All Forum Posts by: Frank S.

Simple answer – refuse and lose – refuse to refund (give credit) and you risk losing customers and getting bad reviews. Hotels are cancelling/refunding without penalty. I just canceled my hotel for a conference at the last minute with no issue or hassle. Welcome to RE investing…it ain’t all roses…hope you kept good reserves...this may get ugly (hope I’m wrong).

I have several SFHs (all are 3/3, double car garage, single story, B+ to A) that historically have rented quickly. However, I am beginning to experience longer days to rent than usual. I monitor and analyze other similar properties, in order to remain competitive, and I’m seeing the same for them. The obvious answer is to lower the rent but that is the point of my post, are rent rates plateauing?

I am always looking to add to my portfolio but based on what I’m experiencing and seeing I’m not anxious to jump in right now unless I find a good/great deal but these are becoming scarce. Considered MF but my research and speaking with friends that own them they are having the same issues. Many can’t compete with the new apartment complexes that are being built with open modern interiors, amenities and convenient locations unless they lower their standards for tenants. This comes with other issues.

Are any of you beginning to experience the same and if so what do you think this means for the rental market?

@Jay Hinrichs

I don’t call them wholesales any more. They are re-sellers.

They post a house for showing one day only, limited window of time to see it (I’ve seen less than 30 minutes so you have no time for inspections), specify no contingencies will be considered, require large earnest deposit and want a considerable amount over what they have contracted with the seller.

This creates a frenzy and urgency among the buyers as they see the crowds crawling all over the property during this viewing period.

They sell.

This is the market we are in and they are taking full advantage of buyers willing to accept that risk.

Caveat Emptor!

@jesse s.  You are not alone. In my experience “locking up the contract” with certain phrases does not work well. In fact, it hurts. Sellers, agents, wholesalers and investors are well aware of this tactic and will simply not reply or reply back with an “as is” offer especially if the property is getting a lot of interest.

Buying is the easy part. You can buy anything. Selling for profit and/or returns and creating a smart exit strategy is the hard part.

Your analysis is a rational decision process. What I am beginning to see in the market is irrational.

That tells me something about this market…

I have several SFH that I own and rent but recently I have been curious about RV and Boat Storage commercial real-estate (not self storage).

Does anyone know about this type of investment along with any advice you care to share and/or where I can get more information about it?

Great article today on CNBC.

I’m sure the debate will continue on both sides. As for me, I recommend everyone rent...

Let me buy and you rent from me :)

http://www.cnbc.com/2017/06/23/how-much-housing-prices-have-risen-since-1940.html

This is a great question with many strong opinions.

In a “perfect” world, putting the minimum or no money down and financing them with debt over the next 15 – 20 years would be the way to go. That’s the power of leverage.

Buy we don’t live in a “perfect” world.

Tenants may not pay, repairs will need to be made and markets do correct (sometimes crash). All of these will cause you to bleed money. Having vacant property or properties due to a tenant getting evicted, then needing repairs, while paying the mortgage and utilities will make you go through cash – fast!

When you pay off a loan, cash flow increases greatly, your debt ratio is lower so you look more attractive to a lender which leads to a better interest rate on your next purchase and you can still have access to cash by getting a credit line on the house. Then patiently wait for the next deal.

In the end, buying is easy but making money – real cash flow – that’s what it’s about.

I own several rental properties all single family homes and considering another. However, I want to expand my real estate experience by trying a flip. My strategy is to purchase a foreclosure at our County Court House try a flip or keep it as another rental in my portfolio if that does not go well.

I looked at a handful of homes listed and plan on attending the upcoming sale – not buying – to see how this process works. However, I noticed that many of the homes appeared to be occupied?

Before taking this plunge I want to educate myself as much as possible on the risks involved in such a purchase. Can anyone give feedback on your experience or guide me to resources that can educate me?

Thanks!