All Forum Posts by: Account Closed

I purchased 14 townhomes eight years ago.

The immediate problem is there is now where you are going to go now in 2022 to get the same price/rent ratio you got starting back then.

And I think the reason you are debating/hesitant going all in on syndications is because you know deep down they are pissing in the wind compared to the stability of the property you already own and control yourself.

You are facing a problem Howard Marks addresses in his latest memo

https://www.oaktreecapital.com...

I short, he recommends not slaughtering cash cows unless you've got some certainty of a better home for the money, or if the cows are drying up.

"and instead of mid west 50 to 125 year old homes you can buy homes built in the 1990s and newer Very easy to maintain"

No one wants to mention the reality of that, regarding the mid west. Here in MI, it's a 4 season state- the homes aren't just old, but very high mileage from weather. With such pitiful income from rents to boot, you better be handy, and handy or not, it gets tough to roll up your sleeves when you are out of state.

Trying to crash course this in a post isn't likely possible.

Couple things that stick out, those Zillow property taxes? they don't matter. You need to call the assessors office and have them tell you what YOUR taxes are going to be as a new landlord. Spoiler alert, they are going to be higher.

Capex? You need to break down major items by service life. % of rent has nothing to do with it. A roof cost a roof. The roofer doesn't give you a break cause you own an inexpensive, section 8 building collecting small rent.

Rent boosts depend on what you can get away with in your local market.

Go to Rent.com or Apartments.com or other sites that show real rentals currently being listed in your market to see the reality of the market rents. Don't rely on Zillow rent estimates. Have to be leery of agents about what they claim for "market rents" too.

Tools? An excel spreadsheet and working knowledge or metrics and how to read/write a pro forma. Otherwise you are blind trusting someone else.

Beyond the loan, can you actually find a profitable deal that isn't just an "appreciation" play?

Because if you can't, whats the point of taking out a loan to do a lousy deal?

This is just classic 2022, hoping for marrow in a dry bone, REI.

They can't raise the interest rates and choke off this market fast enough for me. 

Beyond basic analysis- which you should learn- there is something else you should be mindful of-

Once upon a time what was condsidered a good deal was one that actually generated profit/income when you bought it.. now a days, it's devolved into one that might if the current "trend" continues for you.

Borderline Bitcoin mentality. 

The more and the longer you dig into flipping and peoples experiences with it, there's really only two kinds of people who made money doing it: People who really knew what they were doing- and people who had the home value significantly enough appreciate under their asses to make up for their mistakes. 

There are people with the equipment and know-how to make a living salvaging wrecked cars. That's Detroit.

As far as a "comeback", you know how they talk about 20 year markets? Detroit has had decades.

I don't know why you are putting words in my mouth and confusing a simple and clear issue.

As far as the NNN properties generating wonderful returns being not difficult to find, I don't know anything about that but find it hard to believe. Yield is just sitting there for the picking, while SFH and small multifamily is about as dry as dust?

 I'm also real aware of the turn around trap on things like retail, specifically, and a 7 cap doesn't help me much if my tenant doesn't renew in 7 years and I end up with an outrageous retrofit.