All Forum Posts by: Peter McDonough

Tax loss harvest in a brokerage account and offset the real estate gain with the paper losses from that account.

The Space & Rocket Museum has their own hotel right next to the property.  All the space camp kids stay there. 

Markets aren't THAT inefficient--returns are basically going to be the same unless you have some serious insider knowledge(where is Amazon going to build their next HQ kind of knowledge).  You'll get paid in appreciation or cash flow or tenant class or asset risk.  A competent investor can make any of those work, just gotta know what you're looking at.  If you're interested, I can help you make some serious money in Huntsville, Alabama, a market you've written off as "too hot"

You're the guy with investments in tertiary markets spread around America.  Seems like a lot of hassle, and definitely not an application of any insider knowledge.  Instead, pick a market and invest in it.  Go hard.  Stop the looking for 2% deals or randomly choosing "$200/month in cashflow" as a goal that means anything.  Most people's definition of cashflow is different, and it should be measured as a percentage of asset value, not a fixed per month value.  Make efficiencies of scale happen in a single place, and you'll go far.

Rates do not justify the work premium required above a typical SFR

We use a commercial LOC on our rentals Interest only, appx prime plus 1%, 3 year balloon. I don't think typical lenders will put a HELOC on non owner occupied real estate--gotta move to the commercial side of things.

@Cheryl Vargas They sure have, unless your PM company is Rockey City Property management.  Those gonzos are constantly renting units at 200-300 bucks below market value.

The permits don't guarantee good work in the slightest.  The city comes out, gives a thumbs up, and goes back to sitting in their cubes downtown.  This is Alabama, not Commiefornia.  Don't bother with the permits--colossal waste of time and money.  If you willfully come ask the city to come make hassle for you, they will definitely oblige--be warned!

You'll be limited to 75% of the cash buy price or 75% of the lender's appraisal, whichever is lower, until at least 6 months have passed since purchase.  Then, it will be 75% of lender's appraisal. 

Derek, don't pass on it!  Wholesale that guy and make yourself some money!

It's a great area!  Prices are up 30-40% in the the last 18 months!