All Forum Posts by: Will G.

Good question, and the one everyone is waiting to see. Fed goes nuclear to combat the massive deflationary forces present in the market currently and institute a do whatever it takes approach to keep the record debt bubble from imploding! If debt starts to go bad it could mean massive deflation and ultimately a repricing of all the assets the fed has supported these last 10 years, aka japan in mid nineties with real estate never(as of yet) recovering.

If they succeed it means asset prices and gold will soar!

Banks are where the money is created and they are all run by people who have to make individual decisions about  their own risk tolerance, so it may or may not encourage banks to make more loans.

This is a bigger response from the fed than the 08 crisis and all in a very short time period. This situation is not looking like a "V" shaped crisis that will last 6 weeks!

What do you think?  

obviously the tenants want to get a dog and not pay a fee or extra rent...I doubt they are expecting you to reduce the rent. your choice should be based on the unit itself. got carpet, a fenced yard, close neighbors that might complain etc.

Sooooo close, situationally and congrats and I hope you have an easier time at it than I did.

I would suggest start with cd's while you survey the market, get to know some commercial brokers, and figure out a likely path. We happen to be in a very strange place, economy wise and also very late in the r.e. cycle. You might be in a fantastic position (cash) very soon, but now cap rates on multifamily are historically low and anything that hits the open market has been handed around to broker "insiders". You want to be one of those people, hence the networking with them for a bit. not sure where you are located but most of the country will have exceptionally bad rent to house price ratio, currently so not a super environment for buy and hold. Fix and flip might offer some better returns, but again it is time to play defense, and deals HAVE to be actual deals and not just marginal ones. The sad truth is the world is yield starved, and difficult environmentally at every turn. Warren buffet is hording cash, the bond market(high yield) is set to implode, the stock market is at a very high valuation and risky, real estate has been jacked up by cheap money(fed policies) and there is record debt(mostly corporate) now. 

Don't forget diversification is crucial.

If you wake up tomorrow and buy the first thing you see, i hope you crush it, but otherwise please don't be another investor who thinks that real estate comes with 0% risk.

IMHO total waste of time and money, I built homes for many years taking undo care about energy efficiency, air changes per hour etc. Nobody cares! Better to upgrade the kitch or bath with that money where it will pay off.

Women buy homes, goes the old adage, so spend that K on something she will appreciate, the insulation can always be added later, higher end flooring...not so much

Radiusplus.com sells self storage market data

Did you check air dna for short term rental info?

@Jason Hendrickson What happened to rental rates? 10% correction? 

Vacancies reached 10% around 07.

Doing d.d. on a 12 unit multi, built in 72, with a sloping lot and no egress, from the 6 lower units bedrooms. Obviously it is code to have the ability to escape both bedrooms in the event of fire, but could this be mitigated by a sprinkler system or is this effectively a 6 unit apartment building?

Current owner has all tenants paying cash, with no leases.

Here we go...

https://www.msn.com/en-us/news/us/oregon-to-become...

Big deal or no?

The answer is a moving target thanks to the financial engineering of the fed. They constantly change the value of money, so we are all left guessing= frustrating for r.e. folks. The last 10 years or so of 0% interest meant cheap money for all sorts of stupid investments, and I GUARANTEE, we will see  who is wearing pants as the tide goes out and the money gods "allow" interest rates to move toward a "market rate, or what they should be. The tsunami of cheap money is simply a way of consuming future productivity here and now and we will have to pay. Now that i got the rant out of my system , i believe most would  look to the 10 year treasury as the benchmark for what is considered a good return. For the last decade it has been negligible in return which is why cap rates for instance have been at historic lows. 

With 10 year treasury@ around 3%,  would you do toilets and tenants for 1% (4% cap rate) with no upside potential down the road, (because cap rates are likely to revert back to historic norms)?

LOTS AND LOTS of mal investments have occurred the last few years , within many sectors, all due to the super cheap money available, especially by institutional investors.

So a worth while deal today will have to pass a stress test of higher cap rates at resell, slightly higher vacancies, and cost of credit rising, and better yet it being something that you can add value to, which will insulate against the future conditions