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Only if you are staying here
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Depends on who does the move. Hire a reputable moving company. Don't just pick up some guys from outside the local U Haul place.
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I'm moving up there too but probably in another year. My brother is staying in LA. Dad's a big golfer but both are not big on gambling. They could care less about the weather.
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Sell the house. Send your parents to the Fred Jordan Mission. And spend 300K on some broads. They'll thank you for it.
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there's always phoenix
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I asked them!! They said they'll think about it
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What's your Dad's handle?
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*Moms
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I'd like to think my advice was pretty sound.
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@HotRodHarry unfortunately my dad can't handle it since he has early stages of Parkinson's.
Mom recommended me to this site because she thinks I don't have enough friends.
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aw man...................that's not true. I'm here for you amigo. Just bring a short dog of Tbird and a saladito when you swing by.
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Move to Arizona. It is way better than Nevada.
Just Saying
Phoenix is nice as well as Sedona.
If your parrents like Manny Pacquiao then go to Vegas.
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@Grumpy that sounds like a plan
@Raspberry8951 unfortunately we love Manny Pacquiao. Gotta represent!!
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What can I say : At least you will be closer to PacMan when he fights in Vegas.
IMHO he is over the hill since he lost to Mayweather.
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need a rematch vs Floyd....no running or blocking allowed
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It’s tough to beat NorCal or SoCal real estate over time. If they’ve never lived in Vegas, they might get stuck selling in SoCal, buying in Vegas and can’t stand the Vegas muggy summers, and can’t affird to move back.
People here make fun IE and dirt people but that’s where the growth is at now.
I’d suggest splitting the $300k: use $200k to buy the biggest best location newest home (not condo) they can get for $200k cash so they never need to worry about mtg again.
Then put the other $100k in the biggest newest rental 4 bedroom house in growing Inland Empire City that a rent survey on Zillow or Padmapper to make sure the 4 bedroom house rents for $2k per month.
With only $200k mtg, you parents’ mtg pmt will be around $1000-1100/month, prop tax and Ins about $500/month more so they’ll still be collecting $300-400/month if they self manage and they put gardening as tenant responsibility. I believe that over time the $300k IE house will appreciate faster than the $200k Vegas house.
As for risks, spreading their $300k in 2 growth cities may be less risky than dumping it all in a $300k Vegas property. Also, so long as your property cash flows decently when you buy, rent prices rarely decrease so even if the house appreciates or depreciates up and down, you’ll be able to ride out the downturn because the property cash flows. It’s not get rich scheme but it’s a possible decently risk balanced strategy for your retired parents that still allows them to continue to participate in future growth. Now if you guys don’t screen well and rent out to some asshat who f-up your rental, then that’s another risk.
Congrats to your parents on their retirements and good luck!
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@2small4porn Thanks!! I will show them this strategy. They’re pretty much done in CA. But an extra house in IE to invest in is not a bad idea. They said hello no to Arizona and Texas.
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“No problem” or “you’re welcome” as was the topic in another recent blog,
The beauty of this strategy too is that if they cant take the muggy heat of Vegas and want to move back to SoCal, they can probably rent their nice big Vegas house for $1500/month+, which will effectively pay for their their moving back to IE house net cost free.
The difference between IE heat v Vegas heat is that IE heat is hot but not muggy/humid.
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I don't understand peeps who move from l.a. to the desert. why not move to Thailand instead? everything is cheaper--especially hospice care or a (wet) nurse for your dad.
Just rent out the house and live off the rental income in Thailand or Philipines.
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Kneegrow say his Mom recommended this site? 
I like the Raiders but have them become Cardinal fans and go to AZ. Especially if buying new home 
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good move for your parents! no state income tax, good place to cash out 401k
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Rhodes Ranch and Mountains Edge areas are southwest neighborhoods and Low crime rates newer homes
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even a dump in berdoo is way overpriced
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"Mom recommended me to this site because she thinks I don't have enough friends."
The above maybe the funniest thing posted here in the 10+ years I have been a member.
If your mother is a member here, or even just makes good lumpia, post more information.
