All Forum Posts by: Jacob Sampson

@Matt R. if something is a gamble then that is what it is.  What people believe about it doesn't change what it is.  My statement wasn't to disparage people who purchase bitcoin only to state that it isn't for me.  There are no fundamentals in Bitcoin.  There is no way to analyze it and based on the analysis decide what is a good price or bad price.  It is purely people hoping/expecting that someone in the future will pay more than the current owner did.

Pardon the hyperbole but:

IBM

Coca Cola

MGM

Chase

DOW Chemical

Woolworth

ALCOA

Ford 

Being a big name did not make investing in NAZI Germany a smart or good move.

Finally, can you tell me what Bitcoin is worth?  At what price is it over valued or correctly valued?

@Julio Garcia I think he is asking why the seller would care.  Your reason is for why the buyer would care.

I agree with @Tracy Streich.  Also, I know you didn't ask, but this conversation reminded me of something.  Check with your insurance to see if you have vandalism coverage.  Not saying you should get it but I have it and found out that the coverage only covers for the first 30 days of vacancy.  If it is vacant for more than thirty days it isn't covered.

Although you didn't ask this and I am not an accountant, it is interesting to note that the cash spent on principal buy down of your rental is considered profit and is taxable.  So if throughout the year you pay $5k in principal through your regular mortgage payment that $5k of taxable income that you happen to chose/were forced to put on principal.  it is one of the reasons why, in real estate, you can be profitable but still be negative cash flow.

You would need to have a local contact.  A friend, family member, or a trusted contractor to show the place.  ultimately you need a way to collect app fees, deposit, and rent.  Paypal or Venmo are great for that.  Zillow may offer the ability to do digital apps and leases.  I use Rentecdirect.com.  They allow for digital apps and leases also.  They also allow you to collect money.  The only difficulty is getting those items set up and the physical showing of the property.

Full disclosure I don't have any remote rentals.  All of mine are local.  But I don't do any of the showings I use a local contact.

The only thing I can think of is that FHA may require the home to be in better condition than the conventional load does. So their may be some deferred maintenance that is acceptable for a conventional loan but no ok with an FHA loan.

My experience with insurance is that you get the stuff to cover catastrophic problems. The nuisance insurance, like home warranties and water backup is not worth it.  That would be a general rule, but if you have a history of water backing up multiple times a year then maybe it makes sense.

I think you may just be feeling the fear that can come with making a new purchase.

It is unfortunate you are using a PM.  They are either super expensive and suck at their job or they are just super expensive.  Sounds like you have the first one.

@Sam Hemingway I think as a general rule you are correct.  I have a standard equation I use when purchasing properties.  I will pay up to 60 X monthly rent for purchase and remodel and must be located in a reasonable neighborhood.  If I happen to come across deals that still meet that equation then I buy.  The problem with a sellers market is that fewer deals meet my requirement.  The only danger of buying into a sellers market is if you adjust your requirements to the market.  If you hold strong you buy fewer but should still be fine.

That being said, I am definitely in the build up cash mode to take advantage of a pop that may happen in the next several years. 

Just my thoughts.  That or buying property is like a drug to me and I just need another hit and the above is my justification for taking another hit. 

It was a surprisingly reasonable year for me.  I finished and sold a flip early on and have acquired 7 SFHs.