Deborah's Views and News

Lakeside CA Executive Retreat-Luxurious Rental in East County San Diego CA

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Mon, 07 Dec 2009 18:16:02 -0600

Lakeside CA- San Diego County Rental

Step into a home that is perfect in every way for the discriminating tenant. This home was built as a custom designed retreat for the owner who is leaving the area. Enter through the huge hand carved mahogany doors to a custom winding staircase.. Home is approximately 1500 s.f. One huge master bedroom with fireplace and hand carved teak mantel. "Walk-in" granite shower and designer glass bowl sink. 2nd bathroom has glass bowl vessel sink and hand carved mirrors.Open floor plan with gorgeous kitchen and sliders to large deck with astounding views. Separate dining area and open living room make this space perfect for entertaining. Marble, granite and teak custom touches throughout. Custom lighting. 2nd bedroom is very small but good for child or at home office. 2 car garage. Walk up to the private roof deck with 360 degree views. Surrounded by 5+ acres of land with lemon, avocado and tangerine trees. Perfect for the upscale couple who desire a one-of-a-kind home with no next door neighbors. $2995/month. Horses and dogs ok. Drive by and e-mail deborah.stone@cox.net for more info.

Front of Home located near Wildcat Canyon, Lakeside, CA

Walk-in Travertine Shower in Master Bathroom

Patio off Kitchen with views of the Lakeside Hills

Kitchen

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

New England in The Fall--------from an (occasional) homesick So CAL gal...

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Mon, 07 Dec 2009 17:47:06 -0600

Although I live on the West Coast, New England is where I grew up. I would like to share some photos I have taken.

Pumpkins

Old Barn in New Hampshire, Mt. Washington Valley

Mushrooms

View over the Mt. Washington Valley

Autumn Leaves

My Favorite Food

Driving from Portland Maine to Mt. Washington Valley takes about 2 hours. The road is one lane, with views around every corner. Having family that lives there makes it a great vacation get-away to hike and fish. Although Southern CA is equally as beautiful and lends itself to outdoor activity, I still marvel at the "smell" of Fall in New England!

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

GO NATIVE........Native Plants that is....

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Mon, 30 Nov 2009 18:40:02 -0600

Water Water Everywhere Nor any Drop to Drink...........

Hopefully this will remain just a line in Coleridge's poem “Rhyme of the Ancient Mariner” and not a reality.

The price of water in San Diego County has risen sharply, and many people are trying to conserve as best they can. 50%-60% of a household's water usage is spent on landscaping. If that isn't enough to make you rip out your lawn blade by blade and “hard-top” it, I don't know what is.

But alas, there is a less drastic measure to be taken and one your neighbors will thank you for.....that is called....**drum roll** Xeriscape, landscaping and gardening in ways that reduce the need for supplemental irrigation.

I first met Wes Hudson when we both worked at the same R.E. company. When I heard he opened up a Landscape Design business North Park Native Plants I was quite eager to talk to him.

North Park Native Plants in San Diego is a local small business that focuses on combining 2 environmental concerns:

The successful use in residential garden settings of local native
plants that make up the natural habitats that surround us in San
Diego.

The need to address the growing water crisis in California by replacing water guzzling lawn with gardens that can thrive with no additional water beside rain, once they are established.

North Park native, Wes Hudson working on my landscaping.

Did you hear this? NO watering the lawn. EVER.I was already making plans for how I was going to spend the extra money.I was in love.......I just had to have it.

So I hired Wes to design and landscape my yard.

Day#1 saw the destruction of my pathetic yard and removal of all the top soil. Then a round of spraying the ground with weed-killer for 2 weeks, then respraying the new growth. After the lawn looked like a lunar landscape, the fun began! A giant truckload of Decomposed Granite (DG) was dumped on the drive way. A layer of black vinyl was first placed onto the old lawn bed then the DG went on top of that. A multitude of drought tolerant plants came next, some quite prickly (near the sidewalk to discourage dogs and bad neighbors). So far, I was amazed at the beautiful results even though it may take a year before they fill out and reach full height.

These plants look sparse now but wait until next year.

One of the beauties of Native Plants is the way they naturally reflect the
seasons in our particular climate. Wes tells me that there could be a
60% reduction in total water usage!

Still my beating heart!

Call Wes for a free estimate. He knows his stuff, is fairly priced and is fun to work with.

www.northparknativeplants.com 619-846-0585

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Income Tax Considerations When Renting Real Estate

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Sun, 22 Nov 2009 17:17:47 -0600

Via Charles Perkins (Charles G. Perkins, CPA):

Income tax considerations when Renting Real Estate

Rental Income

For IRS purposes rental income is taxable income in the year received. There are some exceptions and special considerations for some income.

Example:

Sam is a landlord that has rented out a single family residence for several years to one family for $1,000/mo. In Feb of the current year the family gives notice that they will be moving out at the end of the month. The tenant has paid timely each month and has the balance held as last month’s rent applied to February. The tenant was refunded $300 of his $700 damage deposit.

