All Forum Posts by: Brian Mathews

@Nicholas M.   LOL.   I’ve been doing Hvac for 20 years about 6 of those in business for myself.   I think I am well qualified on how to clean a flame sensor.   You can use a dollar bill if you want, a $20 or a $100 if you want to feel like Daddy Warbucks.  Sandpaper also works just fine.  Its a piece of metal and sandpaper will not hurt it one bit.   

If you have enough reserves to pay for emergencies that might arise or vacancies on your property then you'll be fine. It goes towards principle and you can pay it monthly or at one chunk. It doesn't go towards a slow death, it goes to being able to reduce your payment when the PMI is reduced and you then get more cash flow monthly. Which in turn you can apply towards the balance and pay the property off quicker giving you even more cash flow. Depending on the type of loan and if you have good interest rate, there may be no need to refinance. I simply called my bank a few years ago and told them the value changed and they made the PMI go away. I might have had to give them an appraisal or tax records, I don't remember as it was years ago.

 It means you want to buy a house so bad you'll do anything to get it.   Like a young man when his thoughts turn to romance and he takes home the ugly broad with 3 kids living in a trailer just to get some.   Then you're stuck with it and it won't go home.   

What is the draw to Lubbock that is creating growth?   I'm just curious, I haven't been there in a few years.   Was it caught up in the oil boom that hit Midland and Odessa or is something else at play?  

I haven't been to Lubbock in several years.   Is it growing?   I always thought it was a pretty stagnant town.    Everything goes up in value over time, but what is the draw for rapid expansion to increase the cash flow or value in the next 5 years?    Are they going to go up $2K a year in value or $10K a year.   Are the rents going up $300 a month in the next 2 years or are they going up $25 a month?   1980s homes are now 30+ years old and along with it comes associated maintenance.   1 new hvac system wipes out 4 years of $100 a month if nothing else goes wrong, not including vacancies.    A tenant moving out and you sitting on a payment for a month wipes out 1 year of $100 a month.   Which is fine if you get decent appreciation,  but look at it realistically rather than being house horny.    

I heard a term this week I've never heard and i think it applies to you.   You're getting house horny.   The only ship that won't sail is a partnership.   

Every area is different and to get caught without a permit sometimes the city can be very punitive and you'll end up spending more time and money trying to undo what you did.    Unless you are familiar with codes and the correct way to do things.   You might get sued later if something goes wrong.   This isn't even taking into account that at closing if somebody starts snooping around and found out you did work without a permit and then contacts the jurisdiction to let them know.   Its a dangerous road to go down.  

They will try to fix it 5 times, billing you every time they come out.    Then if they do replace it, the contractor will find all sorts of things that aren't covered    In the end you'll pay close to what you would have paid anyways and they'll install the cheapest thing there is with the worst contractor    

The price of the house is whatever somebody will pay as is. If he can get $300K as is to somebody else vs. you offering him $265K for it. He's selling it there, regardless of the issues you mention. Honestly, it sounds like a turd with too many issues to mess with. If you get it for $256, $300 or $340 and it requires $100K worth of work, you lose. You're looking at it from an investment perspective. If you are doing that, then you need to pay 70% or ARV or it's not worth it. If he won't sell it for that, then move out. Its his problem to deal with. Remove your emotion from it.

An LLC is for liability issues and the S Corp for taxes. The IRS has no interest in the LLC.