All Forum Posts by: David S.

On further thought you could back into a similar setup by pricing it a tad high but indicating you're willing to talk about the price for the "right fit" (don't get specific) or if it doesn't rent quickly. 

The sheer inconvenience/discomfort this puts the prospective renter pool in would be enough in my book not to try it. Remember, your typical renter doesn't think like you and I... that's why most of them are renting rather than buying... they want simplicity and lack of responsibility. I bet you anything you scare off 50% of renters who would otherwise consider the place, and you're wasting a lot of time entertaining those who think they can get a deal. 

Nope. Not to be harsh, but the mere fact that you're asking the question tells me you have little understanding of what's involved logistically and financially. Suffice it to say this is a bad idea. The cost involved would go a long way toward (if not fully fund) a down payment on another unit!

Not so sure you even need to offer $500. Tell her you're taking her to court for expenses, additional rent for roommates, whatever you can come up with, OR, sign this termination agreement and we both walk away. Worth a try I'd think.

I posted a month ago that I was seeing weakness in the south Denver/Co Springs rental markets, now that weakness has spilled over into price reductions on homes for sale of 5-8% already relative to what they were asking a month ago. That's significant, especially when annualized, though a portion of it is likely to be seasonal. 

One thing that Trumponomics seems to forget (love him or hate him) is the significant impact that labor supply has on GDP. When you hit full employment as we have now, it puts a significant dampener on GDP growth. This claim of 4%+ sustained gdp is frankly ludicrous, 3% is as good as it'll get on a sustained basis but even that's a stretch. Add in raising rates and things can head south quickly. 

Let's also not forget that the average wage has lagged cost of living since what, the late 70's? Birth rates are dropping. Deficit is massive at all levels of government. If we don't have a "crash" we'll at least have a significant slowdown, but 9 out of 10 times these days that means a crash since zero bound interest rates have created speculation in just about every asset. Nobody wants to be left holding the bag and many assets can be sold in an instant.

Personally I think something will trigger a cascade effect in the markets sooner rather than later. This leads to uncertainty and contracted 401k's/savings, lower consumer spending, layoffs, and that's all it takes to trigger a major recession. It doesn't take much when investors are skittish, and they are. One of the best measures of investor confidence is the uniformity of speculation... are all asset classes rising at once? If yes, then confidence is high and asset values tend to remain relatively stable and climb. If no, as we've been seeing with sector rotation in and out of stocks like FANG and semiconductors, as well as a divergence btwn corporate and govt bonds, confidence is cracking and downside risk becomes much higher. 

I'm betting this is the top, and if it isn't I don't suspect home prices are going anywhere too fast, certainly not like they have in the last two years. 

@Todd Dexheimer has some good points. If you didn't rewire the joint, just keep in mind that you cannot insulate over/against knob and tube wiring or any kind of older asphalt wrapped wiring. It has to dissipate heat though it's sheathing. Blow in insulation included, both types.

I'm sure it can be proven to have health implications over time if breathed in constantly, but it's not like asbestos, and even that is overblown in our society. Don't get me started on radon... what a money maker. 

I know you're in an expensive market, but I've seen better in my market which is similar in price (Denver area). I agree that the maintenance provision is far too small for that property even if you remodeled it to perfection. 

One thing to look at is the water and sewer... that's a large expense that would be good to get in the tenant's names if at all possible, especially if that's more typical of the area anyway. 

@Paul Staszel Oh it sure can! My 1922 still has three ceiling lamps on knob and tube that's in great shape. I made sure all outlets were fully upgraded for safety. Keep in mind that the wiring in that building is not as old as the building itself... they probably didn't wire it till the 30's or 40's, so the wiring is probably just as old as mine was. 

@Aaron Arthur that's a tough one; a costly lesson but usually in the long run the lesson learned ends up being worth the cost if you just keep moving forward.

Frankly people will only find a way when they're forced to. Even if that's your mom. The market is relatively hot everywhere now, I see no reason for you to hold onto the place in hopes of a better price when you're bleeding money and facing real family drama with your mom. Tell her you need to sell and bite that bullet. Your opportunity cost of sitting on that under performing asset is huge. Sell it, keep to yourself about what you end up buying after you've sold it, but keep moving forward. Good luck sir!