[Exaday]

I don't understand why you don't rent it.

I know it's a hassle. I have a friend that could manage it for you. RE agent with a handyman husband. That'd be the way to go.

You've got to hold on to it just a little longer.

[ajkh]

I know. I sounds ridiculous to, after having gone thru all the "bad," now that supposedly the "good" period is starting, to decide to get rid of it! I know... but the way I see it is that the more you have/own, the more problems you have/own... so basically my reasoning is that with just two properties I will have more of a balance where chances of going sour are more limited... we just want to lead a more balanced life. Maybe it's because we just went through two pretty upsetting months...

As far as renters being "the problem of Las Vegas"... I feel there might be some of this, but it doesn't necessarily have to be. I have two properties here in LA and my tenants have been in them for more than 15 ys already. They take care of them as well as an owner would... it just depends on education I guess.
We, humans, are a particular species... but I do feel it doesn't necessarily have to be that way. Besides, unless people from out of State buy those properties, locals unfortunately cannot in many cases.
There are, though, some communities where they only allow owner occupation. I have read in this forum about investors who have purchased property to then find out they could not rent because the HOA would not allow the house to be "not-owner-occupied."

[Swigchow]

Originally Posted by ajkh

I know. I sounds ridiculous to, after having gone thru all the "bad," now that supposedly the "good" period is starting, to decide to get rid of it! I know... but the way I see it is that the more you have/own, the more problems you have/own... so basically my reasoning is that with just two properties I will have more of a balance where chances of going sour are more limited... we just want to lead a more balanced life. Maybe it's because we just went through two pretty upsetting months...

As far as renters being "the problem of Las Vegas"... I feel there might be some of this, but it doesn't necessarily have to be. I have two properties here in LA and my tenants have been in them for more than 15 ys already. They take care of them as well as an owner would... it just depends on education I guess.
We, humans, are a particular species... but I do feel it doesn't necessarily have to be that way. Besides, unless people from out of State buy those properties, locals unfortunately cannot in many cases.
There are, though, some communities where they only allow owner occupation. I have read in this forum about investors who have purchased property to then find out they could not rent because the HOA would not allow the house to be "not-owner-occupied."

I appreciate your thoughtful initial post.

Your decision to sell depends on your financial and personal ("balance") needs. However, those same financial and personal needs should have determined your initial purchases as well.

Real estate investing is much more difficult, financially, physically, and psychologically than imagined or presented in those "best seller" books or these blogs.

I believe that you have made good choices and will be rewarded in the future.

Good luck!

[ajkh]

Yes, I agree. But you learn as you go... only by going through the process. I hope you are right, and that we have indeed made good choices. Like I said, it does look like the worst should be behind us now, and I definitely hope to be rewarded in the future.
This was MY personal experience, and will definitely not be that of someone else. I just wanted to share hoping I can contribute and help someone else understand it better. That's all.

[Scott456]

You mentioned you your tenants have been renting your properties in L.A. for 15 years. I belive there is a rent control in L.A., and having renters staying in a property forever may not be good in terms of investment return. I have friends who rent in west L.A. area, have been living in the same place forever, they loved it because they are paying a rediculously cheap rent in today's market. They even fixed all the problems in the properties themsevles and hope to live there for the rest of their lives. Good for renters, not so good return for the owner (until you sell it). But then, when you sell it, you will have had accumulated so much capital gain that you will owe a big tax on it (and no owner-occupied dedution benefit)

[ajkh]

No. There's no rent control in all areas in LA. Only in a few. Not in mine. For me it's been perfect. Can't complain at all!!

[JohnG72]

Originally Posted by Scott456

You mentioned you your tenants have been renting your properties in L.A. for 15 years. I belive there is a rent control in L.A., and having renters staying in a property forever may not be good in terms of investment return.

To be subject to the RSO of the City of Los Angeles, a property must meet the following three criteria:

1. <LI class=bodytext>The property must be within the City of Los Angeles; and <LI class=bodytext>There must be two or more units on the lot; and
2. The building must have a Certificate of Occupancy issued on or before October 1, 1978. (In the case of mobile homes and mobile home pads, the park must have been issued a permit to operate before February 10, 1986

Rent Stabilization Ordinance

[khuntrevor]

I was at our Neighborhood Association meeting the other night. The officer from (Phoenix) PD told us that appliance thievery is the new craze amongst the tweaker punks on bicycles. I was talking to this parolee on the bus and he told me that he served 46 months for copper theft--so apparently they are coming down hard on that. I think condos may have been better for you, and a lot of other out of town investors. You dove in head first, and hit your head. What kind of rents are you getting v. what do you have in them? I would absolutely not even look at something I would have to pay more than 8X for in this market. Condos more like 5X. I have one rented here that I only paid 3.22X for. 22K purchase; 569 rent. No mortgage, but I still wouldn't take much less. There are several other costs involved. Professional Management, HOA fee, property taxes, and supplemental insurance. So for the people on the block that paid 139K for the same thing, and owe 120+, it would completely suck. There is a huge pool of renters right now--some by choice--some because they couldn't get a mortgage if their lives depended on it. Here, only the sharks are loaning on condos--30% down, 15-18% interest--would still be considerably less than rent.

[ajkh]

Yes, we paid cash also. All three under $100K. The rent is more or less $900 - $1050 in that price range properties.

[olecapt]

Originally Posted by ajkh

Yes, we paid cash also. All three under $100K. The rent is more or less $900 - $1050 in that price range properties.

I am being a bit negative simply because I do not see the affair the same way you do.

One thing about investor RE is that it is very hard, if not impossible, to get your money out clean in the short term. As you will swiftly find out without an agent and even with one to a lesser extent you are going to attract nobody but bottom fishers to your for sale property. Take one look at the tax sheet and you are going to get offers starting 10% or more below what you paid. And that is after you put in money and effort to fix it up. YOu simply get no exposure to the first time buyer who might go for a flip...but even there the appraiser is going to come through and evaluate your place at 5 or 10% below what you paid.

It is pretty close to financial suicide. You rent the place out for a couple of years and then doll it up and get rid of it. Not with a hot record of recent purchase and likely off a short or foreclosure.

I try to do a final walkthrough of every house where I represent the buyer at the last instant...just for fear of it being stripped. I lost one a month ago on a stripping.

And be careful with your deal with the handyman. If you are paying him anything it is unlawful. He can do it for free but no other way. I actually check on a couple of places for snowbirds who are friends of mine. But I take no money because I do not have a property manager permit.