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Old 03-08-2016, 07:49 PM
 
Location: SoCal
13,248 posts, read 6,345,210 times
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It's not a god idea to leave a house empty, there might be squatters. I thought deeply about this issue and decided not to leave my house empty because it's not a good idea.
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Old 03-10-2016, 05:01 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,619 posts, read 39,986,663 times
Reputation: 23772
Where in TX? It is pretty big and diverse, that could take awhile to sort out.

We stayed with locals in our favorite areas during holiday vacations for several yrs., fortunately, one couple had spent a 40 yr career as county extension agents in many TX counties. They helped us weed out some areas. Now they are our neighbors! Or actually about 3 minutes down the road. We now have 6 homes within a mile (all rented). We have cabins / guest homes to stay for free.

It is nice to be within 1 hr of either SAT or AUS. We can just take the flight with best schedule and price. There is also a lot to do within 20 min of home. ( many great small communites with lots of entertainment / tourism events, some towns with colleges). Several retreat centers a few minutes from home, we often attend lectures and recreation events for free. National music conference grounds, < 2 miles away.

The best part... Our TX rentals cash flow very well, >10% net cap rate. And... That income is not taxed by TX or my domicile state.

No need to leave our homes empty, each has multiple living space for us, future caregivers, boomerang kids, parents with care needs, helping out friends. We just take on boarders, or have someone house sit in the extra living space when we are gone... Usually 50% of time, this year 100% travel.
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Old 03-11-2016, 04:04 PM
 
1,099 posts, read 664,965 times
Reputation: 734
Quote:
Originally Posted by StealthRabbit View Post
Where in TX? It is pretty big and diverse, that could take awhile to sort out.

We stayed with locals in our favorite areas during holiday vacations for several yrs., fortunately, one couple had spent a 40 yr career as county extension agents in many TX counties. They helped us weed out some areas. Now they are our neighbors! Or actually about 3 minutes down the road. We now have 6 homes within a mile (all rented). We have cabins / guest homes to stay for free.

It is nice to be within 1 hr of either SAT or AUS. We can just take the flight with best schedule and price. There is also a lot to do within 20 min of home. ( many great small communites with lots of entertainment / tourism events, some towns with colleges). Several retreat centers a few minutes from home, we often attend lectures and recreation events for free. National music conference grounds, < 2 miles away.

The best part... Our TX rentals cash flow very well, >10% net cap rate. And... That income is not taxed by TX or my domicile state.

No need to leave our homes empty, each has multiple living space for us, future caregivers, boomerang kids, parents with care needs, helping out friends. We just take on boarders, or have someone house sit in the extra living space when we are gone... Usually 50% of time, this year 100% travel.
Initially we were thinking just outside Austin (we were looking at Round Rock and Pflugerville), but depending on my wife, there's an outside chance it could be the Dallas area. We have to sort out the job situation as we still plan on working for at least another 7 years.
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Old 03-12-2016, 11:45 AM
 
Location: VT; previously MD & NJ
2,206 posts, read 1,350,381 times
Reputation: 6344
Quote:
Originally Posted by bodyforlife99 View Post
We have a principal residence (SF Bay Area) and an investment property (Salt Lake City). Our equity in our SF area home is approximately $600K and Salt Lake City is about $100K. My wife stands to inherit between $300K and $1 million in the next few years. And we have retirement savings of $400K. We are both looking to work for another 7-8 years. If we rent out our principal resident, the monthly after tax cash flow would be roughly $600 (SLC is around $300). We are thinking of relocating to either Austin or the Dallas area. My accountant tells me we could rent initially but should make a decision within about 2 1/2 years on whether we want to sell (she said as long as we were in our principle residence for 2 of the previous 5 years, we would not lose our $500k capital gains exclusion). So we were thinking about renting for two years in Texas, see if we like it, and then making a decision. Of course, the thought of just going to Texas, buying outright, and not having rent or a mortgage payment is very appealing. And there's also the possibility that housing prices would tank significantly since Economists are predicting the next recession for 2017 (although that would probably mean the low would hit in 2019). Admittedly, I believe the housing market would not have anywhere near the drop it had last time as lending standards are tighter, and SF has had such a massive amount of people flock to it, that it's highly unlikely demand wouldn't be in place for quite some time (45000 people have migrated here since 2010 and only 7500 housing units have been built...and there's really nowhere to build anyway). I'm just wondering if anyone has been in this situation and what they decided.
Why are you thinking of moving? Is it because a job opportunity came up? Do you want to try out an area to see if it will be good for your retirement years? Do you hate or love SF? Would you consider that area for retirement after working a few years in TX? Or Salt Lake? Is that a possible retirement destination for you?

