All Forum Posts by: Jonthan Kiser

Quote from @Alan Asriants:

time in the market always beats timing the market

buy in a solid area, focus on appreciation and solid tenant base that will take care of your proeprty

Cash flow is near impossible to find.

You will make your money 10 years down the line, when property appreciated, rent increased, and possibly rates went down

 True, IF you are patient and spend the time to master your local market.  Just buying a property thinking it will go up in 10 years is dangerous.  In 2008 it took 5 years for the bottom to occur and 5 more years to recover.  So in 10 years you would be back to zero.  If the pandemic had not happened many of those people would still be under water on their properties! 

Quote from @Eudith Vacio:

Hey @Kazumi Boyd - almost every housing market is up right now, if you are ready and can afford the house, then it's not a bad time to invest. But also maybe explore other options like a townhome or condo. That might be a better fit for you. I'm pretty sure there are people that waited to buy 1 year ago, thinking that prices would come down and look what happened. Prices continues to rise! the deals are always out there, especially NOW because those that are selling right now with these high interest rates are motivated sellers. 

This is a half truth.  The only way to make this true s to compare it to a year that makes it so.  Austin is down YoY but still up from years past.  Austin trend is down, not up.  People who bought in 2021-2022 in Austin are backwards on their equity! 

If you bought in 2021-2022 or even 2023 it may take more years to recover and gain making it a bad investment.  You can make more profit today just holding cash than on rental properties! 

Quote from @Chris Watkins:

Hi Kazumi, welcome to the forums!

The effects of a particular president (or even governing party) would likely be small on the major economic forces that drive real estate. Presidents actually have little effect over the larger economy (positively or negatively) that the preside over.

Interest rates are a real concern for investors, especially us in the NW with prices where they are. The demand to live here, coupled with the lack of supply will govern housing prices for the next decade, and insulate the region from a larger drop, even if other parts of the country drop (which I don't believe will happen, at least not like 2008)

An investment property should be looked at as a long-term investment, one that lasts through many economic cycles. If you have high short-term goals for cash flow or appreciation, there's a fair amount of risk. But that risk diminishes over a longer horizon and real estate is fantastic in the long-term.

Whether you invest should depend on your short- and long-term goals. Time in the market beats timing the market. 

This is false, dangerously false. 

POTUS has a huge effect on economy as investors should know.  Clinton destroyed the auto rebuild market which went from being a billion dollar industry to almost completely extinct in a few years (I know I was making $350k a year and then couldn't make a dime).  Obamacare destroyed thousands+ of small businesses while big Corps pushed for it because they could afford to take the hit knowing it would put more of these smaller companies out of business creating larger market share for them to cover the increased cost (Mafia tactic). Obama "cash for clunkers" program was the start of insane car pricing from MFG's. Trumps China Trade War hurt importers (I am one, trust me it hurt us bad). Mortgage rates are high because the FED has increase rates under encouragement from Biden Admin plan to drive inflation down. I can go on for days about the effects of a President over the economy. 

All of these things affect the economy at large.

I have always had insurance on land I buy and hold for future development.  In this situation I have a piece of land that requires a home to be demolished before it becomes just a lot.  Any recommendations on the best route for insurance in this situation.  The demo should take place within 30 days pending Asbestos inspection.  It is not fenced off and is zoned residential but it is on a busy highway that can be easily converted to commercial due to it being in county not city.

I appreciate any input.  I have a quote from NREIG/REinsurePro insurance program which is cheap as expected but just looking for more input.

Thank you.

Just to add a little perspective.  I had Allstate and when we had a fire on a property they treated us like arsonist.  They actually came out and cut samples from the carpet and had an investigator interview us (we were not even in the country when this took place).  The agent we used then proceeded to swindle our funds as they dripped in by using words like "courtesy" and then charged us a premium for that "courtesy". It took over a year to get half of the premium advertised to us.  We called lawyers but they said the company was so big that they were highly invested in top lawyers that would drag it out for so long the recovery would be a loss.  I have never used them since and never will.  Point is, they are all in the business to make loads of money and they do not make money paying claims.  So you need the insurance but you need to do the footwork to limit the possibility of having a claim!  That is the greatest value to your bottom line, YOU.