All Forum Posts by: James Triano

@Raven Parmer

I definitely would like those colors.  If you don't mind sharing your paint colors (looks like a tan, a grey, and a greenish color in there if I'm not mistaken?) that would be great!  Feel free to PM me. Also, if you have the supplier/type of bathroom tile you used that would be great too!  Thanks again!

@Raven Parmer

The place looks great and so do your numbers! Congratulations!

We're working on a flip right now and we may steal some of that color palate you've created.  Looks awesome.  

@Joe Pitrolo

I'm very familiar with the Morgantown market and live near here. You're not going to find college students by posting your property on the MLS. You need to generate traffic to your property by signs around campus, posting on the bulletin boards in the Mountainlair and posting ads in the Daily Athenaeum for student housing if that's what your going for. I'd be happy to reach out to some folks in Morgantown to help get your place rented if you'd like. Just PM me. Good luck man but there's no reason you should be vacant for 8 months with how blown up this town has become.

@Anne M.

Exactly.  I think it largely depends on where you are in your life.  I'm a bit younger so I'm okay with sacrificing my time in order to get maximum returns, while that certainly won't be the case in a few years.  Luck certainly plays a role but hopefully over the long term, variable "luck" will be minimized.  Keep playing the long game and you'll be in great shape!

@Anne M. Hi Anne!  You bring up such a great point.  I think you've received some great advice here so I won't beat a dead horse.  I too use index funds to invest and they're a great vehicle - I do automatic purchases every two weeks from my day job to hit the tax limits here for different allowable investment accounts. They're great. 

Everyone here has touched upon the main differences here (leverage, taxes, passive vs. active, etc.) but I'd like to point something else out.  When we (index fund investors) put money in an index fund, it's important to keep in mind that you are buying a business.  When you purchase an investment property, regardless of how you want to look at it, you're really buying a business.  It has revenues, expenses, customers, vendors, and a marketplace in which it functions.  Here's the difference in your returns - the distance you are from active management. 

In an index fund, you're many, many levels away from actively managing those businesses, thus your returns are eaten up by employees you must pay to manage the business, boards of directors, executives, then of course, your brokerage who packages all of those companies together to make your index fund.  Therefore, you get to expect a 5% return.  

In real estate, you can be that far away from management, too. However, expect a similar return (over the long term) from a REIT. Your returns will be a different form (more dividends than capital appreciation). However, if you go buy a rental property, YOU are the manager. Therefore you can get 20% returns on your money in. If you pay a property manager, then let's say your returns drop to 15% per year. Finally, if you hire a business manager, maybe your returns then drop again. I'm not trying to persuade you one way or the other, just know that it's certainly not an apples to apples comparison. I love REI and it's going to be huge my own personal portfolio but I'm willing to sacrifice the time and energy to do so - why? Because I genuinely love it.

Good luck!

@John Son

I think you're asking the right questions here.  Family situations can always be a bit tricky.  I DO think it's a good idea to invest and work with family members as long as they can be trusted and you have an honest relationship with one another.  Layout all of the expectations up front.  Obviously, this being your parents, I'd say go for it.  Of course, you need to do your due diligence.  Being new, I would just start picking up the phone and calling agents about multi-family properties in the area you're looking for.  Also, I wouldn't worry too much about what the current rent-roll is at an apartment (while it is great info to have) but start to learn about the area as a whole.  Learn about what the market rent rates are (because these could be higher or lower than what the current rent-roll is), what the schools are like, if the population is on the rise or is decreasing, crime statistics, etc.  This truly is a situation where you're going to "need to manage like your parents live there".  Good luck and feel free to contact me with any questions!

@Account Closed could help you out.  They're from the other side of the state. 

 Great point Steve - I'm grateful for the input 

Also, I've read where you discuss about Allegheny county being a "second class" county and don't worry, I don't take any offense to that - now if we were talking football this might be different, haha.  Thanks again for your help here!

 This is very much the situation I have.. it's a home purchased in 2009.  I can certainly see there being issues for homes purchased prior.  As I researched, I became comfortable with the mortgage documents and that the first mortgage holder is foreclosing. 

Thanks for pointing out the lender motivation here - it's important to remember that the lenders are not flippers but are just looking at the best financial way to unload the property. 

 Thanks for the information and howdy neighbor!  Thanks for the reference for those courses, I'll certainly take a look!