All Forum Posts by: Troy P.

A brief rundown of your numbers would help us help you.  Generally, no, 5-10 is not my cup of tea.

Quote from @Nicholas L.:

@Troy P.

"Prior to WWII, everyone lived a similar minimalist life. Afterwards, we needed jobs, and to create those jobs, we needed to make stuff."

I think that the last 80 years is maybe a little more complicated than that, yes?

I think there would be / is tremendous demand for lower cost housing, it's just not possible to build it in most markets as @Jay Hinrichs is covering.

 It's a lot more complicated than that, but important to note that we didn't get here overnight.  My comment is more about minimalism than it is affordable housing.

Quote from @John Canwell:

Last point - Americans need to start being minimalists.  Live a little smaller.  Maybe 750 sf per person on average. I see people owning much larger housing space and paying more for heating, cooling, insurance!!, property taxes.   

This is interesting because this is how it all began, the intentional culture shift.  Prior to WWII, everyone lived a similar minimalist life.  Afterwards, we needed jobs, and to create those jobs, we needed to make stuff.  Now we have a lot of stuff we need people to buy.  The controversial, easily accessible debt monster was born.  Since then, everything has gotten larger, everyone has to have more, and they want it now.  I don't see the majority becoming a minimalist any time soon, unless it is forced on them.

"Live where you want, invest where it makes sense".  It wasn't clear in the original post if this is a primary.  I'm assuming it is.  Like others have said, your primary is not a great investment.  I won't argue whether it is or isn't an investment, but my opinion is it's not a great one.  I think a lot depends on where you are in life.  Can you "house hack" it and rent out one or more bedrooms?  Can you keep searching for something more affordable off market?  Can you buy something much smaller, live in it for a year, then move, rent it out, and do this every year until you're happy?  I suggest not signing up for a loan that is going to leave you house poor and unable to save or invest.

Putting 16K down on a fourplex in today's market will put you living (house hacking) in a D area and putting a lot more than 4K into repairs/renovations.  Like others have said, understand the concepts, then analyze the properties with today's prices and numbers.  Be conservative with your numbers and you'll see how close you are to your desired cash flow.

I've used TurboTenant for the past 3 years and I've been happy with it, although the price for the paid version did go up about 100% since then.  The free option is good enough for tracking basic payments and expenses, but paid service makes digital leases and advertising very simple.  I recommend checking them out.

Quote from @John Mocker:

Troy

The reason for the non-renewal should be stated on the notice you received from your current carrier. 

 The reason states because it is being transferred, but I thought it was the other way around (being transferred because it is not renewed).  

Quote from @John Mocker:

Troy,

First, the reason for the non-renewal is important.  If it is due to the company either pulling out of the market or changing their guidelines that is best because it is not anything specific to your property.  In that case, I would shop it around to see if any other regular carriers will write the coverage.  

If it is due to a condition of the property (multiple losses, unrepaired damage, etc.) it will be more difficult to get a regular company to write it.  You would have to show the condition was corrected.  

Cajun Underwriters Reciprocal Exchange is not a government program.  I would compare the rates they give you with other quotes and see which gives you the best combination of coverage and price.

 Thank you for the insight.  It's a 2 year old home with 0 claims so it is definitely not property related.  It is a common theme in the area and less competition is making it harder to keep prices down, but I'll definitely be shopping around.  Thanks again.

Quote from @Dan Miles:

Quote from @Troy P.:

It sounds like she wants to hold onto her funds to get herself into her new place while screwing you over in the process.  In my state, we have to produce an itemized list of all expenses that came out of the deposit within 30 days of tenant moving out.  If  you don't have a list showing you've used all of the deposit, then the remaining must be returned.  I would never agree to keep a deposit before I know whether I'm using the funds or not.  Rent is rent, deposit is deposit, and I suggest keeping it that way.

So you would process the eviction even though she will be gone by the end of the month?  I can’t file until the 21st according to state law.  Then they have to mail her the notice to pay…which she may be gone by then.  

No no, I would definitely try to avoid an eviction.  I guess my point was I would not put it in writing that I am accepting the deposit in lieu of rent before you have inspected the place.  I would agree with the earlier post to make it clear that you can only accept deposit as rent if there are no repairs or cleaning needed after she's moved out, but I have a feeling that waiving a deposit is also waiving your right to seek any reimbursement for any expenses after move out.  It's too risky for me personally.  Your state would vary, but there's no right answer here unfortunately.

Also, you should definitely get her forwarding address, especially if you take the advice of filing eviction.

It sounds like she wants to hold onto her funds to get herself into her new place while screwing you over in the process.  In my state, we have to produce an itemized list of all expenses that came out of the deposit within 30 days of tenant moving out.  If  you don't have a list showing you've used all of the deposit, then the remaining must be returned.  I would never agree to keep a deposit before I know whether I'm using the funds or not.  Rent is rent, deposit is deposit, and I suggest keeping it that way.