All Forum Posts by: James Cox

@Sam Eknoian I think a few others already mentioned to check zoning, otherwise you may be collecting checks only to find out you have to boot a few tenants or face fines. Also, probably a good idea to confirm highest and best use otherwise it may be hard to sell in the future.

@Nathan G. I was going back through some posts and realized I forgot to thank you for the good advice. Much appreciated!

@Asa Davis

I’m an appraiser in the Texas Area. Of course Im not familiar with your market but I’d be glad to look over the appraisal and who knows maybe provide something useful. For example, is it credible, well supported, etc.

@Jay Hinrichs

Love it. Put a deposit down on the dual motor self driving first thing in the morning after the unveil. We see lots of value in it if Tesla can pull it off. Thought I was going to have to sell my wife on the idea but she was literally handing my phone to me before coffee. We didn’t even really discuss it much like we do most things, I guess the value was obvious and the commitment was almost 0 and so far away (2021). The safety, tech and the cost of ownership were the big selling points. I will say, we’re not really the latest and greatest kind of people or into virtue signaling when it comes to our cars or really anything. Did I just virtue signal by making that claim? Feels like I did. Moving on, my 06 Ridgeline that I bought new in 05 just seized on me at 300k mi and she drives a 12 year old minivan. I volunteer this info because I think it’s noteworthy and interesting to see what the people buying this truck are coming from.

At first, before the Cybertruck was released I was going to maybe sit back and let this unfold, let the quirks get worked out and maybe find a good deal on the used market. But once the options, features and price were revealed, waiting just didn’t seem prudent.

@Andrew Schulz

If you know you want to end up in real estate then maybe pick a part of real estate that interests you and learn that skill and use it as a stepping stone to compliment your investing.

For example, I became an appraiser because I felt like it would be a stepping stone to being a well rounded investor. I’ve been appraising for 10 years now, invested a bit and now ready to crank it up.

If appraising wasn’t an option and let’s say I was handy, another option would’ve been to do some contracting work because of the low barrier to entry, cash in hand, working for yourself, networking etc.

Leveraging the skills you have now to kill two birds with one stone imo is a good idea because you’ll gain traction by working an occupation that’s related to your end game. If you have office skills go work at a title company or become a loan processor, learn the business and be a loan officer. Go sell new homes. No college degree required and no real estate license required. Persistently go after the interview and don’t stop until you have the job. They don’t teach that in high school. That’s what I did before I was an appraiser. I started out as a model attendant and then a year later got a job with the same builder. New home sales pays very well. You’d likely make 6 figures as a mediocre new home salesperson.

Anyhow, pick something and do just that one thing. For me when the builder I worked for went under in 08 I didn’t have anything to fall back on. I had a mortgage and a truck payment and no savings. The only thing I really knew how to do was wait tables and build a fence because I had just built one for my house. I put a Craigslist ad out that read ‘ I build fences cheap.’ Thats how I ended up bringing my house and a rental out of foreclosure and financing the transition to appraising. My apologies for the long winded advice but I’m passionate about this topic because school doesn’t teach this stuff but luckily I had parents that did. Good luck!

@JM Payne thanks for that advice, so smart

@Jermell Shavers I like that

Any thoughts on the merits of requiring rental insurance.

I’m just finishing up a rehab for a buy and hold. The rehab has gone a bit longer than expected. We had a lease signed over a month ago that began at the beginning of last month and the place is just now habitable barring a few punch list items. The first lease didn’t require renters insurance. I just purchased the BP Texas lease and see the clause about renters insurance. I like the idea of requiring it but I didn’t require it in the first lease she signed. I filled out the new BP lease requiring a minimum of $50k personal coverage and have signed my end on DocuSign and waiting on her. My question is, am I out of line? Is this ‘bait and switch?’ I’d like her to carry coverage but I don’t think I can rightfully dig my heels in. Btw- I let her move her stuff in already...i know...bad.

@Ryan Nolan

I’d be inclined to leave it but that’s the appraiser in me talking. In all the appraisals we’ve performed the market doesn’t seem to react strongly to replaced/brand new mechanicals vs older functioning units. When a homeowner tells me about their new ac or water heater or roof, I think to myself, “congratulations on maintaining your home.” I note it in the report but it’s nearly impossible to line item for value and conveys a level of precision that doesn’t exist in an imperfect real estate market.

If you hold out and don’t touch it, then you can see at the time of negotiating if it even matters to the buyer.

@Nicole Heasley

My engine just blew on a 300k mike truck I bought new in 05. I wanted time to breathe and didn’t want to rush into a decision so I rented a 2019 f150 for 30 days for $800 and I get up to 3,000 miles. If I were to lease one I’d probably only get about 2k miles. I just re-signed the paperwork Monday and have it for another 30 days. I’m an appraiser so I drive a lot and needed something fast. This was a good temporary solution for me.

Also, I needed my dti to be as high as possible for the next few months because we write off a lot so I didn’t want to finance a new truck. I still may end up financing something later. We’re also hemorrhaging cash on a rehab so I didn’t want to drop a bunch of cash. I feel like I’m almost doing something underhanded; kind of like I found a hack, because after the write off it’s about $600 per month. Here are a list of a few of the advantages

1. Doesn’t affect my dti because it’s not reported to bureaus

2. I’m on our mini van insurance ($50month) rather than new f150 insurance which would’ve been much more

3. I don’t own a depreciating vehicle

4. Free maintenance - tires oil changes etc.

5. Didn’t drop a handful of cash

6. Tax deductible - of course this may not apply to all

Disadvantages

I can’t tint the windows

I can’t paint rainbow flames on it