Buying multiple properties in year 1 - can I keep this up?
Rental Property Investor · San Jose, CA · Member since 2018 · 46 posts · 26 votes
Jumping in to real estate was a well-calculated move. I live in San Jose, and this market is notorious for making people lose faith in their ability to purchase.
I bought my primary residence in May of 2017 - a brand new million dollar 3 story 2200 sq ft home and closed on a 500k vacation/rental in Lake Tahoe right before the new year.
The primary was financed with 10% down and the rental was financed with 20% down.
I strongly believe the the community I purchased my primary in has massive potential upside, and have been blown away by the prices i've seen my neighbors sell their properties for within just a year of owning.
I'm sharing this in the "success stories" section because I can't stand how discouraged people get, and I truly despise the mindset of "i'll just wait for the market to crash"
We need to find a way to make it work - no one will do it for us
We have been hearing that the market is going to crash for four years now; so, many investors agree that sitting on the sidelines for extended periods is very costly.
If you have strong market knowledge, buy in good locations, use prudent debt, and have reserves, buying (predictable) appreciation plays can be a very profitable strategy.
On a side note, buying property is not a success story...making a profit over the long-term is.
I have the capital to invest wherever I want. I still invest in Houston and live in San Diego. No way in hell I'm buying RE in California. The returns are terrible and the political risk is way too high. Who knows what LL unfriendly law those Sacramento nutcases might pass.
There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13. They probably should get rid of it because schools are suffering because of it, but given that prop has been in place for the last forty years it is not likely to happen. There is a modification on the ballot this year but it applies to commercial property only.
I own nine properties in Mississippi and a condo in South Lake Tahoe (hi, SLT folks.) I pay the same amount of property taxes on each of the properties I paid 30-40K for as I do for my condo in Tahoe for which I paid three times as much.
Your comment: "There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13" You shouldn't drink this early in the day, you are saying silly things. ;-)
I notice you don't live in California. I actually checked out California before I moved to Arizona. There is no comparison between the two tax levels. Arizona is far, far less taxed. Also, the connection between "property taxes & the national debt" run like this: The new tax law reduces the amount of property tax that can be written off. That means people living in high property tax states are paying more in taxes. States in fact are getting less from the federal government as well. (We have to pay off the national debt somehow, so hopefully the natl govt is spending less) the states have unfunded pension plans that have to be paid. The states aren't getting enough from the printing presses of the treasury (your taxes) to pay these unfunded liabilities, so they shift money around and increase taxes on your state income taxes and property taxes. Heaven help us if they decided to cut back on expenses instead, but that won't happen. As property tax, they have a captive audience. As income tax, you can move out of the state to somewhere else, as many in California are choosing to do. Simple economics. People move to where they can make a living and not be taxed so heavily. Thusly, the state's option, is to raise property taxes.
I have the capital to invest wherever I want. I still invest in Houston and live in San Diego. No way in hell I'm buying RE in California. The returns are terrible and the political risk is way too high. Who knows what LL unfriendly law those Sacramento nutcases might pass.
I disagree that the returns for San Diego RE are terrible and so do sources such as CoreLogic. San Diego historically has one of the best ROI for buy n hold RE in the country. Various sources including CoreLogic confirm that San Diego ROI on buy n hold has been historically outstanding.
Unfortunately I do have concerns about various politicians (National, state, and local).
The San Diego city council recently passed regulations banning STRs (except in certain owner occupied situations) including in an area that is all rentals (Mission Beach) . They have to be capable of creating better regulations.
My local city politicians recently decided to fill a vacant City Council seat with someone who has lived in the community 3 months. No matter what their qualifications, 3 months does not provide time to determine the sentiment of the constituents. I would like to see a 1 year minimum residency for city council appointments. Anyone who has lived in the community only 3 months should be required to win the City Council seat via election. It was a very poor appointment.
I do not want this to become a political debate so all I will say is that the country has to become less divided.
@Dan Heuschele, I agree, politicians (and voters) seldom see long-term or unintended consequences of their actions. Someone who is appointed to the city council after 3 months probably has a short-term agenda or is highly ideologically driven.
