All Forum Posts by: Ali Boone

Values are going up for residential housing because of everything. Commercial properties may be a very different story, but there are a lot of factors causing the housing prices to go up because of it all. But more generally, fun fact, housing prices have only dropped in 1 of the last 5 recessions (including the Great Depression). And the only reason they dropped that one time (2008) is because the entire crash was because of the mortgage industry.

Thanks for the shout out Rachel! :)

I've never heard of a bank waiting a seasoning period on a property if it's already tenanted, etc. The seasoning will just be how far they check back on your financials.

You're kind of asking a few different things, and pondering a few different scenarios, so here's a couple random articles that hit on the things you're talking about:

Househacking considerations: https://www.biggerpockets.com/...

Buy local or out-of-state: https://www.biggerpockets.com/...

Maybe start your considerations around the things in there, and then build out from there.

Not at all... unless for some reason you're expecting freakish appreciation on it. Those numbers with a conventional 20% down will barely cash flow, if at all. But then putting only 3.5% down, leaving that much more interest and higher payments, and then PMI on top of it... without running the numbers, I can't imagine it's even close to positive. Plus you didn't mention if it needs any work. Ultimately, anytime you're wondering if something's a good deal, the question I always ask is -- "where exactly do you plan for the profit to come from?" If you can answer that, you might have a deal. If you can't answer that, you need to dig in quite a bit deeper and learn more about rental properties so you don't get stuck with something that will never earn you a profit.

If you live in CA, you're stuck with the LLC fee. Even if the LLCs are from different states. I put an umbrella insurance policy on all my properties so I could avoid the LLC.

I don't want to hog up this thread going into a long-winded debate, but I would argue exactly the same thing about info being misleading on here about how great local investing (if an ECOL city) is when a lot of people get burned because something looks sexy on paper, having no idea how to work the more expensive and appreciation model correctly. I don't think the broad assumption can be said that local is better to start, having done both. All of my OOS properties have been fantastic, and with a much lower risk given how much less I've had to put into them.

There's absolutely no right or wrong strategy. What works for me works for me, and what works for you works for you. But realizing that not every one who reads your posts will work with you to ever hear the transparency on the numbers, seems like it could set some people up poorly to just say investing in SoCal is fantastic. 

I believe it... I have a duplex here. But I wish in your posts when you're saying how great it is you'd be more transparent on the numbers. It can be great here, but it can also be misleading for new investors who don't know what they're taking on if they try it.