LA County extends eviction protections through end of 2022

And to think, USCTrojanCPA heckled me for selling my blue-collar rentals as the pandemic was getting underway. 

Last time I checked, SPY was up 107% from the pandemic low and I haven't once gotten a repair call, missed rent check, or vacancy.

It just goes to show, DON'T take investment advice from a realtor.
 
Liar Loan said:
And to think, USCTrojanCPA heckled me for selling my blue-collar rentals as the pandemic was getting underway. 

Last time I checked, SPY was up 107% from the pandemic low and I haven't once gotten a repair call, missed rent check, or vacancy.

It just goes to show, DON'T take investment advice from a realtor.

Let's see....if you would have brought a home during the early part of Covid and put 25% down, you would be up over 100% in most areas on a cash-on-cash investment plus your interest rate would be about 1% below the current rate.  And yeah, I give my all my clients good advice because they better that they do the better that I do because repeat and referral business is GOLD. Hell, you should have hired me to sell your rental property because I most likely would have got you a higher price because I go for the last dollar for my sellers.  ;)

Btw, you still think the rest of Orange County is outperforming Irvine in pricing? 
 
The California Court Company said:
pro tip:
buy investment properties in OC, live in LA county as renter and live rent free.


Ha, ha. Good one.

Kidding aside, these LA land lords is getting royally screws.

You got all these knuckle heads / progressive law maker making rules. WTF, pretty soon you have law abbiding citizen that actually pay taxes, themselves collapse or throw in the towl altogether.

Oh but wait, the FED and Treasury just have to crank up their printing press again, right?
 
USCTrojanCPA said:
Let's see....if you would have brought a home during the early part of Covid and put 25% down, you would be up over 100% in most areas on a cash-on-cash investment plus your interest rate would be about 1% below the current rate.

Funny you should say that...I did my buy my primary in March 2020 with close to 30% down.  Here is the announcement thread to refresh your memory: 
https://www.talkirvine.com/index.php/topic,16533.msg359061.html#msg359061

We moved in the day after schools shut down.  And yes, our rate is close to 1% below the current rate.
 
Liar Loan said:
USCTrojanCPA said:
Let's see....if you would have brought a home during the early part of Covid and put 25% down, you would be up over 100% in most areas on a cash-on-cash investment plus your interest rate would be about 1% below the current rate.

Funny you should say that...I did my buy my primary in March 2020 with close to 30% down.  Here is the announcement thread to refresh your memory: 
https://www.talkirvine.com/index.php/topic,16533.msg359061.html#msg359061

We moved in the day after schools shut down.  And yes, our rate is close to 1% below the current rate.

And given the appreciation since then your cash-on-cash for home probably beat the S&P performance. 
 
USCTrojanCPA said:
Liar Loan said:
USCTrojanCPA said:
Let's see....if you would have brought a home during the early part of Covid and put 25% down, you would be up over 100% in most areas on a cash-on-cash investment plus your interest rate would be about 1% below the current rate.

Funny you should say that...I did my buy my primary in March 2020 with close to 30% down.  Here is the announcement thread to refresh your memory: 
https://www.talkirvine.com/index.php/topic,16533.msg359061.html#msg359061

We moved in the day after schools shut down.  And yes, our rate is close to 1% below the current rate.

And given the appreciation since then your cash-on-cash for home probably beat the S&P performance.

Possibly, I would need a good appraisal to know for sure, but the return on a home has to factor in the costs of interest, insurance, taxes, repairs, upgrades, and closing costs.  The return on a rental additionally has to factor in the cost of management, which for IE blue collar areas can be substantial at times.  More frequent turnovers, higher wear and tear, and greater financial risks all factor into this, not just the monthly fee you pay to a manager.  With the advent of covid, eviction moratoriums became an additional cost in blue-collar areas (the people with the least amount of reserves to weather a storm).

I'm not denying that the rentals I sold continued going up in value substantially, but if you have non-paying tenants that you can't legally evict, it tends to offset those returns.  Not only that, but you can't as easily sell those properties for top dollar with non-paying tenants living in them, so you may not be getting the returns from appreciation that you expect.

This affects the risk vs. return equation.  We focus a lot on raw returns on this forum, but what really matters is risk-adjusted return.  For the past two years, there's no question that the S&P was the lower risk investment and had similar or better returns than the B/C area rentals had.
 
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