There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13. They probably should get rid of it because schools are suffering because of it, but given that prop has been in place for the last forty years it is not likely to happen. There is a modification on the ballot this year but it applies to commercial property only.
I own nine properties in Mississippi and a condo in South Lake Tahoe (hi, SLT folks.) I pay the same amount of property taxes on each of the properties I paid 30-40K for as I do for my condo in Tahoe for which I paid three times as much.
Your comment: "There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13" You shouldn't drink this early in the day, you are saying silly things. ;-)
I notice you don't live in California. I actually checked out California before I moved to Arizona. There is no comparison between the two tax levels. Arizona is far, far less taxed. Also, the connection between "property taxes & the national debt" run like this: The new tax law reduces the amount of property tax that can be written off. That means people living in high property tax states are paying more in taxes. States in fact are getting less from the federal government as well. (We have to pay off the national debt somehow, so hopefully the natl govt is spending less) the states have unfunded pension plans that have to be paid. The states aren't getting enough from the printing presses of the treasury (your taxes) to pay these unfunded liabilities, so they shift money around and increase taxes on your state income taxes and property taxes. Heaven help us if they decided to cut back on expenses instead, but that won't happen. As property tax, they have a captive audience. As income tax, you can move out of the state to somewhere else, as many in California are choosing to do. Simple economics. People move to where they can make a living and not be taxed so heavily. Thusly, the state's option, is to raise property taxes.
According to SmartAsset, the effective property tax rate of CA is slightly lower than AZ but virtually the same. Coastal So Cal and San Francisco areas have higher property values that make the tax paid greater in those areas than would be found in most areas of AZ.
According to SmartAsset, Arizona has a much lower income tax rate than California.
The Arizona state sales tax is lower than California state sales tax but the Arizona communities typically add to that rate making many areas of AZ have higher sales tax than most areas of California.
It is not cheap to live in CA and it is especially not cheap to live in Coastal So Cal and San Francisco areas of California.
I had a friend who liked to play the stock market. His refrain was always, "Look, this one has been going up and up and up and now it's really high." So he'd buy it.
I never really understood that logic. Now and then I would jokingly point out to him, "Hey, it says here, 'Past performance is not indicative of future results.' What does that mean?" Anyway, he had a good time and lost a lot of money.
I don't think many investors are just sitting idle, "waiting for the market to crash." But if you have numbers you want to hit on rental properties, and you are in a rising market, those targets will get harder to hit. We are buying, even now. But we're looking at a few hundred houses to find one that works for us. "Waiting for the market to crash" doesn't necessarily mean doing nothing in the meantime. It means, if you're systematic and disciplined, you will have to buy very selectively in a market like this.
I have the capital to invest wherever I want. I still invest in Houston and live in San Diego. No way in hell I'm buying RE in California. The returns are terrible and the political risk is way too high. Who knows what LL unfriendly law those Sacramento nutcases might pass.
There's a reason...actually there are a bunch of reasons...why so many Californians are investing their money in "flyover country" or other OOS RE. Although that has its own set of hazards that require a pretty savvy investor to navigate.
@Nick Colvill I'm getting 20+% annualized returns, and IRRs higher than that. Not to mention the tax benefits, which make the scenario even better. Real estate is a lot of work. You can 100% outsource it, but that of course eats into the returns. Multifamily syndications don't require any work on the LP side, can be less risky with conservative underwriting, and in a down market, rents typically don't crash as dramatically, if at all. If the syndicators have financing in place to ride out a downturn, then it's a great way to diversify. I like them for retirement cash flow as much as anything else.
There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13. They probably should get rid of it because schools are suffering because of it, but given that prop has been in place for the last forty years it is not likely to happen. There is a modification on the ballot this year but it applies to commercial property only.
I own nine properties in Mississippi and a condo in South Lake Tahoe (hi, SLT folks.) I pay the same amount of property taxes on each of the properties I paid 30-40K for as I do for my condo in Tahoe for which I paid three times as much.