I think the rent/sell decision (for SF or SLC) really needs to consider where you think you want to end up after you stop working.
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Old 03-12-2016, 09:17 PM
 
1,099 posts, read 664,965 times
Reputation: 734
Quote:
Originally Posted by ansible90 View Post
Why are you thinking of moving? Is it because a job opportunity came up? Do you want to try out an area to see if it will be good for your retirement years? Do you hate or love SF? Would you consider that area for retirement after working a few years in TX? Or Salt Lake? Is that a possible retirement destination for you?

I think the rent/sell decision (for SF or SLC) really needs to consider where you think you want to end up after you stop working.
We're not sure. SF has a very high COL so in all likelihood, we wouldn't retire here. But we also think it would be nice to get cash flow and feel the rents aren't coming down anytime soon here. In addition, we'd love to will the house to our children if possible. We're a minority couple so there's no way we'd move to
SLC. We're indifferent on moving from SF. We used to like it here but now have gotten to the point where we're a bit fed up with the crowd here (we basically put up with it).
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Old 03-12-2016, 10:06 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,619 posts, read 39,986,663 times
Reputation: 23772
If nothing is keeping you in CA, go experience an income tav free state while you are still earning income (and do it soon to avoid 2016 CA domicile),

Retain your CA property for tax benefit and investment prop management tax incentive trips back to CA.

Austin is a bit too crowded at the moment, and rough growing pains. It is near much of what is nice in TX, so I would look nearby. SW of there... You won't find me in TX during Aug and Sept. Nov - April is pretty decent, but can be cold.

What about WA or NH or TN, or AK? (I am not keen on FL, SD, or NV)
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Old 03-13-2016, 12:18 AM
 
Location: Silicon Valley
18,121 posts, read 22,989,204 times
Reputation: 35310
Quote:
Originally Posted by bodyforlife99 View Post
I also don't even know how to comment on this. I understand your daughter had a nightmare of a situation, but what you're talking about is not a normal occurrence based on my own experience and others I've known that have rented out their homes. You're advice is asking me to leave $35,000 on the table while we make up our minds. There's no way in my wildest imagination I can imagine so much going wrong with a situation that would make sense. And we're already replacing things all over the house just out of necessity. I really can't imagine anything really breaking down in the short run. Before we move, the heater, hot water heater, microwave, stove, and dishwasher will all be no more than 2 years old. There's a brand new fence, gutters have been replaced, garage door opener that's barely been used, and the washer and dryer is within 5 years. I just don't see it. We have no problem with someone living in our home while they pay near $4000 for rent. It would make no sense whatsoever in my mind to leave it vacant.
My point was that none of the maintenance issues my daughter was charged for, needed to happen.

I know the stories are hard to fathom, but they're true. I hope everything goes great for you. And that you really come out ahead by $35,000.
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Old 03-13-2016, 01:28 AM
 
Location: Seattle some of the time now.
727 posts, read 524,782 times
Reputation: 1238
OP: I have done exactly what you're contemplating. I moved from southern California to Seattle. I am renting out my house in California & am renting in Seattle.

I have a mgmt co. They are pretty straight-forward & consistent. I made sure everything was in good working order before I left. It gives me peace of mind knowing when problems arise, they will be handled quickly & efficiently.

The rent I charge is twice what I pay in Seattle. Additionally, I pay property taxes, mgmt fees, California state income tax on the rent only, Landlord insurance which is slightly more than homeowner's insurance & the gardener. I come out a little bit ahead.

I've had the same tenant for the entire 3 1/2 years I've been gone. The mgmt company was excellent in finding the right tenant.

My house has been assessed at an increase in value of approx. 100%. The actual selling price could of course be very different, but rarely do homes in desireable neighborhoods in California decline. So keeping the house is like an invesrment that's growing.

One bonus for moving to a state with no income tax is when I took some money out of my IRA, I paid federal taxes only. (Yes!)

That's my experience. I hope that helps.
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