All Forum Posts by: John Clark

I haven't looked at properties in a long time due to interest rates killing any potential deal in my area (SE WI). Instead of looking for a multi-unit, I started calculating Single Family properties to see what it'd take to make my #'s work.

230,000 starting price (3bd 1.5bth, very low price for this area).

$1900 rent

$4k Taxes

$1500 insurance

$3k all maintenance

20% down

4% interest rate (just to see if even this would hit my #'s.

RESULT = $220 cash flow :-( :-(

How are you all finding single family properties that work? My target is $500 cashflow, I'm not even close.

I'd even consider 2-4unit, but I know my numbers are even further away.
:-(

What’s your appreciation potential? Appreciation comes at a cost. That cost is cash flow.

as others have said, you missed vacancy. The property doesn’t cash flow.

0 Votes

Milwaukee, Wisconsin

Quote from @Victor N.:

Hi everyone, I just formed a LLC in Wyoming and intend to buy properties in Alabama.

I live on the east coast however. Do I need to register my LLC in my home state as well or is a foreign registration in Alabama sufficient?

Thanks.

Every state that I can think of requires that foreign corporations doing business in that state register in that state. Not only does the state earn money, but if there is a lawsuit the plaintiff will know who the registered agent is. Failure to register might even be a reason to hold the principal/beneficial owner (you) personally liable for the foreign corporation’s actions in that state, so don’t try to be cute; just register.

0 Votes

Quote from @Mark Jay:

Hi, we purchased a small lot of raw land last year and have since improved it and added a mobile home. When we bought it we closed through a title company and had title insurance. Now we are selling it owner finance. Do we need to go through a title company for title insurance again, or can we just have a real estate attorney prepare the documents? The buyer is not concerned about title insurance and I thought it was only for the buyers protection but wanted to get some clarification on this. It's $1k cheaper to just go through the attorney.

The buyer is stupid. As for you, that depends on whether you have judgments against you or credit agreements that claim all your assets as security.

0 Votes

Tyler, Texas

You will of course reasonably accommodate, but it will take more than their non-medical say-so about the niece to prevent showing. Where’s doctor’s note and make sure it says you can/cannot intrude for health reasons. Also she is not on lease, so get her out or face eviction.

You are being played.

1 Vote

As others have said, get your personal finances in order first.

If you pay off the car loan, you could then drop your collision and comprehensive coverage on your insurance. That can be half your premium, so it’s an added bonus.

Then pay off the Robin Hood loan. Massive cash flow improvement if your numbers are right. In fact, consider paying it off first and rolling the cash flow into the car loan.

then look at whacking down the credit card consolidation ( I assume you have either family emergency situations to justify that debt, or have cut up your cards).

All of this assumes that you have no prepayment penalties for advance payment on the debts.

By the way, I doubt your rental is cash flowing. Where are your reserves?

2 Votes

Minneapolis, Minnesota

Quote from @Mark Morosky:

Afternoon,

New investor here with no properties anywhere (other than the one my family and I live in and own) but putting things together to start soon.

Living in Michigan but curious if investing in your first property out of state is a crazy idea. Looking at multiple cities in the Midwest/PA area

Thoughts?

Short answer: don’t be an idiot. Long answer: no, and don’t be an idiot. Education answer: did you notice that some of the people encouraging you to invest out of state with no experience at all work on commission which they receive at sale, not when you succeed?

First, you might not even like being a landlord.

second , real estate is too illiquid an investment for someone who doesn’t know the territory, the laws, or who he is dealing with, at any level.

stay hyper local your first several iterations of investing. Invest locally with someone you trust personally. Get your head examined if anyone tells you otherwise. Have people met success doing otherwise? Sure. People have also walked away unscathed from a front seat position in a high speed head in collision without a seatbelt or airbag, too.

1 Vote

Allentown, Pennsylvania

You don't. You simply don't invest where you can't look at what you're getting into. Real estate is too ill-liquid an investment to buy without looking at it first and thoroughly inspecting and investigating the area and the specific property.

0 Votes

Quote from @Brian J Allen:

This summer, Jack’s Abby Brewing of Framingham acquired Wormtown Brewing of Worcester, marking another step in the ongoing consolidation of the microbrewing industry in Massachusetts. Wormtown has built a strong brand, with its beer recognized beyond the local region.

However, this merger raises questions about the challenges of doing business in Worcester. If Wormtown is better off brewing its beer in Framingham, a key factor could be Worcester’s commercial tax rate. The dual tax rate in Worcester has been a deterrent for businesses, and this merger serves as yet another example of its impact.

From a financial perspective, the numbers are clear. Worcester’s commercial tax rate stands at $30.04 per $1,000 in property value, compared to Framingham’s significantly lower rate of $11.94. On top of that, Wormtown was being charged approximately $115,000 in personal property taxes for its equipment, in addition to rent and likely a portion of a triple-net lease.

By moving manufacturing operations to Framingham, Jack’s Abby can increase capacity without incurring additional taxes or equipment costs. Given the tax disparity, choosing Framingham over Worcester makes clear economic sense.

Interestingly, Worcester has a lower cost of residential rents and likely lower labor costs than Framingham, yet its business tax policies continue to push manufacturers out. This trend is reinforcing Worcester’s evolution into a bedroom community for towns with more favorable business climates to the east.

On the bright side, Jack’s Abby has announced plans to expand Wormtown’s taproom on Shrewsbury Street, including outdoor seating. While this is great news for local beer enthusiasts, it underscores the irony that Worcester residents will be enjoying beer brewed in Framingham—largely due to Worcester’s tax structure.

So long as the water doesn't come from Back Bay. . .

0 Votes

Worcester, Massachusetts

Quote from @Kyle Reedstrom:

I have a lot of new construction homes in my area. Many of them have no transaction history. How do I find out what the price was of these homes when they were built and closed with the 1st owners? AKA I want to find out the original price the houses started at?

Context: I am a Real Estate agent and we are conducting a marketing campaign to show people how much their homes have appreciated in value. In order to have that number, we need the original price the home closed at.

Look at the deed on line. Specifically, look at the tax stamps affixed to the deed. The tax stamps are set at $X per $Y of purchase price, often per $500 or $1,000 of purchase price. From the amount spent on tax stamps and the transaction tax rate, you can find the original purchase price.

0 Votes

Fargo, North Dakota

Quote from @Michael Lynch:

Thanks Guys! ..... I really appreciate it.

Make sure you check local/county/state limits on screening. Some places don’t allow criminal records checks outside of various charges/times, others refuse to permit eviction checks, others have limits on income criteria. Remember, you are landlord scum, not innocent, misunderstood, virginal, tenants.

0 Votes

Coastal NC, North Carolina

All Forum Posts by: John Clark

John Clark has started 5 posts and replied 1342 times.

Post: I'm losing motivation, can't find anything that works.

Post: Home state registration needed for my Wyoming LLC?

Post: Do we need title insurance when selling owner finance?

Post: Landlord Seeking Advice: Tenant Refusing Showings (Niece's Health) & Potential Holdov

Post: Laidoff, lots of debt, have 75k equity in my first home, looking to get my next deal.

Post: Out of State For First Property?

Post: How do you vet a market when you can’t visit in person?

Post: Wormtown Merger Reveals Harsh Truth About Worcester’s Tax Structure

Post: How do I look up the original build prices of homes in my neighborhood?

Post: Best way or how to properly do a background check?