Housing.....Sell High, buy High?

[Sbarry]

X2 on getting amazing houses on the water in Canyon Lake for that price point ! Will you be able to pass the Canyon Lake size regulations with the new 22 deck build ? If so great idea and so jealous of you guys being able to hit the water in CL and LHC at your pleasure.

Yup, we're good to go with the size [emoji1360]

 

[Raffit78]

Sorry but that is never going to happen. Housing will not crash like it did before. Don't drink the doom and gloom Kool Aid.........

Unless rates remain at nothing. There will be a correction and 15-20% isn't unreal.

 

[Bigbore500r]

Yup, we're good to go with the size [emoji1360]

Man Canyon lake looks awesome. Wish it worked for our commutes

 

[Sbarry]

Man Canyon lake looks awesome. Wish it worked for our commutes

It's about an hour each way for both my wife and I, but as soon as you pull in, it's all worth it.

 

[78Southwind]

So we are looking at a few houses but my goodness they are expensive. At 800k I would need a hefty down payment in order to make my monthly manageable. I don't want to sell the chino house so I would have to pull everything out of it which I'm not yet sure of that's a good idea or not. My parents are looking to retire so I'm looking for something w a back house. I like chino chino hills Phillips ranch diamond bar area. West Covina is cool I know there's some killer stuff there on certain parts but haven't really checked pricing. Seems like everything is back up, maybe not as high as ever but pretty close

How about buying your parents house and building on to it. Maybe they will finance you. I know if you inherite the property you keep their tax rate. You will have to do some research but I think you might be able to keep their tax rate if you buy it as well. I am not 100% sure though. A friend of mine bought a house from his Dad which the Dad had inherited from my friends Grandfather. The home is worth 1.3 million right now and he pays taxes on around $200,000.

 

[BHC Vic]

How about buying your parents house and building on to it. Maybe they will finance you. I know if you inherite the property you keep their tax rate. You will have to do some research but I think you might be able to keep their tax rate if you buy it as well. I am not 100% sure though. A friend of mine bought a house from his Dad which the Dad had inherited from my friends Grandfather. The home is worth 1.3 million right now and he pays taxes on around $200,000.

I think the idea was my little brother would take over payments on that house and then re work the lake house situation so that I become full owner of that. Then my parents would just live w us and pay a minimal rent to hell my wife and I out w the bigger payment. Then tent out the house in chino till we wanted to cash out. I guess that scenario works out best for my little brother. He called dibs on that house when we were kids. Got me lol. I guess we would rally have to put pen to paper and come up with a fair number for my brother to pay my parents I do t know

 

[Sbarry]

Man Canyon lake looks awesome. Wish it worked for our commutes

Little Saturday show on the lake

 

[Joker]

Plans are to ditch the Bullhead house within the next couple months and start looking for a house around Phoenix. Time to focus on where we want to retire. Prices around here are still hovering at 250 on the outskirts.[emoji106]

 

[River Lynchmob]

View attachment 515995

I'd assume you could turn this space into a back house...
http://www.realtor.com/realestatean...t-Marina-Dr_Canyon-Lake_CA_92587_M26585-07784

Looked at that...love the area but it should be turned around looking at the lake.

 

[Sbarry]

Looked at that...love the area but it should be turned around looking at the lake.

How's the search going?

 

[Joker]

What about the boat & enjoying the water? Are you going to just get out of boating completely? Also, since PHX & Havasu have the same weather climate, have you considered living in Havasu full time? Allowing you to still enjoy the lake & river with a ramp just mins away & never have to worry about 4hr drives again?

I actually never have thought about living in Havasu. We need more stuff around us, like a bigger city. Boating will go away once we move here so we can do more things aside from going to the river. It's time to start looking at options.

 

[River Lynchmob]

How's the search going?

Search is good...selling isn't...luckily the place we like is still for sale.

 

[Sleek-Jet]

What about the boat & enjoying the water? Are you going to just get out of boating completely? Also, since PHX & Havasu have the same weather climate, have you considered living in Havasu full time? Allowing you to still enjoy the lake & river with a ramp just mins away & never have to worry about 4hr drives again?

Depending on where you buy in PHX metro area, Parker and Havasu are only a couple of hours away. But there are some excellent lakes to boat on near Phoenix also, Lake Pleasant, Roosevelt and Apache (if you are brave enough for the road), Saguaro if you don't mind the crowds. Powell is a little over three hours from the north end of town. Plus you have a major hub airport right there so heading to Florida for a long weekend actually can make sense.

 

[460]

Plans are to ditch the Bullhead house within the next couple months and start looking for a house around Phoenix. Time to focus on where we want to retire. Prices around here are still hovering at 250 on the outskirts.[emoji106]

We're closed.

 

[Joker]

We're closed.

