After over 2 months of searching for a suitable multi-family property in Nevada, I’m finally in contract!  Escrow should be short since I’ve already had the inspection and am paying cash.  I’ll be moving up there in a matter of weeks, and can finally move on with my life.

Once I close escrow, I’ll be packing my BMW with the few possessions I have and saying goodbye to California for good.  When I arrive, I’ll pick up the keys from the real estate agent and walk into a vacant, 95% finished triplex.  I’ll have all 3 empty units to myself.  During the few weeks it takes me to complete the minor repairs, I’ll have to pick one unit to call my home.

One is a tiny studio, another is a small 1 bedroom, and the last is a considerably bigger 1 bedroom.  Picking the best unit for myself means collecting less rent, so I’ll have to decide if it’s worth it.  Since I’m paying cash, I won’t have a mortgage, so regardless of which unit I occupy, I should still be cash-flow positive on this thing.  It will be a great feeling knowing that you are actually generating a cash flow from your primary residence.

I’m extremely relieved to have this deal underway.  By 2012, I’ll be 100% cut off from California and all California-based businesses.  Insurance, banking, healthcare, accountant, etc – all moving to Nevada businesses.  I know that in the grand scheme of things, one man moving his business out of California isn’t going to make a difference.  However I hope if enough people do this, it sends a message to California that what they are doing isn’t working.

I feel like I’m selling my stock in CA and buying stock in NV.  CA is falling apart, but NV is somewhat stable.  Eventually, I’d like to sell my stock in USA and go somewhere with a better outlook.  That whole discussion can be saved for another post though.

Once I get settled in Reno, I want to start traveling again.  I’d really love to do a lot of snowboarding…

 

8 Responses to “Things Fall into Place – Adios California!”

  1. Joe NOonan says:

    “Eventually, I’d like to sell my stock in USA and go somewhere with a better outlook.”

    Enjoy a higher debt percentage per person and 50%+ tax rates! If the dollar fails or the US government fails no place will be safe so it doesn’t really matter.

  2. Don says:

    Tom, I’ve owned and rented a 3 unit property in upstate NY since 2005. I don’t live there though.

    You probably know this already but …the absolute most important thing you can to is screen prospective tenants thoroughly.

    When I first bought the property I wanted to fill it up quickly and get those dollars coming in. I didn’t screen hardly at all! I learned my lessons over the next couple years.

    Now, I have 3 great tenants. One has been there since I bought the place and the other 2 have been there 4 + years. It is basically a hands-off, money making enterprise now.

    I have one tenant who is partially disabled and on section 8. Don’t shy away from ALL section 8 tenants. Most are bad, I agree… but don’t overlook them all. He is the cleanest, quietest and most respectful tenant any landlord could ever want. His rent is paid by the state and is deposited directly into my checking account. Very easy and reliable.

    So, screen, screen, screen! Run their credit reports too!

  3. Don says:

    Oh and good luck with your new venture!

  4. Tommy says:

    I’m going to be using a property manager to run the place for me; should save a lot of time and headaches too!

  5. Doug Lawson says:

    What Nevada Corp. Company you using in N.V and are you happy with them? If so, could you email me info? I’m here in Calif. myself I’m planning on getting out of Dodge here. I’m more looking living in a Motorhome right now, until I figure out where the heck I want to be…lol….maybe on a island!…

  6. Tommy says:

    I used Nevada.org and they did a great job. I actually live in Nevada, so it’s not like I’m just setting up a corp for tax benefits there.

  7. Poor Uncle says:

    Hi Tommy,

    Agree with your metaphor about selling CA stock and buying NV stock. As a matter of fact, I live in Southern California. You just can’t beat the weather and the beach, and the mountains here.

    I hope you will be vested in America – the good old U.S.A. As an immigrate/refugee, I can honestly say…U.S. is the best place on earth. Our best days are still ahead of us. But we need people like you to keep the country and its entrepreneurial spirit strong.

    As a refugee from many years ago, my parents were given a choice which country we would like to be adapted by. Some of the choices include U.S., Canada, Australia, Germany, the UK. We chose America because we wanted to live and be like Americans.

  8. Tommy says:

    I’m still going to stay vested in America for sure. I do most of my business with American companies, so it would be a mess to try and move everything off to a foreign country. 35% tax rate isn’t too terrible either.

    I agree that you can’t beat the weather in CA. I’ve been staying in Portland for the last 6 months, and I definitely do miss the sunshine.

Leave a Reply