All Forum Posts by: Dave G.

@Abdul Jabar weird, when I responded to your post there was only the title - "$80K Cash-What should I do?" There was no posting or info beyond that. Maybe a glitch on the BP site. 

Now I see what you're asking. I don't know anything about Roofstock, but I am not so much a fan of these investing platforms trying to shortcut or "democratize" the process. I gave Peerstreet a chance and am not happy with it. Inflated property valuations, poor communication and subpar returns. I'll be closing my account once I can escape the last 2 positions (one in foreclosure, the other is REO).

If you already work 2 jobs I don't know how you could buy a business, unless you put the $80k down on an established & profitable franchise (e.g. Subway) and then you work there as your own employee/manager to save costs. 

My RE thought is you look for a duplex to buy with $80k, live in one side and rent out the other. Slow and steady, buy another one in a few years and so on. Good luck to you. 

@Randy E. Ok well it seems like they are being unreasonable. Based on info you've provided I would non-renew and move on. Good luck to you.

If you're expecting any helpful responses, you're gonna have to provide a little more info...

Go to Vegas

@Randy E. 

I assume there is only one bath/shower on this property and the issue is they cannot bathe with hot water until the parts arrive and the plumbing fixed. 

Are they asking for anything from you or just angry? I suppose you could have offered to put them up in a hotel for a few nights until you get the hot water fixed. Or some consideration for their inconvenience. Not sure you could do more than what you're doing otherwise. 

Not sure there is enough info for me to offer an opinion on renewing their lease. I don't know what the rental market is like there. Or their current lease rate versus market rent. And condition of the property in terms of time and $$ to turn it. 

@Jay Hinrichs ok, fair enough. But the numbers in AZ don't lie and the majority are from CA, with OR and WA following behind. Maybe 500K people leaving a state with 40M is not a big deal but when a lot of them migrate to a state of 7M people it really helps move the market. And so some move back and you know them. Well, sure seems like most are staying when they come to Phoenix with nation-leading growth rates multiple years in a row. 

And I did not say it was doom and gloom. As an AZ real estate investor, it is juicing my property values big time. Keep coming, AZ is open.

@Francis A. Content of the article (excerpt below) conflicts with the title. Fake news for Commi-fornians. 139K net population outflow in one quarter (>550k annualized) sure seems like a departure en masse to me. I own property in Phoenix and Northern AZ and there are California plates everywhere. And as @Chris Levarek alludes to, there are California $$ cash offers on homes all over the place. Everything is competitive going to BAFO and selling above list, oftentimes well above list. 

The number of people leaving California typically tracks with the amount entering the state. But the findings show that wasn’t the case in the fourth quarter of 2020, when 267,000 people left the state and only 128,000 entered

@Linda Thomas what does your lease say about any of these things? Certainly the lack of rent payment you can take action on. What are the PA state laws for rentals? In AZ we have the Arizona Residential Landlord and Tenant Act. Look at the PA version of this to see what you're options may be.

Ultimately, I agree with @Landon Bleau I would spend the $$ to get a RE lawyer and do it correctly. Taking no action or trying to do a DIY are not good options here.

@Eric Andersen I would verify with your insurance agent that the landlord/owner policy would provide coverage for this risk. Or find out if you require some additional insurance (although I wouldn't think so). All properties really experience this risk, and if you have a rental with a pool (like many do in Phoenix) or you have a rental in MN where there are icy front steps and driveways, there are all kinds of risks. 

If it was me, 1st I'd confirm proper insurance coverage (a given for any property) and next I would consider adding an indemnification addendum to the lease agreement that the tenant must sign acknowledging the tenant agrees to the ladder as a navigable part of the property and that the tenant is of sound fitness and coordination to use the ladder. Perhaps could also restrict the lease to exclude minors if kids are thought to be riskier.

Good luck,

Dave 

@Louis Walker you've asked for guidance on how to maneuver it. My response is don't vote in representation that is pro-taxes. 

I think this would be terrible for multiple reasons. It effectively would double the CGR for folks at that income level from 20%. There are many scenarios where this could affect very middle class people, not "rich" people. And I don't believe it has an inflation adjustment attached to the $1M threshold. 10 years from now the $1M will be worth a lot less, yet we're still taxed at ~40%. BS.