All Forum Posts by: Account Closed

MBAs are of little value. As mentioned earlier in responses, they’re okay for networking but it’s a largely superficial credential (“My MBA degree makes me a business person!”). 

What about a different masters degree - perhaps in applied economics like here?  I would argue that would be more valuable. Typically these degrees have great scholarship options (you can often get tutition remission) and will also develop the practical ability of interpreting contemporary trends and movements in the economy - some university faculty will even work with you to help you explore your particular interest (ie, real estate).

MBA degrees will just have you do pointless group projects and case studies and you will pay the equivalent of a mortgage for it (but with no house!). Universities champion them because they’re cash cows for business schools - how do you think they paid for that marble flooring and Starbucks vending machine?  Good luck!

In cities with very pro-tenant leanings, eviction is long, expensive, and near impossible (especially in DC). If I were needing to change a tenant on a month to month lease, what would be a reasonable amount to offer as Cash for Keys (assuming a high cost area like DC)?

Also, how does the transaction take place?  Do you offer cash once they move out?  Half cash at agreement, the other half paid at move out?  I’d value any input. Thanks!

I’m interested in creating a self-management model that cuts inefficiencies of normal property management services. I’ve spent a lot of money on mediocre service that provides marginal value. I know people say your property manager should make you money, but that is exceedingly rare in my opinion. Time to trim the fat and find ways to innovate.

I’m interested in digital door locks that are on the market (like these). If those were installed on out of state SFRs, one could control many aspects of a rental property that a property manager would normally steward. For example, one could work with a local Realtor to show a property to tenants and select to have the door open within certain time windows. There could also be certain windows of time open for contractors and cleaners to have entry. From what I can tell, a custom lock combo can be provided to anyone coming into the home and then deleted afterward (all via a phone app). This is pretty remarkable, albeit it’s been available for quite some time already...however, the prices seem to be dropping. Also, I see Amazon gives the option for on site installation (fee required - very convenient).

I’m curious if anyone has had success with this? I could see the benefit for reduced instances of changing locks during tenant turnovers or lost key instances, which could be a significant future cost saver and hassle-remover (equally important).

I’d value any thoughts and input tremendously. Thanks!

As we look at the strong likelihood of increased inflation down the road, I wonder if thoughts here toward leverage will then become more dovish.  One glorious part of having mortgages on properties is having a 30 year fixed note that will get pummeled over time by inflation (or admittedly, become much more burdensome by deflation, but I don't think that's where we're heading for now).

Steven - your comment about proper insurance is something I want to comment on. I think one unexpected benefit of maintaining debt on a property is that the bank is involved as a 'partner' on the endeavor. Re: insurance, if a devastating event impacts your property, you will have much greater efficiency resolving insurance claims if you have the bank involved to a high degree - the bank wants its interests served and protected and their army of lawyers will ensure that the insurance company doesn't stall. If you own free and clear the insurance company's incentive for helping you individually is minimal - you're last on their priority list. Maybe others have a different take?

Thanks everyone. These responses all point to a consistent POV. Thanks for taking the time to share your input and experience.

Follow up question:  let's say I do generate reliable quotes and present a price reduction to the seller. Could he leave me the delta at closing?

Hi BP community,

Once the inspection has been done, when do you walk away from a deal? I know there's no one answer to that but I'm facing that as I evaluate a fourplex opportunity.

It's a brick building that is fully leased.  Cash flows very well and it is priced reasonably for the market (if one were to assume no deferred maintenance). The building is around 100 years old.

However, the inspection flagged some significant issues:

The basement/crawlspace area is host to the bulk of the problems.

-  Basement has an obvious moisture problem.

-  Subfloors are saturated with moisture at some parts, leading to wood rot, fungus/mold, and obvious safety issues.

-  The floor unit above the basement's problem site has a concerning issue with floor sloping/alignment. This seems connected to the issue with the subfloors.

-  The electric wiring is a mess in the basement. There are at times exposed wires and knob and tube wiring (that doesn't seem to be carrying a current, but should definitely not be there).  There is also an issue with corrosion due to the moisture problem.

In my opinion, these are structural issues that call into question the building's integrity. However, I want to see if somewhat normal to encounter issues like these where a possible solution could be made by the seller hiring a structural engineer and electrician. Have you guys encountered results like this and still moved forward, or did you walk away? Thanks!

I I should add,  we did a walk through but no report was signed (I was new to the state and didn't know)

No move in inspection was done that expressed an agreement of the property condition.

thanks for the info. My question is more oriented toward whether someone would manage Section 8 tenants from 3 hours away. I can imagine (most) market based tenants would be manageable (but that may well be a wild assumption). Curious if anyone has self managed Section 8 from a distance.