All Forum Posts by: Ray Hage

Unless you are getting a ton of bad guests, I think a 1 bath property is fine. I have 5 rentals with 1 bathroom and there haven't been many issues over the years. Of course, if you can find a property where you can add a 2nd bathroom or maybe a half, you'd be better off in the random case of a toilet clog.

0 Votes

Quote from @Brandon Morgan:

Hi all, I recently bought a house near Scranton PA it is my first investment property. I live in the Jersey/NY area which is about 2 hours from Scranton. I am still looking for renters and I am wondering if it is necessary for me to get a property manager since I live far away. sometimes there are random things that need to be taken care of that I can't do right away since I do not live close. My realtor says it is not necessary since she can take care of some thing but I do not want to solely rely on her. to anyone investing in this area is it necessary to get a property manager? what is your experience with this and do you have any recommendations?

Generally speaking it isn't necessary if you are willing to put the time in. Do you have a local handyman in that area? That's going to be your number 1 guy. You will also want to have AC/plumber/roofer for bigger issues. The tenant will contact you if there's an issue. However, every 6-12 months, you'll want to inspect the unit yourself since you're within driving distance.

3 Votes

Wilkes Barre Scranton, Pennsylvania

Quote from @Francesco Ponticelli:

Quote from @James McGovern:

:D depends on the goal, not all investors have the same one!

How can an investor make money on condos while avoiding future liabilities?

I agree with you that it's hard to predict future liabilities in condos, but if you choose wisely (solid management, reliable developer, newer construction), you can reduce the risk.

How to make money? Appreciation and understand when is the moment to sell, cash in the equity, and move to the next project.

And it's not just condos: you can't avoid future liabilities in any RE investment. You can buy a house and it can get damaged by a hurricane (i.e. Hurricane Irma, to mention the latest with big impact here in SoFL), while a new condo can remain intact.

I think the answer is very market/condo specific.

I agree there are ways to reduce condo risk but it is dangerous in south FL right now. Frankly, I wouldn't feel comfortable owning a condo long term due to rising HOA costs and major assessments. This can happen even with a newer building

1 Vote

Miami, Florida

Quote from @Agustin Conti:

yeap..those are the numbers I am seeing..$1125 in monthly interest is not fun...This is like 14k per year in interest alone. Crazy.. I am ok with 1000 to 1200 per month including some principal payment. but not this. This is like around 50k in interest over 5 years, not a minor expense in the whole equation. dang..it is so easy to make money IF you have the money! the more you have the easier it gets and the other way around.

That is definitely not worth it! Way too much and you end up basically dealing with a lot of crap with very little gain.

0 Votes

Miami, Florida

Quote from @Patricia E.:

Hi - I'm looking to complete a total home renovation for a property in Palm Beach County. Looking for recommendations of contractors who are experienced in this area. Thank you!

Hey Patricia. I have a great guy for you. He is based in Miami but since it is a big job, he would be interested. What kind home is it?

0 Votes

Fort Lauderdale, Florida

Yep it’s a pain in the butt but well worth it. I had to redo the bathrooms as well and dealing with old crappy plumbing was not fun. Took a bit longer than expected. Frankly I hate plumbing now lol

0 Votes

Bryan-College Station, Texas

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited.

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper.

Am I the only one?

I was doing that strategy for quite a while and still do. Lately, I have rehabbed 2 properties to increase the LTRs by a lot. So far so good! I have also got into lending as well. I haven't done a flip yet but I am open to it. LTR buy and hold has served me very well and I think a good basis in RE for most people

1 Vote

Bryan-College Station, Texas

@Jonathan Pechmajou It is a beautiful home but I think overpriced if you are getting absolutely no interest in it. I'd consider lowering the rental rate a bit to see if it picks up. Also, have you noticed homes in that area renting unfurnished? That may be the way to go. You have it listed in all the right places so it has to be one of those 2 problems.

0 Votes

Fort Lauderdale, Florida

@Account Closed Unfortunately you are correct, you are still responsible for all the costs of the property. I assume you didn't have insurance on it? It is specifically "Fair Rental Value" that should be included in your plan. Anyhow, if you don't have it, you have to either be stuck with paying the expenses. Do you know why the work is stalled? Is it the city with permitting issues or is it the contractor doing the work, etc? How much more time is expected?

If you're goal is to keep it, you could take a short term personal loan or cash advance with your credit card. With Bank of America credit card, I took out a large cash advance for a 4% fee and no interest until after 12 months (if you do this, make sure you can pay it all off within the 12 months because the interest rates goes to 24%!). You'll have to check your expected future cashflows if you decide to take the loan.

0 Votes

Fort Lauderdale, Florida

Quote from @Danny Celestin:

BP Fam, thanks in advance for your help with this situation. I'm in escrow on a duplex, my credit score is high 750+, I'm a W2 employee, and I plan on keeping this duplex for more than 10 years. With all the speculations of rates going down in the future what is the best option in your opinion. At the lowest rate option I'll have just enough reserves. The reason I'm asking is because I made so many mistakes on my first property and I made them because I didn't ask enough questions. Just trying to avoid making the mistake this time around! Thanks again!

1. Non QM, 8.125% interest rate, 2.625pts, 20% down payment, 12 month prepayment penalty period - 3.61% CoC

2. Conventional, 7.375%, 1.249pts, 25% DP, no prepayment penalty period - 6.45% CoC ($43K savings over 30yrs)

3. Conv., 6.999%, 1.694pts, 25% DP, no PPP - 7.2% CoC ($55k savings over 30yrs)

4. Conv., 6.625%, 2.176pts, 25% DP, no PPP - 7.9% CoC ($67K savings over 30yrs)

5. Conv., 6.125%, 3.204pts, 25% DP, no ppp - 8.72% CoC ($82K savings over 30yrs)

With rates this high, I would avoid the buy down! Just refinance in about a year or two when the rates are expected to be lower. There is guarantee of course...but the Fed is strongly signaling it plans to lower.

1 Vote

Indianapolis, Indiana

All Forum Posts by: Ray Hage

Ray Hage has started 1 posts and replied 1070 times.

Post: Should I stay away from STRs that only have 1 bathroom?

Post: Is a property manager necessary?

Post: South Florida Condos - Buying, Holding or Selling?

Post: HELOC, HELOAN or something else for personal Home renovation

Post: Total Home Renovation - recommendations and tips

Post: Boring Buy and Hold Investors

Post: Boring Buy and Hold Investors

Post: No Application, Rental property

Post: Looking for an advise from a real estate CPA or investor

Post: Should I Buy the Rate Down