All Forum Posts by: Kenny Smith

...what in the world is going on with the Denver housing market?

1. Inventory is very low - for all of the homeowners that bought or refinanced during COVID that have a sub 3.5% interest rate don't want to sell when rates are at 7%. Why? If they are trading up, why trade a 3% rate for a 7%. We may continue to see inventory issues until sellers feel there isn't a huge gap in rate exchanges when trading up.

2. Luxury housing has slowed - the entry level home in Denver still stands at roughly $500k-$600k. During COVID, folks were able to afford a little bit more seeing rates were so low and their monthly mortgage was kept down. Now, they are getting priced out of those more expensive homes because of affordability with rates. Now, there the entry level home price point of $500k-$600k has seen a huge uptick. A nice home priced right and in a good location, is still selling quick!

3. Rates will ulimately decide where the market goes - having already mentioned the importance of rates to sellers..rates of course, have a huge effect for buyers as well. Some buyers are considering waiting until rates to drop to get into their home. Seeing a large numbers of buyers are considering this strategy, if rates do drop and many get into the market at the same time, this will likely cause home prices to go back up.

Bottom line - we need more inventory. Inventory would put us in more of a balanced market for both buyers and sellers.

Thanks for reading!

 Thanks Randy.  So to clarify, I would be taking money out of the 401k or SDIRA and would be buying more real estate myself.  But I want to do that without any fees taken out..not sure if that is possible.

I am told the 401k plan I have now does not allow for that..that is why I want to roll it into an SDIRA, because from my understanding, you can use that money to buy real estate without penalties.

Hey BP Community!

I am planning on moving my prior company's 401k to a self directed IRA so I can take advantage of borrowing money against it to buy more Real Estate.

Anyone have a great company they'd recommend to hold this SDIRA account with?

Many thanks!

Hey BP!

I have an older home with original hardwood floors.  I also live in a very dry climate here in Denver.  The issue we dealt with when we first bought the investment property is very squeaky floors.  I used squeak away, break away screws, to fix the larger squeaks.  Essentially eliminating the gap between the subfloor and the joists that was causing the squeak.  For the most part, they worked.  

However, I am still finding additional smaller creaks in the floor boards themselves.  Any recommended product out there that helps hydrate or lubricate hardwood floors?

Thanks in advance!

@Account Closed

Thanks for your input!  I don't claim to be a medical professional, but if someone had a pre-existing lung condition, or is a new investor who doesn't know how much and where the asbestos is, probably a good idea to get a second opinion.

Every situation is going to be different.

Hello BP community!

I get asked this quite a bit with some of my clients, so I figured I'd share my thoughts on it.  If you own a home that was built prior to 1978, there is a good chance there is asbestos somewhere in the home.  They used asbestos back in the day because it was a highly-effective and inexpensive fire-retardant material and thermal/acoustic insulator.  It can be found in materials such as insulation, ceilings, roofing felt, floor tiles, cement, and even roofing shingles.

Realizing this product has proven to cause cancer, it was banned in building materials in 1977.  Although it was banned, there was still product circulating in the market afterwards, so don't be surprised if your 1980 home has traces of it still.

If you run across asbestos, understand most asbestos will not be released in the air, unless it is disturbed.  Before conducting any renovations, it is important to have a licensed asbestos abatement company either test the product, or abate it themselves.  

I have popcorn ceiling in a few of my rentals that more than likely has asbestos in it.  Since I have no plans to remove it anytime soon, I shouldn't be worried about getting it in the air.  Again, unless it is disturbed.  When in doubt, make sure to call a professional to get a second opinion.  

Thanks for reading!

 Thanks for the recommendation Michael!  I am not 100% to be honest..I've been in touch with my plumber as I know eventually they will need to be replaced.

As our short term rental portfolio has continued to grow (3 so far), we've learned so many things along the way.  Quick Tip, whatever can go wrong, typically will at some point!  All we can do as property owners is do our best to mitigate those issues.

Case in point, we have 2 older single family homes we Airbnb (1957 and 1960).  The master drain line is galvanized steel.  Over time, these pipes can start to corrode, which can be restrict water flow, and eventually leading to possible backups.  Both of our homes, did just that.  Although there was no MAJOR damage, it certainly caused issues.  According to our plumber, it was likely caused from people flushing items down our toilet that shouldn't have been, such as "flushable wipes".  These wipes can be a big problem..older plumbing cannot handle things like this.

Since then, we have really made things crystal clear for our guests.  We simply have a sign above each toilet of things they should not be flushing down the toilet, and what type of problems it can cause.  We also have smaller stackable washers that can also cause issues if overloaded.

Simple things like a sign telling the guests can show that you as the host is professional, wants to take care of their home, and it can certainly help mitigate issues down the road.  Even though this seems like a simple thing a guest should know, some folks need that reminder.  Since then, knock on wood, we've had no further issues!  Sometimes it's simple things like this that can save you a whole lot of headache, and possibly money. 

@Michael Voils

So a HELOC is like a line of credit on your home, just like a credit card. You'll get pre-approved for a max credit limit. As long as you don't go over that, you can essentially continue to draw as many times as you want.

You'll obviously want to verify this with whatever lender you'll be borrowing from as HELOC's are all set up differently based off the institution you work with.

But yes, there shouldn't be any reason you couldn't draw that $75k at 2 separate times..you'll then only pay interest on whatever you borrow, not your credit limit.