All Forum Posts by: Ken Teng

@Peter Lohmann Thanks for the advice. I am very curious why there are few posts or discussions about Columbus here, while deals related to Cincinnati, Cleveland abound? Is it because the Columbus market is saturated? I know a lot of institutional players heavily investing in Columbus.

@Kartik T. If you still want to invest in real estate, you can buy properties a little farther. But that requires a property manager. If you want to invest in state, I recommend Fresno/Visalia/Bakersfield. If out of state, you can go to Midwest for cash flowing properties, Indianapolis, Cincinnati, Memphis, Kansas City. Or you can go for speculation in Colorado or Utah.

Letting Equity sit in a property not earning you money, either cash flow or appreciation, is a crime. I would suggest doing a 1031 and get a cash flowing property. Please notice you may owe capital gain taxes because of depreciation. That is why you need to do a 1031 to avoid taxes.

@Dan Heuschele

You are talking about appreciation. Actually I am a huge fan of speculation for appreciation. But would you jump into the SD or coastal CA market NOW, when the probability of the market going down is pretty large? Looking at the history does not make sense here. When you start looking from 2012-2013, everybody jumping into real estate is making good money. But the problem is what to do NOW.

I only said I wouldn't invest in SD market in the near future, maybe half a year or a year. We will see what happens next year.

@Hongbing K.

I am aware of this chart. If only I could have this chart at the beginning of this year. I personally do not think this trend will hold for at least the next 6 months. I may be wrong. But again jumping into the SD market NOW is pretty risky, though you can always argue greater risks lead to greater returns.

There are two ways of making money in real estate, through cash flow or equity buildup. Cash flow is for immediate money. You can use that for your daily needs, especially paying down your other higher APR loans.

However, I always believe real wealth buildup is based on appreciation with leverage. In general, you should make your existing equity move and earn you more money. Equity sitting in a rental does not do you much good. This is riskier than cashflow, but that's the way to wealth.

I have never been to such a class. But my personal opinion on that is that it is like an MBA course. All the things taught are common sense stuff and can be learned elsewhere. But with some really good courses, you get connections and networks you cannot get otherwise. With that said, you need to listen to the feedback of previous attendees, not just the lecturers or advertisers.

At the end of the day, when it comes to real business, you need to do your homework hard and thorough. Do not think one course can make you rich. The things learned are just the basic backdrop. You need to fill in the details yourself.

Also turnkey properties are for busy people who do not have time or expertise to do the flipping themselves. Money for time and expertise. Simple

I also want to buy turnkey properties. So I think about this problem too. I think the major reason for the provider to sell it is to make quick money. You see if they hold onto it and collect rent, money comes back really slow, and they may not have capital to get to their next flip. Of course, this is just my guess. I also want to hear real turnkey providers to chime in.

You can and should deduct your appliances separately. Because they depreciate faster than the house, in 5 years. Current money is always better than future money. You can also deduct furniture, e.g. Cabinets, in 7 years, and garden structures like fence in 15years. I'm pretty confident the above is accurate and logical. But confirm with your cpa.

@Kevin Fox We can agree to disagree. I give my opinion as an independent investor, you give your opinion as a San Diego real estate agent. We have different perspectives and interests, and a consensus is difficult to reach.

Every market has relatively good and bad deals. I just want to say based on my unwarranted observation, the chance of running into a good deal in San Diego needs luck and patience. I myself will not invest in the coastal area of California in the near future.