Keeping an Expensive San Diego Home as a Rental

Question: “Hi Gary. We have a pretty nice house in UC, worth around $850,000. We want to scale down and buy a condo. Do you think we should keep the house as a rental?” Answer: Expensive homes make no financial sense as a rental in San Diego. Your cash on cash return will likely be
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Don’t Worry About Deflation When Buying a Rental

Question: “I’m a little afraid to buy a rental with everything going on. I’m afraid we’ll have deflation which will push rents down. What do you think?” Answer: I’m by no means an economist, despite a BA in Economics from UCLA. A little knowledge can be dangerous, but I’m willing to share my opinion. The
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What Is Debt Coverage Ratio?

Question: “I’m a small-time real estate investor. I have a couple of rental condos in Mira Mesa and North Park, but I’d like to trade into an apartment building. I’ve been talking with people and asking a lot of questions. There’s a term I’ve heard called debt coverage ratio. What is that?” Answer: You’re getting
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Buying a Foreclosed Duplex Directly from a Bank

Question: “I’d like to find and buy a foreclosed duplex directly from a bank. Any advice on how to do that?” Answer: Having sold close to 800 foreclosures for banks, I definitely know the answer to your question. If the property is owned by a major bank, they have a process they go through before
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Can You Do a 1031 Exchange on a Fix-and-Flip?

Question: “We just bought a fixer-upper house to fix and flip. The repair work is about done. We want to sell it and buy another and not lose a lot of $$ to the taxman. Can we do one of those 1031 exchanges so we don’t pay any taxes?” Answer: Two agents that worked for
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How to Find Out What Are Rents Going For

Question: “I’ve got a vacancy coming up in one of my apartments. Do you know any websites where I can look up what rents are going for?” Answer: I know of a few… http://www.craigslist.com …of course http://www.rentometer.com http://www.padmapper.com …just maps Craigslist ads? http://www.finestexpert.com …upper right corner
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Are Foreclosures Also Short Sales?

Question: “Hi Gary. I’m a new real estate investor. I see all your foreclosures. Are they also short sales?” Answer: First, a quick explanation: There are 3 stages of foreclosure during which a home may be sold: BEFORE a foreclosure sale, when the homeowner is in foreclosure. AT the foreclosure sale, when the home is
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What’s a Reasonable Return for Your Investment Property?

Question: “I’ve been looking for an investment property for several months to buy and hold. I’m open to a house, condo, duplex, triplex, or fourplex. Just nothing with 5 or more apartments due to financing. I’m trying to get at least a 10% return and…” Answer: Hold on…10%? If you’re banking on a straight 10%+
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The Impact of Lowered Assessment on Your San Diego Home

Question: “Hi Gary, I just got a notice from the county tax assessor’s office saying they were lowering my assessment. I attached a copy for you. Is it real? And if so, will this affect me if I need to get an appraisal or will it affect the value of my home?” Answer: That indeed
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Time Frames for a 1031 Exchange on Your San Diego Home

Question: “When you do a 1031 exchange, what are the time frames and when do they start?” Answer: Great question. This is something I’ve found that few agents even know. There are two time frames, running concurrently, starting the day you close on the property you’re selling: 45 days to “identify” the property(s) you’re buying.
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