All Forum Posts by: Tobias Falzone

So I am rolling over about 30k into a self-directed IRA this year that I'm looking to put to work efficiently. I understand that is really too small for syndications with 50k minimums. What passive deals if any can be had with 30k out of pocket in a retirement account?

There are a lot of people with VERY loud opinions one way or the other, but I personally don't see crypto going away.  I have noticed larger institutional investors getting into the space recently.  The USD may be seen as problematic long term because of monetary and fiscal policies driving inflation.  Asset prices in general are quite high.  Traditionally if you want to hedge against inflation, RE is a great choice. BUT, RE cap rates are remain compressed despite being in arguably a major recession, I worry about their sustainability long term especially when the interest rate environment changes.  Stocks haven't performed as well in the last 20 years as they have historically from 1950-2000 and the valuations especially on newer companies is eye watering. IPOs are coming to market at 50B rather than 1-2B, so there is little money left to be made for the average investor unlike how it was in the past when companies like Amazon and Microsoft went public.  Bond yields are non-existent. What is there left? The best performing part of my small portfolio over the last few years has been real estate, crypto and collectibles.  Other than some small acquisitions in the collectibles space there really isn't anything I've been excited enough lately to allocate away from cash into.  So for now I am just waiting and watching.

However, I will say that DeFi is changing the game in crypto.  It used to be that Bitcoin and other Cryptos couldn't generate yield.  But now there is an ecosystem of lending and staking that definitely can generate yield, @Alexander Szikla, which will make it a more attractive investment for long term allocation. If I was putting any more money into crypto (and for the record I'm not currently planning on it) it would be focused in yield producing crypto assets. 

@Jeffrey Grieshop You pull public records on transactions - you look for houses bought and then sold within a past year.  Each area is a little different for pulling records, but you will see the buyer names/entities to try and contact.  You will also see what areas they are most active in and the house types they buy.  Its great real life info that can be used to identify your own potential flips or buyers for wholesaling.

@Armando Rodriguez I also second KW, though each office is independently owned and has a different feel. I interviewed more than one before settling on the office I went with. If you are in the process of getting your license they will typically let you sit in on the classes and trainings so you can hit the ground running once you get your license. Feel free to PM for more details if interested.

No, I only make bets I know will win

@Deepak Kumar  I used to live next door to Austin in Oak Park.  When one of my wife's friend's came to visit she needed to get something at radio shack, so she looked up the nearest one that happened to be in the Austin neighborhood and she decided it was close enough to walk.  It ended up being one of the scariest experiences of her life and was literally chased by not one but two different groups of what she described as gang members.  Chicago's neighborhoods can vary drastically block to block, and I recommend driving the neighborhoods of any area you are seriously considering.   I also agree with Brie that you don't want to buy in areas with 10 cap properties in Chicago.  Target 7-8 caps and you can find some great working class areas with good tenants.

@Kevin Zhang It depends on your goals and how involved you want to be.  As for south lake tahoe, the local population there is quite antagonistic to vacation rentals, as many locals see it as driving up prices as to make it unaffordable for them.  The city already has a strict permitting system in place for Vacation rentals, and it is quite possible they will further attempt to regulate vacation rentals.  VRs are exempt by renting 30+ days at a time, but I would encourage you to look outside of SLT proper if daily vacation rentals are going to be a core investment criteria.

Rental market overall is quite strong in Sacramento.  Jumbo loan limits in Sacramento county are currently $517,500, 20% down would put you at a 646k purchase price and still be ok.  There are still duplexes in stable areas between 300-400k.  Even A areas like Folsom will have 500k duplexes in some pockets, but cash flow is going to be lower in higher end areas.  AirBnB in Sacramento proper has restrictions on short term rentals in non-owner occupied properties.

Sacramento has a great renters market and one of the fastest rates of rent growth in the nation.  That said, these increases are baked into prices and cash flow is getting harder to find (but not impossible).  You might also consider 2-4 plexes with the amount of equity you have.  Was there a price point you were looking at or a specific area that interested you? 

I'l bet the rental rates given are pro-forma, since one unit is described as 'move-in-ready'.  Repairs are going to be substantially higher than $1000. Just cleaning up the exterior property will be a few thousand, and if the other two active units require renovation then you are looking at a renovation budget of at least 10-20k each.  I would recommend viewing the property to get a better idea of repairs required to bring this property up to par.