All Forum Posts by: John Kunick

Quote from @Jeff G.:

Quote from @Andrew B.:

It only applies to those who own more than 50 units, so if thats you I get why you're not happy, but I do believe this is a good thing for Americans. The cost of housing has exploded. 

I'm sure someone will chime in and say "that's going against capitalism and the free market," but I'll remind you tax benefits are not part of the free market. The whole intention behind a tax benefit is to encourage you to do something. If the rental market is extremely profitable, you dont need more incentives to buy rentals, you were going to do it regardless. 

 Nope, I don't have 50 units. I expect to grow to that size eventually, but that day is not today. I'm with you on the tax incentive argument: I'm very much a flat tax guy.

It's not that rent control is "against the free market" that bothers me. That happens to be true, but the real problem is that it introduces artificial inefficiencies in the market that end up severely harming the people that it's allegedly supposed to help.

Wherever there is rent control there is severe market dysfunction. I have yet to see a counterexample.

https://www.foxnews.com/opinion/bidens-rent-control-plan-onl...

What continues to amaze me is how dense people are when they are not willing to look at historical examples of what happens when bureaucrats and politicians intervene and therefore artificially change market dynamics.  How in the heck can anyone say "I do believe this is a good thing for Americans"?  This is similar thing that happened when the eviction moratorium was implemented and we had landlords claiming it was a "good thing".  Well, it ended up being a bad thing and ultimately ruled unconstitutional.

History shows us the actual opposite of what he and others claim will

happen will actually take place. Instead, there will be unintended

consequences that will negatively impact the very people they claim to

be for.  Like others have said, this is an attempt to get votes..

Our current president is supposedly floating a policy idea of rent control to no more than 5% annually.  History shows us the actual opposite of what he and others claim will happen will actually take place.  Instead, there will be unintended  consequences that will negatively impact the very people they claim to be for.  I was one, during eviction moratorium, that said it was unconstitutional and a violation of property rights and contract law.  I also said it would end up being a big mess and ultimately would hurt the very people they claimed it would benefit. I had many on Bigger Pockets that initially thought I was off base, cruel and heartless..  Well, history shows what happened both in terms of marginal tenants ultimately getting hurt (as did many landlords) and the Supreme Court ruling the Eviction Moratorium as unconstitutional.
I see the whole idea of rent control, which is just another form of government invasion for political hopes, being bad for everyone.  Thoughts?

@Aakshay Subramaniam, first, good luck and hope you attain your goals! Second, I've done a wide variety of REI starting with SFH in Tulsa and built my portfolio. I transitioned to MFH via syndications and have put most all of my new money there the last few years as I got tired of the tenant headaches and also my ROI is as good if not better.. Let me see, I get same or better results with almost no headaches - hmm think I will take that path! I've also done hard money lending, some development deals (build from ground up), self-storage, etc.. I'm sticking with MFH via syndications. But, you gotta know how to do it and find the right syndicator.. DM me if you want to know more.. My goals have always been to build passive income leading to financial independence (which I've been fortunate enough to achieve). Willing to help!

Quote from @Nathan H.:

Hello, 

I'm an experienced investor that took a hiatus for the last couple of years. I'm looking to jump back in but need to explore new strategies and may be out of touch with the market. I live in Colorado, very few deals make sense here, out-side of maybe a very long-term strategy, so I'm looking to different markets.. I've invested out of state, but not much. Just want to get your take if you invest in an area with $100,000 houses that rent for maybe $1,200-$1,400. Are those areas out there and can they be lucrative? Oklahoma, specifically Tulsa seems like it may have some merit.

Hi Nathan, like OKC, Tulsa (where I live and have invested for many years) isn't still a place to buy a $100k house that will rent for $1200+.  It was 10-15 years ago, but you are now going to pay close to $200k to get a house that you can rent for $1200+...  You may be able to find houses that will get close to that criteria, but they will most likely be in less desirable neighborhoods that you will have lots of issues and turnover.

@Alex Clark, it would all depend on what you bought and how much you paid vs. how much you could rent that specific property for.  Overall, Bixby is a terrific sub-market with high demand for quality rentals. I've not had a turnover of any of my properties in Bixby  for several years as tenants just keep renewing leases..  So, I keep renewing them with reasonable increases in rent and I make sure to take good care of tenants by always maintaining the properties and being responsive whenever a need arises.  I try to not give them a reason to want to leave - and that keeps the cash cows producing!

Quote from @Sunny Karen:

Quote from @John Kunick:

@Sunny Karen, I've been a long time investor in Tulsa and live here.  All of your characterizations of Tulsa area are correct (stable appreciation, not volatile, good cash flow, etc.).  It's a great place to live, raise a family and invest.  My only concern about your two deals is location.  While I can't tell unless I had specific addresses, Sand Spring and West Tulsa can be iffy.  There are some good areas and some bad areas.  But, your game plan sounds solid.
All of my "homeruns" have been in South Tulsa, Bixby and Broken Arrow.  Remember, "location, location, location"!

 Thank you John! Glad to hear about your long-experience with Tulsa market and insights.

I have been scouting the Broken Arrow area without too much success yet. With the current interest rates being cash-flow positive even with 20-25% down with conservative underwriting has been hard. The appreciation potential in these areas looks promising though.

What is your take on the Pratville area and the area north of the river around 4th and Grant in Sand Springs?

Sorry, I have no take on Pratville nor Sand Springs.  Have never owned there or actually spent much time there.  Best of luck!

@Sunny Karen, I've been a long time investor in Tulsa and live here.  All of your characterizations of Tulsa area are correct (stable appreciation, not volatile, good cash flow, etc.).  It's a great place to live, raise a family and invest.  My only concern about your two deals is location.  While I can't tell unless I had specific addresses, Sand Spring and West Tulsa can be iffy.  There are some good areas and some bad areas.  But, your game plan sounds solid.
All of my "homeruns" have been in South Tulsa, Bixby and Broken Arrow.  Remember, "location, location, location"!

@Sandeep Dhall, hi, I've been a real estate investor in Tulsa for 10+ years.  Since I also don't like C kind of neighborhoods/tenants, I would avoid North Tulsa and/or anything to do with Section 8.  My focus continues to be Bixby, Broken Arrow and South Tulsa (Union Schools).  Avoid Tulsa public schools.  Focus on Bixby, Broken Arrow, Union and Jenks school districts as the people you want to attract tend to flow to those school districts.

Quote from @Jonathan Gobbo:

So like everyone else has said, you can make a killing off section 8 because you can buy homes for so cheap in some areas. I personally don't section 8 any of my stuff because of all the red tape you have to go through to have your property qualify. I have a quadplex in a c-, d+ area and I'll never buy in an area like that again. I'm constantly having to replace windows and kicked in doors, it's ridiculous. With that being said, I'm looking to sell it so if you're wanting great cash flow, let me know! Ha ha

 Jonathan, I totally agree with your take on this.  I bought eight houses a few years back in C area.  Fortunately, I bought them really well and did some remodeling/repairs.  I held on to them for only ten months as my tenant experiences were so inconsistent.  Half were good tenants and the other half....  I got to point I really didn't care how much $ I might make, it simply wasn't worth the hassle.  Fortunately, I sold all 8 to one investor (at a nice profit) who had several other similar properties and had the right management and temperament to handle that niche.
There's just too many other ways to make $ without all of the headaches!