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All Forum Posts by: Diane Perry

Diane Perry has started 7 posts and replied 28 times.

Post: Please Stop Calling My Sick Grandmother!

Diane PerryPosted
  • Posts 29
  • Votes 11

I do not have a landline, but my grandmother who has dementia does, and she’s getting constant phone calls from wholesalers. How do I get her number off of these lists? PLEASE STOP CALLING HER!

Post: Is the 1% rule dead in Arizona?

Diane PerryPosted
  • Posts 29
  • Votes 11

Sorry, this is not about Arizona, but my peraonal experience.

I only have a couple sfh rentals, but making almost double the 1% in rent. One is in Nashville, purchased in 2017, and one in small town in a coal area, PA, purchased in 2022. I have another property that’s not cash-flowing yet, also in PA, but all my properties I bought at a great price. I think that’s why I don’t have more properties, because it has to be a great deal right from the get-go, and that usually means it needs a bit of work and is also dated, but a solid investment. I have great tenants, because I refuse to buy a property I wouldn’t be willing to live in myself. I could mke  lot more money being a slumlord, and would have to work ten times as hard. It’s not easy finding the right deal, and takes quite a bit of time. It’s not the way for most people, but it works for me.

I am a real estate investor. I am searching for an agent who is willing and savvy enough to send me listings in Eastern TN that are in opportunity zones only, and below $250k. I have called several agents who are unfamiliar with this feature of RPR and they all tell me they are too busy to learn how to do this. It is a free feature of RPR and I have even sent them links to the tutorial of how to search for listings in opportunity zones.

Finally I realized I am barking up the wrong tree asking random agents to learn a new trick, so I am posting here to see if someone gets back to me who already knows how to do this.

Forgive me commenting on a 2 year old thread, but now that people are largely no longer quarantining, I am still interested in the answer to this question. For me personally, and the impression I get from listings in multiple areas across the eastern and southern areas, and open floor plan is still very desirable… but I understand how the long narrow house on the long narrow plot with a kitchen at one end and all the “rooms” in a long line… well, I just think it looks awful.

That being said, I am actually on both sides of this question, really. In a modern house without any character, I think it is beneficial to have a mostly open concept for public rooms, Of course if there is room for a living room and a family room, one should be separate and more of a hangout space. 

However, and I feel very strongly abut this, if you are dealing with, for example, a truly lovely craftsman house with loads of wood trim and character features, or a victorian house, or something else which is spacious enough to work as separate rooms and has a load of character, I feel it is a crime to erase all the walls, slap a coat of hideous grey paint on everything, and put in a glitzy-glammy colorless kitchen open to the majority of the first level. I have seen many a gorgeous historic home in fine condition be assaulted and battered in this manner in the more chic and expensive areas near me, and it is something done usually by a contractor who has no architectural literacy about these styles. Unfortunately, it is usually irreversible, because that high level of trim work and materials is so expensive. 

I own a house that used to back to a brook. I was upset when developers came in and put houses in the backyards of the houses on either side of me, facing but not in any way designed to take advantage of the view of the brook, and then put a road between me and the brook and park. My feeling is, if I wanted a house that backed to a park that is what I bought, and if other people wanted a house on a road, they should buy one and not destroy the neighborhood to put in yet another “luxury” cookie cutter house.

I feel the same way about homes that are perfectly wonderful and function beautifully with separate rooms that have tons of character. If you want to live in one, buy one and live in it. If you don’t like that kind of house, buy a different house, don’t destroy a frankly better quality home to follow a trend when there are brand-new and not-so-new houses that will give you what you want without killing it!

That all being said, I really don’t think open concepts or great rooms where the kitchen, living, and dining areas are either wide open or visually connected is going away at all. If there is a separate family room, great. If not, my experiences with designing for families is that once kids are teens they retreat to their bedrooms on their phones, and only come out for pizza, so don’t worry about a “family space that includes teens.” Yes, noise does carry through these spaces, so watching tv and quiet reading or studying or working can be an issue, but not an insurmountable one. Plus, if you’ve ever read the three “Not So Big House” books, you know that eliminating hallways between rooms means less WASTED space. Plus, it just looks damn good.

As for me, give me a “live-in kitchen” and I’m happy. That’s where I spend my time, and if I found a historic house I loved and decided to move to, I would change my living style to suit it, not the other way around.

I am interested in what happened after that… I just saw a very nice-looking house with all the heating and electrical and plumbing torn out, and am tempted to bid… I would LOVE to find a construction partner in Detroit with a proven record of rehabilitating these lovely old homes, and save them.

Since the program started in 2017, you can’t have held them for 10 years yet, so you can’t sell the properties without a capital gain, although depending on when you bought them, I believe you might get a 10 or 15% stepped -up basis even if you do not hold ten years. If you sell them and they are deemed original use, the buyer can hold ten years and get the full benefit if they buy it as a QOF. You can sell interest in your QOFs to someone, but that would be adding more equity, and restart the ten year clock on that chuck of equity. 