Your comment: "There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13" You shouldn't drink this early in the day, you are saying silly things. ;-)
I notice you don't live in California. I actually checked out California before I moved to Arizona. There is no comparison between the two tax levels. Arizona is far, far less taxed. Also, the connection between "property taxes & the national debt" run like this: The new tax law reduces the amount of property tax that can be written off. That means people living in high property tax states are paying more in taxes. States in fact are getting less from the federal government as well. (We have to pay off the national debt somehow, so hopefully the natl govt is spending less) the states have unfunded pension plans that have to be paid. The states aren't getting enough from the printing presses of the treasury (your taxes) to pay these unfunded liabilities, so they shift money around and increase taxes on your state income taxes and property taxes. Heaven help us if they decided to cut back on expenses instead, but that won't happen. As property tax, they have a captive audience. As income tax, you can move out of the state to somewhere else, as many in California are choosing to do. Simple economics. People move to where they can make a living and not be taxed so heavily. Thusly, the state's option, is to raise property taxes.
According to SmartAsset, the effective property tax rate of CA is slightly lower than AZ but virtually the same. Coastal So Cal and San Francisco areas have higher property values that make the tax paid greater in those areas than would be found in most areas of AZ.
According to SmartAsset, Arizona has a much lower income tax rate than California.
The Arizona state sales tax is lower than California state sales tax but the Arizona communities typically add to that rate making many areas of AZ have higher sales tax than most areas of California.
It is not cheap to live in CA and it is especially not cheap to live in Coastal So Cal and San Francisco areas of California.
Okay, now I'm scratching my head. Your Comment:
"According to SmartAsset, the effective property tax rate of CA is slightly lower than AZ but virtually the same. "
What exactly do they mean by "slightly lower"?
Here are two houses of approximately the same sq ft, the Phoenix house was updated 2018 - The San Diego is from 1980 - which Tax Burden is Bigger??? Phoenix = $1,607 and San Diego = $7,584
San Diego is about 450% more tax than Phoenix. I happen to know the Phoenix property, it is one of mine.
*****************************************************************************
I'm slightly confused by this thread. How does buying your own home and a crash pad for friends make you an investor. There is no mention of the "multiple investment properties" you've bought in a year??????
There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13. They probably should get rid of it because schools are suffering because of it, but given that prop has been in place for the last forty years it is not likely to happen. There is a modification on the ballot this year but it applies to commercial property only.
I own nine properties in Mississippi and a condo in South Lake Tahoe (hi, SLT folks.) I pay the same amount of property taxes on each of the properties I paid 30-40K for as I do for my condo in Tahoe for which I paid three times as much.
Your comment: "There is no connection between property taxes and national debt. Property taxes found local expenses like schools. California property taxes are relatively low thanks to Prop. 13" You shouldn't drink this early in the day, you are saying silly things. ;-)
I notice you don't live in California. I actually checked out California before I moved to Arizona. There is no comparison between the two tax levels. Arizona is far, far less taxed. Also, the connection between "property taxes & the national debt" run like this: The new tax law reduces the amount of property tax that can be written off. That means people living in high property tax states are paying more in taxes. States in fact are getting less from the federal government as well. (We have to pay off the national debt somehow, so hopefully the natl govt is spending less) the states have unfunded pension plans that have to be paid. The states aren't getting enough from the printing presses of the treasury (your taxes) to pay these unfunded liabilities, so they shift money around and increase taxes on your state income taxes and property taxes. Heaven help us if they decided to cut back on expenses instead, but that won't happen. As property tax, they have a captive audience. As income tax, you can move out of the state to somewhere else, as many in California are choosing to do. Simple economics. People move to where they can make a living and not be taxed so heavily. Thusly, the state's option, is to raise property taxes.
According to SmartAsset, the effective property tax rate of CA is slightly lower than AZ but virtually the same. Coastal So Cal and San Francisco areas have higher property values that make the tax paid greater in those areas than would be found in most areas of AZ.
According to SmartAsset, Arizona has a much lower income tax rate than California.
The Arizona state sales tax is lower than California state sales tax but the Arizona communities typically add to that rate making many areas of AZ have higher sales tax than most areas of California.
It is not cheap to live in CA and it is especially not cheap to live in Coastal So Cal and San Francisco areas of California.
Okay, now I'm scratching my head. Your Comment:
"According to SmartAsset, the effective property tax rate of CA is slightly lower than AZ but virtually the same. "
What exactly do they mean by "slightly lower"?
