All Forum Posts by: Dave G.

@Elizabeth Bryant

How old are you? When do you plan to retire? What % of your income goes to savings? I think you need to provide some more context for any meaningful responses. Generally, this would not be something that I personally would ever consider. What I have done multiple times is take the max loan against my 401k and used the proceeds to put together a cash purchase for a property. Then I've paid off the loan to myself. 

@Anthony Stephenson As an owner with multiple rentals and a frequent target of investors and wholesalers, I will share my personal view on these contact attempts in no particular order. If I was looking to sell, I would never go to a website. I find texts to be invasive and annoying. I delete them immediately. I don't answer any unfamiliar numbers on my cell. Voicemails are deleted. So phone calls are a waste of time on me. Maybe I am old school, but what I do notice is a card in the mail from someone. And while I have not sold to one of these folks, I have retained several of these cards for reference and future consideration for when I do sell. 

So, not exactly what you were asking about in your post, but maybe somewhat helpful for you.

@Priya Duhane have you e talked to the realtor? Confused why you would be asking for this in a forum.

@Nathan Gesner 

Start the eviction process immediately. Follow it to the letter of the law based on your state statutes. 

@Phillip Gonzales I bought 3 rentals when I was 24 years old. All bought with nothing down, and one of them I actually wrote the note for the seller to do a carryback for me (he owned it free & clear). Then I was off to the races to be a millionaire, right? Nope. I made the critical mistakes of not having any cash reserves and the properties had limited cash flow. Something would break almost every month it seemed, the properties taking turns each month on which one required maint for which I had no money to pay for. This went on for ~18 months until I dumped all three properties. I did not get back into real estate investing again until 18 years later and have 6 rentals now. 

Bottom line - make sure you have your $hit together before getting into so you don't make elementary mistakes like I made. Good luck to you.

@Chad Griffin What is your purpose here? To help out the community or to maximize the financial outcome for you and your wife in the sale of your home? I find this post on BP to be confusing as this is not a website for sharing ideas on how to be charitable to others, which sounds like your biggest motivation based on your post.

All that being said, the details you have provided appear to me that you would be taking on potentially significant risk. This would not be something I would consider, especially in a period of a strong housing market. If the market was in the dumps, and you had limited offers from quality buyers, this might be something I would consider if I really had to get out of the property. 

Join a local REIA. Look for meetups (still happening with COVID?) on BP in your area. You'll meet people in these forums and others. Good luck to you.

@Joe Dvorak

I do not necessarily agree with some of the responses. I do agree with @Tina Tsysh response about it being hard work. I have done this, and the first question you need to ask yourself in my opinion is: Do you want to be a realtor? I think you need to want to do that as a career just as much or maybe much more than being a real estate investor. If that is the case, then 1st be a Realtor, 2nd be an investor on the side. Otherwise, the effort, cost and litigation exposure that being an agent imposes on you when you're really wanting to be an investor is not worth it. 

Best of luck to you.

Dave

My response is Absolutely. 

But it won't be across the board. I will attempt to refrain from being political, as that is not the purpose of BP. But, aside from the fact that the country has successfully proven out the effectiveness and vast personal & societal benefits of working virtual, the financial, social and cultural leadership in certain parts of the country are absolutely driving people with means to depart certain localities and states. From what I've learned and personally experienced in AZ, this is the entire coastal West, NYC area and Chicago. I imagine it's also happening somewhat in other cold-weather mid-western states too, but not to the same degree. 

I think COVID really just accelerated things, that this migration was already happening. People don't want to live where they feel unsafe, and they have a tolerance level for the cost of living and taxes that can be breached. The ability to work virtual now (thanks to COVID) for so many has largely removed the barrier of having to find a new job if you move. It's much easier now, and often pays for itself quickly (think moving from LA to Phoenix, what I'm personally seeing).

As an investor, you do not want to buy into these markets where people are leaving. It's gonna get worse before (if) it gets better, and will take years if so. You want to be where they are moving to. I am lucky that my investments are in AZ. I am on the correct side of this investing equation, with my property values and rents seeing unprecedented gains. Prices are a current and trailing indicator in the investing equation. Job growth and population migration are more forward-looking indicators. With the right info you can be more proactive vs reactive. 

There are several parts to your question. First, the number of units you one under the same HOA is meaningless with this inquiry. Tenants insurance coverage is very limited, essentially covering the tenant's personal property in the rental. Furniture, TV, etc. This might help the landlord in terms of avoiding litigation over a fire or theft tenant loss in the unit. Otherwise, I know of no other benefit to the landlord. The HOA insurance covers all common structures, common infrastructure and areas. I've heard it described that HOA insurance would rebuild back only to the rough flooring, rough ceilings and interior studs. Everything else within the unit, flooring, electrical, plumbing, water heater, all kitchen appointments, bath fixtures, laundry etc, is what you're buying insurance coverage for as the owner.

To me, an analogous question would be - "Is insuring only the exterior of my car sufficient"