All Forum Posts by: James Kendrick

Ned I think you nailed it.  It's a cheap capital source in the opinion of the investor.  Buy as many properties as possible, spend the tax money on rehabs, build up tons of cash, and negotiate a favorable settlement.  It's another exercise in understanding opportunity cost.

Some drivers in large cities view parking tickets as the cost of living in the city.  They let the fines, interest, and penalties accrue and pay off everything at the end of the year.  Cheaper than a garage.

One thing that fascinates me is that some tenants view late fees as a blessing.  For $XXX my landlord will loan me my rent money.

Baltimore is on fire.  That city is starting to change very rapidly.  Good or bad, some pretty remarkable housing face lifts are going on.  I think the window of opportunity around Hopkins is disappearing fast. 

One thing I have noticed is that the city has hand picked certain neighborhoods for revitalization.  You don't dare leave a window cracked, a front stoop with any debris, an alley with any weeds, or any indication that the property is vacant.  They will come down on you hard.  I've never experienced anything like it in this city.

What are you looking for?  Cash flow?  Appreciation?  Stability?

You can get the same cash flow in other areas for much cheaper but with more risk.  The seller financing terms are attractive but I think you can do better.  Baltimore is a complicated animal right now.  You need to be in the right areas.  And unfortunately they don't always equate to the most logical investments. 

@Edward Briley Shhhhhh Edward that's supposed to be a secret

So you're looking at a shell.  Probably complete gut and rehab.  In the right neighborhood 10K is a steal.  In the wrong neighborhood the numbers will never work.  I'm assuming rowhome so all of the "structure" is in the brick.  The joists sometimes need to be replaced every 100 years or so.  There is another angle to this that I can discuss with you.  PM me for details.

If anyone is looking to liquidate their properties in Baltimore City let me know.  Not sell but liquidate.  Be fearful when others are greedy yada yada yada and so on.

Shannon the only reason to invest in Baltimore city right now is the upcoming appreciation, if you believe in that sort of thing.  This is important because certain neighborhoods will do better than others.  This is a very complex subject and an unpopular one for some so I won't go any further other than to say that you can't just look at a neighborhood in isolation.  Rather, you need to look at a neighborhood as it is evolving over time.  How you accomplish this task is up to you.

If you are young, work a 9 to 5 job, are unhappy in that job, and real estate interests you then Rich Dad Poor Dad will change your life.  You will never look at W-2 income the same way again.

@Don Harris

Let's be clear here...you didn't earn this money you just deferred paying taxes on it. You will eventually be taxed on these funds in the future at the future tax rate unless tax laws change or you achieve a step up in basis. More like a cheap loan than a guaranteed return. Regardless, you are to be commended for highlighting the deductibility of certain IRA contributions.

Scott don't overthink it.  If you own 10 homes clearing $500 per month each after vacancy, repairs, reserves, etc. then you are bringing in $5k per month.  If you are trying to replace $5k of monthly W-2 income then you are probably getting close.  I'm leaving out the tax considerations but you get the idea.  If you need more income then you need more houses.  Everyone has different cash flow concerns so what might work well for your neighbor might not work well for you or vice versa.