Here are two houses of approximately the same sq ft, the Phoenix house was updated 2018 - The San Diego is from 1980 - which Tax Burden is Bigger??? Phoenix = $1,607 and San Diego = $7,584
San Diego is about 450% more tax than Phoenix. I happen to know the Phoenix property, it is one of mine.
*****************************************************************************
The effective tax rate is the rate that is actually paid. For AZ it includes the exemptions and rebates and for Ca it includes the break that owners get via prop 13.
An extreme example of ours is an RE currently valued at ~$1.5m has property tax of ~$5k due to prop 13. I purchased an RE currently valued at ~$600k that the previous owners were paying less than $500/year property tax. It was owned since 1956.
The effective property tax rate of both states was ~0.8%.
Jumping in to real estate was a well-calculated move. I live in San Jose, and this market is notorious for making people lose faith in their ability to purchase.
I bought my primary residence in May of 2017 - a brand new million dollar 3 story 2200 sq ft home and closed on a 500k vacation/rental in Lake Tahoe right before the new year.
The primary was financed with 10% down and the rental was financed with 20% down.
I strongly believe the the community I purchased my primary in has massive potential upside, and have been blown away by the prices i've seen my neighbors sell their properties for within just a year of owning.
I'm sharing this in the "success stories" section because I can't stand how discouraged people get, and I truly despise the mindset of "i'll just wait for the market to crash"
We need to find a way to make it work - no one will do it for us
Hey Nick, fellow CA investor here (LA area, but used to live in SF and lots of friends and family in the Bay Area). I like San Jose as a market. I think that while a lot of our of state folks (no offense intended) tend to focus on the absolute prices in the Bay Area, reality is most San Jose zip codes are far from the most expensive parts of the Bay Area.
I have a cousin who bought in San Jose in 2005 or so, were a bit underwater during the crash but stayed there, and sold in late 2017 with quite a bit of appreciation, to move to Saratoga, since their incomes had improved, and the school they were zoned for was not the best one in San Jose. The people who bought their house were perhaps much earlier in their careers, and saw San Jose as a good place to start out (for over 800 thousand bucks, lol). San Jose is thus not too expensive or too cheap relative to the Bay Area in general, or so it seems to me.
Point being, I do think there's upside IF you are holding for a while, and planning to live there, or if you move, you can put in a good tenant (which is not an issue at all in your market). Still, if you are going to invest up north, I firmly believe you'll enjoy the most success if you avoid newer construction and try to get into deals that need at least some rehab, assuming you can build a good network of construction folks. Obviously different for the house you live in, I get that.
I bought one in LA County in a gated community earlier this year, that was built almost 15 years ago and needed some interior work, and the return on the work we did, in terms of both value and rental price bump, has been great, and the area is really growing. San Jose can be a great market if you focus on the right deals - there are people making money hand over fist by doing so.
Hey Nick, to follow up on your response about new builds, I differentiate a primary vs. an investment. I actually think a new house without any hassles is a great place to raise a family and stay in for 20 or 30 years. I'd consider doing it myself when that time comes. I am not a guy who enjoys fixing stuff in my own house etc.
Now, as far as rentals, I have a direct basis of comparison on this, with the property I mentioned in LA that I bought earlier this year. Next door to the gated community I purchased in, is another gated community that KB Homes just finished. Our place, built in 04/05 went for $535K, 3 bed 3.5 bath, while similar units (actually, only 2.5 bath), and slightly smaller than ours, sold for $660 to $680K, brand new, looked great. Now, those homes have gorgeous hardwood floors, an excellent open kitchen etc.
They also rent at the top of the market for the area (about $3500 per month), for investors who bought them. What that means is that an investor who picked up one of those could be waiting around for a while to get it occupied, compared to places that are a bit older but still nice and updated, but cost a good amount less (mine rents for $3000.00). In fact, I saw the ones more expensive than ours still sitting on the market, after ours was gone in a few weeks. You'll find that vacancy times on single family rentals at these prices really kills your ROI. Ours was snapped up quickly and we got a long-term tenant. Now, the same is true when selling as an investor - being the most expensive home in the area is often not a good thing, even if your property is higher quality. Especially if the market slows down.
