All Forum Posts by: Susan O.
Susan O. has started 69 posts and replied 547 times.
Post: Los Angeles Tenants "Union" - Universal Rent Control
- Fresno, CA
- Posts 552
- Votes 181
Originally posted by @Jeff B.:
The investor's choice is to invest where there is No Rent Control in the first place. If you're already holding in such areas, 1031 into units elsewhere. Owner's can't battle or defeat these actions, so seek shelter anywhere else.
Yes Equal Housing is the law, but R.C. only creates more slums so get out while there's someone who will still buy you out.
You're absolutely correct about the slum part:
https://fee.org/articles/the-case-against-rent-con...
As far as moving out of the areas I wouldn't jump to such a hasty conclusion.
Real estate fundamentally is about LOCATION
Also fair market- supply and demand.
These areas where the socialist groups are targeting rent control tend to be near the ocean, dense cities where there are lots of jobs and decent economy.
There just has to be counter action against Entitlement like this:
Post: Episode 221 of The BiggerPockets Podcast - with Tim Shiner
- Fresno, CA
- Posts 552
- Votes 181
When I commute these podcasts have been PRICELESS. As they are as entertaining as they are informative thumbs up all around
Post: Episode 221 of The BiggerPockets Podcast - with Tim Shiner
- Fresno, CA
- Posts 552
- Votes 181
Excellent podcast to Mindy, Brandon, and Tim
Originally posted by @Mike Krieg:
I"m building two homes in Seattle: Bothell and Auburn this year. It has not been easy finding lots. My partner and I are looking for more but they are hard to find.
That's great Mike. How is building up there?
To the original poster: Also consider this:
https://www.usatoday.com/story/news/nation/2015/07...
Entitlement groups are pushing for rent caps in seattle:
Post: Los Angeles/Santa Monica Meetup
- Fresno, CA
- Posts 552
- Votes 181
Thanks me too. When will be the next time you meet up in LA?
Post: Entering buy and hold market right now
- Fresno, CA
- Posts 552
- Votes 181
Originally posted by @Ying Gong:
San Diego housing price is at and above pre-recession level. I am wondering whether the timing is not right to enter market for buying and holding (for rent) when positive cash flow seems generally challenging. It seems to be risky to expect further rise in property value as objective. I like to hear some thought on this.
I think long term buy and hold is good in San Diego. Especially if you can find cashflow. What areas are you looking at? I love the beach areas but it's difficult to find anything near cash flow.
I don't think property values will rise too much with interest rates going up soon. But if there is true inflation then property could rise. But so will all other costs.
Post: Rezoning Duplex to Four Unit Multifamily in Northeast LA
- Fresno, CA
- Posts 552
- Votes 181
Originally posted by @Bryant Brislin:
I'm not sure what everyone keeps saying to talk to LADBS about a zoning matter. It's the Planning Dept who you would talk to. Anyway, a zone change for one little parcel is highly unlikely and not worth the trouble. Doing zone changes in the city of LA is very difficult and can take 1-2 years, not to mention the expense. I'm a land broker who sells land in LA for new development, FYI.
Great advice Bryant. I think a lot of people get building and planning mixed up. I used to develop in LA. I got out of LA because of the way the city council was headed. There's too many entitled people in LA but now it's in every city of California. Even Sacramento, all of Bay, Central orange county is getting that way. San diego too.
Post: Contact Your Legislator: Continue Rent Control Ban
- Fresno, CA
- Posts 552
- Votes 181
Great Matt
Originally posted by @Dmitriy Fomichenko:
Welcome to the BP family! Here are some recommendations for you:
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Wishing you the best!
Dmitri I read your solo 401 k advice on your blog it is excellent. I didn't know those were all the options
Post: New discouraged investor in Sacramento
- Fresno, CA
- Posts 552
- Votes 181
Originally posted by @Bob E.:
@Wesley Duvall I was referring more to buying existing notes secured by a 1st lien on real estate.
Any investment has some amount of risk, there are usually ways to lower or reduce that risk. Costs on performing loans are pretty low, usually $20-30 for professional servicing (that was factored into my numbers above). If a loan defaults your costs can go up so you want to minimize your risk of default, there are ways to do that as well.
Remember - Risk is the likelihood of not achieving your goal.
Agreed you should always think about an investment as
But always think worst case scenario. Exit strategies etc. It's all in the BP guide
This new political wave of rent control in Sacramento and through Califonria is also throwing a wrench into any investors
http://www.scpr.org/news/2014/09/12/45988/la-rent-...
http://www.tenantstogether.org/campaigns/rent-cont...
These groups like Tenants Together have a lot of state-wide funding from different larger groups and that would completely cap your rents. The main source of income for an investment.
So if you can add x amount of dollars in capital improvements you should be able to increase rents by y amount of dollars but the whole rent control thing would completely skew your NOI thus skew your CAP rate.
Cap rates are what lenders use to value your property.