Just 2 more✌️️

 

[Joker]

I actually enjoy this more than boating.[emoji1][emoji106]

 

[OldSchoolBoats]

View attachment 516035

I actually enjoy this more than boating.[emoji1][emoji106]

Go Bruins!

 

[Joker]

Go Bruins!

That's it. We're done.[emoji1]

 

[rivrrts429]

View attachment 516035

I actually enjoy this more than boating.[emoji1][emoji106]

You better call me when you're done with that boat [emoji106]

 

[Joker]

You better call me when you're done with that boat [emoji106]

I'm close. I'll let you know Rich.

 

[460]

Just 2 more✌️️

Application approval might cost you tickets[emoji1]

Go Devils

 

[nowski]

The one thing that is overlooked when buying high is the property taxes you'll be paying. The housing market is cyclical and timing it may not be that easy especially if you simply need a place to live. Buying Low And Selling High is what everyone wants to do but not everyone may be in that position. Selling low and buying low when the market is down may be the next best play... Just my .02 cents...

 

[boatpi]

LOF you have pretty much figured it out. And in response to a few other remarks made;

1. property taxes can have a dramatic effect but this generally applies to CA property only as NV and AZ are accessed value, NOT sale price.

In NV here is how it works, the county assessor looks mainly at the age and size of the improvement unless the land is exceptionally large. So as an example, I have a 3,755 house built in 1978, I pay $1,700 and a 3,250 house built in 2006, the taxes are $1,900, all per yearly. IN NV it is just plain cheap.

2. Landlords insurance is not expensive for houses, I pay $500 a year for a 1,888 sq. ft. house built in 2006, market value of $220K. Replacement is higher and is always based on square foot by carrier.

As noted, money is really cheap now, and this is part of you costs in purchasing any property.
I will quote Dave Ramsey, who I agree with, "There is good dept and bad debit".

Good debt is using someones low rates to purchase income property with 20% down in a good rental area with good employment. Note "employment, as this is the first thing you need to consider before any purchase. No job, no rent money!

Bad debt is boats(!), expensive cars, and ANY credit card or revolving loan. If you carry too much debt you will not qualify of a loan.

IF you have owned income property for 5 years, you are given income credit for the estimated market rent at 80% of the market rate on the property you intend on purchasing, BEFORE YOU EVEN BUY IT.

If not, I believe the credit towards current net income for loan qualification is about 50% of the anticipated rent. All of this helps the buyer qualify.

The smartest person around is someone that can buy a duplex or triplex and be able to live in one of the units. Why, everything in repairs and improvements can be deducted on taxes and you are onsite to manager the units, so it is an "active management " in the eyes of the IRS. Hey, who gets a write off for painting or replacing a roof on your personal primary residence? In this car you do.

Add to that if you are able to do this in NV, and live on site for 6 months plus one day, or a bit more in a calendar year, you are a resident of NV, no state income taxes.
I will add one more suggestion for first time investors, learn the sweet spot in the area that you will buy into for monthly rent, as an example in Las Vegas it is $1,300-$1,450 for a single family house in most areas. Set that as your target, you will have many seekers to pick and choose from.

Always remember BPI's theme, "The foundation to personal wealth is to legally avoid paying income taxes as much as possible".

 

[BHC Vic]

I bought a couple books yesterday. I don't think I'm going to get rich just by reading them but I like to get ideas and see what can be done legally

 

[thetub]

I bought a couple books yesterday. I don't think I'm going to get rich just by reading them but I like to get ideas and see what can be done legally

Donald Trumps book?

 

[BHC Vic]

Donald Trumps book?

Lol I was looking for that one but didn't see it. When we walked into Barnes and noble investment section was first thing I saw on the right. I figured that's a sign lol

 

[Hammer]

Forgot about this thread.....


We are in escrow. Closing is the 28th of this month on our property and the new home closes on the 31st.
May be "homeless " for a few days.... what a process, Exhausting to say the least...

 

[BHC Vic]

Forgot about this thread.....


We are in escrow. Closing is the 28th of this month on our property and the new home closes on the 31st.
May be "homeless " for a few days.... what a process, Exhausting to say the least...

Ahhhh couldn't be that bad weren't you just in Hawaii [emoji12]

 

[Hammer]

Ahhhh couldn't be that bad weren't you just in Hawaii [emoji12]

Yes I was just in Hawaii... but finding the perfect home for my family wasn't easy. I had high demands that I wasn't willing to compromise on. RV parking being one of the biggest along with the neighborhood. The market was slim pickings as we got closer to the holidays. I started feeling the pressure when we had a full offer on our place almost immediately and they signed on for an additional 14 days with our contingency of us finding g a house. I didn't want to lose a buyer.

Right now we couldn't have found a better property for the price. I low balled they countered and we accepted. Crossing my fingers everything works out over the next 20 days.. I'm an impatient person and I want the deal done so we can move.

