All Forum Posts by: Matthew Becker

I can probably help you I have done a lot of private deals and I don't pay taxes.  I have some question.  How much does he owe on each property, what is his basis and how much are they worth?   How much does he want to spend on a house?  How much cash do you have available?  With this info I can probably point you in the right direction.  In general I would come up with a solution and tell my accountant what I am doing.  I just did a deal very similar to this with a couple houses.  

I am new to bigger Pockets,   But I have been buying real estate for a 34 years.  I would not invest in either.  Both have populations that are declining.  You are dealing with people who have to live there not people who want to.  I think you will get little to no  appreciation long term.   Dealing with low income tenants is much more difficult.  It really sucks to kick out single moms who have not paid rent in 6 months when they are crying in court.  I would invest in a fund or find partners in place that are growing.  Economics matter: Market trends and supply and demand.  I think as people are able to choose to work places that have better weather places like Cleavland will continue to decline. Also consider Crime rate.  All these will effect long term appreciation and rents.  

I can relate brother.  But I learned hard work for no money.  The lawns where for another landlord so I made a bit there.  $5HR in 1982 I thought I was rich.  Good luck with the kids they are a wonderful blessing.  My 8 year old turns air bnb with my wife.  She is mean toilet cleaner.  We have a cleaner but during the summer my wife has her do it with her just so she learns.  It is harder than doing it yourself but having capable awesome young ladies in this world hopefully will raise the bar for the lazy dudes. 

Buy one fix it up sleep in a closet and rent out rooms,  live for free,  refi and do it all over again.  1 a year for 10 years . I started at 19.  I had no knowledge and now I have a company that builds 5M to 10M a year.  You have youtube with that you can do anything. Plus thousands of really smart people in this group to bounce things off.  Fail aggressively when you are young there is no risk.  Although anyone who says you will fail might have never tried.  I actually never lost money on a deal.  Once my book keeper embezzle a million dollars from me.  But I don't count that.  Go out and kill it.  

The knock down cabinet that are made of 1/2 plywood shaker style are pretty good deal at home depot.  They are easy to put together.  Set up a contracts account at both Lowes and HD.  You don't have to be a contractor but it will save you a good chunk of money.  Go to pro desk it is easy.   I don't think I could justify custom cabinets for a $1500 rental. I have remodeled several hundred places and the ones made with particle board look good but don't last.  If your cabinets are made out of plywood and nice enough painting is actually a great option.  Saves money and looks great.  I like a navy, darker blue, charcoal or Teal but it really depends a lot on lighting, natural light and how big the kitchen is.   You might have to use some deglosser so the paint sticks.  It is much faster than sanding.  I actually like brush strokes in old houses as well. You don't have to spay them or make them perfect then.  You good contertops and do a tile back splash with some color I think white subway is becoming a bit dated.  My nephew when to Cornell and played football.  I always thought it was a good place to invest it was just to far away from me to do it. 

Good luck 

Just say you can't qualify and I don't want to charge you app fee.  

Moscow has changed a lot since 90's.  I moved here in 2008.  It has changed a lot since then.  Down town is really vibrant.  Plus global warming has really helped with the winters.  It is a great place to invest.  Let me know if you ever come up this way we can get a beer. 

I think you are right on.  Condo's don't pencil well.  If you really want to help them.  Buy 1 or 2  house close to your home or at least someone what close depending on numbers.  Or a small complex.  Take them there for the next 15 year.  Have them clean up, Paint, and learn.  I swept out my dads places when I was 7 for $2 and that is not $2 an hour, mowed 20 rental yards when I was 10.  Painted a 2 story house when I was 12.  I learned I don't like to do any of that stuff.  But I bought my first house at 19 and kept going.  Education and hard work are worth far more than money.  If they have a taste for it then use the equity to buy a rental where they go to College and have them manage it with roommates in it.   

I have only have girls and they are much more capable then your average boy so don't let that affect you.   They can get dirt and out work most men.  Start the early.  Then they will have strong work ethic.  The only problem then is them finding a man that is worthy of them when they get older.  

I would generally not buy a current STR because the people price it based on STR income. STR's don't create real estate value they are a business I have a dozen and am building 2 more this year so I like the business model and I have over 100 regular rentals. I do at times sell to dumb people with bad agents who will over pay for a property because of the revenue it generates as a STR. But they could just buy the house or condo next door and go to cosco and spend $10k making it nice like my wife does. IKEA stuff does not last. Get good beds, pillows, sheets and don't simp. I look at a property and base value on market rent not STR rent. If it is valued at market and you get furniture for less than cost then great. But if value is based on STR walk away. If it does not cash flow as a stand a loan rental don't buy. The city you live in at any point could just create restrictions on STRs and you will loose your ***. This has happened all over the country and will continue to happen because we are becoming a renter nation and we will probably never keep up with the housing supply. We are to far behind and we have no labor force. I realize this is a very long answer to questions you never asked. But I know several people who made this mistake even after I warned them including someone who dumped 3M into a fund that promised to pay 10% return. In 2 years he has gotten nothing and it was focused on Austin TX so they have probably lost 30% in value as well, can't get a loan and will go broke because of too much overhead. Good luck

Even if you are not worried about cash flow I would suggest you buy things that do cash flow or invest in a fund.  You should balance appreciation with cash flow.  You can still buy plenty of things in nice college towns that make money.  You could just invest in a fund that should out performed what you are doing.  Although a lot of them have under performed.  Find a small one that is not nationally advertised.  If you are not cash flowing and have a high earning job you don't need to deal with 3 or 4 rentals.  Just invest with an expert.  

Where do you live and do you own your own house?   How much do you want to invest? Do you own any now? .