All Forum Posts by: Pete T.

 What is this based on?

As long as you are upfront in everything you do, it really doesnt matter.

@Tony T. I think you miss the point that all things will NEVER be equal and each deal is different. You need to define your goals first, then determine what will best answer them- as in what property, not completely eliminating a big house or condo or whatever. There are reasons I prefer small MF, however when I see something that works for me that is a SFH or condo, I weigh it the same as I would anything else and determine if it works for me.

Hopefully everyone can just leave peacefully as w/ rumors, it is hard to do anything and the cops are usually pretty worthless in these type of situations.  I could care less if people smoke pot, but I definately dont want smokers of any kind any of my places!

Sure, you could make a ton in appreciation and I am sure there are some good indicators on which markets to attack.  However, my experience has been rents being a lot more stable during the ups and downs than housing prices.  Even if you see them moving up and down together, a similar percentage in rent is different hit than that same percentage in value.  Finally, there is a lot less prediction in cash flow.  I am looking at all of the same factors- making future cash flow and appreciation predictions, but as far as cash flow- I am fairly certain of what I am going to get now, next year and so on.  I can always adjust as things happen.  With appreciation holds- I might be right today, 10 years from now, and 20, but what about when things go wrong?  That value i "gained" doesnt matter because it is only realized when it is utilized (sold, refi, etc).  I know people that have held properties all over the metro detroit area that had some of them take a huge hit, but bc they still cash flowed, it didnt matter.  What makes an area desirable now, may not matter 30 years from now.

Eric, what do you see as the advantages of holding in S Corps and LLCs?

I would pass

Less charges at settlement, much quicker, less drama

Communicate with the tenant and explain that you need to serve a 5 day pay or quit to protect yourself and if you can receive your payment in those 5 days, all will be well.

@Jeff S it is annoying to me as well that we as investors pay higher rates- bc there is "more risk" despite the fact that I have paid every bill early that I have ever had.