If you have owned a rental property in the past - what was your experience like? Where was it? Would you do it again? Was it profitable beyond the returns you would have recieved in the stock market? How did you get started the first time? Thanks
What is prop13 rollback?
There was a law enacted somewhere in 1978 in California about capping the property tax to 1% to some additional assessments but not beyond 2% something like that(best google it, I know there is a law but I may not be articulating it right) Now socialists wants to raise this tax to generate new revenue sources for cities, it is a disastrous but some sections are arguing about doing it selectively for rental properties or firms but you never know who they will throw under the bus at last moment. Sometimes the fear is, even normal homeowners will be subjected to prop13 rollback, that will be disastrous...
Do yourself a favor and read this: https://blog.wealthfront.com/why-rental-properties-are-not-good-investments/
âImagine you bought a house or condo for $500,000 and financed it with a mortgage of $400,000 at a 30 year fixed rate (with no points) of 3.8%. Your monthly payment would be $1,864. Your monthly real estate taxes would probably be at least $400. You should also factor in monthly upkeep and insurance, meaning youâd need to charge a monthly rent of almost $3,000 just to break even.â Not even their problem statement is correct. The mortgage principal payments are going to your equity which you own !! - they arenât just disappearing! Sheesh this article is horrible in every way. What terrible analysis.
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300k fully remote vs 450k 3x RTO, which would you choose?
Will limit the answer to my experience. You can take a deep into real estate market but do not compare it with other investments. Taxation, returns, how much degree of passiveness all aspects are totally different if you are comparing with stocks for an example. Think of it more like a mere different bucket instead of keeping all eggs in same bucket. What return one got in different time frame will not be a better reference for you to draw any conclusion but learn from those experiences to be alert. Spend time in understanding zoning, demographics of area, taxation before jumping in for bigger pie. If you are renting small property, returns are great but as soon as that clout becomes bigger you need to keep more capital aside as a operation costs. If you are in California, keep eyes and ear open over crazy idea of prop 13 rollback and selective rollback on rental properties... Some more adventures venues are foreclosure properties if you have enough cash and got enough semantics of real estate.