All Forum Posts by: Joe Lambert

My unbiased opinion would be Omaha:)

Ok, maybe it’s a little biased. But, I do love this city. We have a stellar rental market and slow growing appreciation. This may not be everyone’s ideal recipe, but if/when markets drop, I enjoy the minimal disruption here. 

And we have a nice zoo. 

It is almost tax protest season in Nebraska and I will be protesting the tax assessment on at least one of my properties in Omaha that has gone up by nearly 28% over last year.  Would anyone like to share their experience, good or bad, with local tax protest services in Omaha?

I want to add to the previous post, what the value of cash in the bank reinvested is vs. having that same money sitting in equity by comparing future value through use of of both over the next 30 years (at the 30 year mark, both examples would be paid off and have equal equity as well as cash flow).

Assumptions:

Value = $100,000; DP = $20,000; Loan = $80,000, CF w/loan = $4800/yr; PM = $5200/yr

Options :

A - Use CF to payoff mortgage faster = Payoff happens at 19 yrs, 8 months
B - Stockpile CF for 10 years and flip = $48,000 in cash.  Flip "cash" at 10% return twice a year, reinvest including profits.  $48,000 > = $52,800 > = $58,080 at end of yr 1, and repeat for 10 yrs

Compare     Yrs         CF           Equity         Accum Profit    Total Return
Payoff          10           0           $68,000                  0                 $48,000 (- DP)
Reinvest      10   $48,000       $42,000                  0                 $70,000 (-DP)

Payoff          20           0         $100,000                  0                 $80,000
Reinvest      20   $48,000       $65,000           $343,000        $436,000

Payoff          30   $100,000   $100,000                  0               $180,000
Reinvest      30     $96,000    $100,000       $2,588,658     $2,764,658