All Forum Posts by: Danny Webber

New home communities are rarely good ideas for investors unless you are planning to make it a long term hold and the rental numbers are very solid. 

You pay a premium for new homes normally vs resales. Resale in a new home community is normally harder because you are competing with the developer and/or more recent homes built and you have little to no equity at purchase, etc..

You are an investor so you need to target the hard projects to make money. If new homes were great investments the 2000+ investors I know would be buying them weekly.

Depends on lender but as long as your dti's are good and you have reserves a loss on rentals is not the end of the world. They may require an LOE. I would not have a huge loss if it is avoidable. Keep in mind that whatever real loss you have is actually 5%+ more of a loss based on the real rate of inflation.

nice!

My belief is that you will see some investors selling their rentals to recoup lost rents/capital at some point in the not so distant future. 

That sucks. Why didn't they show up. Normally you have to refile the entire case and wait for a hearing. You can file it on your own if you have proof you are the owner. You will need the fin records from the pm company to make your case normally in triplicate. You will also need the total amount owed broken down for the submission.

Pay attention to the notification laws of your state. Make sure those are all documented. IE. Registered mail, 3 day notice on door or whatever else is state specific. I would look at having the PM company pay for any additional fees/lost rents etc. as a result of their negligence in representing you. 

Look at 2-4 units and just live in one. That is still a form of house hacking. Also, look for unrestricted land with a house that you could throw a travel trailer on as an airbnb. Mobile home parks, land to develop/build 2-4 units on, etc...

I am not a fan of a high priced sfr as a rental later but to each his own. Also, new homes do make great rentals or resales typically due to cost/note vs rents without larger down payments. You also typically have to compete with builder inventory or newer homes when selling. 

I do not think our pricing will go down anytime soon. We have been really insulated from the outside world in regard to RE. 

There are still deals out there for sure.

@Aralyn Austin

Prepaid full rent and double sec deposit or some combo will mitigate your risk if their rental hx and the rest check out.

@Bryan Hancock

I wonder how much land there is in total in RR that can be developed. Probably still alot i would think.

@Andrew Worgan

Find an agency that fits your long term plan then find an REI Mentor.