Can you make rent?

[everysurfer]

I knew a guy who bought the cheapest single family house available in Santa Barbara. Minimal fix-ups, paint, carpets, drapes. Flipped it 2 years later, cleared $100K.
Put that down on some land in Buellton, poured a pad and brought in a double-wide. Stoked!

I bought a house in the hidden valley neighborhood in Santa Barbara. It had lots of code violations, and was owned by a pill addict.

Fixed the violations, filled in the pool, cleaned it all up, and made $180,000 in about 4 months

 

[Sharkbiscuit]

Let's say you buy a $700K house. Your monthly PITI is about $3K/month. It never goes up.
Let's say you rent the same place for $2500. Your rent goes up $100 every 2 years.

In 30 years the owner has shelled out $1.08M and now owns the house outrght.
In 30 years the renter has shelled out $1.18M and owns nothing.

The trick is coming up with the down payment - $140K in this case.

The notion of property tax and insurance not going up in Florida sounds strange. There's a law capping how much the former can go up per year, but the sumbeach is going up, or your $700K house just took a sh!t and isn't worth $700K anymore.

For what the more affordable 2-3br/2ba houses/condos go for around here, doing the math, my rent is about property tax and insurance on one of those, and it hasn't budged since 2011. Not a dime.

I don't have to mow a lawn, repair jack sh!t, etc.

And if a Cat 5 rips a new inlet where my current dwelling is, well, I lost some old clothes, a decently new queen bed, some WalMart kitchenware, and a few boards I didn't bother taking with me.

The road to the boat ramp and Safe Harbor seafood and the marinas on the East side of the river here? It floods on hard onshore winds or new/full moons. When your lot is below the mean high tide line, it's not yours anymore.

 

[ElOgro]

Let's say you buy a $700K house. Your monthly PITI is about $3K/month. It never goes up.
Let's say you rent the same place for $2500. Your rent goes up $100 every 2 years.

In 30 years the owner has shelled out $1.08M and now owns the house outrght.
In 30 years the renter has shelled out $1.18M and owns nothing.

The trick is coming up with the down payment - $140K in this case.

In 30 years the owner has done a $hitload of maintenance and improvements no matter who lives there. How many people in this day and age live in a house they’ve owned for 20+ years?

It’s cash on the barrelhead here. There is some government sponsored low cost housing, apartment blocks, but most of the people that own rent them out. Cracker box shitholes.

It’s been a priority for us to check out leaving two properties where our kids and their kids have roofs over their heads throughout their lifetimes. Our grandkids offspring can fend for themselves. Everything will be free by then.

 

[rts265]

House next door just sold 30k over asking. It’s a junker. I was blown away. It’s not a buyers market here. No signs of slowing down.

 

[Autoprax]

is there surf there?

I hear the prostutution is off the hook

 

[Sharkbiscuit]

I hear the prostutution is off the hook

I thought prostitution was the hook?

 

[Autoprax]

I thought prostitution was the hook?

I'm old. I don't know what cool things the kids say.

 

[Sharkbiscuit]

I'm old. I don't know what cool things the kids say.

Me too and me neither, but I'm pretty sure "hooker" is or was slang for prostitute.

 

[ElOgro]

The we bought property where we live, one hectare, for $40k cash in 1999. Replacement cost today would be in excess of $1m. For the exact same dirt. No building, no fence. Dirt. That’s crazy.

 

[potato-nator]

I thought prostitution was the hook?

a prostitute IS a hook.