Lakewood90712
Thinks s/he gets paid by the post
- Joined
- Jul 21, 2005
- Messages
- 2,223
Looking for a way to be a landlord for income after retirement , and not having to deal with the "house" part . Might be a hair brain idea , but I'm even looking at things a little outside the box.
Next year at F.I.R.E , I plan to sell my home of 28 years. And rent a small house from my dad's family trust. I would be both tennant and landlord , as I am the trustee. I could get about 260k currently for my home-( would have sold for 400+ in 2007 ) . If I took out a loan on it , and parked it in treasuries, current rents would not produce cash flow. I do not forsee any apreciation going foreward. The tract is 70 years old , sale prices are back to approx 2002 levels and still dropping.
Drive south one mile , and things are a little down in the retail/mall corrodor , drive north , and now it's 50% vacancy of commercial , graffiti , barb wire etc. Same area was full and buzzing with acctivity until the housing bubble burst.The so cal economy is slowly sinking, and except for the upper class and above , household income continues to drop. We have little manufacturering left , after most of the Aerospace jobs left the state. That was the real economic engine that fueled the area economy during the cold war.
Currently about 35% of the population in CA is employed. That is a huge drop from 10 years ago , and 35 % is far lower than most states. Lot's of people , 65% , are too young or old to work, disabled , or just no longer looking for work. I dont see how conventional real estate investments will work in this situation.
Next year at F.I.R.E , I plan to sell my home of 28 years. And rent a small house from my dad's family trust. I would be both tennant and landlord , as I am the trustee. I could get about 260k currently for my home-( would have sold for 400+ in 2007 ) . If I took out a loan on it , and parked it in treasuries, current rents would not produce cash flow. I do not forsee any apreciation going foreward. The tract is 70 years old , sale prices are back to approx 2002 levels and still dropping.
Drive south one mile , and things are a little down in the retail/mall corrodor , drive north , and now it's 50% vacancy of commercial , graffiti , barb wire etc. Same area was full and buzzing with acctivity until the housing bubble burst.The so cal economy is slowly sinking, and except for the upper class and above , household income continues to drop. We have little manufacturering left , after most of the Aerospace jobs left the state. That was the real economic engine that fueled the area economy during the cold war.
Currently about 35% of the population in CA is employed. That is a huge drop from 10 years ago , and 35 % is far lower than most states. Lot's of people , 65% , are too young or old to work, disabled , or just no longer looking for work. I dont see how conventional real estate investments will work in this situation.