All Forum Posts by: Caleb Heimsoth

@Dylan Barnard I’ve owned property in three states (Ohio, TN, and NC) and I have had my fair share of issues with trees, so I cannot understand under almost any circumstances why you’d willingly plant a tree.

Here’s a brief summary of issues I have had with trees:

1. Buyer backed out due to tree being to close to home. Got quote of 3k to remove. Ended up not removing but still a pain

2. Neighbor tree branch fall on my property. No major damage, cost 90 bucks to have cut up and removed, but still troublesome

3. Another tree near a roof, causing issues.

Long story short, I wouldn’t plant one.

@Andrew S. Interest rates are near zero, which means all returns on fixed income products drops. Unless you are retired, it’s best to have equity investments at times like this.

The FED has stated that rates will remain low for several years

@Karlo Bodu how long has it been closed/charged off? It’ll stay on your credit report for 7 years until it rolls off. I am pretty sure that’s how it works. If that’s the case, you can do some other things but your credit will usually be mid 600s until that happens

@Ashley Garner this seems average to me. I wouldn’t classify it as great or bad, just average.

Are you looking at this as a ten year hold? The longer you are invested the Lower the IRR. 10 years is a really long time for this type of investment.

If you look at alternative investments I think you can find plenty (like stock market) that would beat this and you have liquidity.

For example, warren buffet (or most likely his employees), ingested 250M dollars a few weeks ago in SNowflakes IPO. In a few weeks he’s up 400 percent.

Now that’s an outlier but a most people don’t factor the illiquidity of these types of investments.

@Tyler Dix you are overreacting but your PM probably could also have better systems.

When I have AC problems it’s almost always a minor fix and is fixed within 1-2 days.

In NC in summer, you want AC. It almost always costs a few hundred bucks. For 1500 dollars you are approaching replacing the entire unit, cost wise.

Your PM can clearly improve this process, either by having better/multiple vendors or something else.

I have also been a tenant before, and my landlord owns around 1100 units in Raleigh-Durham. This is all just him, not a syndicator.

I have had an AC problem (where I live), called the office at 430 pm on a Friday and the AC technician shows up 2 hours later. That’s the type of process you want.

@Aaron Lietz if you have to ask strangers on the internet for validation of something’s value you already know the answer.

These programs aren’t worth it but the people you buy from will gladly take your money

@Jung Yi so it sounds like your experience was more or less what I commented about 9 months ago?

The easy days of BRRRing with built in equity are long gone. You took on a lot of rehab and didnt get any additional equity. You actually lost equity compared to simply buying a house at 100k straight up, assuming you had to refinance (due to additional closing costs).

Long distance turnkey investing almost never works and when you add rehabs it gets a lot worse much faster.

Your risk adjusted returns are much less then simply buying an index fund.

@David McClain if she has an appraisal contingency she can cancel the deal, it doesn’t matter if you don’t want to cancel the deal.

It’s really up to the buyer what they want to do. You can simply say the price is still 240k and they make up their mind

@Corey M. Yes you need to account for this. Be sure to also account for lease up fees, maintenance, capex, interest. Etc

@Josh Lang this likely only changes due to either taxes or insurance. I once had something similar happen with insurance. My annual premium doubled last minute because the appraiser mentioned some stuff.

This stuff happens, best to always double check stuff yourself