All Forum Posts by: Steve S.

Thanks for all the great thoughts Team!!!

By saying 10-15% are you referring to the stock market or your CoC return?

Stock market the last 18 years or so has returned a mere 4.3% per annum w dividends included. It's been one of the top 3 worst performing 18 years in the last 130 years. 

I suppose the worry is when we have the next market collapse, can I rent them out and are they rented at less than my monthly all in payment. 

Over 30+ years the market will have many bear markets and this next collapse is likely to be a doozy as the debt is now twice as high as it was in the last bear market in 2008. 

I'm typically in the 28 or 33% tax bracket 

What are the pros and cons?

I have bought them within the last year.  I could probably pay off both in 3 years or so and would gross about $3,000 per month in rent at that point.

Are there reason NOT to do this?  $3,000 more per month of consistent cash flow would = early retirement.  

Are there reasons TO do this?

only 1 quote. My option period is up today so won't be able to get another before a decision

I suppose I could purchase and get a tenant in it and later look at investing in the foundation repair 

house built in 1984. Pretty decent overall metrics on my offer of about $139k which would rent for about $1,400

However, after inspection, it probably needs $3,000 of capex and with a foundation inspection it needs at least a soul leveling for $4,000 or a full foundation overall auk for $10,500

I countered during the option period with $125,000 to cover my capex coats. 

They countered with $132,000 and $1,250 towards my closing costs

Questions:

1) how long could input off the foundation repair?  If I delay will the expense go much higher?

2) given their offer would cover more than my capex costs if I just did the $4,000 soil leveling, what would your next steps on the negotiation be?

I'd expect to rent in November / December for around $1,400

Thx for the thoughts. The property is in decent shape but near the top of the range that will work. I'm happy to walk away but also see potential. 

I need to replace all counters, both tubs need to be re-done, carpet in one room and some wall damage that needs to be fixed. I'd probably be content if they'd drop the price another $2,000 and was planning to ask for $4,000 off given those issues that need to be fixed. 

I expect them to reject any reduction which means I may need to walk away or accept a decent to good deal that may be a great deal years from now  

Yes upon more detailed analysis the capex required is going to make the numbers tighter. The deal will still work but it's not as lucrative as I thought it may be. 

I Have a house under contract. After doing more detailed analysis, if I could get the seller to kick in another $2,000-$4,000 the deal would likely work. 

Any suggestions on how best to do this?

I may just walk away from the deal but want to at least try.