All Forum Posts by: Bill B.

Especially if they keep making blanket assumptions about what other people are doing. 

Imagine how many house hackers are in there? People willing to live in a 2plex or 4plex for a year to get started. try plugging in 3.5% 30 year loans with a guaranteed renter and see if the numbers work. 

I promise you, you can make a good deal of money under 1% and you can lose your behind getting 2%. 

Imagine for 1 second you aren’t the smartest investor in the entire market and maybe someone else has figured out how to make money at a lower rate than you. You can’t say 1% is kick butt but .8% is a total idiot. 

Are you including property age, weather, maintenance, price, tax rate (state and property) insurance rate?

People, please throw that 1% rule in the trash. If you’re going to ignore the 2% rule why stick with the 1% rule? Would you rather get 1% on a $30,000 house in Detroit or .8% on a $2million lake house? 

I passed up so many deals 5 years ago over a stupid small amount of money. I had bought a better deal recently so I wasn’t going to pay too much now. I showed them, it took them one extra day/week to sell and I lost a million? Maybe more?

Tell me which houses you’re looking at now that won’t be worth at least double  their current value when the loan is paid off (3% per year) and don’t buy those. 

@Mac L.

If they are the old school gate type valves (they turn multiple items to open and close) they should be replaced with ball valves. (1/4 turn from full on to full off)

You can probably get away with just doing the main house one (I almost always do these even if working) the rest are up to you. Find a Plumber you can pay a set fee for replacing “x” number of gate valves. 

Just when I think @Jay Hinrichs can’t get any smarter. He goes and pulls something like a stackable in the master closet. And blows my mind. 

Never been so glad my place is in Tonka bay. :-)

Need a permit to replace a window, but not for rentals. 

To be honest I skipped the first page of comments so ignore me if it’s been mentioned. 

Take away the investors and what do you do with the 10’s of millions if not 100’s of millions of newly homeless?

True, if you were going to fill every house with homeowners instead of renters it might drop the price of houses in half so you’ll make all the current homeowners a “little” pissed. But at least half of them would sit empty during the next financial crisis so at least the homeless could break in to those and really crush the remaining homeowners values  

Lower property values would also lower property taxes for everyone so cities would be forced to get rid of all those extra employees. Cops/firefighters/teachers/etc...  or maybe they could just raise the tax rate so housing was worth less but still cost just as much monthly? 

My wife is married to a guy that owes a million and a half and doesn’t have a “job”...

Silly wabbit. 

I believe most mortgage documents include a page that specifically asks and basically only says. ‘I plan to live there” that’s why you’re getting a better rate and lower costs. It might even have a list of the penalties and crimes being committed by not doing that. If it doesn’t your mortgage broker can defiantly tell you.

Google says...

Lenders can call the loan — demanding immediate, full payment of the outstanding mortgage balance. If the borrowers can’t afford to or refuse to pay, the lender typically moves to foreclose — wrecking whatever plans of long-term investment or vacation-rental-home ownership the borrowers might have had. Lenders can also refer the case to the FBI: Lies on mortgage applications are bank fraud and can trigger severe financial penalties, prosecution and prison time if convicted.

They aren’t harder to rent out, they’re actually easier.  Tenants just tend to be harder on them as they tend to have more youths/children. you’re also by default going to have more people living there. More wear and tear on common areas. 

NV leads nation in rent increases, population growth, job growth, price appreciation and personal income. 

(Population and job growth are helped by being a small state and price appreciation is helped by just now reaching 2008 prices, but they’re still real percent increases.)

You’re probably lucky to get 1/2% of purchase price to rent ratio at today’s prices, but units fill very fast are mostly less than 10 years old, have stucco siding, tile roofs and lack grass. 

No worries

Ps. The exemption is if it was a primary first and you sell with 3 years of moving out after living there at least 2 years.