Should we stay or should we go now? Or both? We have a 10 unit apt building that has been in the family for decades and thus unencumbered. Located in Santa Monica with all the wonderful things that go along with such an ideal location- beaches, eternal sunshine, hipsters, rent control, deferred maintenance and high price/rent ratios.
So, should we sell the building and buy better-performing property in a growth area/ landlord friendly / high (property) tax area such as Texas (Dallas-Fort Worth, Austin, San Antonio)? Or, perhaps, do both; that is, stay in Santa Monica, pull some equity out and move it to Texas?....
Looking forward to the responses.
What's your goal?
Are you more interested in getting a better return & you're ok with being away from your investment in another state? Or would you rather enjoy the santa monica rents/tenants you have now with you being geographically close to your investment (that has much better appreciation)?
I love Santa Monica with all my heart and have spent many beautiful days @ the pier but I personally wouldn't want to buy & hold there - between the rent control and the crazy city ordinances. Just my 2 cents
The goal is maximizing investment return. I have no problem with trading the ability to drive by my property(ies) for a better return. I suspect SM will have better appreciation than Texas, but that is of course speculation. That's why I'm thinking that perhaps taking some equity out and moving it to places like Texas may be the way to go. Of course the building is getting older resulting in more expenses, so that's an issue too.
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