All Forum Posts by: Bruce L.

Hi!

I Need some advice, I'm selling in SFR here in Las Vegas. It's listed for $150K, and I think it may appraise at $155K. I'm having a hard time choosing between these two offers.

1) Cash at $159K
2) 50% down Conventional Loan at $165K.

Which one would you take? If it doesn't appraise, couldn't the buyer just pay the difference or get a 60% loan instead of 50%?

Thanks.

This is a very interesting topic.

I'm looking for a property for my mother (senior) that I will be paying cash for. I have multiply properties that are also paid off.

I'm wondering if it's best to hold title, under my name or her name?
If her name, she would be able to take advantage of the senior tax exemption and homestead, but I would lose on deductions and insurance savings since I have multiply properties. Anything else?

As for the deprecation, does it really matter as you will eventually have to recapture the deprecation you took when you sell the property right?

@Mike P, I understand LLC if u plan to own free / clear, but why get a LLC for flips

Thanks Karen Margrave, Marv Rousselow & Steve Babiak for the feedback.

I've been pretty stressed about this so far, not so much because of the break even cash flow, but I also purchased another property and got other stuff going on all at once.

Marv, I did do a lease option a few years ago, if I recall, I think I charge them 5% down and got an extra $300 a month above fair market rent. The deal never closed, so I kept the option money. Is 5% pretty standard now?

Also, do you think AHS would cover A/C repair? I heard some warranty companies are hard to deal with and will only do minor repairs.

Steve, the house is 1650sqft, so it would be a about a 4 to 5 ton unit, roof mount installation. 10 years on parts and only 1 year on labor for that price. When shopping around, what other things should I look for?

Help! Need some advice. Going to try to make this short.

So, I purchase a SFR in 2003 for $170K, my balance now is $115K.
My rent is $1300.
Total Monthly Expense: $1100.
The current fair market rent: $1000 - $1200.
Current market value is $135k - $140k and rising due to record low inventory.
40 minute drive one way to property, my plan is to have all my rentals within a 20min drive, so I do plan on sell this one day.

My tenant just informed me that they can no longer afford the rent and is looking to move out.
If they move out, it would take me 3-5 weeks + cost to find a new tenant. I ask them if they would stay for $1100, they said yes. It’s a very competitive rental market right now.
No cashflow @ $1100, just breaking even.

My question is, should I sell? Take the tax lost.
Or rent it out to my current tenant for $1100 and hope that prices will rise?

BTW, my A/C technician told me last year that I should start to budget for a new A/C unit for he's not sure when it will go out. Est. $5K.

I've watched a few of these video's and blogs in the past, and USAWatchDog to me, seems to be nothing but gloom & doomers.

They could be right, but if you keep saying prices are going down, eventually, in a year, 3 years, 10 years, 30 years, at some point, prices will drop and they will be right.

I agree with not getting hung up on the 2% rule. It's nice if you find one, but I find that most homes that gives you 2% are much older and in less desirable areas.

I also have doubts on the 50% rule as well, especially if you do the work yourself like I do for most of my repairs.

As for Cap rate, I have it in my calculations, but I pay more attention to Cash on Cash Return, which is

Cash-on-Cash Return = Annual before-tax cashflow / total cash invested

1 - 2 year rental, then sell.

Hi everyone.

I just discovered that I have Polybutylene plumbing through my house that I put an offer on. From my research, it looks like if your house was built between 1978 to 1995, you may have that plumbing installed. They estimate that up to ten million homes have had this plumbing installed nationwide.

My question is what are you all doing when you discover it?

I got a decent deal on this house and the demand in Las Vegas is off the charts right now. I could back out of this deal if I wanted to, or re-plumb the entire house ($5k-$7k) or just leave it alone and roll the dice. All seems to be ok so far, the house was built in 1984.

The seller will not reduce the price nor fix the plumbing issue.

Thanks. :)

Yes, it's true, I'm Greedy, and want more money! :)

There has been many discussions here on BP about cashflow vs appreciation. Most of us would agree that cashflow will not lead you on the path of wealth. For me, I want both, as I cannot afford to go negative for years on just speculating.

That said, when is the right time to sell?
- Anyone have a formula? like if prices go up 100%?
- Gut feeling based on your research and analysis?
- When it's a seller's market?
- When prices go up then it flatten out?
- When major current event happen that may affect the market?
ie. if government decides not to allow mortgage tax deductions?

It's hard to resist the urge to hold out for more money, especially when prices start to climb like they are doing in my market.