All Forum Posts by: Craig Janet

Interest rates, housing cost, insurance, maintenance, and materials have risen beyond rental prices. This has made cash flowing impossible unless you put a significate amount down. Then your ROE will go down considerably. Alternative safe investments such as CD's and bonds are closing the gap with real estate. It's not worth the hassle and risk to get an extra 2% ROI.

Just 5 years ago you could pretty much buy anything within reason and it would have been a good investment. Not so much now.

Classic professional tenant behavior. They think they can use the deposit for the last month's rent. Unfortunately there isn't much you can do. You can sue them but it likely won't get you anything. 

 I agree with you Mitchell. In my market a $200K house will get you about $1500 after all expenses you will probably net around $1000. So that's 12K on a 200K investment for about a 6% return. Or you could take that same $200K and but in a CD at 5% and get $10K. Is that $2K a year worth all the hassle and risk of owning a property, not to me. 

Either rents need to go up or house prices need to come down. Hopefully both. For the foreseeable future I'm holding on to my rentals and just investing my cash in CDs and treasury bonds.

If you took that 150K profit you could put it in a CD to get 5% that would provide you with $625 a month in interest. Risk free and hassle free. Of course you would loose the equity you pay down and and the tax benefits of real estate.

You also need to consider that you are paying down your mortgage at a very low interest rate plus you are cash flowing and hopefully some appreciation. Your total ROI is going to be hard to beat elsewhere.

I'm busting my butt for 10% return on my rentals. It's very tempting to sell and get 5% for doing absolutely nothing. I just know I'll probably regret it after 5-10 years. 

I hate the all the cold calls from wholesalers especially when they act like potential tenants for a vacate property. Then at the very end of the call they ask if I want to sell. Very annoying. 

I have no problem with them making money if they were at least upfront about the transaction. If they said I'm going to offer half of what your house is worth because your desperate and or ignorant but I have no intention of actually going through with sale. Then I'm going sell it for what it's actually worth but if I can't I'll just walk. That would be a tough sale.   

I've bought plenty of off market deals. I will contact the seller, view the property, and then make a offer. If its accepted, I call an attorney to draw up a purchase agreement. Then we close on the property. If there is any problems the attorney will contact the person needed. I don't see what value an agent would have given either party.

The only value I see with an agent is to show the property. Because people will always want to look at it at the worst times. Many won't even show up. Many others can't afford the house or they are just kicking the tires. No way that's worth 6% which could be tens of thousands of dollars.

 Maybe it's different over here in Louisiana but you certainly can just walk away without any explanation. I do my own inspections so there is no official report. I've told sellers thanks but no thanks, and walked. 

I hate to say this but your realtors and lawyers may not be looking out for your best interest. They are trying to persuade you to continue the deal because that's how they will get paid. The contract has an inspection period, you inspected it and it failed. It's that simple you can walk or renegotiate, you don't even have to explain. If you haven't paid any deposit, it makes it a lot easier for you.

I'm just curious how did you not notice $27K? Do you get monthly statements? How was the PM hiding this from you?