All Forum Posts by: Account Closed

If I live in Japan today, if the properties have positive cash flow and the numbers make sense, I will buy Japan properties when others scare today.

From the history (real estate, stock, crypto currency) don’t end bad until it reach the super super crazy stage. We are still far away from the super crazy stage yet. If you look at Las Vegas case shiller data from 1987 to 2018, on average, today Las Vegas house price has less than 3.6% raise each year since 1987. Each year has only 3.52% growth on Las Vegas house price since 1987, include the inflation, today’s Las Vegas house price is not expensive at all.

I upgrade all my properties, so I can get top dollars rent. Plus, it will sell at a higher price in the future. That’s why I like improvement. :)

Hahaha... That’s right, since you will be selling it in a few years. My mindset is more like buy and hold long term, like to maintain things inside/outside well for long term. It would benefit the community in the long run. Haha...

These two years, I have seen several Communities have fresh paint on the exterior walls of all buildings in the same community. It has made the community more attractive to both buyers and renters. But the idea is needed to be present and approved in the homeowners association board meeting. As an owner of the 4-plex, you have the right to present the idea during the monthly or quarterly homeowner board of directors meeting. Once it is approved, the HOA will look for contractors and it should take less than one year to paint all the buildings in the same community.

Terry Lao Thanks for the information. I’m glad that you bought it at a low price of $170k. Some comments about the community: The old paint on the buildings make the community looks a bit old. If the HOA is willing to budget some money for fresh paint on all the exterior buildings, it is value-add and will attract more investors like me. In addition, the fresh paint can help sellers like you to sell the 4-plex at a higher price in the future. Seriously, when you have a chance, try to talk to the Board of directors about fresh paint on all the buildings. :)

@Terry Lao

One year ago, I had a chance to purchase several of these 4-plex at around $240k each.  

I drove by there 4 to 5 times, tried to convince myself to purchase it, but still don't have the brave to buy it due to the unknown class of tenants.  The neighborhood seems like a C/C- area to me.  I was feeling a little bit scary when I was there.  I think that's because my focus is Class A or Class B tenants (minimum 650 credit scores and verified income must be at least 3 times the rent) - easy tenants.  

What type of tenants in the 4-plex neighborhood (Gray Ln)?

Students?  Section 8?  cash income without credit? or else?

Want to understand the neighborhood more before consider it again.  

Thank you

story extension...

5106 Goldn Ln

Sold at $310k

5227 Garden Ln

Listed at:  $320k (under contract)

5247 Garden Ln

Listed at:  $330k  (under contract)

5126 Gray Ln

Listed at:  $339k

At this speed of raising $10k per month, similar 4-plex may be asking for $400k in December 2018???

I agreed.  

One of the properties I closed escrow one week ago.  The listing agent listed it at $205k, but I found recently sold comp is $220k.  It had 20 multiple offers because the property is renovated with fresh paint, modern wood laminte floor and brand new stainless steel appliances etc. already.  I won the property at $215k.  It is $10k over the asking price, but still $5k below recently sold comp.  To me, the numbers work and it is a good deal even it is sold above the asking price.  

It depends on the stage of the real estate cycle. During the beginning, middle, or expanding stages, it is better to have mortgages, so you can leverage more properties to maximize the profit. The more closer to the peak, it is better to pay off the properties, so you have a better position to ride out the next recession. The real estate market is still very strong, should have at least a few months years expanding before reaching the peak. I’m still purchasing more properties using leverage today.