Irvine Soul Brother_IHB
New member
House in mid-town LA. Renters stopped paying, so we evicted, and now we're fixing up the place.
The property is a 2 bedroom/1 bath, 1450sqft detached home on a 6500 sqft lot. There is also a detached garage structure on the property. 1920's style home.
My strong position is that we should sell at this point. Why?
-- I believe, like many of you, that RE is not close to bottom, and in '09 it will take the big dump because of the coming loan resets at the higher end and the continuing collapse of the American economy.
-- LA: listed as #1 as areas likely to have a bad '09 in US housing: not so good for owners there.
-- 2bd/1ba detached. . . not exactly the ideal rental per the value. (3bd/2ba attached at the same value would bring in more rental income).
-- If we sell now, put the money in the lowest value bonds/CD/low-but-positive yield assets and then reinvest in 3 years in anything RE we'd be better off than now.
-- Asian buyers will save the day! Okay, on the macro scale, we all know that this theory doesn't work. The area where this house is located is a neighborhood that is really being improved, and it may benefit from the K-town spillover (an area and community which has some strength, South Koreans are now able to invest more $ abroad -- North Koreans, not so much).
BTW, If we sold, we would incur no capital gains taxes, nuff said. Also, I'd be willing to show the house and my dad is a broker, so we wouldn't have to pay sellers fees either.
Even though I'm sure about the right course to take, my mom is not. She believes that renting out the property would be better. When asked, she says that there is an "X factor" that will keep RE propped up. Nothing that I say holds any water with her, despite my predictions about economics having mad validity in the past. So, I'm wondering if anyone can maybe elaborate on what I've said or tell me how wrong I am, I would welcome any impressions you might have about this scenario we have!
The property is a 2 bedroom/1 bath, 1450sqft detached home on a 6500 sqft lot. There is also a detached garage structure on the property. 1920's style home.
My strong position is that we should sell at this point. Why?
-- I believe, like many of you, that RE is not close to bottom, and in '09 it will take the big dump because of the coming loan resets at the higher end and the continuing collapse of the American economy.
-- LA: listed as #1 as areas likely to have a bad '09 in US housing: not so good for owners there.
-- 2bd/1ba detached. . . not exactly the ideal rental per the value. (3bd/2ba attached at the same value would bring in more rental income).
-- If we sell now, put the money in the lowest value bonds/CD/low-but-positive yield assets and then reinvest in 3 years in anything RE we'd be better off than now.
-- Asian buyers will save the day! Okay, on the macro scale, we all know that this theory doesn't work. The area where this house is located is a neighborhood that is really being improved, and it may benefit from the K-town spillover (an area and community which has some strength, South Koreans are now able to invest more $ abroad -- North Koreans, not so much).
BTW, If we sold, we would incur no capital gains taxes, nuff said. Also, I'd be willing to show the house and my dad is a broker, so we wouldn't have to pay sellers fees either.
Even though I'm sure about the right course to take, my mom is not. She believes that renting out the property would be better. When asked, she says that there is an "X factor" that will keep RE propped up. Nothing that I say holds any water with her, despite my predictions about economics having mad validity in the past. So, I'm wondering if anyone can maybe elaborate on what I've said or tell me how wrong I am, I would welcome any impressions you might have about this scenario we have!