All Forum Posts by: Bill B.

1/2 bath is sink and toilet only. (no tub or shower) for future reference. 

@Tom Albares

Tom, I’m sorry for your loss.

I would talk to a local cpa/attorney. As a non-cpa/attorney, I believe, because you live in a community property state, you can sell both properties at a stepped up basis tax free. There’s certainly no way I would keep a $200k condo to make $2,000/year. 

YURT !!!!

@Brandon Carriere

10-12% on $2-$300/mo isnt even factoring in if we’re ignoring the time out fo the market, the new loan costs, the lower price he gets as a rental, the time involved researching any/every market, vacant time looking for new tenants, etc etc etc. 

I dunno his situation any better than those that say sell sell sell move to another market constantly. We don’t know if he has any equity. Maybe he bought as a primary and would only break even if he sold? Especially since he has to sell to an investor that honors the current lease. 

The house he has isn’t some random house, it’s one he bought, but the one he bought out of state per other’s suggestions would certainly be random. 

$600k was only a 20% gain in 10 years, that’s 1.5%. He probably would get closer to $750k, that’s 3.5%. 

It just gets old to hear the cashflow story from people that will not even entertain anyone else’s opinions. You want cashflow on any property? Pay 100% cash. It will probably cashflow. But it turns out leverage is good. 

I hate owing money and I hate paying interest. So I did all 25% down 15 year loans, kind of a middle ground between paying all cash and paying 5% down 30 year loans. Now 15-20 years in I’ve got more and more paid off properties but all that money is being snowballed in to paying off other loans. I assume more than half the people on BP don’t need real estate cashflow any more than they need their stock portfolio to cashflow, but they keep getting beat over the head with “this is the only correct way, this is the only metric that matters!”  

A guy who grew up in the modest Midwest can’t spend the cashflow from 12 paid off Vegas properties. Maybe I should start posting that if you’re property isn’t cashflowing over $1200/mo you should sell sell sell. 

Ps.  Everything above is just an extended rant of seeing people post the exact same opinion to every poster without bothering to read or learn anything. I apologize, I was going to say in advance, but I guess it’s in arrears, since the rant is over now. :-)

Let me get this right. 

Op should sell and pay $30,000 in commissions ( or counting discounted price because it has renters in it.) so he can start over in an area he knows nothing about, to avoid $3,000 a year in negative cashflow?

Does anyone suggesting this think in 10 years when he’s invested (not spent like when selling) that same $30k in negative cashflow this house will be worth less than $600k? $700k? Plus he’ll just owe another $30k less  

i’m Waaaay more concerned about the property being in the renter’s paradise called California than plus or minus $2-300/mo. In cashflow. Nobody’s life is changed by that amount of money, especially when they own a $500k rental. 

You’d have to ask a local landlord. Off the top of my head expenses that some landlords have and others don’t...

Snow removal, lawn maintenance, semi annual house/fence painting, insurance and property taxes both vary WIDELY, replace asphalt roof every 10 years or tile “never”, seal/replace asphalt driveways, is there an Hoa?

My only MN property has high property taxes and high HOA, my expenses last year were almost exactly 40% (40.12%)

An average property in Vegas for me ranges from 27.5% on a 5 bedroom no Hoa home, to 30.8% on a gated Hoa 4 bedroom. To 36.4% on a 4 bedroom gated Hoa with a pool. (Another expense I forgot to mention.)

So 30% in Vegas seems about right, maybe 40% in MN, maybe less. (That’s lake front with a $400/mo Hoa.)

All percentages are without financing expenses but include everything else I possibly could. (Tax return data)

Dont forget, I’m pretty sure you have spend more on improvements than the purchase price to qualify for Ozone benefits. 

As long as it’s a bad enough deal that you don’t mind losing it if they say no. As soon as you counter/change the agreed on contract to require them to fix something they have the right to say no thank you, in fact we have a better offer from another person. 

This is why I always submit backup offers on properties I really want. I have my realtor say something like “in case your current buyer gets nit picked, because we aren’t...”

Either it’s a tiny deal/expense or it’s a big deal. A leak should probably be fixed, but it’s your risk. If it’s a new roof, how much more can they sell it for with a new roof? Are you willing to pay that higher amount?

I’d certainly get a quote from a roofer and a handyman for the interior damage. 

In 5 years the rents have only increased $25? At just 5% / $25/year you’d be at $600. Hate to think 5 years from now it’s only $25 higher. I assume property taxes/insurance/maintenance are up more than that. 

Run in to it all the time on waterfront property, dunno I’ve seen it on dry land. 

Can you build a garage/workshop there?