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Archive for January, 2012

Articles

My Tenants Have Piercings, Tattoos, Blue Hair & Great Credit!

cute tenant with blue hair(I also rent to some really hot bachelors – in case some of you ladies want to get on my waiting list!) 😉

Some landlords shoot themselves in the foot by trying to prejudge which prospective tenants will be good, based on physical characteristics. This will get you into discrimination trouble, and it’s unproductive.

I remember many years ago, when my Mom managed a 90-unit complex that my Dad built. There was a club-house with an office. I think the statute of limitations has run out now so I can tell you that once my Mom locked the door and hid under her desk when a “skuzmobile” full of smokers pulled into the parking lot. This is not advised!!! (But it is a pretty funny family story.)

I have a system (for apartments) where I don’t even meet my prospective tenants until I’m there to sign the lease. So I have various funny stories about that.

One day, a few years ago, I arrived to sign a lease. There was a girl with blue hair and her hippy boyfriend waiting at the door. I said, “Wow! You have blue hair……but I could care less because I’ve seen your awesome credit reports so you can have any color hair you want.” They were my great tenants for about 3.5 years.

(I asked her what was up with the blue hair, and she said she was just trying to freak out her parents. She also worked in the prop department at the University Theater so it was part of her shtick. The hippy boyfriend was a registered nurse.)

I fell in love with them on paper (good credit, good rental history, good employment, no criminals or sex offenders). We don’t have a hair color requirement!  More…

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2012 started with a fish taco attack in San Diego…

2012 written in sandI had a fish taco attack when our plane landed in San Diego at noon on Christmas eve.  Josh and Hillary gave me a new iPhone 4S, so we asked Siri for the best fish taco place in San Diego.  She gave us the top 14 fish taco restaurants in order of popularity by customer ratings, and we spent the next ten days in search of the perfect fish taco.  It was a great and tasty adventure!  We had my little grandkids Zander and Aria with us, so we relaxed and did lots of kid stuff and lots of walking.  We hit the zoo twice, the wild animal park, Sea World, the beach, fabulous sunsets, the works. 

2011 was our best year ever!  We worked smarter, and got leaner and meaner.  We think 2012 will be a great year to increase and add cash flows.  We have several plans in the works and will keep you informed as we pull them off.  The landlording business is a ton of fun and a great retirement gig.  I hope you have as much fun this year as I’m having!

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When the Prophet Says Buy — BUY!

John R. TalbottInvestors, if you are watching the market closely to determine if it’s time to buy: head’s up!  Here’s another killer post from our friends at The KCM Blog that is a must read:

“John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

“Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”

“He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:

  • Home Prices Relative to Peak Prices During the Bubble
  • Home Prices Relative to Construction Costs or Replacement Costs
  • Home Prices Relative to Incomes and Rents
  • Home Prices in Real Terms, Not US Dollar Terms

Bottom Line

“If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.”

 

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Negative Equity by State

Negative Equity by State

Thanks to our friends at the KCM Blog for this InfoGraphic.  Note:  This only applies to single family residences.  Apartments and multi-family properties are doing terrific, because their values are determined by the income stream which they produce (not comps).