I might be interested in buying an original use reno. Please contact me. If nothing else, I am looking for another investor who is interested on QOZs. I am just forming my QOF now.

Quote from @Eliott Elias:

Stay in your state, it is vital you are close to your first property. There are thinks you are going to learn the hard way not being able to physically be at your property. If 50k isn't enough I would try to partner up with someone.  

@Jack Lin If you are interested, I would love to talk with you about an area I have purchased a rental house in, in Pennsylvania. It’s not too close to Queens, but close enough. If you think you’d like to partner up, I am interested in partnering with someone too, as I often find some great deals, more than I can invest in myself. I purchased a home for not too much more than the $50k you are considering getting in for, and it is great to not have to risk paying a mortgage just in case there are months with no tenant. 


My biggest rule for myself is, I do NOT want to be a slumlord. There are a lot of investors, and whole companies, that buy and supply rentals that are just barely habitable. I find that renters are more forgiving (in many markets) of dated stuff, but they don’t stay long, or respect property that is in really bad shape to begin with. (why should they?) A decent but dated place to live will attract families, people with good jobs, responsible tenants, and then both the tenants and the homes are very little trouble, and rent gets paid on time.

Post: Where does cash RE purchase go on a P&L?

Diane PerryPosted
  • Posts 29
  • Votes 11
Quote from @Bill B.:

You could have the “expenses” you paid to buy the property. Appraisal, transfer tax, etc etc. But not the actual purchase price. 

Unless you overpaid for “goodwill” or something like that, it’s still not an income or an expense. (Imagine buying The last property you need to own the block for $100,000 when it’s only worth $80,000. You spent $20,000. (Unless your combined properties are now worth $50k more.  Then you actually made $30k by overpaying $20k)

If you have $10,000 in cash and then buy exactly $10k in gold you have no income or expense. If it costs you 10% and you only get $9,000 in gold, you have a $1,000 expense. If you turn $10k in us cash in to gold, one month, and then in to crypto the next month and then in to British pounds the next month. You have no income or expense unless they charged a fee or the value rose or fell. 

As I mentioned before. They usually only care about income because you spend yourself to poor. 

Thank you, @Bill B.!

Quote from @David Vaughn:

Diane i've been at this game for over 20 years. What I have learned for the most part is 90% of my tenants have been ok until their situation changes. Then it tends to go downhill. I guess someone with a higher credit score might care a little more about hurting themselves credit wise but in the rental side i've never seen that so much. What i have noticed as just in most other businesses the customers that are more stable and reasonable tend to be the most relyable and easier to deal with. There isn't one total magic combination to picking the best tenants. We have processes and minimum standards and still at the end of the day there is some luck involved. 

I get that one wants a tenant with provable positive history of paying. But I am also thinking it is a very local issue; in NYC, a LOT of people rent, even some that could certainly afford to buy. In some areas, renters are generally more fly-by-night, and most people own their own homes. In certain professions where one might have to move a lot, renting is the norm.

I can tell you that when I went to rent my Nashville home, on the outskirts of Davidson county but near Percy Priest Lake, most who can, own, and there wasn’t a single renter who had a decent score for me to choose from. Even when I used a property manager, the scores were unbelievably low. I remember saying to a friend, “I didn’t even know was possible to have a score in the TWO’S!”

Post: Where does cash RE purchase go on a P&L?

Diane PerryPosted
  • Posts 29
  • Votes 11
Quote from @Bill B.:

If you need a P&L for last 3 months and this happened 5 months ago, obviously it  don’t go anywhere on the P&L. Plus, A “P”rofit “&” “L”oss statement doesn’t include assets, only income and expenses. 

If I have 1 million in the banks and It pays me $1,200/yr in interest. I live at home and don’t pay for anything but pizza and beer, and I spend $90/mo on pizza and beer my P&L is..

$300 interest income

-$270 pizza and beer

$30 net income. 

If I spent more I could have a negative P&L with a million in the bank, with $10 million in the banks. 

I have $100 million in gold and I spend $20,000 to live for 3 months

My P&L is…

Income 0

Expense

Rent $5,000

Food $5,000

Entertainment $5,000

Misc $5,000

Net income minus $20,000. 

You can spend yourself to “needy” no matter your income. Just gamble, donate, spend on whatever. But I assume there are income limits on assistance. They probably only care about incime. 

Bill, just to clarify, as I said, the cash came in five months ago, but the purchase happened within the three month period. 

Expenses to live are not asked, (ie pizza, rent, etc.) only business expenses against the business income. So is the purchase of the rental an expense in this case is my question, since other expenses arising from the rental, taxes, insurance, etc. are deducted from business income.