Sam quickly is able to fill the vacancy and the new tenant moves in on March 15. The new rent remains at $1,000/mo. Sam collects first, last and a damage deposit. The damage deposit is $700. This tenant pays timely each month except December. In December he is unable to pay the rent until December 30^th. At that time you collect a $50 late charge and accept a credit card payment. The payment is processed right away but the funds are not available to you until January 2^nd.

Calculation of taxable rental income

Charles G. Perkins, CPA

Servings Small Businesses in the Puget Sound Area

Cell: (206) 422-5504

Office: (206) 228-1988

email: charles@charlesperkinscpa.com

website: www.charlesperkinscpa.com

I look forward to meeting your business and tax needs. I also have many partners in business that can meet your other business needs. These include contractors, insurance agents, investment advisers, financial planners, mortgage advisers, and many others.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Rental Income Rules for Security Deposits

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Sun, 22 Nov 2009 17:13:20 -0600

Via Charles Perkins (Charles G. Perkins, CPA):

Rental Income rules for security deposits

General Rules

Each state has slightly different rules regarding deposits collected when a new tenant moves in. Deposit can be collected for utilities, cleaning, damages, last month rent and some other purposes. Deposits can be refundable or nonrefundable in some cases. The rules will vary from state to state.

A deposit is a liability. In other words this is money that you may have to return at some future date. Because of this many states have enacted rules regarding what can and cannot be done with these funds. In Washington State, these funds must be deposited in a separate bank account and that information disclosed to your tenant. These funds must be held in trust.

http://www.rentlaw.com/securitydeposit.htm

Federal Income tax rules applying to deposits

For tax purposes it is important to know the purpose of any deposit. Money that is being held in trust to pay for any future damages or refundable cleaning must be returned within a certain number of days unless written notice is provided as to why any amount has been withheld. This money is not considered income at the time it is received for tax purposes.

When the tenant moves out any portion of the damage deposit not returned to the tenant is considered rental income. Of course generally this is offset by rental expenses that were listed on the written notice provided to the tenant at move out.

If a landlord collects a nonrefundable cleaning deposit or advance rent payment this is considered rental income in the year received.

State income rules generally are similar to the federal rules, but you should consult with your tax preparer.

Charles G. Perkins, CPA

Servings Small Businesses in the Puget Sound Area

Cell: (206) 422-5504

Office: (206) 228-1988

email: charles@charlesperkinscpa.com

website: www.charlesperkinscpa.com

I look forward to meeting your business and tax needs. I also have many partners in business that can meet your other business needs. These include contractors, insurance agents, investment advisers, financial planners, mortgage advisers, and many others.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Interest Rate Update 11/14/09

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Sun, 22 Nov 2009 17:02:49 -0600

Via Ralph Gorgoglione (EcoBroker Certified - John Aaroe Group, Inc.):

Conventional Loans:

30 Year Fixed Conforming---$417,000 and Below: 4.875% with 1 Point

30 Year Fixed High Balance Conforming---$417,001 to $729,750: 5.0% with 1 Point

30 Year Fixed Jumbo---$729,751 to $1,000,000: 5.625% with 1 Point

5/1 ARM Jumbo---4.875% with 1 Point-amazing for Jumbo product

FHA Loans:

FHA 30 Year Fixed---$417,000 and Below: 5.0% with 1 Point

FHA 5/1 ARM---$417,000 and Below: 3.75% with 1 Point

FHA 30 Year Fixed High Balance---$417,001 to $729,750: 5.25% with 1 Point

FHA 5/1 ARM High Balance---$417,001 to $729,750: 3.75% with 1 Point

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Metro San Diego Neighborhoods: NORTH PARK

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Tue, 10 Nov 2009 15:53:57 -0600

In the past 13 years since I have been living in in So Cal, Metro San Diego neighborhoods have experienced increased revitalization. North Park is one of these areas.

North Park has always been a “diamond in the rough”. North of Balboa Park and just adjacent to upscale Hillcrest North Park has gone through some growing pains, only to emerge as an ethnically and economically diverse area with a downtown center that is hip and flourishing. There is also a vibrant arts scene, and many chic new eateries.The 805 is the backbone of this area, and one can get to just about anywhere in San Diego County in 20 minutes.

North Park definitely has an inescapable “pulse” and on my recent visit there, I could see that previously vacant stores were replaced by some very unique businesses.

Claire de Lune Coffee house in North Park.You can even find poetry readings by locals here!

Off the Record sells a huge selection of 33 rpm records...like The Beatles!

Get your shoes repaired.......

Or get a tattoo...

North Park Beauty Supply...with a seriously huge selection

Local color: skateboarding..........

Checking in with the office...........

Taking a much needed energy drink break.............

On a peaceful midday stroll in North Park....

