All Forum Posts by: Harish V.
Harish V. has started 3 posts and replied 191 times.
Post: Real Estate Agent's car
- Investor
- Fremont, CA
- Posts 195
- Votes 112
When looking for my first property, we had agent driving us arround in a BMW 5 series, while good to sit. Every time I would say to myself, this is all coming from my money. I think, a decent clean car is a good enough.
Post: San Diego or Austin ?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Bruce Woodruff:
I would take advantage of the opportunity if only because CA is severely tenant friendly and likely to become more so as they follow the path they're on. Plus you'll probably make more $$ in the long run...
The Market in CA, more importantly bay area is messed up. I see properties with Zillow estimate of 1.5M+ with rental estimate of < 4K. Thats a 2% return before property tax and property tax will eat up 50% of it for sure, if purchase was made today. Dont think anyone can buy for investment anymore. Any existing rental properties are going to be neglected. Rental rates are going to sky rocket 2-3 years from now.
Post: San Diego or Austin ?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Twana Rasoul:
@Vamsi Pan Hi There! Is there a reason that you want to sell other than your tenants moving out and you feeling like your returns are not that great?
More often than not, selling is not the best option in San Diego/not necessary. You are making $17,000 a year in cashflow, how much has your property increased in value, how long have you had it and how much did you put down to initially buy the property.
Without knowing more details, I'd have a hard time believing that your returns have not been great, especially if you have held for more than 5 years.
Post: CA lawmakers want an additional 25% cap gains tax for flippers
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Bruce Woodruff:
Quote from @Jordan Tinning:
My question is, will this get any traction? Doesn't seem to make any logical sense and will actually limit supply even further but incentivizing investors to hold instead of sell.
I live in WA state, but bad policy like this tends to start in CA and then travel north to OR and WA unfortunately.
If it goes to polls, it will pass for sure. Tax payers are a minority in CA. Beneficiaries of these crazy policies are majority.
Post: CA lawmakers want an additional 25% cap gains tax for flippers
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Looks like govt. does not like that people update homes. They want only builders to make homes.
Post: New CA bill would impose 25% gain tax on house flippers >3yrs
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Kevin Phu:
@Harish Verma right?? It's not even targeting only investors. It's also targeting anyone that isn't a first time home buyer or just your average Joe who sold a home to buy a bigger home for their family and then decided to sell within 7 years for different home or to move out of state for whatever personal non speculative reason.
Post: New CA bill would impose 25% gain tax on house flippers >3yrs
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Kevin Phu:
@Alan DeRossett found the bill and reading now...
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1771&search_keywords=Speculation
Post: California Prop 19 and primary residency length of time
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Proposition 19 Fact Sheet (ca.gov) BoE says what you said. You are right the person may or may not be correct. Good luck.
Post: Cash Out Refi or Hold the current Loan?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Trevar James:
Hello community, I'm looking for a little advice. I just moved in tenants at my first rental prop. Its generating about $500 cashflow after mortgage, mat, and vacancy. I purchased the house as a foreclosure so after a few repairs I should have a really nice amount of equity. I was wanting to move foward with the Brrrr strat but I'm hesitant thinking if i refi to a bigger loan won't it kill the cashflow Im getting. Should I just stay with my current loan or am I looking at it wrong.
Oh and the loan is a conventional with a local bank as a second home 3.35% interst rate if that info makes a difference.
Thanks Beforehand for any advice.
Post: What is Considered Positive Cash Flow?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Simply put - Cash flow = "money in" - "money out". Money in will be rent, any other charges you may have like late fees, laundry profit etc. Money out - mortgage payment (P+I), taxes, insurance, hoa, management + vacancy + maintenance. Most "A" areas will be difficult to cash flow. Any house with large enough cash down should produce positive cash flow. For SFR - its become very hard to generate positive cash flow. Specially true if you buy property in open market.
ROI and profit on investment is totally different issue. e.g. even at negative or zero cash flow you may still have "Principal" repayment which increases the equity. Appreciation also increases equity.