All Forum Posts by: Jon Q.

Hello BiggerPockets fam,

I am wondering how to approach this issue with my tenant. Earlier this month, my tenant uncovered water damage along the baseboards and lower walls of the master bedroom. Immediately, we contacted our home builder (D.R. Horton) since the property is only 10 months old and has a 1 year warranty. Apparently, the concrete slab that houses the water/well system had a crack that served as the intrusion point. The concrete slab/equipment runs along the exterior wall of the master bedroom. Vendors are taking care of the work that needs to be done. All good up to here....

Now, my tenant claims that there is damage to her brand new bedroom set. I have not asked for images yet, because I am unsure as to how to proceed. Who should be accountable for this? Landlord? Tenant? Home builder?

Thanks for the help!

Throwing my opinion into the ring here. My thoughts are summed up by the concept of dollar cost averaging (DCA). I try to build by portfolio with BRRRR positive revenue deals regardless of what the market condition at the time is. Naturally, this is easier/harder depending on the market we are in but overall seeking for deals of this nature and accumulating assets in the long term is my modus operandi.

Quote from @Jon Q.:

Quote from @Mark Cruse:

I have been trying to finalize a nightmare flip for over a year. It will now be a rental for awhile. I was told the unit may have been cursed and a lady I know said she has a specialist from the Islands that can chase out spirits. I laughed at first but say hmmmmmm right now lol. I´ve sold of 3 doors to reposition the capital. I visited my WV STRs to assure things are in line. Made improvements to various units in the portfolio to maximize value. I recently discovered I have tons of usage left over from my VA loan so I will pick up a multi this year hopefully.

😆 I’ll buy cursed properties all day long if they’re located in high quality neighborhoods and I can pick them up at a price meeting my investment criteria.  In fact, I specialized in acquiring cursed properties and turning them to gold! 

 Mine was filled with devil satanic paraphernalia, at least that is what my contractor said it was. LOL. His wife said she had people who could clean it out. Some of my crew was afraid to be there alone because they said they heard voices. I even heard something that sounded like a ladder or bucket falling but nothing was there. I took it in stride at first but the things that have went wrong it makes me wonder. Who knows because pretty cool things have happened also. Maybe I can turn it into a gold mine one day like you do. LOL  

I have been trying to finalize a nightmare flip for over a year. It will now be a rental for awhile. I was told the unit may have been cursed and a lady I know said she has a specialist from the Islands that can chase out spirits. I laughed at first but say hmmmmmm right now lol. I´ve sold of 3 doors to reposition the capital. I visited my WV STRs to assure things are in line. Made improvements to various units in the portfolio to maximize value. I recently discovered I have tons of usage left over from my VA loan so I will pick up a multi this year hopefully.

I have been trying to finalize a nightmare flip for over a year. It will now be a rental for awhile. I was told the unit may have been cursed and a lady I know said she has a specialist from the Islands that can chase out spirits. I laughed at first but say hmmmmmm right now lol. I´ve sold of 3 doors to reposition the capital. I visited my WV STRs to assure things are in line. Made improvements to various units in the portfolio to maximize value. I recently discovered I have tons of usage left over from my VA loan so I will pick up a multi this year hopefully.

@Jon Q.

I've only been investing for 8 years but have bought 6 SFR in the last year. I normally only buy 2 per year, but the numbers worked good for me recently so I kept buying. I'm in it for the long haul and bullish on single family under the median price due to a shortage and high demand.

Quote from @Jon Q.:

Brian,

So do you have a lot of Capital just sitting in the bank not generating returns? If not, curious about what you’re doing with it…

I always like mine working for me.  Now, I’ve got a decent amount in oil stocks.

Dry powder in money markets, yes, but also a lot deployed in a variety of things such as in my own debt fund, some oil/gas private placements as well as some series seed stock and a variety of public company stocks.  Real estate isn’t the only game in town…

Quote from @Jon Q.:

Quote from @Larry Turowski:

@Jon Q. Smallish-time investor here in the Midwest (technically northeast, but whatever) and there is still opportunity here. 2021 I was involved in another business so didn’t do a lot, but bought 7 properties in 2022 and I’ll be closing on a couple more in early May.  A couple of those were flips.

I don’t see any sign of a major “correction” for SFHs,  maybe in some super hot markets, but overall I’d be surprised to see a correction beyond 8%. Prices are still going up here with record low inventory.

Can I asked what city / cities your in?

The cities with larger corrections have been those with larger run ups than most others (ex. those with strong population and job growth).

Just in and around Rochester NY.  But this is a small-time market and I'm a small-time investor compared to many on this thread.

35 years experience here. The market has definitely softened.  But i am still doing deals.  I have LTR's, STR's and i do 3 - 4 rehab flips per year.  Slowly moving into multi family.  I also run a REIA here in NC.  The deals are still there if you know how to find them.  Inexperience can make you go broke in a downturn, but if you know what you are doing it can be a gold mine.  I am to the point where most of my deals come from referrals or people calling me, but there are still lots of active wholesalers out there who are bringing good deals (there are equally a lot of sorry wholesalers who don't know what they are doing, so be careful).  In a downturn, if you are doing LTR, look at the average rents in the market and make sure your property isn't worth an amount that would demand rents significantly in excess of that.  Check your old leases.  Is it time for a rent raise?  Quite likely if you haven't done so in awhile.  Rents have skyrocketed.  Do you have reserves for repairs and to get you through a renter defaulting?   If you are doing STR, remember that people still travel in a downturn.  They still vacation, but they don't vacation at the real expensive places (like Disney where they'll spend thousands).  They will go to the beach, the mountains, and places where they can get a modest stay and a reasonably priced vacation.  Buy your STR's accordingly.  If you are doing flips, buy houses that will have an ARV that is below the average price in your area.  Buy them so that if they don't sell, you will be able to rent or airbnb them.  Being able to pivot in these markets is key.  Opportunity will be rife for those who know what to look for.  Short sales will come back.  Foreclosures will come back.  Creative deals will be key - can you imagine doing a sub to for some of those loans with those nice 2% interest rates?  Change is here but it's not all bad.  If you know how to work it, it can be very very good.