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All Forum Posts by: Celeste Carter-McAfee

Celeste Carter-McAfee has started 1 posts and replied 19 times.

I only have this bit of insight to add, I have not found extended warranties to pay off in the long run. That being said, I would spend more time researching the brands that you purchase when replacing. I am not a fan of LG or Samsung as in my area there is not a repairman to service those brands. You may want to ask your local plumber which brands he recommends as he is the one that will do the maintenance on them. I purchase Whirlpool, but am currently researching brands that use less water as I pay water on my units. So that may change depending on what I find out.  

Post: Things you've learned not in RE books or podcast?

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

I love this! @Leo R. nailed it. I would also add, follow your nose. I open all the cabinets and take a big sniff. I purchased a foreclosure that looked great, but had lots of air fresheners all over the house. After I purchased and completed reno, I could not understand why the musty smell persisted in a corner cabinet. When I decided to replace the kitchen countertop, I discovered that the builder or contractor nailed an upper cabinet that hit the main drain from upstairs bathroom. Over 15 years, of a very tiny drip created black mold in the wall and behind the cabinets. It was not observed from anywhere upon inspection and could only be seen when the countertop was removed. The kitchen cabinets and all the drywall had to be removed with mold mitigation protocols and completely rebuilt. It still was a money making endeavor, but I will from now on always sniff each and every cabinet and make sure to be extra diligent when I see air fresheners to cover smells. 

Post: Things you've learned not in RE books or podcast?

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5
Quote from @Leo R.:

@Mark F. excellent question...I've learned a lot about property analysis from podcasts, books etc., but there are certain aspects of property analysis that I've had to learn mostly from experience.

I often think of property analysis in two ways: 

First is "the paper assessment" (which includes the P/L spreadsheets, the appraisal, SQ footage, data on the local market, and all other info that can be easily conveyed on paper--or at least on a computer).  You can learn a lot about "paper assessments" via podcasts, books, youtube videos, etc.--for instance, you can learn how to analyze a property's financials via podcasts, articles, etc.

Second is "the physical assessment" (which includes all of the things that CAN'T be easily conveyed on paper or on a computer--these are things that often require a skilled in-person assessment of the property and neighborhood). For instance, knowing where the load-bearing walls are, knowing what types of tenants the property will attract, knowing the routing of plumbing & condition of the sewer main, knowing how noisy the street is, knowing that the house has a serious settling issue or water diversion problem, and--importantly--knowing how the property could be changed to force appreciation/rent. These are all things that are NOT easily conveyed on paper. Moreover, many parts of the "physical assessment" cannot be easily learned via books, podcasts, etc. Instead, the best way to learn about these issues is through experience--personally viewing lots of properties and having discussions with GCs, PMs, and other pros...

Here's an example: I once bought a 2 br, 1 ba A property in an A neighborhood at a discount because it was on a moderately busy street that turned off retail buyers (but it wasn't so busy that it would turn off tenants). This is info that you only learn by visiting the property. The property had an unusually large entryway that didn't have much use, and small bedrooms that probably turned off other buyers (again, I only learned this by visiting the property).  I bought the place knowing I could easily convert part of that entryway into a bathroom, and expand one of the bedrooms into the space--creating a nice large master suite. Because of the layout of the existing walls, and the routing of existing plumbing, ducts & electric, I knew it would be a fairly simple and inexpensive operation (again--I only knew this because I visited the property)...after the work was done, it transformed the place from a negative cashflow property (that mostly only appealed to college kids) into a cashflow positive property that appeals to couples, couples with a child, well-off single people, and pairs of housemates.

The "physical assessment" and the ability to see the potential of a property is a skill that can't be easily learned via books, youtube videos, etc.--because it requires actually going out and viewing a lot of different properties in-person, learning to spot opportunities that aren't apparent to other buyers, learning from GCs what is (and isn't) easily do-able, learning from PMs and agents about the local tenant pool and the unique dynamics of the neighborhood, etc., etc.

Books, podcasts, youtube videos are incredibly valuable, but there are many aspects of real estate that are best learned through direct experience.


Post: Hold strong or Drop Price? Marketing strategy questions

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

Have you thought about  maybe do a "rent to own strategy" that the extra 15% you are asking for rent could be used as a "down" by the tenant for purchase of the property in the future? That may give you an edge over the other properties and if the tenant decides not to purchase after a fixed term you maybe at that time can reprice the rent???? 

Post: Renting vs Selling Due to Military PCS (Relocating)

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

Hello, IMO I think there are at least two ways you can look at this problem. One is by the investor strategy (which, though I have done well for myself with real estate am not a huge expert or claim to be, and just now starting with multifamily investing) and the other is looking at it through as a longer term investment strategy.


Investor strategy states it doesn't make sense to rent just like Nathan mentioned above, as it doesn't leave room for bad tenants and vacancies, damage by tenants ect. You can negate most of this by proper selection of tenants and a great lease, but there are NO guarantees in renting real estate. 

My strategy and if I were in your shoes, and I wanted to return to the area, I would rent, even if I am not making any CCR and as long as the payments were made. It does mean you have to dip into savings, but I look at it as a 20-30 year return on my investment and still better than the stock market as far as returns. If the house is well maintained and not in need of any large repairs like roof, hvac system, ect I would hold. If not you may have to work extra hours to make up for the difference which is a sacrifice.

I personally, sold out of a market which I loved the location, now wish I would have held on as I am priced out of it completely at this moment. Maybe not in the future, but for now. 

You can simply use a different loan product for your next house. VA loans are great if you don't have any money for down, and you save the PMI, but if you do have down money, there may be other programs available. For instance, did you know in rural part of Kentucky there are USDA loans that are little to no money down programs? Get with a couple lenders to identify if this is an option for you. You may get some other avenues opened up.

We are looking at a PCS soon to New Jersey and wow that is a difficult market to break into as well. Hope your PCS is smooth as silk.

Best of luck and Happy New Year!

Post: Under contract multifamily with empty unit.

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

@Kyle Ewanic that is a wonderful idea!!! I truly appreciate the wealth of knowledge I am receiving here. I am thinking with the fall appliance sales coming up of upgrading appliances to stainless or adding water saving toilets (water is paid by me). They are only nine years old so hoping they will look fairly good. Only seen in pictures so far, had my PM go in person. I will get my eyes on them this week. Very excited. Thanks again! 

Post: Under contract multifamily with empty unit.

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5
Quote from @Celeste Carter-McAfee:

Just bought all the books. Thank you so much for your recommendations. Listening to them now. 

 @Patrick O'Shea

Post: Under contract multifamily with empty unit.

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

Just bought all the books. Thank you so much for your recommendations. Listening to them now. 

Post: Under contract multifamily with empty unit.

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

Oh wow, thank you so much! I am finding it to be a different animal. I will read all you suggestions. I appreciate it to much. 

Post: Under contract multifamily with empty unit.

Celeste Carter-McAfeePosted
  • Investor
  • 93465 40475, 40403
  • Posts 19
  • Votes 5

@Joseph Guzzardi Jr thank you for the reply. I appreciate your advice.