All Forum Posts by: Laith Ali

I think the midwest in general is pretty cheap if you live outside the city. I laugh when I hear people say they spent 800k on a house in a big city that would cost 80k here. I eat pretty good for 200 a month which is 50 a week. I usually get orange juice, steak, boneless chicken to make a sandwich, and a 5lb of potatos is pretty cheap like $2.50, and flour is only like $2.5 for 5lb. You just need to take time to learn to cook and you can food better than any restaurant. 

I don't have health insurance. I cut my hand pretty badly and I just went to the urgent care and it only cost 100 for a visit. I went back again for a 2nd checkup and in total it cost 200. Although I don't really recommended everyone do what I do, I think its pretty sad that people feel like they will die tomorrow if they don't get insurance. A co-worker got laid off and he was paying 900 a month in health insurance from his own pocket. He had to dip into his 401k just to pay his bills.

Chris, that's a smart idea. I should start looking for poor friends so I can use them as a gauge when to exit the market.

I thought teachers, police officers, firefighters and other government workers were making like 60k and some I heard in san Francisco were making 120k a year. No wonder they go crazy when someone wants to cut their pension.

Hi,

I was reading an article a few days ago that said 40% of Americans can't come up with $400 if they had an emergency. I couldn't believe almost half the country is that broke. The median household income is 60k, so where is the money going. Was Senator Chuck Grassley right that they were spending it on booze and women lol. I usually don't spend more than 1000 a month. I own my own place so there is no mortgage and I'm single. Please let me know if you could come up with a $400 in an emergency and what your expenses are.

-200--food

-400- car payment, gas and insurance

-100- utilities

-100- internet and phone

-200-- property taxes and house maintenance

Total

-1000

Thanks everyone for your feedback.

Chris you have a good point  about checking the comps. It looks like my area won't give you the money you want if you put high end material. It's too bad because I seen some really great kitchen layouts that I wanted I try. It's easy to forget that I'm designing this house for someone else. 

Hi Everyone,

When you are flipping a house which things do you spend on that give you a good ROI and what things should be avoided. I'm in the st. louis area and the market I'm targeting middle class areas where a 3 bed 1500 sqft house will sell for $180k. Also what features do people really want. Below are some things that i thought about.

1. Kitchen countertops. I love granite but will others pay you what you paid for it? What do you think about granite tiles? I seen pictures online and they look really good. I was also thinking about concrete counter-top but I read they require a lot of maintenance and that they are hard to keep clean.

2. I like alot of countertop space because it makes cooking alot easier. 

3. Is it worth it to install a kitchen island or is it for high end homes. I personally don't like kitchen islands. I think regular tables are better since you can move then.

3. Is it worth it to add a bathroom in the basement for a house with only one bathroom? What about renovating the entire basement.

Also where do you get your material from. I seen some nice RTA cabinets online, has anyone had issues. I also seen nice tiles for the bathroom online, or is it just easier to go to home depot. 

Thanks

Don't show that to Bernie Sanders lol.

In my area and in most of America a 1500 sqft house would cost $1000 a month. That same house would cost $100,000. At 4% interest it would cost you $740 a month for 15 years. You can budget 260 a month for taxes and maintenance and repair. After 15 years you live rent free. Honestly people suck at math and that's why when someone says something like owning a home is for idiots, they just repeat what he says.

Don't forget that moving is also very expensive. You can't just break your lease and move next day. You also need to pay an application fee when you first rent. Also you rent will keep going up, and probably by the 15th year your $1000 a month rent will be $1500 a month. Also that $100k house will be worth $150k.

You can do whatever you want to your house. You can have whoever you want over your house. You don't need to ask your landlord permission if your friend want to live in with you. You can remodel the kitchen or bathroom. You don't have to be worried that owner will kick you out if he wants to sell the house. 

The real question should be why are 50% of Americans still renting. This is exactly why the rich stay rich and the poor remain poor.

Hi Steve, I'm not against learning or reading, it's just that I think you are wasting your time, from my experience. I read many books especially real estate books and realized that they waste so much time talking about useless things. Even thought I don't how much these authors make, I think money is a big factor for them writing. That's why they write 7 different books with different titles but basically the same message. You have to be able to think outside the box if you want to be good at negotiating. 

Maybe I'm difficult but you haven't convinced me lol. So much for your negotiating skills :)

@Steve McGovern:

I have to disagree Steve. I don't think its as gray as you think. I found your reply very vague, and that's how most of these books are very vague. I read too many books on real estate and finance that were just vague. I feel like they are just saying stuff so they can keep the book thick to justify the price. 

I will say that experience is what gives you good negotiating skills. If you don't know anything about construction then it will be very hard for you to get a good deal because you have no reference on whether the price you got was fair or above average. I also think that having good experience gives you genuine confidence. 

Don't worry about him saying he is insulted. Not sure the city the MFH is in. Some cities are just not good for renting because the rent to price of housing will give you a low ROI (Ann arbor is a good example). Always stick to your numbers and don't be embarrassed or feel like you are low balling him. I seen better deals than this in Michigan, send me a message if you want me to forward properties in Michigan.