All Forum Posts by: Rick Albert

Unfortunately you are going to get different answers from different people, especially from Realtors trying to solicit business in their market.

What I have been noticing is that even in landlord friendly markets, prices are high. You will need to analyze each property and neighborhood to get an idea. For example in Birmingham, Alabama, it meets most of your criteria but certain neighborhoods I would never consider.

Neither, you need to dig into each sale yourself. The problem is these are automated values that don't factor things in like views, condition, or even if one block of homes sells for more or less than another. 

 That's a good question. The cat skeleton you can argue holds no material value. I would just double check. I would assume you are in the clear but you never know.

That could be considered personal property and belong to the previous owner. I would get an attorney involved and ask about the ramifications of keeping it.

If the numbers broke even at 3.5%, investors would be flocking to buy that property putting 20% down.

House Hacking is about the long term gain. In real estate, you make money four different ways:

1. Cash Flow

2. Appreciation

3. Tax Benefits

4. Loan Buy Downs

House hacking helps you with all four. 

The central valley has potential (I went to college at CSU, Stanislaus). I would stick close to campus. Nice area and good tenant pool. I was analyzing a triplex over there a while back but sold before I could submit an offer. There is multifamily there that I would consider. Your main competition is the dorms and the apartments on the north side but housing in general is still sparse for college students.

Everyone here is posting the right things. No to property mangement and make sure you have good systems in place.

Also make sure you have "house rules." Things like quiet hours, trash days, etc. is going to make your life a whole lot easier.

I'm not in the short term rental business but if they are independent contractors then you don't owe them anything. They are running a business and need to figure out their rates on their own. Unfortunately this is a case of "if you give a mouse a cookie" and it goes from there.If I were them I would charge extra for holidays. 

It is free to ask so I don't blame her for trying. 

When it comes to remodeling, it is ALWAYS the same answer: Look at the comps.

If comps are showing quartz countertops, then put in quartz. If the competition is putting in engineered hardwood, then that's your answer. Every market and submarket is different and you just have to do some research.

The best advice I can give is to have house rules. Things like quiet hours, guest policy, and more are so important. Believe it or not you are building a mini community where you want everyone to play nice.

To answer your question:

1. You can look at the after repair value and subtract your costs. for example if it is worth $2M after fixing up, costs $1.5M to build, then the land is worth $500K.

2. In situations like these, I tend to see more cash for keys. Depending on the situation that can start at $10K but likely $40K and up. Keep in mind they are likely paying below market value, so giving them a small amount won't be enough to cover the new market rent that they would be moving to.

3. It may take you a year to build (sometimes longer depending on the property). With HML you will have to pay something during that time. If the numbers work and you can afford it, make it happen.

As others have mentioned, new construction isn't what it used to be. Developers are getting creative and making it work but that comes with experience. 

This is a question for an attorney but my GUESS is that if there is an available unit, I would think a judge would say you could move into that other unit. 

Keep in mind you will have to pay relocation fees. Depending on the circumstances you are looking at around $20K. Because there is an available unit, I would do the math to see if the relocation fees is worth paying.