All Forum Posts by: Derek Petersen

AC problems yes, but not many furnace issues. I have a fourplex built in the 80's, and one of the units is turning over. Painters call my PM and say the furnace is not working. PM sends a "comfort specialist" and the diagnosis is a bad gas valve and pilot assembly that would cost $615 to repair. He's recommending replacing the furnace with a new Lennox furnace and evaporator coil, for a total of $2287, 10 year parts and 3 years labor.

Which would you select or would you get another technician out to re-diagnose the problem? PM did get a 2nd bid for $3100 to install a RUUD furnace.

Thanks for any input!

The San Diego Buy and Hold Meetup will be January 17th instead of January 10th. Please contact me for more details.

@John Tan,

I use Timing the Real Estate Market using the Campbell Method by Robert Campbell. The book shows you how to develop Momentum Charts on Existing Home Sales, Building Permits, NOD, Foreclosure Sales, and interest rates.

It took me several days geeking out and collecting the data, but now I just maintain the data sets and watch for patterns.

The first San Diego meet-up will be January 10 to give everyone an opportunity to recover from the holiday. I am trying to keep the first meet-up small, with a focus group of individuals that already have a portfolio of rental real estate. Opening agenda will be:

• Introduction
• Current Markets Invested
• 2014 Returns
• Markets/Neighborhoods being evaluated for future purchases

Each person will have about 15 minutes (+/-) to get through these topics and introduce themselves. The location is currently TBD, but will probably be somewhere in Carlsbad. The time will be roughly 3-5pm ish Sat afternoon start and I'm thinking a maximum of 2 hours. I just wanted to give everyone a heads up to get this on the calendar. I will contact you individually, but if you're interested send me a message and include your RE background and rough portfolio info.

Thanks and looking forward to the first meet-up,

Derek Petersen

To the San Diego folks,

I'm thinking about coordinating a RE meetup in Carlsbad specifically for buy and hold multi family investors. If you already have several properties under your belt, investing locally or even better nationally, I want you part of this meetup. The objectives are to network, share our experience in different markets, share resources, drive and motivate each other, provide support when things get tough, discuss scaling strategies, maximizing your portfolio, and hanging out once a month. Let me know if you're interested. First meeting will be in January.

I'm looking to pick up some multi unit (2-4 units) in downtown Phoenix, Tempe, or Old Town Scottsdale. I am shooting 1% R/V ratio min; 3-4 units would be best. Please add me to your buyers list if you shop these areas. Feel free to contact me and I can provide better information on the specific areas I'm looking for.

Escondido and City Heights were 2 areas in San Diego that made sense from a cash flow standpoint back in 2009 and 2010 when there was blood in the streets. Now I would challenge anyone to find a 2-4 that makes 8% cash on cash in SD county. Please contact me if you do and we can work some deals together. 

I also have a property in Sunnyslope. Did you make a decision on PM and how is it going?

I wanted to post a question to all of you that know the phoenix market well. I currently own a tri in Sunnyslope; it performed moderately well considering I went through all of the tenants in the first 9 months that the PM had placed and had to evic one of three. Let's just say I'm hoping for a better year in 2014.

That being said, I would like to add several more Phoenix mf properties (2-4units) this year. Can anyone throw out some areas that have potential upside but most importantly cash flow (between the 1%-2% rule)?

Thanks

Yes, I do understand the rules, but probably not worth it if claiming RE Pro plus having a full time W2 lands you in the audit pile. Realistically, I probably did work the hours.

The $25k special allowance begins to phase out at $100k and gone at $150k. If you are married, it begins at $50k and completely phases out at $75k. You talk about a real estate marriage penalty.