All Forum Posts by: Allen Wu

If you had a good chunk of money to invest in today's market, would you invest in a multifamily syndication or a single family home?  Would you rather own 100% of a hard asset that requires more work, or a small chunk or a larger property with little to no work?

For simplicity, let's say it's $100,000.  What would you do?

Hi All,  Been listening in the eaves but new to BP. My husband and I live in San Diego and recently bought our first two properties. Both are student rentals near University of Akron ( my family is from there so lots of trusted connections). We want to add some doors but don't necessarily want all of our eggs in the same basket and not sure where to go next. Would love to look at some 2-4's but not sure where. Interested in buy and hold for cashflow. I'm a sponge!

Quick question BP folks, 

My tenants lease is up as of November 1st, 2022 and I am contemplating selling the property: As of right now I could walk away 200kish tax free because I have lived in the property 2 out of the last 5 years. These are my accessory thoughts: 

Is the market going to drop more and I lose more equity ? I dont have a crystal ball but to me this is possible, if rates keep going up very few people are going to even qualify to purchase homes in my area if prices were to stay high. I also see a flood of inventory coming on the market because everyone is trying to cashout and take advantage of there equity. 

But on the flip side if people cant buy/ qualify for homes they have to rent thus flooding the rental market with more demand and jacking up market rents which is good for a landlords pocket. 

Im leaning towards continuing to rent it out, mostly because if I sold I would want to redeploy that capital into  some other investment as quick as possible. That other investment would almost certainly require a loan at a much higher interest rate than I currently have and that doesn't really sit well with me. 

Any thoughts Id love to learn from other peoples perspectives and thoughts. ? 

I bought a house SAn Antonio.Its a brand new community with lot of investor homes.My rental  is through a property management company.I have reduced rent 3 times .My zillow contact is 43 totally but only 2 showings so far.My PM suggests to reduce further.I wont have any cash flow with that low rent.what do you suggest.I want to rent it out asap.

Quote from @Marcus Auerbach:

@Allen Wu replace for sure; that's an investment in your asset. 

But 8k for a new AC is a rip-off! We usually replace AC units (condenser and evaporator) for about $2,500 on an average house in Milwaukee. I assume you only need a small unit for your condo, so might be slightly less.

Run a quick google search before you talk to a contractor about the cost so he knows that you know: 

 I agree. $8k is high for a new unit. That may just be the California market that you are in, but I would get a few bids. At that age, they will have to change the outdoor and indoor unit as the refrigerant will be different with new units and it is just time to replace both while you are doing this. How many square feet is the condo and what size (tons) is the existing system?

While you can get all theoretical about it and argue the time value of money and how your discount rate need to be higher than 6.25% to justify that capital outlay, the bottom line is that this AC unit is 35+ years, is costing you $500 per year, and is highly likely to cause you another issue in the near term. Personally, I'd either: 

- Repair it this fall (when neither heating or cooling companies have a lot of business) 

- Wait for the next big repair and just replace the whole thing. 

I bet you save money and stress, and never know it, by replacing the unit in the next offseason. If you pay utilities, you may also find that they are cheaper with a newer, more efficient unit.

Hi,

We bought a property in Henderson back in June. The property is located in Tuscany Master Plan Community. We are out of state and now relying on local property management company to help us find a tenant. We haven't had any luck and we have already switched PM company once. Any experience local landlord please advise. Thank you.

Are there any RE investors interested in investing outside the state of where you currently reside?  If so, which states? And what is it about it that compels or stops you to invest this way?

Hey all! I live in an expensive market (Denver) and am toggling between buying one expensive property locally vs. buying multiple cheaper properties out-of-state. 

By buying locally, I can take advantage of all the house hacking / primary residence benefits (low down payment, lower interest, etc.) as well as not needing to hire out property management. By buying OOS, I could purchase multiple properties with 20% down and avoid paying PMI every month.

Which would you choose? My partner and I are on opposite sides of the fence!