Salamat po
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@gr8hands I cook better lumpia than my mom, but can't cook pancit if my life depended on it lol
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Why Vegas and not, say outside of L.A. county?
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On the list of Top 10 worst places to live. Vegas,... #5.
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as of march , sales taxes are going up about 1% in many cities in cal
the worst was up to 10%
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Prettychynna- I’m not saying you can buy in IE for $100k. I’m suggesting that the OP’s parents don’t spend all $300k of their profits in a Vegas house, but to split proceeds.
Take $100k of profit to use a downpayment on a $300k big 4 bedroom rental house in the IE that can rent for at least $2k/month. Depending on the loan interest rate they get on $200k loan they need to borrow to buy this $300k house, they’ll pocket between $300-500/month after expenses.
Use other $200k cash to buy the best biggest nicest area house in Vegas free and clear via cash w no debt for parents to live.
BlueDiamond- at the OP Parents’ stage in life, I don’t think being over leveraged is a good idea. By keeping SoCal house and simply refinancing their house that they currently only owe $300k to borrowing $500k and using that borrowed $200k to invest elsewhere/Vegas is problematic. First, their $600k house needs to rent for at least $3500/month just to cover basic expenses and squeeze out a bit of cash cash flow as safety cushion. Making some assumptions, mtg is about $2600/month + prop tax and insurance about $600 = $3200 so they’d pocket $300/month. Obviously if the $600k house can rent for a lot more than $3500/month, then the risk v reward of being overlevraged might be worth it. From experience, finding $2500/month renters is a lot easier than finding $3500/month renters, especially for a house that’s worth only $600k.
Second, the OP’s parents have already doubled their money on their $600k house (probably not exactly true but it sounds better). They need to ask themselves if they think it’ll be easier and faster for their current $600k house to appreciate to $700k+ in next few years, or if it’s easier/faster for a big 4 bedroom house that rents for $2k/month in IE to appreciate from $300k to $400k+?
If the latter, then it’s time to sell rather than to do cashout refi, replant the appreciation seed, and put their equity to work.
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Hmmm not sure if they can buy a nice 200k house in Vegas if they want a 4 bedroom house.
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IceD, Redfin.com is your friend. Lots of tools readily available to see if you can make this concept work. A quick search on Redfin for 1500sf+ houses below $225k shows close to 70 active single family homes in Las Vegas. Sort the results by Price/SF and that’ll quickly show you the cheapest biggest houses out there. 1500sf isn’t big but there are many 2000sf+ bigger ones on search results as well. Some are fixers, some are short sales, and some are turnkey ready to go. Some are in shit areas and some are in better areas but it’s up to you and your parents to figure out what’s right for them.
Lastly, if your parents are serious about moving, then their most immediate decision is to strategize their financing. Do they sell the house to get the cash upfront and rent an apartment for awhile so they can patiently wait for the best deal to buy and have the money to buy? (Safest route to go)
Or, do they do as BD suggests and get a Line of Credit for $200k so they have the money to buy their Vegas house first, move in there, and then sell their $600k house? (The problem w this later strategy is that they now need to be paying $500k mortgage on their $600k house for however long it takes for house to sell and market has slowed down.)
If you don’t have this figured out, then even if the deal of a lifetime falls on your lap like a $1 lap dance special at Spearmint Rhino, you won’t have the funds to act on it.
Anyhow, they’re going to lose about $30k on commission and closing fees when they sell their house.
Focus on the concept. Adjust the strategy based on your parents’ final budget/finances and the opportunities that comes across you lap.
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Thanks!! Well they are headed there next weekend to check out houses so hopefully they can decide by then if they want to take out a Line of Credit or just buy one in cash. I just found out they have cash stashed away lol.
The funny thing is, why can't they just pay off this house hmmm...
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Good luck buying a big house in a nice area for 200,000 in Vegas.
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@Butt_head maybe 350k would do it
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2,500 sq. Ft In a gated community would probably run 450 to 500,000.
That would be for a house less than 10 years old.
Of course then you're gonna have associations fees.
If you're gonna play golf you might as well get a house inside of a community with golf courses.
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| There are 35 comments on this blog. |
