All Forum Posts by: John Carbone

What does park model depreciation fall under? I hear anywhere from 5-15 years for tax purposes.

Atleast Covid is over now (even though it isnt) and no more lockdowns. People can choose to get 4-6 shots if they want it. Actually on second thought, I probably would prefer locks-down because more people would be pushing up my prices on my STR in TN

 I agree! That guy cracks me up sometimes though. 

If Dave Ramsey read this thread, he would have a heart attack 

Leverage is amazing when asset values go up. I’d caution getting too overextended though. Every investor I know does max leverage, consumers are max leveraged, if there is an actual recession here, we will see some major pain to flush all this speculation out of the market. 

It’s a balancing act for sure. You don’t want to overextend yourself to where you need the w2 income job to cover expenses if things go badly. You want to have as few fixed costs as possible. 

im invested in Tennessee and never in hoa’s. My fixed costs on my properties could be serviced by me working at McDonald’s. 

I was a little over leveraged initially but I’m in a spot now where I’m probably 60 percent ltv on my properties. Depending how 2023 goes I may push that up to 80 percent and expand some more. But do what makes you feel comfortable. 

Real estate on leverage has worked for people every time except GFC, if this happens within next 5 years then can be in trouble, but make sure you can ride a huge downturn. 

 You will want to try to find someone for maintenance on marketplace or fb groups. There are a lot of people that will go out and do basic stuff like that. For actual contracting work though you don’t really want all the “handy Andy’s” on there working on 500k-1m properties. You can message me specifics on the finish work and timeframe and I’ll see what he says. 

I have a friend here in Gatlinburg that is a fully licensed contractor. He only works on referral and I can’t give his name out. I’m keeping him busy through early February and I may be having him do something else, but depending on the job and time it will take can determine his willingness. I could mention it to him tomorrow when he comes over to work on my log siding. 

fwiw, my friend told me the people who are primarily on marketplace are people just trying to get leads for companies. The people who end up doing the actual work are not licensed, but they use the license of someone to do the work. What ends up happening is, you pay 10k for a deck and it gets outsourced sometimes several times and the final person who does the work ends up doing it for 3k. This is very common. 

 I’ve done this as well, but since rates have gone up I haven’t seen the offers like this. Are you still seeing these offers?