All Forum Posts by: John Choe

Great idea so long as you've tested that it doesn't contain asbestos.

Agreed, since you inherited the tenants I assume you have no ties to them, so you don't have a reason to give such a huge discount every month.  Move it up as quickly as possible and if they move out then you're able to get it turned over and re-rented.

When I inherited some tenants, I had my agent give them notice that I needed them to vacate in order to do updates.  They basically all agreed to move out without too much argument.  We just needed to negotiate the terms and time to move out.  Most were accommodating but one tenant decided to stop paying rent from that point and moved out in the middle of the night without notice.  It worked out better that they left since I didn't have to evict.  Although I do wish they would not have left the mess and food sitting out in the open when they left (especially in the bedroom).

As with most topics, the answer is "It depends"

For some, leverage is the way to go to grow your business as quickly as possible.  For others, you have to consider a higher cash flow that would benefit a person for years to come.

Are you looking to grow your portfolio quickly?  Leverage

Are you looking for steady income with less management? Own

Are you looking for the tax benefits? Leverage

Is it difficult to find properties in your area that meet your criteria? Own then leverage when you find another.

So yes, "it depends"

So I'm interested in doing a flip and would like to see if someone can easily explain something.  If I purchase a house for $100k and put in $25k and have $5k holding costs then sell it for $200k in a short timeframe, what options do I have to avoid paying a hefty tax bill at the end.  Put it in a bubble on a one time trial flip.  Not into a 1031 or buy and hold.  A simple flip.  Am I going to get a big fat tax bill for the $70k profit? 

Agreed, the term of bubble gets overused and the Peaks and Valleys will happen over time.  Look at the long term and don't panic when you see prices dropping slightly.  The POP that happened in 2007-9 is more due to the stated income loans that were passed out like candy.  Can it happen again?  Sure but if you've bought the right places you should be protected from the slight declines that are natural.  A catastrophic decline could happen again, then be sure you are prepared with several exits.

Personally I keep my business and my personal separated in my mind.  My home is a place that I have for my family to live in and enjoy.  I don't consider it an investment or an asset.  That's what my investments are there for.