[pwd72s]

Originally Posted by JMPRO

There is a house for sale in the neighborhood where my rental house is located and they want $499k for it. This is in a beach community in southern Cal. Rents are easy there and the place would rent for about $1900.00 a month. I'm thinking I could buy the place with cash, as in no loan and I would make about 3% on my money after taxes and expences. That is better than I could make on my money in almost any other case. I don't see prices going down any further in that area and its on a nice lot that I could build on for myself later on. It also has an ocean view which is a plus. If I had to borrow the 499k this would not be a good deal but since I have the money and can't make any where near this return in savings or a cd . The worst case is
I can't get a renter{so far not a problem}
Bottom drops out on property { looks like we have reached the bottom}
The area which is near the beach falls off into the ocean in the next big earth quake. Ok now everyone shoot holes in my plan.

You are aware that a tax on rent is part of the health care plan, aren't you?
Since I'm no longer a landlord, I don't know the %age that the feds will take.