’m selling this property. It’s a condo with a pretty expensive, overbearing hoa that I feel is going to get even more expensive in the near future. Take advantage of the homeowner exemption and the current market. I should walk with about 130k. Bought it four years ago for 355k. Will sell for 450k-ish. Lived in it two years. Rented it for two years. If I use that money again now, in ca, it’ll be a small multi family. Won’t ever buy anything with an hoa again.
Yea, HOA can be great or real wicked! I live in a community with a POA. Putting in an addition now and the self declared building inspector for the POA is complaining about the trees that were cut down to make room for the addition being on the ground. Its fine to cut the trees, she just wants them moved. Thing I the ground is still too muddy to get the tractor in to move the trees. Had the tractor come in 3 times in the past 2 weeks, but its too muddy and the tractor gets stuck so it does not have the ability to move itself let alone move the fallen trees. She can see the tractor tread marks and giant hole where it was stuck. Does not matter, she wants the trees moved off the property. Well, gosh we would love them moved too. They are right where the steps go! So fines we will be getting for something that is not controllable. Should be dry enough to move them this week.
Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
7y
Ive loved the comments here as I am one of those New CA investors. Purhcased a fourplex in January in LA and am going through the ringer to get it renovated and rented. This is an age old argument about CA but the only two questions you ask yourself are
What are your investing goals?
If your goal is immediate cashflow, CA is not for you. If your money can garner you more in other states, sell and move OOS
Do the numbers on the property work?
If your CA property is making you money and is in a desirable neighborhood, do a Heloc or cash out refi and move that money elsewhere.
The bottom line is, there will be a great demand for housing in good CA neighborhoods that can appreciate much faster than central states. If you are willing to ride it out, keep you CA real estate, if not, sell and move the money elsewhere.
Rental Property Investor · Orange County, CA · Member since 2017 · 5 posts · 5 votes
7y
@Jason Graves
I'm from Orange County and currently owning 2 properties in Anaheim and Buena Park area. (Bought both of them in 2011). I am looking to move my equity somewhere else outside of California where cash on cash return makes more sense. Would you mind sharing your broker and expertise? I would love to connect!