Condos in North Park are still priced very reasonably. On a recent search of homes for sale in metro San Diego you can find one BR condos in the low $100K's all the way up to homes over $1,000,000. A recent search of the MLS showed 25+ condos on the market between $100K and $150K. If you are a young professional renting an apt. than now may be the time to purchase a condo in this Metro San Diego neighborhood.These are great prices for urban digs within 10 minutes drive of downtown San Diego. Public transportation is available too.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

10 Painless ways to Save Money......

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Mon, 09 Nov 2009 17:31:26 -0600

Sure, I can:

Ride my bike instead of my car. (try riding a bike on the So Cal freeways). Eliminate Starbuck's from my daily routine (aww, this hurts). Brown bag it daily (hate making sandwiches in the morning). Sit in my dark, cold house with no lights on.....(enough said)!!

But I have found 10 painless ways to save money in San Diego:

1. Use the clothes dryer for 2 minutes to "fluff" the fabric, then hang on a rack in the sun.

2. Change all light bulbs to "low energy".

3. Recycle plastic grocery bags to use in the trash.

4. Check fees at your bank. I did some comparison shopping for small business accounts and even though there was only $20/difference a month,it's money in my pocket, not theirs.

5."Sun-blocking" curtains & ceiling fans reduce heat (and cold) thus lowering energy costs substantially.

6.Check your cell phone carrier & cable t.v. providers regularly. They don't want to lose you to the competition, and often have "new programs" to offer you. I just saved $20/month from my Verizon wireless bill, & $30 from my cable bill, with not much difference in my old service plan.

7. Sign up for SKYPE, and lighten up your monthly cell minutes. For $2.95 month, you can call unlimited within the USA, and for a bit more, all through Europe. Check out www.skype.com

8. Stop paying high prices for "processed" foods. You will not only save significant $$, but you will be much healthier.

9. Stop buying bottled water. My refrigerator has a “filtered water system”. If you do not have this, you can purchase Brita Water Filtration System at Target and filter your own water. Or use both and have double-filtered water.

10. Stop buying software. I found Avira (anti-virus) and Open Office org. (replaces Microsoft Office) both online for FREE. Google.docs now offers FREE web-based templates

Using the above methods I save over $100/month.............. and I have some of the lowest utility bills in my San Diego neighborhood.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

The Nosey Neighbor CMA..or the REAL Barometer of Your Home's Value!

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Fri, 06 Nov 2009 16:28:53 -0600

Recently, one of my neighbors put their home on the market. I might add that this is a stunning home and is professionally landscaped and decorated. I have an office in my home that faces this house. From one of the windows, I can see all the activity and the "comings and goings" of agents with clients. Now before you tell me to "get a life"......I just want to make it clear I don't stare out the window all day (ok sometimes I do).... but I do hear voices and doors closing when the weather is warm and the windows are open.

My feeling was that this property was not priced right, as a matter of fact it was priced significantly higher than the competition. I had the agreement of Comps and a few local friends who are agents. The neighbor is a friend, but decided (for reasons I do not understand nor want to get into) to hire a "neighborhood specialist".

In the past 2 weeks this is what I witnessed:

3 sets of clients driving up, walking around the house, looking up the street and then down the street, and then getting in the agent's car and driving away.

3 couples brought by agents who entered the house and spent approximately 3-5 minutes inside.

1 couple brought by an agent who spent 5 minutes walking around the outside and backyard.

Several cars coming to a slowdown, looking at the house and then driving off.

No Offers or interest to date.

Now there is absolutely no scientific methods I have used nor do I assume I have seen all the showings, but when I witness the above scenarios during the first 2 weeks of the sale of this SFR in a very strong market in an urban neighborhood in San Diego..... I can't help but draw the conclusion that this house is not priced right for the current market conditions.

I hope the present agent picks up on the feedback he will hopefully get from the the Buyers' agents. Of course he may have just wanted to "get the Listing" at any price. Over pricing a home does a major disservice to your client and wastes valuable time. It doesn't get the property SOLD. It is deceitful, makes you look stupid and it is bad business practice.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Landlord Conundrum..

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Tue, 03 Nov 2009 21:21:13 -0600

I have been a Landlord for 25+ years and have not run into this problem. One of my tenants, we will call her Marissa, who is punctual with the rent, has good credit and a good solid work history. She wants her boyfriend to move in. His credit is the worst I have ever witnessed, with collection account after collection account. She says he has been working on repairing his credit and had some previous family issues.I also did not get a "good vibe" from this person. Marissa will take responsibility for the rent and will pay with her check, while doing their own internal book-keeping. The lease is now in her name but they want to be on it together by 12/1.

I have a problem renting to someone of his quality and do not want to have him living there.I don't know what to do except refuse to have him move in. My fear is: what if they split up, she leaves and I am stuck with a bad tenant?

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

At Risk Teens.......there may be an answer!

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Tue, 03 Nov 2009 16:17:35 -0600

DIEGO HILLS CHARTER SCHOOL

It's been awhile since I have been in High School. I know I am dating myself with tales of school marms in long dresses and grey hair pulled back in a bun....not a glimmer of a smile on their faces. Always holding the deadly wooden ruler in their hand. In those days a “rap” across your knuckles was not out of the question.

School for me in Boston was torture. I attended Girls' Latin School, one of the srictest and most regimented in the nation. I was not a good student, and had way too much energy. But I managed to graduate and go onto college and professional school, so I must have learned something.