With our home, the kitchen was good, but it had carpet and nasty bathroom tiles, so we did that, repainted, and put in new toilets from Costco, and the over $14K we spent on that seems to have added about $30K already to the home value, probably more in the future as we have long-term appreciation. There's a multiplier effect with rehab work, that you'll really come to appreciate as you do more of this. With a new build, the developer gets that upside.
Now, with new builds, you are correct that there are more warranties in place, and less work needed down the line, but as an investor, the premium you are paying for that, charged by the developer, is not worth it. If you were to build contractor relationships, and have the work done yourself, the value you could add to the property on your own, vs. the cost, is a no-brainer. I'm not saying to get dumpy houses in some warzone in the worst part of Oakland or Richmond, that are going to be a money pit, but the BRRR strategy, and just rehab in general, is by far one of the best ways to profit, learning that myself with this deal.
Also, keep in mind that even the best tenants are going to cause some wear and tear, and if you already paid a lot more for the property, having to fix those things when they move out, is going to add to your overall costs. If you bought a new build, those costs are already higher. I personally don't at all like the idea of tenants wearing down the nice new hardwood floors of a new construction home, especially kids and pets doing so. My laminate floors, on the other hand, look good but it's easier to handle that affordably.
In a nutshell, when it comes to your investments, don't fear something that requires a bit of work and is older, within reason, in an area you believe in. That is where the money is IMHO. You'll see on these forums there are people doing amazing rehab and value ads in your market no reason you can't, in time, find ways to do the same. Go get 'em!
Unfortunately, the reality in SFBA just about everyone believes home prices have gone through the roof at the historical peak. Since April 2018 with 20-25% more inventory it is very much normalized sales with fewer offers. Many neighborhood home prices dropped 8-12% since May. It is a almost certain interest hike will happen in days. For every 1% interest rate increase the affordability will decrease by 10% until few can afford these $8000 monthly payment per mortgage. By 2019 the mortgage will be over 5% you expect home value still will rise?
Right now there are plenty of homes sold below asked price outside high paying employers Google, Linkekin, Tesla, and Facebook. Many took 6-7 weeks before sellers reluctantly took an offer ($1-2M price range). It was may be 10 days or so before April 2018. Mill Valley, Foster City even new homes are waiting for a reasonable offer.
Yes, there is no limit how many loans you can borrow(private), 4 is for optimum rates. I am not sure how one can afford paying $32,000 a month ($8Kx4) for the next 30 years at this low interest. By the time the borrower reaches 35 he already passed prime productive age for high tech work.
I'm slightly confused by this thread. How does buying your own home and a crash pad for friends make you an investor. There is no mention of the "multiple investment properties" you've bought in a year??????
The title of the thread isn't "multiple invest properties", it's "multiple properties"
In the OP I specifically state the type of home (primary vs rental/investment) and the financing.
You are clearly confused because you didn't read the title and original post (OP) correctly.
No harm no foul
Jumping in to real estate was a well-calculated move. I live in San Jose, and this market is notorious for making people lose faith in their ability to purchase.
I bought my primary residence in May of 2017 - a brand new million dollar 3 story 2200 sq ft home and closed on a 500k vacation/rental in Lake Tahoe right before the new year.
The primary was financed with 10% down and the rental was financed with 20% down.
I strongly believe the the community I purchased my primary in has massive potential upside, and have been blown away by the prices i've seen my neighbors sell their properties for within just a year of owning.
I'm sharing this in the "success stories" section because I can't stand how discouraged people get, and I truly despise the mindset of "i'll just wait for the market to crash"
We need to find a way to make it work - no one will do it for us
Hey Nick, fellow CA investor here (LA area, but used to live in SF and lots of friends and family in the Bay Area). I like San Jose as a market. I think that while a lot of our of state folks (no offense intended) tend to focus on the absolute prices in the Bay Area, reality is most San Jose zip codes are far from the most expensive parts of the Bay Area.
I have a cousin who bought in San Jose in 2005 or so, were a bit underwater during the crash but stayed there, and sold in late 2017 with quite a bit of appreciation, to move to Saratoga, since their incomes had improved, and the school they were zoned for was not the best one in San Jose. The people who bought their house were perhaps much earlier in their careers, and saw San Jose as a good place to start out (for over 800 thousand bucks, lol). San Jose is thus not too expensive or too cheap relative to the Bay Area in general, or so it seems to me.
