All Forum Posts by: Chris John

Numbers work = buy 

Numbers don't work = don't buy 

Don't overthink it and let the deal (not the property) speak for itself

I'd argue that the buyer always pays the commission. 

@Alex Kosley

It looks like you listed about 210k in debt.  What are the monthly payments on that? 

If it's anywhere near 3k or lower, I'd definitely not pay it off.  In theory, you could buy a property worth a little more than 250k and use the rents to pay your bills.  So, you could buy an asset that pays your debts for you (essentially you're paying off your debts on your income statement instead of paying them off on your balance sheet).  You wouldn't have to worry about the bills monthly, and you'd get a free house out of it eventually.

Of course, I wouldn't actually buy a 250k house for cash and without using leverage.  I'm just trying to simplify the argument.

Quick edit:  IMO, this country is broken in the sense that working hard and paying cash isn't rewarded anymore.  It worked for my grandpa, but now you're rewarded for borrowing.  I don't like it, but I definitely think it's the game nowadays.

@Ned J.

Fair point on the government overreach thing.  I definitely like zoning, but I concede that your point has validity.

I don't think we agree about the origins of the ADU bill, but I'm only speculating that it's do-gooder libs. I don't actually know for sure. I do know that I've heard progressives bang the drum, so it's a bit hard for me to believe that liberal California is carrying the water for investors after screwing them at every turn during Corona. Again, I freely admit to not actually knowing though.

Your CC comment makes me laugh.  Daddy's money does go far in the valley.  haha

@Ned J.

The news story in the link references AB 2221. That's the statewide ADU bill. The city doesn't want to pack more people in, the state does and it supersedes the cities wishes. You probably won't agree with me based on previous threads where we've had polite disagreements, but I believe this is someone exploiting the law of unintended consequences. There's been a LOT of that going around these days in this country.

;)    haha.

Go Buffs!

Quote from @Carlos Ptriawan:

It's O*K*A*Y for your blockview to be distracted so other human being, could live in the same space like you do.

Normally I agree with you and I've learned a ton reading your posts, but this one I disagree with.  It's ok that there are expensive corners of the world where not everyone can live, imo.  We don't need tent cities, people living on sidewalks or under bushes, or ADU density just because people "want to live somewhere".

If someone can't afford to live where they want to, they should live somewhere cheaper and stash cash until they can move up in the world.  I guess I don't understand when this country became about bending to the will of whoever complains the most or plays the biggest victim...  blah, blah, blah, get off my lawn!  haha.  Apparently I've turned into my grandpa.

LOL.  When the neighbors were voting for things like increased population density and affordable housing, they meant having ADUs added to your neighborhood, not their neighborhood...

Increased government intervention in a free market that works perfectly well without the intervention.

I hate to sound so spiteful, but I'm beyond grateful that the exact same people that kept my children home from high school (despite their desperately wanting to attend) have lost their crown jewel.  The fact that my children have rebounded and are doing great, while San Francisco becomes a craven cesspool, due to their self-inflicted measures, makes it all the sweeter. 

Karma isn't always so quick or so just, but it's great to see the arrogant brought to their knees.  Again, sorry for the spite!  haha.

Quote from @Mark Cruse:

Quote from @Bruce Woodruff:

Quote from @Mark Cruse:

@Akin Okegbile as stated I'm gravitating away from class d, but something pulling 1.5k right of the break Id sit on that for a minute. It will be over 2k one day. I have one class d left and it has the best tenants Ive ever had. I'm not anywhere near 1.5 but its building equity every month and kind of runs itself. 

 Nothing is worth your health or your life, my man....

 I understand all that but it's all business. It's rough and can be not a good look, but people who know what they are doing make themselves wealthy through this on a consistent basis. My point here is I have done class Ds since I've been in the business and I don't anticipate dying or being seriously harmed. I am migrating away from it because I'm capable of coming in at a much higher level; however, If I'm making 1.5 to 2k cashflow I have the skills, talents and business savvy to make it rock for awhile. As stated I'm done with class d for the most part but if some incredible deal just fell out of the sky into my lap I can squeeze it for a lot of cash until I'm ready to pass it on. I still have one on this level and its running itself building wealth with cash flow and equity.  Just depends on the situation!

I just think you're being pragmatic!  haha.  With a 2k cashflow, I'd either do it myself or pay someone good money to do it for me if I was that scared.  Even if I paid a 20% management fee, I'm still doing pretty good.