Investing 102

[CarlC]

I hear you on the industrial property prices Greg. They have not come down in Los Angeles Co. like home prices have. The one we had our eye in is in the same complex that my friend already owns one in (it's an industrial "condo" building), but a 2100ft^2 building goes for well into the $200k's + taxes + association dues. Ouch.

Todd got lucky on his tenant. I would have done exactly the same if that offer came but I had to take a different approach. The current tenants are a nice young couple with a three-year old son. Both have full time jobs and a good income. They paid cash for the move-in but have insufficient funds for a down payment for a home. With escalating home prices combined with how difficult it is to get a loan, if they can't qualify now, they likely won't any time soon. So, give them a few more property "upgrades" that they like (he even came over to help with one of them) to entice them in and hope that they will be long-term.

So, am I working on the Camaro today as it sits in a million pieces in the garage? No, I'm dumping data into Quickbooks for all of the remodeling costs, rent income, tax and insurance payments, etc. There's no free lunch.

I'm also a cheap SOB sometimes. I've never liked paying for things that I can do myself, and taxes was one of them. No more. My tax accountant is worth every penny. I go in two times during the calendar year, in addition to the normal tax season sessions, to do a "check up." Yeah, it does cost, but I'm certain that the money paid is more than offset by both the monies the accountant finds/saves me and the reduced stress of dealing with it. In other words, find a good tax accountant and save yourself money and the hassle factor.