All Forum Posts by: Chris John

This is going to be like the cop thing.  Community makes it clear they want to "defund" police (granted, that seems to mean something different to everyone that says it).  Police quit.  Community changes mind.  Nobody applies for new positions.  "See, they don't want to be police if they are held accountable..."

Or like the food desert thing.  Allow rampant shoplifting.  Stores close.  New ones don't open.  "Why can't we get services to these communities?"

Now, make being a landlord impossible.  Landlords leave.  No rentals drives up prices.  "Look how greedy these people are!  Also, this is proof that free market capitalism doesn't work!"  haha.

@James Hamling

I definitely get your point and agree with your thoughts on "Fly Over Country" vs. the idea of what I consider the midwest.  I hate California, but my family is here and my wife ain't leaving.  However, if I did leave, it would be to Tennessee, Florida, North or South Carolina, etc.  No way would I want too brutal of a winter, so a lot of what I consider the midwest is out.  I know I only speak for myself, but I suspect that I'm not alone in that thought.

@James Hamling

"This may be a bit out there of a prediction, let's call it my "Thesis",
but I think we are seeing the birth of the MidWest dominance."

I've seen quite a few things in my lifetime that I NEVER thought I'd see, but this one would be up towards the top, for sure.  I mean, are you saying that people will flood out of California, Texas, and Florida and head to Cleveland or something?

@Alexa K.

"Roof replacement within the next 5 or so years, and a new AC condenser
by Spring 2023. Based on my contractor estimates, I'm roughly looking at
around $6.5k"

"a few years ago these houses sold for $4,000-7,000 each"

I'm from the Central Valley of California and all I can wonder is if this post is from 1973 or something?  Those numbers are CRAZY for me to think about!  haha.

Personally, I think that if your numbers are correct, it sounds like a great return (I have no idea how accurate your numbers are) as a percentage.  If someone is able to invest money at 30-40%, it won't take long at all for them to get wealthy.  Also, you'll go crazy if you compare your deals to other people's deals.  You're always going to find someone that did better, so you can't let that dissuade you from picking up good deals for yourself.

To play devil's advocate:

- If you have a bad tenant that does some real damage, it could easily take several year's of your projected profit to pay for.  That's problematic if you're not expecting appreciation.

- No matter where you're at, it seems like materials alone would cost more than $6500 for a roof and an AC.  Having said that, I'm definitely not familiar with your neck of the woods.

- I'd closely inspect those drains that need snaking to confirm that you don't have pipe, root, or some other major issues.

Good luck!

Things that aren't sustainable can't continue forever.  Hence, the stupidity that this nation is currently enduring will eventually end.  I just hope I stick around long enough to see it, but either way, it will end...

@Carlos Ptriawan

Sorry, I just heard of this new invention called "Google"...

"The Fed can increase the money supply by lowering the reserve requirements for banks,
which allows them to lend more money. Conversely, by raising the banks'
reserve requirements, the Fed can decrease the size of the money
supply." - Investopedia

@Carlos Ptriawan

Sorry if you've already explained this (there's a lot to read through...)

What process does the fed use to increase and decrease the money supply?  I hear people refer to it all the time, but I have no idea of the mechanics behind it.

Thanks

@Michael Keane

Nothing ventured, nothing gained, but I'd really question a seller that's willing to accept 20% over asking with no down payment and seller financing.  I can't think of one reason that you'd continue making payments if things go remotely south.  I'm sure you're a great guy with no plans of breaking the deal, but with those terms, why wouldn't you?

These responses of "it's your house, you decide who lives there" etc. are making me laugh.  You're all not from California, I'm guessing?  haha.  Good night, I can't wait to get the rest of my money out of this state!!!

@William Anderson

Fabulous response.  Thank you so much for that!  I really appreciate it.