I was going to post this under “Good Places to Invest,” but thought it might be better to start a new thread.
I have been thinking about investing in rental property for about a year now. I am mostly interested in 4-plexes. This is due to the fact that I can get a residential loan while getting my feet wet before moving into apartments. I can offer about 35% - 40% of the asking price and recieve a cash flow $100/unit/month with 3.25 times gross yearly rents or 39 times yearly gross rents. While this may be difficult, I don’t think it will be impossible finding sellers to take these offers. SFH, duplexes, and triplexes are all negative when it comes to cash flow.
It seems that the two cities located within my area are becoming more and more unfriendly towards landlords. Both cities require that each property be registered, licensed and inspected with, of course, a yearly fee ($70 per property). Yesterday I opened my Sunday paper to find this article: http://www.avpress.com/n/30/0930_s7.hts, did a spit-take and wonder if I should move elsewhere to start my investing career. Our wonderful California minimum franchise tax of $800 per LLC doesn’t help matters as well.
What does everyone think? Are these just the rules of the game or should I start looking at other places to invest. If I do invest in other states, I will be selling my current residence (hopefully) and moving there. I can always find a job in my career field until I can find the right properties. I like the idea of “flyover country.” I was thinking of maybe “flyover country with a professional football team.”
I like the idea of "flyover country." I was thinking of maybe "flyover country with a professional football team."
GO BENGALS! :bobble
Yes, I would move out of the People’s Republic of California. Socialism and captialism can’t exist together.
Here in flyover country, there is still a LITTLE sanity left. However, there is a trend in this country for cities to pass law enforcement duties onto landlords without giving them police powers. That is what happens when the criminal justice system becomes impotent.
This decision sends a message to property owners that they are responsible for what occurs on their property and that the city will hold them accountable for allowing their properties to be used to flood the streets with illegal drugs and endanger our neighborhoods,
Since the police and idiot judges won’t do their jobs, they expect the landlord to do it for them. What is the landlord supposed to do? Shoot the druggies? I’m all for that, but is that now legal in California?
Good Luck. Say it with me - GO BENGALS!
Mike
GO BENGALS - I’ve always liked the AFC North, but I would have to say I am more of a Pittsburgh fan. I heard Cinncinatti, Cleveland, and Pittsburgh are all good regions to invest in. My father recently retired to western Pennsylvania (Conneaut Lake) and keeps telling me that when I get tired of California to move out there; it is a much different world than California.
BTW thanks for your candid replies. I enjoy reading your posting and blogs. Hopefully within about 18 months I can move out that way and not be one of those California transplants that doesn’t end up selling my investments to you :smile.
Good luck to the Bengals tonight. Maybe after tonight there will be a three way tie for 2nd place.
I think you’re dreamin’ if you think your going to buy property at 35% of asking price. People will let it go to the bank.
Also, the outskirts areas of LA are already getting creamed. I just check San Bernardino Co and their sales volume has dropped 48% since summer of '06.
By next summer some tasty deals might start to emerge in the rental arena in SoCal.
Good luck
Maybe. I can’t help but remember an old Jack in the Box commercial. Jack is a booth at a convention. A salesman trying to sell him a new “Jumbo Jack” button for his cash register. The price $1 million. Jack tells him he’s crazy and asks him if he thinks anyone would buy it at that price. The salesman says, “I only need to sell one.”
I only need to buy one.
Tg
Mike, you’re a Bengals fan???..I’m from Cincinnati…Been a lifetime fan…Even during the decades when everybody laughed at me…
The 1st Monday night game was sure better than their last… 
Finally I feel at home among my fellow Bengals fans! Who-Dey!!!