ihate17
Well-Known Member
It is California
The last house I bought cost $679,000, lived in it for a couple of years and then upgraded but decided not to sell. Not selling turned out to be a good move because the now slowed Cal market had not steamed up at the time. This house, not being a track home and being in a secluded area is hard to price but agents tell me it will bring about 1.2 mil. It is currently rented by two lady doctors who have huge debt they are still paying for both of their med schools and the setting up of their offices. They pay a little over $3,000 but since I have a 15 year mortgage on this home my note costs me $3,900 per month and taxes are over $7,000 per year. They take good care of the house and grounds, pay their rent early, and like to stop by my office and deliver fruit from the trees as a rent bonus (that is what they call it) You just can not get 5 or 6 thousand a month for rent.
This house I will probably sell in about 2 years, perhaps it will be to them.
All the houses have had huge gains in value, you just can not get a rent that will match the value and that goes for all of them. Most of them I am in cheaply at todays prices, so they make money. There is something basically wrong with an area where the values of homes are high, there is a strong demand by renters but there is little the renters can afford. It is reflected by the fact that young couples, first time buyers, just can not buy homes here without help from family. Most land up moving inland or to other states.
Go on line, check out property values in beach communities in California and it is staggering. Closeby is the town of Santa Barbara, the medium home there is 1.2 million. A friend of mine sold an old, beat up, small place with little land recently for $975,000. The same place inland, perhaps in Riverside County where it is hot but they are building like crazy, might be $250,000.
When I began this I could afford a cash drain. The write offs and capital gains have been nice but today 3 of them are also bringing in cash.
ihate17
The first one I bought, over 20 years ago, was $145,000, had taxes of about $1,600 and you could rent for $1,200, but interest rates were higher and it was a small cash drain. That house today is worth close to $700,000, taxes are still less than $2,000 but you can not rent it for more than $2,400 and often people who can afford that kind of rent have some kind of credit problem or they would be buyers. That house today is totally paid for, so besides the obvious capital gains it brings in cash.E-town-guy said:
The last house I bought cost $679,000, lived in it for a couple of years and then upgraded but decided not to sell. Not selling turned out to be a good move because the now slowed Cal market had not steamed up at the time. This house, not being a track home and being in a secluded area is hard to price but agents tell me it will bring about 1.2 mil. It is currently rented by two lady doctors who have huge debt they are still paying for both of their med schools and the setting up of their offices. They pay a little over $3,000 but since I have a 15 year mortgage on this home my note costs me $3,900 per month and taxes are over $7,000 per year. They take good care of the house and grounds, pay their rent early, and like to stop by my office and deliver fruit from the trees as a rent bonus (that is what they call it) You just can not get 5 or 6 thousand a month for rent.
This house I will probably sell in about 2 years, perhaps it will be to them.
All the houses have had huge gains in value, you just can not get a rent that will match the value and that goes for all of them. Most of them I am in cheaply at todays prices, so they make money. There is something basically wrong with an area where the values of homes are high, there is a strong demand by renters but there is little the renters can afford. It is reflected by the fact that young couples, first time buyers, just can not buy homes here without help from family. Most land up moving inland or to other states.
Go on line, check out property values in beach communities in California and it is staggering. Closeby is the town of Santa Barbara, the medium home there is 1.2 million. A friend of mine sold an old, beat up, small place with little land recently for $975,000. The same place inland, perhaps in Riverside County where it is hot but they are building like crazy, might be $250,000.
When I began this I could afford a cash drain. The write offs and capital gains have been nice but today 3 of them are also bringing in cash.
ihate17