Point being, I do think there's upside IF you are holding for a while, and planning to live there, or if you move, you can put in a good tenant (which is not an issue at all in your market). Still, if you are going to invest up north, I firmly believe you'll enjoy the most success if you avoid newer construction and try to get into deals that need at least some rehab, assuming you can build a good network of construction folks. Obviously different for the house you live in, I get that.
I bought one in LA County in a gated community earlier this year, that was built almost 15 years ago and needed some interior work, and the return on the work we did, in terms of both value and rental price bump, has been great, and the area is really growing. San Jose can be a great market if you focus on the right deals - there are people making money hand over fist by doing so.
Hey Nick, to follow up on your response about new builds, I differentiate a primary vs. an investment. I actually think a new house without any hassles is a great place to raise a family and stay in for 20 or 30 years. I'd consider doing it myself when that time comes. I am not a guy who enjoys fixing stuff in my own house etc.
Now, as far as rentals, I have a direct basis of comparison on this, with the property I mentioned in LA that I bought earlier this year. Next door to the gated community I purchased in, is another gated community that KB Homes just finished. Our place, built in 04/05 went for $535K, 3 bed 3.5 bath, while similar units (actually, only 2.5 bath), and slightly smaller than ours, sold for $660 to $680K, brand new, looked great. Now, those homes have gorgeous hardwood floors, an excellent open kitchen etc.
They also rent at the top of the market for the area (about $3500 per month), for investors who bought them. What that means is that an investor who picked up one of those could be waiting around for a while to get it occupied, compared to places that are a bit older but still nice and updated, but cost a good amount less (mine rents for $3000.00). In fact, I saw the ones more expensive than ours still sitting on the market, after ours was gone in a few weeks. You'll find that vacancy times on single family rentals at these prices really kills your ROI. Ours was snapped up quickly and we got a long-term tenant. Now, the same is true when selling as an investor - being the most expensive home in the area is often not a good thing, even if your property is higher quality. Especially if the market slows down.
With our home, the kitchen was good, but it had carpet and nasty bathroom tiles, so we did that, repainted, and put in new toilets from Costco, and the over $14K we spent on that seems to have added about $30K already to the home value, probably more in the future as we have long-term appreciation. There's a multiplier effect with rehab work, that you'll really come to appreciate as you do more of this. With a new build, the developer gets that upside.
Now, with new builds, you are correct that there are more warranties in place, and less work needed down the line, but as an investor, the premium you are paying for that, charged by the developer, is not worth it. If you were to build contractor relationships, and have the work done yourself, the value you could add to the property on your own, vs. the cost, is a no-brainer. I'm not saying to get dumpy houses in some warzone in the worst part of Oakland or Richmond, that are going to be a money pit, but the BRRR strategy, and just rehab in general, is by far one of the best ways to profit, learning that myself with this deal.
Also, keep in mind that even the best tenants are going to cause some wear and tear, and if you already paid a lot more for the property, having to fix those things when they move out, is going to add to your overall costs. If you bought a new build, those costs are already higher. I personally don't at all like the idea of tenants wearing down the nice new hardwood floors of a new construction home, especially kids and pets doing so. My laminate floors, on the other hand, look good but it's easier to handle that affordably.
In a nutshell, when it comes to your investments, don't fear something that requires a bit of work and is older, within reason, in an area you believe in. That is where the money is IMHO. You'll see on these forums there are people doing amazing rehab and value ads in your market no reason you can't, in time, find ways to do the same. Go get 'em!
Solid input and I can't disagree with much if any of it!
@Nick Colvill, fair enough but what's the question then? Can I keep buying properties like they were cars? Of course you can if you have enough money? Am I missing something? What is it you are actually asking?
@Nick Colvill Perhaps people were confused about your post because next to your name are the words "rental property investor".
99.9% of the people on BP invest in RE, and don't consider themselves "rental property investors" unless they invest in property they rent to others.
==>i'm going to assume that you didn't intend to sound incredibly arrogant by saying "buying a property is not a success story", so i'll politely let you know that that's how it came across. What gives you the right to dictate the definition of success story? And why on earth would you even attempt to belittle someone else like that?