I know times have changed.While I was out today, I walked by an open house at a local shopping center of the “Diego Hills Charter School” in San Diego CA. I was intrigued by their sign which said “One on One” and “Independent Study” and “Attend as little as 3 hours/week”. Diego Hills Charter School in San Diego CA is a brand new public school. Any high school student (age 14-19) can enroll FREE. The workload is geared to each individual student while taking into account obligations and unusual family circumstances. Some teens just work better in a more personalized environment.There is also independent study and free tutoring.

The mission of Diego Hills Charter School in San Diego CA is to engage students who are no longer a part of the traditional High School setting. If a student needs to make up classes to graduate, this may be the place for them. Of course the student would have to be pretty self-motivated to embark upon a curriculum like this, but what a great way to “rescue” at risk youths and allow them to finish their education.

All I know is that I would love to have had the option to attend a school like this when I was in my teens. This just may be the answer for a teen in transition or one who has dropped out and is a fearful of going back to a traditional setting. With so much support, it seems to be a recipe for success.

If you have a teen in transition, call Diego Hills Charter School in San Diego CA at 619-286-0312 or check out their web-site www.DHCharter.org

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Tips for the Tenant: How to stand out from the crowd...

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Wed, 28 Oct 2009 08:37:13 -0500

I have some advice for anyone interested in renting a home with less then stellar credit in a very tight rental market in San Diego. Don't get discouraged and automatically think the agent/owner will reject you if there are alot of prospects. Smile, be sincere, be yourself AND:

1. Be punctual.

2. Be honest. Explain to the agent (or owner) that you have had a past bankruptcy, credit issue etc. and bring proof of it. One of my best tenants brought a "discharged" bankruptcy form with her when she came to see the home I had for rent. She explained she did some dumb things when she was younger. I rented the home to her and she was never late with the rent and it was immaculate when she left. She turned out to be one of my best tenants in the San Diego rental market.

3. Bring a copy of your credit report, phone #'s of your employer, copy of your driver's license etc. ANYTHING that will make filling out the application easier. Blank spaces left on applications, and even illegible applications have been tossed by me, when I have 10 other prospects. It shows lack of respect or fear of disclosure.

4. Be polite and non-confrontational! Leave your bad attitude at home.No owner wants to deal with a disgruntled tenant from day #1. What will the tenancy be like in 3 months?

5. Wear clean clothing. Casual is fine but neatness is important. The owner will assume if you show up in tattered clothing, that is the way the apt. will look when you live there.

6. Watch your language. Profanity is not acceptable and most owners will be turned off.

7. Don't be afraid to follow up if you have not heard from the owner.Expressing your enthusiasm about a house in the San Diego rental market always helps:("we have always wanted a pool and this is one of the loveliest I have seen" or "I love the kitchen, we enjoy cooking"). I like to choose tenants who LOVE the property. Passion is contagious.

8. Don't badmouth your present landlord. The San Diego rental market is a tight community and word gets around.

9. Don't leave your checkbook at home. The one with the check for the application fee or first month's rent is always seen as a more serious tenant.

Remember, you are going on an "interview" and first impressions are lasting. Put your best foot forward and I bet you that home you want in the San Diego rental market will be yours.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

QUOTE OF THE DAY

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Wed, 21 Oct 2009 14:06:13 -0500

"And the day came when the risk it took to remain tight inside the bud was more painful than the risk it took to blossom" ~Anais Nin~

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

TIPS for the First Time Buyer: Home or Investment

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Tue, 20 Oct 2009 12:56:07 -0500

There are no investment strategies in the "rule book" of Metro San Diego Income Property that are “black and white” which means you can never say that in every case these facts are true. But these 3 basic rules have allowed me to “dodge many bullets” in changing economies over the years. Whether you are thinking of your first real estate purchase as a home to live in or as an investment for the future, these rules are great caveats and have created a blueprint for my success.

1.The $150K Rule: In most cases, condos are only good investments when they are very well located: downtown, oceanfront or located near hospitals/universities. If you find a great buy on a condo elsewhere (suburbs) then $150K maximum is the upper limit of what you should pay. Why? The amortization of a $150K loan at $900-$1200 month will fit the needs of most “bread and butter” renters, so in a down market, you will have the ability to attract tenants. Condos are the first sector to feel the pinch since they are usually considered 2^nd choice to SFRs. In a down market on a $3000+ month debt, you may not have a large enough pool of tenants. This should make no difference if you're buying as your primary residence or as an investment since resale value should be your utmost consideration when purchasing property.
Single Family Homes (SFR's) are always a better investment than condos in metro San Diego. Dollar for dollar SFR's have a higher resale value than condos. Why? If you could spend $1200 to rent a 2 BR condo in a building with shared walls/parking/barking dogs/HOA rules etc. wouldn't you prefer a private home with no neighbors and private parking? So would I...and most tenants would too. Of course in many cities ie.(NYC, San Francisco) one cannot find a SFR so this is a moot point. But if you have a choice of a condo with a few more amenities or a SFR with similar square footage, you will be increasing your net worth in the long run by purchasing the SFR.
Multi-units are a great way to get into the market in metro San Diego. If you are a first time Buyer, and you have the choice of a duplex (or 2 on 1 as they are called in City Heights, North Park, Normal Heights, Hillcrest and Golden Hill) or a SFR, choose the duplex, if all other things are equal. Why? The added expense of the higher price will be offset by rental income and that rental income most likely will be more than 50% of your debt, taxes and upkeep. Thus, you will have a tenant help pay for your expenses while the property is appreciating. Then when you really want to buy the SFR, hold onto the duplex as an investment property, leveraging the equity for your new home.

