My first venture into RE some 10 years ago was driven primarily by passion and intuition, where I went OOS and got busted, learned my lesson, came back to CA, bought in SF and spent the next 5 years subsidizing rental loss from my w-2 income.... Lol
Fast forward to today, I have 4 rentals with 2 mortgages on them, both at <4% for 20 year fixed rate...My DTI is at 16%, down from some 60% at the height of my "subsidizing" days....
So I am ready for the next move, and hope it will be driven by knowledge and patience this time.... I am locked and loaded, just waiting for the fire and fury.... Happy Saturday BP!!!!!!
Curious what made you want to go OOS of such a high value property with such "low" rent? Seems that most people who go OOS are looking at more affordable houses (150-200k range for that rent range).
@Diane G., sorry to hear about your bad experience investing out of state. I had seen you recommend not investing OOS before . Was that with a turnkey type of operation or did you do it on your own? How much research did you do before making your purchase?
I'm sure you are glad you bought in SF when you did considering price appreciation.
@ Joseph M - it was a $400k SFH in Tempe AZ.... so not your typical OOS C- rental....mine was renting $1600 back in 2004...
Still tenant don't seem to stay more than 6-9 months , non stop repair request, all repairs at 3x the price.... on and on and on...
This is still a mystery to me... when I self managed my rental in SF, tenant stay 3 to 7 years, 1 repair a year if that much....
To this date, I did not figure out why OOS rental is non stop issues for me..
At any rate, that property, had I hold it, rents $1800 today and about $340k today.... so good decision I did to cut loss... pad on my shoulder ...lol
Diane G. Yeah some local markets are more transient than others . Some areas it's common for tenants to be moving around a lot . It is kind of surprising that rents have hardly gone up in the area since 2004 .. but I guess there is just so much supply and not enough demand .
Rents in L.A were a fraction of the cost in 2004 versus now . I know SF is probably the same . Rents there are higher than most parts of L.A unless you are by the beach like Santa Monica .
I'm pretty amazed what people are paying in downtown la since when I was growing up people didn't even want to go to that area now they are paying $3000 or more in rent !
I had read that buildings in Downtown L.A went up like 10x in a relatively short amount of time like within a decade or so .
Curious what made you want to go OOS of such a high value property with such "low" rent? Seems that most people who go OOS are looking at more affordable houses (150-200k range for that rent range).
@ Matt katsaris - I have a personal rule that I only buy property that I don't mind live in one day, however unlikely that is going to be...
So.... No C- for me... Lol
@ Matt katsaris - A class property in OOS, often times, don't cash flow much if any.... that is true for most all metro cities.... you have to go deep into the "hood" to cash flow.
Here in Bay Area, you can't even cash neutral...