I can't speak for Mike Dymski, but maybe he just means that you should hold off on comments about how you "can't stand" and "truly despise" investors with a different philosophy, until time has proven that you really do know better. Write back in five years and we will all be happy to applaud your success story.
Jumping in to real estate was a well-calculated move. I live in San Jose, and this market is notorious for making people lose faith in their ability to purchase.
I bought my primary residence in May of 2017 - a brand new million dollar 3 story 2200 sq ft home and closed on a 500k vacation/rental in Lake Tahoe right before the new year.
The primary was financed with 10% down and the rental was financed with 20% down.
I strongly believe the the community I purchased my primary in has massive potential upside, and have been blown away by the prices i've seen my neighbors sell their properties for within just a year of owning.
I'm sharing this in the "success stories" section because I can't stand how discouraged people get, and I truly despise the mindset of "i'll just wait for the market to crash"
We need to find a way to make it work - no one will do it for us
Are you liquid enough to put down 10% and 20% on multiple million dollar properties every year?
@Nick Colvill, fair enough but what's the question then? Can I keep buying properties like they were cars? Of course you can if you have enough money? Am I missing something? What is it you are actually asking?
This is a thread in a forum about success stories, i'm not asking anything. I'm discussing my most recent successes in real estate - per the nature of this specific forum
==>i'm going to assume that you didn't intend to sound incredibly arrogant by saying "buying a property is not a success story", so i'll politely let you know that that's how it came across. What gives you the right to dictate the definition of success story? And why on earth would you even attempt to belittle someone else like that?
I can't speak for Mike Dymski, but maybe he just means that you should hold off on comments about how you "can't stand" and "truly despise" investors with a different philosophy, until time has proven that you really do know better. Write back in five years and we will all be happy to applaud your success story.
Mike was very direct and to the point, something that is very admirable. If he meant to imply what you suggested, i'm sure he would have had no problem saying it.
Now, if that is what YOU are implying, that is a different story
Jumping in to real estate was a well-calculated move. I live in San Jose, and this market is notorious for making people lose faith in their ability to purchase.
I bought my primary residence in May of 2017 - a brand new million dollar 3 story 2200 sq ft home and closed on a 500k vacation/rental in Lake Tahoe right before the new year.
The primary was financed with 10% down and the rental was financed with 20% down.
I strongly believe the the community I purchased my primary in has massive potential upside, and have been blown away by the prices i've seen my neighbors sell their properties for within just a year of owning.
I'm sharing this in the "success stories" section because I can't stand how discouraged people get, and I truly despise the mindset of "i'll just wait for the market to crash"
We need to find a way to make it work - no one will do it for us
Are you liquid enough to put down 10% and 20% on multiple million dollar properties every year?
I would say no. By next year I plan to put up to 300k down on a multi family unit and finance the remaining 70-75%. That would constitute it as a million dollar property, but it will have been 2 years since my most recent purchase - so no, not EVERY year, but as a real estate professional with a high income w-2 spouse, the savings we get on depreciation the asset in terms of the the reduction in tax liability and subsequent check from the IRS puts our rate of savings at a decent pace
@Nick Colvill, oh OK so this heading "Buying multiple properties in year 1 - can I keep this up?" Is not a question and you aren't asking anything.
I can only assume English is not your first language.
Generally this symbol "?", we call it a question mark, is ALWAYS indicative of a question, somebody asking something.
My bad.
@Nick Colvill, oh OK so this heading "Buying multiple properties in year 1 - can I keep this up?" Is not a question and you aren't asking anything.
I can only assume English is not your first language.
Generally this symbol "?", we call it a question mark, is ALWAYS indicative of a question, somebody asking something.
My bad.
Similar to your recent post titled "Do people ever learn? (Memphis market observation)" - you were not posing a question at all despite the appearance of a question mark, you were merely making a few statements and following it up by further solidifying your lack of a direct question by saying "So I'm posting this just as a discussion point so that people may find it when they search." You don't see me hopping on your thread and demanding clarification for what specific questions you are trying to ask
The subject or post title is an eye-grabber, a conversation starter.
Don't play stupid Dean