All Forum Posts by: Dean Weltman

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@Joe Splitrock

Thanks for the insight. Your points made me think of how the inner city areas around here that receive the majority of section 8 are strong rental areas that get rents with very high GRM's. The downside is the other things that come with investing in some of those areas... Give and take.

I find it interesting that people chiming in from the West coast have more to say about the validity of the source (I don't have an opinion on that, but I'm distrustful of the NYT - I wonder if these same people would be content if they were the source) and veiled accusations of rasicm. 

What I'm getting at is that the only two people that feel there may be something to the article both live in the area. Personally, I have a lot of knowledge about crime issues in the area, and many locals have for years been associating section 8 with spikes in local crime. There are numerous valid studies that bear this out, but there is more to section 8 than just that. 

Section 8 is a real way to desegregate inner cities and give people an incredible chance at removing generational poverty from their family histories.

This could have led to an interesting discussion on the merits of section 8 to counter the naysayers, but it quickly went to finger pointing and dirty looks.

I'll leave this anecdote here: I live in one of the Dallas suburbs where people still sometimes leave doors unlocked without a second thought. About a year ago there was a murder of a lone female convenience store clerk. The suspect turned out to be from a similar adjacent suburb, but he got there by way of section 8 from a grittier part if town. He wasn't the one receiving the section 8 voucher, but he was part of the family that tagged along. 

I see examples like this on an almost daily basis (minus the murder, but plenty of aggravated robberies), so when you live a thousand miles away, don't be so quick to cast your back handed political opinions on the problems we're experiencing. I do welcome reasoned opinions, or at least less inflammatory tones. I welcome any PM's on the matter, but I don't think I'll add much else to this discussion on here, unless the tack of the conversation changes.

Thank-you.

@Paul J. Agreed.

I'd be curious to know what area you're talking about. Don't worry, I'm tapped out for now, so your secret is safe with me. I'm currently building a spec house in Ft Worth that should appraise close to $550k, but it's all I can afford to do right now. I bring that up to say that Ft Worth is a great area to invest in and I wish I could live there. Maybe one day...

All you out-of-towners, stay away! Lol

@Darren Budahn Your sarcasm is duly noted, but since I'm living in the area in question I can tell you there is a very real crime problem afoot. It's not all about section 8, but that certainly helps explain how crime has 'moved.' That, along with other local issues (Dallas area) and a national disregard for law enforcement has created a perfect storm that allows criminals to thrive in the open. 

But yes, you can make it about whites versus minorities if you like. That seems to be the norm, lately.

You definitely need to Google the local REI's. That can be a good place to meet the RE professionals you're going to need later, as well as fellow investors. These are the people that have the answers to questions you don't even know you want to ask! There's also a couple of BP meetups in the metroplex, which you can find by digging around this site.

Best of luck and PM me if you need some help going in the right direction.

@Kourtney Post ^^^

A bunch of great points were brought up and it's certainly a lot to think about. I've taken various loans from my 401k and right now I'm paying myself more in interest than I would be earning from Wall St. I think a 401k loan can be a great way to go if you're limited in your options. Just don't borrow that money to have it sitting in your account - it's has to be exercised or it's just a waste.

Ultimately and obviously, whatever you do and whatever strategy you're using, you must overestimate ALL expenses, and underestimate income, and then you need to still be clearing a decent cash flow. If that's not happening it's not worth looking at in more detail.

If you're using a 401k loan to finance your down payment on a buy and hold, the 5 years of loan repayments will likely make it impossible to save enough to make any other investments during that time. Personally, I use 401k loans for things that will give me a quicker and larger ROI. I then am trying to use those returns for long term holds. We'll see how that works out...

@Paul J. The source is just fine. Perhaps you'd prefer the NY Times? You won't hear a contrarian opinion in that old rag.