In these times, approach buying property with the mind of an investor. Look at the bottom line, and figure future appreciation into the equation.

Call me to purchase your first investment in metro San Diego income properties.. I offer a FREE consultation and there is no such thing as a stupid question. Your metro San Diego Income Property Specialist: Downtown, City Heights, Normal Heights, North Park, Golden Hill

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

10 Pointers for the NEWBIE Landlord

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Fri, 16 Oct 2009 18:00:00 -0500

Maybe you already own income property, or perhaps you are thinking of buying an investment for your retirement portfolio. Did you know the number one reason income properties do not succeed is due to poor management?

That's right! So why not learn to “self-manage” and reap the rewards of extra cash flow and peace of mind. It really is not that difficult or time consuming. I wish I had someone tell me the following things before I became a Landlord 25+ years ago.

Treat your tenants fairly. They are paying your mortgage and it is because of them you are going to have a successful investment.
Never ask for rent. Everyone knows their rent is due on the first of the month, and asking for it just sets up a “Landlord as Beggar” scenario.
Always do credit checks. You never know who is hiding an eviction or worse.
Don't micromanage your property. Or if you do, don't make it obvious. No one wants to see a “nosey” landlord on a daily basis. It makes for animosity and distrust.
Accepting late rent even once without a late fee just because you are a nice guy sets up a bad precedent. After 2 late rents, I have it in my lease the tenant will be given a 30 day notice to leave.
Accepting dogs can be a disastrous decision. Not only can some dogs be noisy and bite, but some Insurance Companies do not allow some breeds and will not pay for a claim if there is an incident. You cannot imagine the problems many Landlords have from dogs. It's just not worth it.
Be “friendly” with your tenants but never “friends”.
ALWAYS have tenant fill out a “Move-in Checklist”. This is the single best protection for you in case you have to go to court.
Empower your tenants by allowing them to make some decisions. For example, I do not assign parking spots in one of my 4 plexes, I let them figure out amongst themselves who parks where.
Cats may not be your favorite animal, but 75% of the renting population has a feline. A cat cannot bite neighbors, is quiet and doesn't chew wood work. An extra pet deposit can be taken on top of the security deposit.

Meow-Meow

Your metro Income Property Specialist: Serving City Heights, Normal Heights, North Park, College Area, Hillcrest and Golden Hill.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

City Heights: Investing in Metro San Diego Properties

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Tue, 13 Oct 2009 17:58:20 -0500

In the early 2000's the best investments were multi-unit properties: 2 units or above. A single family home was not considered to be an investor's arena. Why? Price too high to even approach a “break-even” point with a modest (10%-20%) down payment. Sure, ok to buy for future appreciation and tax shelter, but for the most part single family homes were not the arena of the small investor in San Diego, CA.

The San Diego income property market in some zip codes has changed all that. One area that has been hit exceedingly hard by the sub-prime disaster has been “City Heights” thus prices are really low. A densely packed multi-ethnic area of single family homes and small condo buildings, City Heights has been gentrifying rapidly. There is a huge mix of housing options: single family, condo, rental apts. And from low-end to (although I would not call it high-end) nice urban digs, close to downtown (5-10 minute drive) and city services (public transportation). City Heights also has one other benefit going for it: the benefit of a “coastal climate” with cool ocean breezes much of the time. Just a few miles inland and you can see temperature differences of 10-15 degrees. This a HUGE benefit during Fall in San Diego....and it's a bonus!

I manage a property for an out of state owner. It is a clean house, 3BR 1.5 BA on a small lot of land and I woud classify it in reasonable condition. There is a lovely family room w/fireplace, and private entrance (think Granny, roommates, teens).The front yard is a small enclosed area with some fruit trees and parking for 3 cars.The house is set far back from the street. The lot is non-existent, but that translates into no upkeep.

FRONT OF HOUSE

KITCHEN

FAMILY ROOM

OK let's talk monthly numbers. At $170K present market value the down payment is $20K (10% down and 3K closing costs)

P & I =$848 (5.5%)

Taxes =$156.

Insurance =$50.

Maintenance =$50

Basic Expenses = $1104.00

The rent is $1350. That would bring the cash flow to $246 /month.But for argument sake, let's say the house breaks even the first year, investing the $246 back into the house for new paint/repairs/upgrades. You would now have a single family home in an urban market in San Diego for $20K down, and you could ride the next wave of appreciation with not a care in the world. Oh and did I mention I had 12 calls on this rental the first week? And that rents usually go up after the first year? This is a great start in City Heights for the new investor in San Diego income property.

