All Forum Posts by: Will G.

Just read a realtor.com article about metros with declining home prices, one of which was austin tx. It seems they have hit their saturation level and are feeling the effects. 

If you are starting out make sure you are aware of the real estate cycle.

This happens over and over again as rents go up more units get built until vacancies go up enough to shut projects down. 

Workforce housing that is inexpensive will be the last to be effected by increasing vacancies

Interesting that it is a converted hospital, my first thought is that it's probably built waaaay better than the typical multifamily which is usually cheap as possible. Section 8 is more a desirable thing in a weak rental market. If vacancies go back to 10% like 2010(national average) you will be glad to have those folks. If demand stays high.....not so much.

Broken record here, but look closely at where we are in the r.e. cycle and try to size up the potential for supply saturation.

Nearly impossible, with the amount of variables, but I did get a verbal from a plumbing co to do replacement of galvanized with pex and it was 8 to $1200 per unit. That was for replacing the pressure lines to the kitchen and bathroom.

Take that number and add "california" on it, so $1800 per unit :)

I really don't see any reason to spend more on the copper and pex being flexible is much easier to run.

If you do consider pex ask for uponor brand as they have the best connectors

I could lease my dog to these flooring companies to do stress testing, and she has wrecked some other brands, but the nucore has held up perfectly!

Gonna go ahead and be the voice of reason....again.... step 1 in real estate investing, learn the r.e. cycle!

Value investing is dead in this segment of the cycle, so no such thing as below market multi family. That means anything on the mls is overpriced, and "wholesalers" that do manage to extract some "value" out of the marketplace aint gonna give it to you, cause they don't have to. Sellers also don't have to give up equity, even those that need a quick sale. The goal might therefore be a "fair" deal. Still hard to find.

I would warn you though, so many overpriced "deals" around here are sellers waiting on "california money"  (Out of market players who will accept ridiculously low returns, or no returns, or buy crap neighborhoods with no hope of appreciation).

This 10 year run in us real estate is a by product of artificially low interest rates, so we are not sure if it is real! don't forget, you can have negative returns in real estate.

Keep an eye on u.s. treasuries, as the benchmark 10 year is expected to continue to go up,and if the market is still intact after 4%, then you can feel pretty confident that this is sustainable. 

Can't comment on that specific, but I am a "nucore" convert.  Purchased from floor and decor , the waterproof vinyl on a laminate like backing imho is awesome. Durability of vinyl with the thickness to cover minor floor imperfections, suitable for bathrooms and has in 18 months shown zero signs from my German Shepard running around on it, where h.d. brand vinyl has been noticeably scratched by  dog nails.

i think we have moved beyond the notion of wealth equal happiness, and studies show that to be true. Once you have all your basic needs accounted for, more money doesn't mean more happiness. Meaning does equal happiness, and meaning takes different forms, but usually, responsibility, status in your community, feeling needed, having meaninful interactions with people, and making a positive difference to others are things humans crave. To be fair money can facilitate some of those things, but totally not necessary to being "valued" by your community

@Dan H. I suppose totally dependant on your time horizon, and cost of stuff. I can get water heaters replaced for for about a third of your #,s and I have bought held and sold many properties without touching the roof.

Obviously everything is less expensive here, but I don't  get to enjoy the advantages of living in cali! 

may i suggest, not doing r.e. now? Honestly it is a terrible time in the cycle to be in acquisition mode. Not only is value investing dead, "fair" deals are hard to come by. Let the interest rate increases soak in and hopefully put some sanity back in the market

capex seems high and couldn't you manage it yourself?