All Forum Posts by: Walt Payne

My opinion is that it will not be pro investor, rather quite the opposite. It will likely be handled in a manner similar to the .Realtor domains. 

Bad, bad precedent.

@Bill Sargeson  I agree that hard work is part of the formula, and as I said there is nothing wrong with investing in lower end properties if you know what you are getting. You are getting income as much from a job as from an investment. That was my answer to the OP issue of passive vs. hard work and long hours.

@Bao Nguyen Yes, that was my point. You are not getting ROI, you are getting the equivalent of income from a second job.

And yes, I am 100% with you on appreciation being speculation. BUT, when one buys properties, all things considered, is it better to buy in an area where appreciation will never happen, or where it will be a likely bonus if you wait for a good opportunity to sell? I don't consider it as part of my numbers but as part of the intangibles when assessing a property.

@Bao Nguyen That was part of my point, is the ROI as high as it appears? Older houses need more repairs long term. Lower income properties have more issues overall. And they have little chance of appreciation.

@Jimmy S.  I don't see anything wrong with the concept. One thing my lawyer told me to do when I asked him this question. Draft a quick addendum that says the rent for the property FOR STORAGE PURPOSES ONLY begins on (date they can start moving stuff in) and will be an extra $10, and this extra period is covered under the same terms and conditions as the primary lease except for cost and occupancy. 

That lease should already include covering the requirement of having renter's insurance, transferring utilities, etc.

This is necessary to cover liability in both directions.

@Bao Nguyen  

And another one falls for the low end property numbers game. Do you really make more on those low end properties? Or do you have a false sense of earnings based on numbers that are not telling the whole story? How much per hour are you making for the work you do? 

I am not saying there is anything wrong with buying low end properties. Low income people need a place to live as much as anyone else. But don't believe that you will make more from doing it. The entry level for them is easier to hit. But the other numbers are deceptive. Factor in that you have more repairs, more trouble on average with tenants, more damage, more likely to need to evict, more likely to be vandalized during vacancies, etc, etc.

If you had easier properties, would you not have more time to work on your business to grow it? What are the odds that those properties will ever do anything but depreciate or  stay even, at best? 

Move up to B, B- properties and life will be so much easier. 

@Joel Owens  I'm another one who has used VRBO and really like it. I have had great experiences over the years with it. Mostly in the Orlando area when my kids were younger. But getting a 3 or 4 BR for about $100 a night in Kissimee was a great deal and a wonderful way to spend a vacation as opposed to cramped into a single hotel room. 

I too have been thinking about the idea. For me it would be a great way to subsidize my stays in Fla, that I hope to make much more frequent in the next year or two. I know from having talked with a few rental owners that it can be quite lucrative. And they say that you get a better clientele who generally have too much to lose to cause serious damage. And if they did, they have too much to lose to go to court over it.

I would suggest The book on Flipping Houses by J. Scott, along with the podcasts and forums. And yes, your local REIA.

 They screwed up the taxes. Then they gave me an hour to get them a check for the difference. They did a stop payment, then after it was verified, afternoon of the next day, they wired the money. So it was not a major delay.

I think the question of "owning" is where the problem comes in play, especially in Fla and a few other states. Do you "own" a property, or the right to sell it, by having a $10 deposit on a purchase option? 

Assigning a contract will protect you more if you have a true stake in the property, not $10. If you have a $1000 deposit it might, depending on the purchase price. A 10% non-refundable deposit for a limited time and I suspect any law student could fight contract law and common law in your favor. To meet the criteria I think non-refundable and significant interest apply. 

Not a legal opinion, just my understanding.