Seems like a “No Brainer” to me. Call me, let's talk.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

City Heights: Investing in Metro San Diego Properties

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Tue, 13 Oct 2009 17:58:15 -0500

In the early 2000's the best investments were multi-unit properties: 2 units or above. A single family home was not considered to be an investor's arena. Why? Price too high to even approach a “break-even” point with a modest (10%-20%) down payment. Sure, ok to buy for future appreciation and tax shelter, but for the most part single family homes were not the arena of the small investor.

The San Diego income property market in some zip codes has changed all that. One area that has been hit exceedingly hard by the sub-prime disaster has been “City Heights”. A densely packed multi-ethnic area of single family homes and small condo buildings, City Heights has been gentrifying rapidly. There is a huge mix of housing options: single family, condo, rental apts. and from low-end to (although I would not call it high-end) nice urban digs, close to downtown and city services. City Heights also has one other benefit going for it: the benefit of a “coastal climate” with cool ocean breezes much of the time. Just a few miles inland and you can see temperature differences of 10-15 degrees. This a HUGE benefit during Fall in San Diego....and it's a bonus!

I manage a property for an out of state owner. It is a clean house, 3BR 1.5 BA on a small lot of land and I woud classify it in quite reasonable condition. There is in addition, a lovely family room w/fireplace, and private entrance (think Granny, roommates, teens).The front yard is a small enclosed area with some fruit trees and parking for 3 cars.The house is set far back from the street. The lot is non-existent, but that translates into no upkeep.

KITCHEN

VIEW OF FRONT YARD FROM HOUSE

FAMILY ROOM WITH F/P and PRIVATE ENTRANCE

FRONT OF HOUSE

OK let's talk monthly numbers. At a selling price of $170K the down payment is $20K (10% down and 3K closing costs)

P & I =$848 (5.5%)

Taxes =$156.

Insurance =$50.

Maintenance =$50

Basic Expenses = $1104.00

Seems like a “No Brainer” to me. Call me, let's talk.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

1031 Tax-Deferred Exchanges

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Sun, 11 Oct 2009 12:00:11 -0500

(4th in a 4 part series)

Investing for Dummies: Investing in San Diego Income property

Paying Capital Gains Tax on the sale of your San Diego income property could defeat the purpose of your investment strategy. If you have to give back the profit to Uncle Sam, consider this:

You can defer the entire gain by purchasing a property (or entity used for business) of equal or greater value ~within a specific time frame and adhering to specific rules~. That's right! The I.R.S. says go ahead, sell your income property and if you do this within the guidelines we have stipulated "you don't have to pay us a dime". Well, you may be thinking "What if I don't want to be a Landlord anymore, I have other areas of my life that keep me busy? I'm sick of all the headaches. If I sell my income property, then what?"

Here are some "1031 Tax-Deferred Exchange" ideas :

Purchase a condo for your child to live in while they go to college.
Buy a future retirement home in an area of your choice (U.S. only) and rent it out until you are ready to retire.
Buy into a TIC investment.
Downsize your life to a multi unit dwelling,live in one apt. and you will be able to defer a percentage of the gain.
Buy a Farm
Buy a vacation condo/house you use less than 2 weeks/year. (this does not include a time share).
Purchase raw land.
Purchase a Corporate Jet used for your business.

There are many more legal ways to reinvest the gain from your income property using a 1031 Tax-Deferred Exchange.

For more info. Go to www.exchangeresources.net

Disclaimer: Always consult with your CPA before undertaking a 1031 Tax-Deferred Exchange or other tax startegies.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Question about Technology: What do you think?

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Sat, 10 Oct 2009 18:59:23 -0500

Faced with so many choices, what experience has anyone had with mobile broadband for wireless internet access? I have a 10" netbook for travel, and I am faced with the following choices from Verizon:

USB Modems, PC/Express cards or using your "smartphone" as a modem.

I do not have an iphone or Blackbberry, but prefer a small flip-phone and my 10" laptop.

Any ideas and advice would be greatly appreciated!

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Oh Appreciation, How I APPRECIATE you....

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Mon, 05 Oct 2009 15:43:37 -0500

Investing for Dummies:

Investing in San Diego Income Property

(3rd in a 4 Part Series)

For all intents and purposes, investment property appreciates in value. If someone asked me the single best reason to own investment property in San Diego I would say APPRECIATION. What is appreciation? Appreciation is the increase of value of property over time due to inflation, supply and demand, capital improvements and other factors. Increase of value adds to your net worth.

The beauty of appreciation is that if you buy low and sell high, you can make money while you sleep.

What does this mean? It means that if you buy a property for below market value (poor condition, short sale, desperate owner) and you sell it at a future point in time for above market value (nicely upgraded, strong Seller's market, above average location) than you have just hit the jackpot!

The timing of a property purchase is everything, kind of like the stock market. Holiday time is easier to find a bargain than Spring time. If you find a property on the market in mid-December, you can be assured you have a very motivated owner. (and motivated owners tend to negotiate more).