 

[LargeOrangeFont]

LOF you have pretty much figured it out. And in response to a few other remarks made;

1. property taxes can have a dramatic effect but this generally applies to CA property only as NV and AZ are accessed value, NOT sale price.

In NV here is how it works, the county assessor looks mainly at the age and size of the improvement unless the land is exceptionally large. So as an example, I have a 3,755 house built in 1978, I pay $1,700 and a 3,250 house built in 2006, the taxes are $1,900, all per yearly. IN NV it is just plain cheap.

2. Landlords insurance is not expensive for houses, I pay $500 a year for a 1,888 sq. ft. house built in 2006, market value of $220K. Replacement is higher and is always based on square foot by carrier.

As noted, money is really cheap now, and this is part of you costs in purchasing any property.
I will quote Dave Ramsey, who I agree with, "There is good dept and bad debit".

Good debt is using someones low rates to purchase income property with 20% down in a good rental area with good employment. Note "employment, as this is the first thing you need to consider before any purchase. No job, no rent money!

Bad debt is boats(!), expensive cars, and ANY credit card or revolving loan. If you carry too much debt you will not qualify of a loan.

IF you have owned income property for 5 years, you are given income credit for the estimated market rent at 80% of the market rate on the property you intend on purchasing, BEFORE YOU EVEN BUY IT.

If not, I believe the credit towards current net income for loan qualification is about 50% of the anticipated rent. All of this helps the buyer qualify.

The smartest person around is someone that can buy a duplex or triplex and be able to live in one of the units. Why, everything in repairs and improvements can be deducted on taxes and you are onsite to manager the units, so it is an "active management " in the eyes of the IRS. Hey, who gets a write off for painting or replacing a roof on your personal primary residence? In this car you do.

Add to that if you are able to do this in NV, and live on site for 6 months plus one day, or a bit more in a calendar year, you are a resident of NV, no state income taxes.
I will add one more suggestion for first time investors, learn the sweet spot in the area that you will buy into for monthly rent, as an example in Las Vegas it is $1,300-$1,450 for a single family house in most areas. Set that as your target, you will have many seekers to pick and choose from.

Always remember BPI's theme, "The foundation to personal wealth is to legally avoid paying income taxes as much as possible".

Thank you. I have to keep pushing my little snowball a little longer until it is big enough to roll down the hill itself

 

[boatpi]

Wow do I wish everyone listened to me back in 2010-2013 to by in Las Vegas. We would all be celebrating now over some beers. Some on here and friends, co-workers did as there were plenty of steals to go around. Imagine buying a 1800 sq. ft house on a 6K lot that rents for $1,250 for 98K! Or a 2,100 on a 7K lot gated, for 105K, all built in 2005!!! I believe my words were "Run don't Walk to LV".

That said, LV and NLV still have great investment properties all due to low rates and strong renter demand.

 

[COCA COLA COWBOY]

I wonder if people thought it was a great time to buy in 06/07? They did!

You buy when no one else is, you buy when there are a large volume of foreclosures and short sales, you buy when things are at lows.

You sell when there is a minimal possibility for gains!

Bruce Norris, Investor, Hard Money Lender, Investor and Inland Empire Economist just sold his triple digit digit number of homes he had citing just that. There may be a small amount of net gain to be had by holding on, but no foreseeable number to justify holding onto hundred of homes.

Sell now! I'll even sell your home for 1% providing a far superior service than your small neighborhood realtor. I just hate to see you guys cry next year about how you bought at the top and your feeling the correction. As you know, increases come slowly, but declines come in short periods.

 

[LargeOrangeFont]

The vast majority of those people were also the ones that walked away from those purchases the following few years, so I'd say that is an oversimplification.

If I could move to a better situation by selling now, I would.

 

[boatpi]

My comment of course referred to purchasing investor houses as the market was ripe. Most interestingly that would include myself until I spent some time on the ground in Las Vegas, thinking Las Vegas was a dying city and no renters would be around.

As it turns out it's the type of city that always has employment if you want to work and many of the homeowners who fled their houses because of poor financial decisions still had a job and needed a place to rent.

The market continues to change the Las Vegas Valley right now the number of properties in market are really down in the prices continue strong with the average resale in the entire valley at about 235k. Over this eight and nine year. Of time Las Vegas has slowly transformed itself from a gambling city with a great entertainment to the entertainment capital of the world and international business partner.

The northern part of the state which is always had the majority of the mining operation which is the number one industry with in Nevada is now turning into a fulfillment center of huge warehouses and now manufacturing with Tesla.

 

[78Southwind]

Wow do I wish everyone listened to me back in 2010-2013 to by in Las Vegas. We would all be celebrating now over some beers. Some on here and friends, co-workers did as there were plenty of steals to go around. Imagine buying a 1800 sq. ft house on a 6K lot that rents for $1,250 for 98K! Or a 2,100 on a 7K lot gated, for 105K, all built in 2005!!! I believe my words were "Run don't Walk to LV".

