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Patrick says

I feel like California is going to get hit with a massive earthquake

Onvacation says

Been waiting for the big one

Guys, do you "eye-spy" the major faults in the Bay Area? There's places on both sides of the bay where the major faults San Andreas (Point Reyes area, Peninsula, South Bay) and Hayward (East Bay) faults are clearly demarcated in the topography.

It's fascinating.

If you're not in six figures for income, you're allowed $25,000 of passive losses. Rental income can be offset with expenses (and can even go negative). For someone who is married, income over $81k would normally be taxed at the federal rate of 22%. Rental expenses include:
1. Depreciation (1/27.5 value of the house every year)
2. Mortgage interest
3. Property taxes
4. Maintenance and repair expenses
Allowed passive losses are phased out from $100k to $150k of income (MAGI). While depreciation is ultimately recaptured (taxed) when the home is sold, you can see how you could be cash flow positive, but show a paper loss while being a landlord. IANAL. YMMV. Not tax advice.

Also, every time you come back to visit, it can be a tax deductible event. All meals, car rental, hotels, etc… Your cell phone bills are also tax deductible as you’re using it for business.

The reason a lot of business owners drive nice cars because it’s tax deductible. They dine often and in nice restaurants because it’s tax deductible.

There’s no reason to settle for an Android when an iPhone is tax deductible so are the iPad and MacBook, etc… Just to name a few.

Patrick says

I feel like California is going to get hit with a massive earthquake in the near future.

On top of everything else.

Yes.

It will likely hit hard in a place like hayward, right above the fault line, and so will be deemed a "racist earthquake" for hurting minorities in that area.

On second thought, it doesn't matter where it hits. It will be a racist earthquake somehow anyway.

DooDahMan says

FJB says

but eventually FL it will be.

For all the people hell bent on moving to Florida have any of you bothered to stay up to date with the price of and availability of home owner's insurance not to mention Hurricane, Tornado, Wind and Flood rider policies nor covered under the basic Homeowners Policy ?

You may not like what you find out or else have some really deep pockets and not file any claims - filling a claim will result in even more pain if your policy even gets renewed.

https://www.abcactionnews.com/news/price-of-paradise/perfect-storm-sending-florida-homeowners-insurance-premiums-through-the-roof?source=patrick.net

My plan is a very large live aboard sailboat if I don't get stinking rich in which case I'll get a place too. I'll only live on it 3 months out of the year (winter season) and the rest it'll be dry docked. Although my pal just got a nice place in St. Petersburg with extra room he's offered up. But that's the wrong coast, I'd prefer East for the gulf stream. He plans to flip yachts as a hobby. He's been sending me videos of a manatee he gives drinks of water to from a garden hose each morning while drinking coffee.

He's one of my pals I used to bar hop with in San Diego. They got out last year after the schools here wouldn't stop telling their elementary aged kids they're terrible for being white and other nasty stuff. Two surprises: One that they left at all, he's the incarnation of a cooler Ron Burgundy in the Gas Lamp district. Mr. San Diego. The other that we both had similar ideas about Florida and waterfront. I found out about that while frozen into my parents house in San Antonio during the winter storm last year that took out the state. He was stuck in the Dallas airport trying to fly to FL to do a deal on his house and called to tell me about his predicament. Also ironic we were both stuck in TX.

Eman says

Fort Wayne,

I don’t know your personal situation, but there are a few ways to strategize your situation.

Let’s say you bought your house for $200k. It’s now worth $1M. You qualify for $500k exclusion so your tax liability is on $300k net gains after the exclusion and your cost basis.

Assume you own it free and clear. I’d do a $500k cash out refinance. It’s tax-free and you use it however you like.

Rent the house out for a year or two while you live at your new location. If everything is cozy, sell the former house then, pay off $500k loan so you only have $500k to 1031 exchange into the next asset(s).

If you want, you can 1031 exchange into something would you move-in and live “forever” or at a later date.

After the 1031 exchange, rent it out for a year or so. Then you can legally move-in to that house. However, since it’s a rental before a primary, the “new exclusion” will be prorated. Let’s say you live there for 9 years and it was rente...

thanks

Bless their Poor Pitiful Hearts.

https://www.msn.com/en-us/news/us/fremont-landlord-says-tenant-who-owes-101k-is-using-covid-laws-to-avoid-eviction/ar-AAVZrGb?ocid=msedgntp&cvid=eee6c8a15c4f40e298ca49fc858d5c04&source=patrick.net

B.A.C.A.H. says

Bless their Poor Pitiful Hearts.

https://www.msn.com/en-us/news/us/fremont-landlord-says-tenant-who-owes-101k-is-using-covid-laws-to-avoid-eviction/ar-AAVZrGb?ocid=msedgntp&cvid=eee6c8a15c4f40e298ca49fc858d5c04&source=patrick.net

This is why you want to be an investor, not a landlord. Hire a professional property management company to manage the rental for you. If they screw up with the screening, In this case, fake W2 and fraud credit report. The property management company would have caught them. Also, they do previous landlord verification too. If they screwed up with the screening, their insurance company would pay for their negligence. Highly unlikely that the PM company will screw up.

As I mentioned previously, our PM company manages almost 100 units for us. NOT 1 eviction in all these years. Not 1 eviction through the pandemic. A couple of tenants fell behind in rent briefly during SIP, but they all caught up shortly after. Don’t be penny wise pound foolish. Let the professional do their job.

Eman says

As I mentioned previously, our PM company manages almost 100 units for us.

You are very fortunate to have found a decent PM company. My experience (along with a few others who hired PMs) is PMs are high priced and use your maintenance funds as a piggy bank for their contractor buddies. Stuff like spending $200 to reset a flapper valve in a toilet, or putting on a new roof without doing a tear-off of the old shingles but billing for a tear-off anyway.

Sell it and strategize where you think the mass exodus influx will land those fleeing over crowded Cities that lack the inventory. And try to position yourself to have land for the inevitable building boom in this country We're way past due for a building boom, and new cities and towns.