Newsom is just like Jerry Brown when he was going brain soft on the way out. DENIAL! Hallucinate along with Newsom. Also, he just doesn't want to admit the rampant carnage to lives and businesses he has cost with Covid Blue Pill Fraud, deputizing the criminal class, hobbling police, abdicating the safety of the people, etc. etc.
On the ground, even the immune RichFucks see that the slow slide down has turned into the fast slide. Santa Monica Blvd. and Rodeo Drive opened up to riots with impunity and no recognizance? The coastal elites are being pricked in the ass with their own foolishness.
The last straw was shortly after I had a baby and I had my third or fourth weekend call of the quarter where I needed to fix something. I gave my tenants 3mo to move out and sold.
I have known people who are several generation California, even extending way back, who have very little net worth and live modest middle class working lives. However, they all seem to have extended family with money somewhere. They just came from a branch that wound up on the skids and had no particular ambition.
Before knowing them, I always presumed that anybody who came here during the many golden ages would have to have tried hard NOT to get rich if they didn't at least invest in SOMETHING, even ordinary real estate.
I had a first generation immigrant Filipino client, quite old in his eighties, who owned many multi-unit rental properties that became worth tens of millions of dollars. He just worked hard and bought them one by one over time in ordinary locations and paid off the mortgages. He eventually sold them and retired to Las Vegas.
The annual ROI (includes tax breaks like straight line depreciation, etc.) for rental property is 4% to 10% (https://homeguides.sfgate.com/good-roi-rental-property-94786.html).
Historically, real estate like residential REITS have earned about 7.25% a year. Its a good way to diversify your holdings.
Better to pay someone ~8% of annual rent to market and manage the place and still at least earn 6%. Offer incentives to renew lease by not increasing the rent during the second year lease contract.
www.youtube.com/embed/JNmMCaJ016g
Gruesome quotes 25 year old magazine articles to explain why California is so great.