If you buy low and sell high, you have nothing to gain but money.

Yes, but you may be thinking that you will then have to pay taxes on all that money. Well, yes, you will but you could always do a 1031Tax-Deferred Exchange and roll over the gain tax free......as long as you follow some I.R.S. guidelines.

Stay tuned for part 4 of San Diego Property Investments:1031 Tax-Deferred Exchanges.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Gimme Shelter....I mean a "TAX SHELTER" for San Diego Income Properties

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Wed, 30 Sep 2009 14:22:22 -0500

Creating Wealth: Investing for Dummies

Investing in San Diego Income Properties

(2nd in a 4 Part Series)

The Beatles song Gimme Shelter was not referring to a tax shelter, but nonetheless a "shelter" is a "safe haven". A tax shelter is an investment strategy that allows you to legally decrease or avoid taxation. It is a way of off-setting losses to other taxable income.

The beauty of investment Real Estate is that it is a natural tax shelter. There are no gimmicks and no loopholes to create. Uncle Sam created it this way, and "fools we mortals be" for not taking advantage of it. (Note that there is a special break allowing a "passive loss" from rental real estate to be deducted from "non-passive" income such as wages. The passive loss deduction is limited to $25K but is reduced by 50% of the amount of the taxpayer's adjusted gross income that exceeds 100K.).

You may be thinking "Oh I'm just a small time investor". What does a tax shelter mean to the small investor in the San Diego income property market? A great deal! Up to $25K in mortgage interest and property taxes is money paid by you for your investment. Some of this "passive income" is deductible against your "active income" or "wages". In 2009 the following income tax rates apply to a single person:

25% on $33,950-$82,250

28% on $82,250-$171,550

33% on $171,550-$372,950

35% on $372,950+

That means with no tax shelter, if you are making $60K annually $.25 of every dollar is paid by you in taxes to Uncle Sam or $15,000 . If you are making $100K annually, $.28 of every dollar is paid by you in taxes to Uncle Sam or $28,000. I don't know about you, but if I had an extra $28K annually I would be blogging right now from a sailboat in the British Virgin Islands (using a waterproof laptop) or a Yurt in Mongolia (do they have wireless there?) Do you see where I am going with this?

Depreciation is also used to shelter your income, since it is treated as an expense for tax purposes. It is an "accounting" loss, which shows up on paper only. However, you can deduct some of the cost on your tax return each year via depreciation.

Of course you must decide where the funds for downpayment on any investment would best serve you. Using funds for one investment eliminate the use of those funds for another investment (i.e. stocks).Consult with your CPA or Tax Attorney for your own personal "wealth-building" strategy.

Disclaimer: I am not a CPA and encourage everyone to consult with their CPA or Tax Attorney for personal tax advice regarding their specific tax situation. The tax laws change frequently and this Blog is by no means attemtping to give tax advice.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Don't hate me because I don't cash flow...............Investing for Dummies in San Diego Income Properties

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Fri, 25 Sep 2009 13:14:48 -0500

Creating Wealth: Investing for Dummies

(First in a 4 Part Series)

San Diego is a great place to live and imany investors have had unsurpassed success in finding good tenants in San Diego. Rentals are in high demand in most every part of this county and you can be assured that "bread and butter" units will be at the forefront of desirable properties to buy or sell. I specialize in small to mid-sized investment properties and many of my clients are novices who have done extremely well by following my investment advice.Why do investors buy income property as opposed to stocks? What are the benefits of owning real estate?There are 3 main reasons people buy Real Estate.

Cash Flow, Tax Shelter/Depreciation, Appreciation

What is Cash Flow?

This is the cash left over at the end of the year when all debt, taxes and management fees have been paid. This is the money you can spend on vacations, a new car or that new kitchen you have always wanted. This takes into consideration the expenses of owning property but is not limited to: debt relief, property taxes,vacancy rate, insurance, utilities, maintenance, advertising, repairs and legal fees. Is cash flow a necessary component of a performing real estate asset? No it isn't. You may be wondering then why would I bother to invest all my money in an asset that produces no income? Glad that you asked! Depending upon your specific financial goals and earnings, cash flow may just be a burden for you. If you pay Uncle Sam 28% of every dollar you make, why would you want to earn more dollars? The key to building wealth is not by earning as much money as possible but by keeping as much money as possible. Why work harder to make more money if all you are going to do is fork it over to Uncle Sam? So defining cash flow as your primary (and only) investment objective is a short-sighted approach to real estate investing and you just might miss out on some "diamonds in the rough"....to say nothing of putting yourself in a financially disadvantageous position. There are some great investments that may even lose money before taxes the frst year or 2 or even longer!

Then what should you be looking for?

Stay tuned for part 2 and why you should invest in San Diego Real Estate.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

I scream, you scream, we all scream for.....FROZEN YOGURT? A San Diego Treat!

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Thu, 17 Sep 2009 18:29:34 -0500

If you think ice-cream is the most wonderful of all foods known to mankind, then read on. I am constantly trying to find an alternative to this creamy, cool and refreshing "hot day" treat sans the fat and calories in San Diego. Most frozen confections don't come close................drum roll.................ta daaaaaaaaaahhhhhhh....until I found frozen yogurt at The Yogurt Barn in Lakeside, just outside of San Diego metro in East County.

