All Forum Posts by: Alvin Sylvain

@Tyler Labrador And when you're 26, take long hard look at what you've been doing for the past five years, and decide whether you want to continue on that road or change to something else.

@Tyler Labrador Don't sit on your hands. It doesn't matter much exactly WHAT you do -- if you eff up, you're not too old to back out and try something else -- but do SOMETHING. Always, always, always have something in the works, either planning or execution. You see some method or system you want to try, peek in long enough to aim, then jump on in. Be cautious, but don't be afraid. You can patch up your scrapes and scars and bruises then learn to avoid them as you go.

@Pratik P. OK, two points. One, you haven't bought this property yet, right? RUN AWAY! You can not rescue the owner here, and believe me, the owner is in a World of Hurt right now. Two, YES, the government can and will penalize the owner of the property where a tenant commits a crime, particularly a drug crime. Justly or unjustly, their view is the owner SHOULD know what's going on in their property, so the owner is equally guilty. Remember also, while marijuana is legal in several states, it's still against FEDERAL law, and many people, especially some in political office, still consider drugs to be WORSE than murder.

@Philip Smith Three things; First, who said REI was "safe"? Everything has risks, including doing nothing. You need to sit down with the missus and compare the relative pros and cons of your various options, including sitting back, doing nothing, and watching your net worth go negative. Look at ALL your options, including finding a better day-job. Second, don't worry about moving back into your original house. I believe the law in all 50 states (I could be wrong, I'm no lawyer) allows you to evict a tenant, with proper notification, if you wish to move in yourself. I've done it, although I was lucky, the tenant wanted to leave anyway. The timing was good. Finally, and probably most important, think long and hard about renting a place you love and intend to move into. It's hard to make good financial decisions when emotions come into play, and you are inviting those emotions to run rough-shod all over everything. Your tenant is NOT going to treat your beloved domicile the way you'd like, and that's guaranteed to create emotional reactions that are not conducive to making money. If it makes good sense to rent it out, consider it a rental and abandon moving back. Instead, look to earning enough from investments to one day move UP.

Biggest mistake? Sitting on my hands.

@Wesam S. Our lease from some years ago specified the tenant was responsible for any minor repair under $100. Keep in mind, this was a SFH, and tenants are more likely to consider it *theirs* which can make a big difference.

Regarding the entirely unrelevant tangent regarding investing in red states vs. blue states: while there *is* a demonstrable correlation between "blueness" and overall anti-business environment, that doesn't mean you can't invest in blue states. You may need different strategies, and it's probably harder for beginners -- but NJ and CA are not Venuzuela -- yet. (Here in CA, we try harder!) So, *yes*, investors are making millions all over the West and Northeast. But I would suggest beginners might have it easier in the Mountains and the South. Some research in long-distance investing could pay high dividends.

@Simon W. Condos have a well-deserved reputation for appreciating veerrrrrry slowly, if or when they appreciate at all.

@Patrick Fraire let me ask this: is there a reason they MUST move to Orange, CA, where $1950 can only rent a dump, vs., say, Phoenix, AZ, where $1250 can rent a palace? Clearly I can not know all the details of the situation, but in general, if you can't afford to live in CA, there is a plethora of cheaper places to live, and you won't get mixed up in doing expensive favors for friends and relatives that can easily sour.

So you have a good accountant and you ask here? Ask your good accountant! :-)