Posted by alan on July 19, 2002 at 24:54:20:
Thank you for your comments.
My point was to show that in Calif. that to get a “desireable” property (near major met. areas) in a desireable area at a “discount”, is near impossible. The Campo area that Ed spoke of is not desireable. It is considered a border crossing area for illeagle aliens. I would think that it would be hard to find a property and then try to find someone that would take your newest “headache” off your hands (via rental or LO). This is my opinion and I would like to see what Ed would call a “deal” in this area. Who am I going to rent to? Possibly illegal aliens, border patrol guys or some guy who wants to run a meth lab in the CA “outback”?
I travel ALMOST every week out of the year. I have been to 49 of the 50 states (No to Alaska) over the past 3 years for my work.
I am not being condensending that I believe So. Cal is the best place in the US (or World) to live. Yes we have problems, but I would not change it (except to move to Santa Barbara where it is more “peaceful” & expensive). I would live no other place on the planet unless it was south of Santa Barbara and along the coast.
I have also lived other places, despite the fact I am a “Native” San Diegan. Those stops have included Miami, Houston, Dallas, Spain (via USAF), Denver, Bakersfield and Los Angeles.
Eugene ORE, one of the locations you mentioned, is one of my favorite visits. It is very pretty. Properties can still be had for a reasonable price and it appears that one can get most of a mortgage paid for by a tenant. Most properties, however, are somewhat aged. I am a “hands-off” type landlord and do not wish to spend time and $$$ on fixing things. It is my preference to find newer homes (at a decent price) that have fewer problems.
I have never spent time in ATL, but have flown thru there on my way to other locations. I do know of people who do live there and what you say is basically true. Homes are much more affordable in ATL than they are in CA. But please note, I am 3hr. time change and a 5 hr. flight away from any property I would wish to purchase in your area. It would not be a wise business move to purchase a home so far from my home base.
However, the “closest” locations that fit my criteria (positive cash flow with very low down, newer type properties) are either in Hemet or the California Central Valley (Visalia, Bakersfield, Fresno, Modesto, Porterville). This area is a 4-6 hr drive for me. Many of these props can also be had for less than 100K. It appears, to me, that “deals” do not exist in So. Cal. for the reasons I mentioned in my earlier post.
My “REAL” complaint (if you can call it that) is that this forum caters to a concept of buying a home with little or no money down. I believe that these concepts (no money down) work best in a “down” market (when cash is at a scarcity) vs. one that is “red-hot” where everyone has equity. You can pick up a property on a discount and it is easier to cover the mortgages with the rents.
I recently sold my residence (upgraded to a larger house) and had no fewer than 8 offers in a 2 week span. ALL offers were cash deals and I would have laughed at any type of “creative” deal as a creative deal would not have put 100k cash in my pocket like the sale of my house did. My main reason to sell my residence was that I wanted (or needed) the 100k in cash vs. renting out my “old” residence at a small profit. If you had been in the CA RE market in the early to mid 90’s, you would have seen CA prop. values drop on an order of 5-10% annually. I had no intention of taking a 5-10% hit before grabbing my $$$. Hindsight is ALWAYS 20/20 (my old house could go for 30-50k more next year), but I took the money off the table and I am happy with my decision.