All Forum Posts by: Ken Alce

Good morning and happy new year! I'm looking to convert my formica countertops to granite. Can you recommend someone for the job in Baltimore City?

I'm also looking to patch up a pretty decent sized wall (hole originally for an older window A/C unit). Can you recommend someone for a job like that? 

Good morning and happy new year! I'm looking for someone that can provide some advice, or a qualified intermediary, in Miami. Ideal if you speak creole but not a dealbreaker! Of course, if we go with you, you'll be compensated for your efforts! 

TL;DR: What if I (hear me out) DON'T factor in repair/vacancy/CapEx expenses in my cash flow analysis?

Hi all. I'm planning on house hacking and I'm excited. How often do the repair/vacancy/CapEx expenses come due?

I'm admittedly being impatient in wanting to buy soon and my realtor is *gently* suggesting that in this seller's market with limited multi-unit inventory (and esp. in my city where we're expecting an appreciation boom), my cash flow calculation should be income vs. mortgage/taxes/insurance/property manager only (without factoring in the "savings expenses" i.e., repair/vacancy/CapEx).

I'm blessed to have some extra cash so if something comes up (say a busted fridge), it won't break me. With the boost to my tax returns (now amplified by home ownership; I donate a lot to charity so I always get a return anyway) and expected appreciation, it may all even out or better.  

Ok ok...does it "help" if the house I'm looking out is relatively new, suggesting less risk?

Look, I know creative finance turns out to be many peoples' ruin. But scared money don't make no money! I'm just curious what you more seasoned investors think about this? Have you taken this path? Any horror/happy stories? 

@Dmitriy Fomichenko Forgive me if it doesn't feel that way! Lol I want the numbers to work but I may have to adjust in this market. After all, we're expecting an appreciation boom in the near future. 

@Benjamin Aaker That's helpful. I've long heard that a house is a money pit, the ironic corollary to the adage that one's house is your best investment. I suppose that's exactly what you're saying. "A SFH will always be in the negative" does help my woosah because, technically, so is renting. The difference being that one ostensibly owns their own home and can recoup some of that investment.

Maybe I need to rethink rental analysis in a seller's market. @Brandon Turner can we get a webinar on that? Lol  

That's valuable information. I hope to never have to evict anyone (for both moral and financial reasons) but good to know that + PM terms. Thanks for sharing, @Benjamin Seibert. 

@Benjamin Seibert thanks for that answer! That makes sense. So say you're house-hacking a property that already has long-term tenants, assuming you all get along and no problems with collections (big assumption, I know), would you forego a PM altogether? Save money for plumbing issues, the yard, and whatever else you don't want to handle but otherwise, it seems a waste to pay a PM for an already near-automated process. 

And if push comes to shove and you need to evict, why not wait to hire a PM at the end of the tenant relationship specifically for the eviction process and to search for new tenants? 

Long story short I found a MFH that I'm interested in but the numbers aren't great and, in a booming seller's market, I'm trying to understand what makes the numbers tick so I can maneuver them responsibly

TL;DR: Why is buying a MFH at SFH prices looking like such a bad deal from jump?

Hi all. I'm planning on house hacking and I'm excited, but something isn't clicking re: rental analysis. I'm consistently getting negative cash flows/CoC ROIs despite what I think are reasonable estimates. Conceptually, how can that be?

Median rent in my city is about $1,300. I suspect owning a SFH is slightly pricier than that (mortgage + expenses). If I purchased a SFH and added a roommate at the median rent, the numbers should largely be in my favor just for the sacrifice of adding a housemate. Why does an MFH comparatively look like a loser?

Are expenses on a SFH *that* pricey that I'm not conceptually understanding? Does the average SFH owner really spend up to twice their mortgage in expenses and savings? Are the hidden benefits to homeownership (e.g., tax breaks, appreciation) so overwhelming that the average SFH owner is willing to eat such losses?

Hi all. I'm planning on house hacking and I'm excited! I've been doing daily reps with the rental property calculator but I'm confused. Why am I setting aside money for repairs and maintenance (conservatively set at 7%) AS WELL AS spending 10-15% of my monthly income on a property manager? Other than collecting rent, isn't the property manager's job to handle repairs and maintenance? Of course, I set aside the CapEx % for the big stuff but I thought PMs handle the small stuff.

My concern is that I'm walking away from potential deals because the cash flow is coming out low/negative when maybe that say 180 a month could make the difference between a non-starter and a potential goldmine!

@JeremieTorres (I don't know why your name isn't popping up) Thanks for the response! Running two analyses is a great idea at the same time is a great idea. And thanks for the example. That's exactly what I was looking for. Good luck looking in Baltimore!