All Forum Posts by: Brent B.

Hi,

I've been renting out my condo for about 6 months now. My tenant discovered loose tiles in the shower and there appeared to be mold underneath. A mold specialist assessed the damage recently and concluded there was mold and a leak was likely coming from inside the wall. There is an adjacent unit. I notified the HOA.

My question is who is likely to be responsible for this cost? My tenants have renters insurance. The HOA has master insurance. I have homeowners/hazard insurance when I originally purchased the condo as my primary residence.

Thanks,
Brent

This will be an AirBnB House Hack in an up and coming neighborhood. My figures are monthly and based on me NOT house hacking in order to ensure this is truly an investment, especially when I eventually move out.

This is a 2BR. I assumed a 55% occupancy rate but believe I can do better. Comp'd the rates against similar AirBnB's in the area to come up with the revenue. The property is recently renovated.

Purchase Price: $165,000

Financing: Conventional, 3% down

Other up front costs: $1k repairs, $3k in furniture, $500 supplies, and $2,000 closing costs.

Hello,

Has anybody had any experience with REO's and foreclosures in Charlotte, NC and nearby areas? Interested in learning more about buying these locally and if local investors have had much success. Based on what I can tell, most of them can be found right on the MLS.

Thanks,

Brent

Question - do you think it would be wise to invest in a house hack, however? I've gotten this debt down to $40k compared to the $47k it was at 3 months ago. I want to start building equity in a home as soon as possible. Also, the house hack could significantly lower my housing costs and help me pay this bad debt faster.

Only 4.3% CoCR? Are you not concerned with that or are you more interested in appreciation?

I'm wondering which REI metric is best to use when comparing a Real Estate deal to the return on the Stock Market. In addition, how do I know if I'm receiving an appropriate risk premium for the extra risk I'm taking on in a Real Estate Investment when comparing to just investing in stocks?

I want to analyze a deal and know whether it's worth it to pursue the deal opposed to just investing in the stock market to earn a 7% annual return. Would Cap Rate be the appropriate metric? Is there a way to risk adjust the metric so that I can compare apples to apples with stock market returns?

I realize the Cash-on-cash return will tell you how much you earn on your cash investment, however, this factors in leverage and doesn't seem risk adjusted to me (i.e. I'm taking on more risk by using leverage and would assume the returns to be higher).

Bottom line, if I'm going to invest in Real Estate, how am I sure I'm adequately compensated for the risk premium I'm taking on over just investing in stocks?

@Cameron Dye Enjoy your life.

But if you want to do some things now, start learning and saving money. No need to rush into these things.

Scams like these are a dime a dozen. They pitch it as a "great investment", tap into your insecurities, up the sales pressure, then boom, you've been swindled. If it sounds too good to be true, it probably is. 

@Andrey Y. Don't sweat it buddy, at least you learned from the experience. You're young and have a bright future ahead of you I'm sure.

@Kristen Ray I’ve had similar challenges with my current circle and trying to change it to include more like-minded individuals and less mediocre people. I plan on just continuing to learn and network to get there. I think it’ll come with time and experience on this journey. I agree that mediocre people can drag you down or make you feel like you’re doing too much or something. I guess that talk just needs to be ignored.

@Christopher Lane have you gotten her to read rich dad poor dad yet?