That said, LV and NLV still have great investment properties all due to low rates and strong renter demand.

Back in 2010 when I was looking for my condo I remember you talking about Las Vegas. I think Las Vegas was one the cities that were hurt the worst. If I remember right down 40% plus. Las Vegas caught my eye but I was looking for water front at the river so didn't I bother. But I am curious what strategy do you have for the future? Do you continue to rent these homes and pay down the notes over time or do you sell these homes at some time and do an exchange into an apartment/s?

 

[boatpi]

We ended up with 7, sold one in 2015 to upleg to a larger house in old Las Vegas . One year later is has really paid off , more so in appreciation and real value and tax write offs .

No plans in selling anything and 5 are paid off .

I looked at selling vs the income , no comparison to the write offs against my earned income/rent.
If I were to start as an investor today, I still have a few picks for the Las Vegas valley . Current interest rates are really the key here.

On apartments not now as I enjoy the deductions of active management write offs.

 

[Abc123]

Mike, buy the home you want now on contingency that your house sells during the escrow. The bubbles not gonna burst for a while, prices seem high now but wait and they'll be higher, renting is wasting $$ you cant write off.
Just my two cents.

How is renting a waste of money? People need a place to live.

What do you base your timeline of the bubble burst on?

 

[Abc123]

Sorry but that is never going to happen. Housing will not crash like it did before. Don't drink the doom and gloom Kool Aid.........

Very bold statement considering we never recovered from the last "recession". The can was merely kicked down the road.

 

[Abc123]

[video=youtube;Ynx6kiNVQAU]https://www.youtube.com/watch?v=Ynx6kiNVQAU[/video]

 

[420HOA]

How is renting a waste of money? People need a place to live.

What do you base your timeline of the bubble burst on?

My comment was made on Mikes situation where he can afford to buy.
When rent is more or equal to a mortgage payment, Rent is a waste of coin you cant write off.
Its not a bubble its reality, as long as building keeps booming and rates stay low, housing will thrive.

 

[COCA COLA COWBOY]

Very bold statement considering we never recovered from the last "recession". The can was merely kicked down the road.

I don't be thinknit will crash like before. It will be stagnant like the 90's. Prices will decline dramatically though as they do in cycles. Some people have to sell for work, divorce, death, etc. this will drive comps down as well as property values. I don't believe it will be as bad because people actually had to show income to purchase this go around. However, 20 trillion in debt, an over inflated stock market and the fact that we do not produce anything anymore could create a catastrophic event.

 

[boatpi]

Keep in mind that many renters cannot qualify for a loan, or if they can they do not have 20% down or they have a killr PMI. Renting can be an alternative. Not everyone has gold balls on credit, trust me. Some of mt tenants have these issues some related to medical bills, but all hard working decent people/families. I am blessed to have terrific tenants, some have been with us for five years.

 

[Warlock]

Home prices are going up at my community alone we went up $8k last month. The problem is going to arise once the rates start going back up. Anyone remember interest only loans? The monthly payment on these loans is tied directly to the current interest rate. Since rates are extremely low a LOT of monthly payments went down by hundreds. As rates start to rise these loans will re-adjust to a much higher monthly payment creating more foreclosers in the future. When your payment goes from $800 a month to $1300 a month its gunna hurt!

 

[milkmoney]

Jus thought of you Michael [emoji12][emoji202]

 

[Go-Fly]

The housing bubble is going to pop in 2017. There is money to be made in a recession, always has been. Here in the Northwest people are still buying more home then they can afford. What was the stat's last week, 60% of American house holds have less then $1000 in savings and 21% have no savings. They live paycheck to paycheck. The Fed's jack rates 1% and you will see the start of the new recession. Good time to buy rentals. I for one have sold all my single family homes and pulled out of the market. Going to sit this one out and travel. Do need to have a house built on some prop at the coast but, I'll wait until the sq ft price goes down.

 

[BHC Vic]

The housing bubble is going to pop in 2017. There is money to be made in a recession, always has been. Here in the Northwest people are still buying more home then they can afford. What was the stat's last week, 60% of American house holds have less then $1000 in savings and 21% have no savings. They live paycheck to paycheck. The Fed's jack rates 1% and you will see the start of the new recession. Good time to buy rentals. I for one have sold all my single family homes and pulled out of the market. Going to sit this one out and travel. Do need to have a house built on some prop at the coast but, I'll wait until the sq ft price goes down.

This is exactly why I see doom. People are budgeted and stretched at these low rates. Wait till they go up and that paycheck doesn't cover it anymore. I didn't think about it but someone mentioned divorce. Seems those are becoming very common. We stole the lake house because divorce forced sale.