All Forum Posts by: David J.

@Russell Brazil with all due respect, please check again. They want $250 EACH

With the high prices in California some of my properties barely cash flow.  When you're getting $100 bucks cash flow they are quite literally asking for a 20% of my already slim margin. And for what? just because they can't manage their budget. I have to disagree. This is a big deal. This is extortion, this is theft as far as I am concerned. 

Thank you :)

I am so upset!, I feel like selling all of these properties and getting out. 

Wonder what they can actually do if I don't pay? A citation? (and then what)

It's a city thing only, not a state thing. They just decided I owe them because, well they want the money they think I am earning. 

How is a single house a "business"? I can't scale the single property!  Maybe I could understand if they wanted me to pay a single license fee to rent multiple properties in their city but $250 for EACH property? WHAT?

UGH!

Look what the fine folks of Antioch California are trying to pull.  They want $3000 dollars from me (I have 3 properties, each received the attached letter)

This is the kings men poking you with a sharp stick and demanding your coins. A Tax for simply being a landlord! 

It's exorbitant and unfair. I don't know how this is legal. 

Warning DO NOT INVEST IN ANTIOCH CALIFORNIA!!

I love this discussion. I think about this all the time and as a result I can't stick to one direction vs the other. I really need to wrap my head around this but it's quite challenging. 

One thing I have not seen discussed in this thread is the concept of extra payments early vs later in the loan.  I am pretty sure that $500 extra toward principle in week 1 has much more impact and creates more interest savings than $500 in week 200. 

Excuse me for thinking outloud, but with this in mind I have been trying to think up some strategy that involves extra payments early on and then stop.  A best of both worlds so to speak.  As I said, I haven't fully developed this idea yet. 

Someone in this thread said something to the effect of "keep your cash flow, you can always pay down your mortgage later if you like".... I couldn't help but think, yeah but your early payments have more impact.  That's why I am working on an opposite plan that kills a bunch of the interest early on but keeps the loan. 

Also, maybe I am way off base... interested in hearing thoughts from others.

@Thomas S. I agree with you. As the market creeps upward, lending practices have to loosen to keep the inventory moving but nothing can go up perpetually.  I know it, but I am still buying property. Like you said we don't know when. My strategy is to make sure I have enough equity and cash flow to survive. Assuming the correction isn't monumental.

@Bill F.  From what I understand, this new Home-One program (as recent as last Thursday) has inched the bar down even more. I am not sure how much documentation is even needed. From what I can tell it's very close to the glory days of zero standards. Have we learned nothing from 2008? Buckle up this ride could be taking off for another round!

https://www.housingwire.com/articles/43218-freddie...

Getting awfully close to "subprime" practices from days of yore. 

Here we go again?

Seems like something involving math would have a well defined answer.  Yet I cannot find a clear answer to the question no matter where I look. 

Suppose I have a $200K loan at 5% for 30 Years that I want to pay off quickly. If I have $1,000 extra to spare each month,  which method should I use?

• Pay an extra $1,000 / mo toward principle
• Pay an extra $20K using HELOC and pay down HELOC $1,000 / mo until paid then repeat

Thank you :)

Do you think homes ( or even MF) that can be printed in less than 24 hours and for only a few thousand dollars will revolutionize the industry?

This could lead to dramatic increase in supply. Additionally the attractive low cost of these homes could drag down the market value of all housing. 

Your thoughts?