All Forum Posts by: Wendy Black

How can you truthfully answer potential sellers who ask whether it's legal to take over their payments while they're still legally the owner(s)?  How do you justify it yourselves when it's clearly stated in loan contracts that this is a transfer of ownership?  Should the bank demand accelerated payment, is it true that you can re-sell it to someone else or turn it back over to the owner so there won't be a problem?  

I'd like to see I'm not uncomfortable with this, but I am...

Do you mean you are not ready to invest in homes or in RE, in general?

If you mean homes, I'd park some of it in performing notes.  You can get in with 10K and earn 6-12%  generally with it.  If you've got to get out quickly, then sell the note.

Even though you rehabbed it, all this could've been avoided had you had it inspected before you even put it on the market.  

We buy and hold.  The first house we bought as a rental (and it's in a neighboring state), and we went over with our realtor during the time of inspection so we could ask questions.  We signed the papers that day.  By the time we were four years in, we paid for the inspections of our next potential property, from the home inspector to the a/c and pest inspectors.  We wanted to make sure our deal was solid-- and that was just to rent, not sell.  Only when we were satisfied did we sign the final papers.  

Homes are expensive.  Consumers have a right to say they're uncomfortable with a particular situation, no matter how inocuous it may sound to the seller.  The only sensible way around this, I think, is to have your properties inspected before you attempt to sell them.  

Why is it so inexpensive?  Did you take over the owners' mortage, or...?

We consider what the market will bear and the cost of replacing the tenant.  New tenants mean painting the home and looking for minor repairs, paying the PM to find a new tenant, and the possible loss of income if it's vacant.  Sometimes it's more expensive to replace them than to keep them there at the same rent.

The other issue is whether the HOA and taxes have increased. We try to pass it on. However, there's someone in retirement living in our condo, and we know it's been difficult for her. I am not keen on raising rates just to raise rates because after all, they likely aren't earning any more money. Our tenants stay for years.

Hi, Christopher.

We can't move to SoCal for the forseeable future because of a family situation.  

Nevertheless, this is not our only rental.  We have six: that condo and a home in SoCal; a home in AZ; and three mobiles in NorCal.  We also hold notes in Texas and the Midwest.   

A possible alternative would be to find a local partner with experience and success in running short-term rentals, and do a 1033 to partner on one in the same or another attractive area in SoCal.  Even by splitting the income, we might be able to earn a higher return.  

Hi, Ali.

We've never lived in CA, but we've been going back and forth since the late '70s.  My sister lived there and moved back.  Nearly the entire family of our daughter-in-law lives in SoCal, and we owned a pizza place in San Clemente that we sold a few years ago.  We'd plan to move out there after retirement, but it's yet to happen.  We purchased the condo to hold onto for a couple of years and then do a 1033 for something closer to the ocean, like Aliso Viejo, Laguna Niguel, or San Clemente.  However, prices inceased so much, and the square footage (over 1k) and amenities were so nice that we decided just to hang onto it.  

Nearly everything we own in physical property is in CA. We only own our own home and an IRA home in AZ. The notes are in the Midwest and Texas, so yes, we are open to investing elsewhere.

What we receive from the properties (which include mobiles in Merced County) has not been able to cover an ongoing, unforeseen family situation we'd never anticipated.  (Life happens.)  Our SoCal properties have been my "heir and the spare," so to speak.  (We own a home in North County SD.)

My hubby prefers notes, although it's the mobiles that are bringing in the most income. As you know, taxes are high in OC, and a repiping project in our condo's HOA increased the fees there, too.

Hi, Sarah.  I'm in Phoenix.  Do you belong to AZREI?

We went into REI investing with our retirement funds and own properties in AZ and CA and some notes in other states. While we live in AZ, we'd hoped to eventually move to SoCal. We greatly need to increase our cash flow and would appreciate suggestions from seasoned investors on how to accomplish that.

We have a 2/2 condo in an attractive area in inland South OC (w-golfing, lake, community pool) we bought 4 years ago for $339k, and it's worth approx. $450k. We put $209k down for a 30 yr. mortgage at 3.75% and owe almost $103k. Rent is $1950 (we just increased it a couple of months ago when the lease was renewed), and we've had only a single tenant. PITI is $1115/mo, the HOA is $365, and our management fees are about $160. Considering repairs, we clear $200-$300/mo.

We considered refinancing last year, but we couldn't beat the 3.75%.  Due to our particular circumstances (including our ages: late 60s), it would be difficult to get a conventional loan to leverage it, and buy more properties.  I know we're not supposed to be emotional about properties, but a complicating factor is that I am about our SoCal holdings.  It's been like our second home since the late '70s.  I think that with sharply rising property values, once you're out of SoCal, chances are good you won't get back in.  

If you were in this situation, what would you do?

Hi, Jack.

We're in Phoenix.

I'd suggest you join AZREI for networking.