Located at 9840 Channel Rd, close to the 67 and Lakeside Center, this family owned and operated business is a little gem.

Decorated in "country" style, the interior has about half a dozen tables. The walls are decorated with photos from the local Lakeside 4-H Club and you can eat your yogurt while staring at the winners of the “best pig” contest or first prize winner in “barrel racing” at the Lakeside Rodeo and even a photo of Miss Lakeside.

4H Board at The Yogurt Barn

Colorful Decor in the Yogurt Barn

Comfy Seating

The 10 frozen yogurt flavors change daily and my favorites are Kahlua and Cream and Butter Brickle. (see below)

What I love about this yogurt is the creamy, smooth texture. Many frozen yogurts can be “icey” or “grainy” but this one tops them all in texture and flavor. There are also lots of great toppings.

Many healthy- choice toppings

The portions are huge so watch out! Come on down to Yogurt Barn in Lakeside, San Diego County, CA.

Hours Sunday-Thursday 11:00 a.m.-9:30 p.m. Friday-Saturday 11:00 am-10:00 p.m.

Time to make the yogurt________

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Local Produce Rules in San Diego!

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Sun, 06 Sep 2009 14:46:30 -0500

Healthy Dessert...or the Lazy Man's Breakfast for House Guests

Now you may ask what this has to do with the subject of my outside Blog--- San Diego and food? The beauty of living in San Diego is that my neighbor's banana tree hangs over my fence and I can pick fresh bananas whenever I want. Great climate, healthy eating!

I HATE cooking in the morning. There is nothing that irritates me more than fiddling around with pots and pans at 7 a.m. But when you have house guests, I always feel like I need to place more than a cup of coffee and a piece of fruit on the breakfast table.

Volia! Bake a banana bread, put it on the counter with butter and jelly, and instant healthy gourmet treat. (I have to give kudos to my friend Susan whose idea this was, while I was lamenting my "oh no.... breakfast for house guests:" routine. She promptly suggested what she does for her guests.)

I am always on the lookout for recipes where I can substitute flour with ground rolled oats. (rolled oats I buy in bulk, and grind in a coffee bean grinder.) You are now getting much more fiber and less carbs from an otherwise empty calorie-laden food.

The following recipe is exceptionally healthy and great for diabetics (although it has a little bit of sugar in it). Did I also say how easy this was to make? Everyone loves a slice of this for breakfast.

½ c. brown sugar

8 tbsp unsalted butter

2 large eggs

3 ripe bananas

1 tbsp. Soymilk (or regular milk)

1 tsp. ground cinnamon

1 cup whole wheat pastry flour

1 cup of ground rolled oats

1 tsp. baking powder

1 tsp. baking soda

1 tsp. salt

Preheat oven to 325 degrees. Butter a 9X5X3 inch loaf pan.

Cream the sugar and butter in a large mixing bowl until light and fluffy. Add eggs one at a time, beating well after each addition.

In a small bowl mash bananas with a fork. Mix in milk and cinnamon. In another bowl, mix together the flour, rolled oats, baking powder, baking soda and salt.

Add the banana mixture to the creamed mixture and stir until combined. Add dry ingredients, mixing just until flour disappears.

Pour batter into prepared pan and bake 1 hour to 1 hour and 10 minutes, until toothpick inserted in center comes out clean. Set aside to cool on rack for 15 minutes. Remove bread from pan and cool completely before slicing.

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"

Marcella June's- An Urban Oasis Coffee Lounge

DEBORAH STONE (REALTY SOURCE-Bankers Hill- San Diego, CA) — Wed, 02 Sep 2009 13:41:41 -0500

Marcella June's Coffee Lounge

An 'Urban Oasis' in San Diego

Located at 5410 El Cajon Blvd (corner of 54^th St.) in the College Area, Marcella June's Coffee Lounge is an interesting and unique coffee spot.

Tastefully Decorated coffee lounge for quiet conversations.

The decor is in a soothing palette with nice furnishings and a lot of space. This cafe venue lends itself to a business meeting or just quiet conversations with friends.

Owner David Zaloudek making my Red Espresso Tea

In addition to all the usual coffee drinks, owner David told me that they are the only coffee lounge in the area to offer “Red Espresso Tea”. Yes, you heard it right.....Espresso 'tea'. Grown in South Africa, this unusual tea is prepared like an espresso drink, complete with milky foam. I couldn't resist. Since I like my coffee with a bit of sweetness, I let David suggest a “hint of vanilla flavoring”. All I can say is WOW..this was really good! It tasted like tea, but had the zippiness and intensity of espresso, with a distinct tea flavor. You gotta try one.

Come on down, bring your laptop and spend some time at Marcella June's. www.marcellajune.com

Deborah A. Stone, Realtor
Integrity-Solutions-Results
Realty Source-Bankers Hill
San Diego, CA

"Representing clients with the experience of an investor"