patrick.net

https://twitter.com/RobSchneider/status/1317474062914998272

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.

#FuckCalifornia

We should revolt against the leftists who have destroyed the state of California.

But I'm not sure I even care anymore. It seems hopeless. The vermin are so entrenched.

What is interesting to me is the guys my friend tells me about that he thinks are rich have several “homes”, one they live in, others they rent.

They are from here, not recently arrived to Santa Cruz. They inherited some property sometimes.

But they don’t have interesting lives or hobbies as a rule, and their net worth is largely in real estate. He knows them from the gym.

I guess I have a weird attitude, but I think it would be a pain in the ass to be a landlord here, and the more tenants the more pain.

Of course they are not going anywhere, they would owe untold thousands in California taxes if they were to sell their properties.

My friend thinks he’s impressing me, but I don’t envy them.

clambo says

I guess I have a weird attitude, but I think it would be a pain in the ass to be a landlord here, and the more tenants the more pain.

I agree, being a landlord sounds like a pain in the ass. I like the fact that stocks never call me because the toilet is broken.

I hated being a landlord

I hated the calls

I hated the sob stories

I hated taking money from struggling people.

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.

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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.

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