FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors in La Jolla, CA

FBS Property Management eNewsletter for
Independent Rental Owners & Serious R.E. Investors by Neil Fjellestad and
Chris DeMarco

We often get asked whether it is viable to purchase an individual condo or
detached single home as an investment operating the property as a rental home.
Then there are those that are currently in this position as they move from their
current residence. Should they rent it out or go ahead and sell even if the sale
won’t achieve their goals? Their real estate agent is often recommending a sale
and the owners are concerned whether this investment strategy as a rental can
work over the long term.

Our four decades of real estate experience gives us a unique perspective
which is very direct and transparent. Well located real estate should be owned
as a long term investment since it is the safest, most productive method for
average people to build wealth. We also believe that property should be kept
rented in order to make a long term hold possible since rent collected is
helping to keep the property well maintained and paying down loan principal.
Eventually the property will be debt free and the rent can become an excellent
safe source of additional retirement income for the investor. We have taught and
utilized this realistic real estate doctrine for decades while keeping our
clients on track with comprehensive advisory services and “best practices”
property management.

So keeping our experience in mind and the fact that FBS currently operates
rental property in 69 zip codes throughout the SD region we are encouraged by
the latest findings coming out of the research department of Zillow. The
following was published on August 15, 2014:

Homeowners are faced with two options when choosing to move up the
property ladder: sell the old home or rent it out. According to a new report
from Zillow, homeowners might want to think twice before
selling if they live in these 10 cities

“When deciding if they should sell their home or rent it out, most
mom-and-pop landlords are primarily concerned with whether or not they can cover
their mortgage payment each month – they simply can’t absorb monthly losses like
professional investors,” said Zillow Chief Economist Stan Humphries.

“However, the greatest returns are actually in markets like San Jose and
San Francisco where there are short-term monthly losses, but the long-term
earned equity makes them the best markets to invest in,” Humphries
added.

Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and
9.1% since June 2011.

And on a local level, the Zillow Rent Index has gone up as much as two to
three times that amount over the past year in rental hotspots such as metro
Chicago (6.3%) and San Francisco (11%).

These are the top ten markets in the country identified as those
most likely to incur long-term financial gain
(long-term monthly profit
is defined as follows: This includes home equity gains, tax benefits and the
difference between monthly rental income and mortgage payments after holding
onto the property for six years on the median home)

10. Honolulu: $2,512

9. Sacramento, California: $2, 694

8. Seattle: $2,861

7. Boston: $3,009

6. New York: $3,179

5. Riverside, California: $3,659

4. San Diego, California: $4,165

3. Los Angeles: $4,328

2. San Francisco: $6,078

1. San Jose, California: $8,927

Please shop and compare; not
just price but services and expertise. We have built a healthy San
Diego business out of advising independent real estate investors, acquiring and
managing rental properties for clients while providing superior housing
alternatives for qualified renters. We’ve accomplished all of this daily for
longer than four decades and currently operate rental properties (houses, condos
and apartments) in 69 zip codes throughout the region. Our rental vacancies
change daily. Take a peek today
www.fbs-pm.com/rentals

If you’re
a qualified renter you deserve to be treated like the preferred customer you
are.
Educate yourself
www.RentSenseBlog.com

If you’re a local rental owner now you hold a winning ticket if
you want a preferred retirement. A preferred retirement includes a personal
residence plus rental properties held without debt and managed by professionals.
This financial condition allows you some important lifestyle choices where you
live and how you live. The ONLY challenge according to Warren Buffet?
Comprehensive and constant professional management of your rental business. The
solution in San Diego is complete property advisory and management services by
FBS.

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