All Forum Posts by: Dave Kennedy

Do you need more info then this for a general calc?

Estimated tax ($300/mnth)
Insurance ($80/mnth)

Strictly looking at it from a cash flow basis and assuming it needs no major repairs. What would you pay for a 2 unit that collects $2,400 in rents. I am just looking for a 30,000 foot offering price. Not the lowest offer...which would be Free! lol.

Thanks!

I ended up turning down the offer for other better opportunities.

I appreciate everyones input here.

Good post, its more difficult to buy a home then a rental property. Since its much easier to get a value using the income approach.

What is a good way to determine a homes value excluding all the peaks and valleys? Would you take a long term growth rate of RE (3-4%?)?

Jeff I agree there was a period after the last crash we went through pretty bad inflation but do you think we are going to see another push, probably bigger this time around? I think its inevitable with all the money we have been printing since last year. Trillions of $$ have been pumped out and eventually it has to catch up.

Will we see mortgage rates into the teens again? I think we may.

It just seems as though they keep pushing things off. The peak keeps getting higher and higher and the collapse will eventually just get bigger and bigger.

If we didn't get propped up by the govt in 2001 we might have already hit our bottom and started back to recovery. Again we are just pushing it off to another day. Eventually it will all compound when our massive debt meets massive inflation meets the failure of SS meets the failure of healthcare. Both of those systems are expected to be insolvent by 2015-2030. Those dates seem a lot further away then they actually are.

We have all talked about it on here since last year. I know many of us expect it with our countries balance sheet so out of wack, the fed would rather see a massive inflationary period because they can deal with it better then massive deflation. It looks like we are starting to make the turn this spring with commodities beginning to come off their bottoms.

Anyhow...I thought this was a great read...some of it above my understanding but it makes a bunch of great points.

http://www.hussmanfunds.com/wmc/wmc090518.htm

I found this to be interesting. As if the fed and Obama are hoping to just push this problem down the road with inflation and give the general public a false impression that this disaster is over. Its already been done once, in 2000-2001 we had the tech crash/ 9/11 and things began to unravel. The government propped the economy with cheap/easy to get money and allowed everyone to buy a home and leverage up 40:1. It saved us from a collapse but pushed the problem out to 2008. Here we are again with the govt stepping in by flooding the banks with money to make them whole. It might prop us up for for a few years but no matter what the big crash is inveitble. The only way to actually recover is let it go through the system. You have to let things fail at some point.

How do you play this as an investor? You don't want to hold cash in the bank because if his prediction of inflation is right any cash will be cut in half by 2019. Do you lock into hard assets like RE now and hopefully ride that wave of inflation? If you lock in a low interests now you would prosper in the next 10 years...correct? Obviously Gold/Silver..etc will be a hot choice as well.

Thanks for the feedback Jon. I was searching on Sub-2 books on amazon and Wendy's book got a lot of good reviews so I purchased it along with the book called FLIP. Good to know Wendy's book gets your praise.

I'm looking forward to reading them both.

Bueller......Bueller......

I went through the book review section and got some great insight but I wanted to narrow the search down since there are so many topics. I am going out to Cali in 2 weeks and need some good reading material for the 6 hour flight and the countless hours of sitting on a beach.

I am looking for a good Sub-2 book, I've never read anything on this material but want to learn. I've read plenty on Multi-Family and Flipping but wouldn't mind reading a few more on these topics.

This is what I am thinking on buying
Complete Guide to Flipping - Steve Berges (Jan 2008) - One of the newer flipping books that might be more applicable with what has gone on in the RE market.
Flip - This one got some good reviews on the board
Commercial RE Investing 101 Trump University - Lindahl I want to read this simply because Lindahl has written some of my favorite RE books.

I've already read
Complete Guide to Investing in Rentals
Property Ladder
The ABC's of REI
Automatic Millionaire Homeowner
Rich Dad Poor Dad
Advanced Guide to REI
Find it, Fix it, Flip it
The REI's Pocket Calculator
How to Buy Foreclosed RE
RE Riches (audio CD) - Dolf De Roos
Multi Family Millions - Lindahl
Emerging Markets - Lindahl

What do you guys recommend? Thanks!