All Forum Posts by: Kama Ward

From Joe A's post I get the feeling that this 100k is a side thing. Diversification- you're not into real estate- at least at this time.

Investing in the midwest markets could be bad for you. This stuff takes time, interest, persistence, multiple trips out of state, being on call. Like the fire Michael Lauther recently had. I think Joe just wants those 'dividends'.

In that case I would suggest checking out the ready made reputable investment opportunities. Like certain turn key rentals or first position notes. That is something you can research extensively online then dip your toes in lightly. They will have a lower rate of return- say 6-10%- but a very low pain in the butt factor- and possibly counter cyclical downturns to your other investments.

Otherwise stay close to home-- maybe a cheaper market nearby- or where you are from originally- if it's somewhere besides NYC. Buy one house/fourplex and learn hands on. One will tell you if it's right for you. Sounds like it won't break you either if it's a flop.

By the way, we rented a 1br/1ba less than 600sqft.

We rented a little apartment in town a few years ago. It was a duplex built in 2001 and had a ductless hvac mounted on the wall in the main room. I can't tell you how much I HATED that thing!!!!!!!!

I would consider our climate mild. It was loud! It blew 'cold' air during the heating cycle- yes it was heating- but the air was low temp and high volume. It cycled on and off constantly. It was hard to regulated the temp in the other rooms (even though it was a newish place and insulated etc). It is all heat pump based, so I don't see how it would work well in a northern climate. It did not end up being cheap to run either- we paid the electric bills.

Maybe there are newer, quieter, more efficient versions. As always, it all depends on you local market, but as of now I can't conceive of putting one of these in even my lowest market rehab. Yeccccccch!!! Maybe a rental would be different. Around here it is not common and has an old hotel room connotation. Things can change though...

Our net worth is up greatly from three years ago, but mostly from factors not related to real estate. The real estate I was holding during that time decreased in value. The most extreme is 25ac of raw land that was worth half of the value in Oct 2008 -our market peak. I bought it in 2006 at roughly 50% of market value, so broke even when I sold it earlier this year (whew!). The improved properties have dropped 20-25%. I made money on rehabs during this time.

Most of my friends own one house, have roughly median income, and do not do much investing. They have roughly zero equity now, and I'm guessing a barely positive net worth. They feel much less secure than before- they just grind through the months and make their payments. The sense of optimism (however false) that the housing market gave them is gone.

Although my family is doing well, I'm looking forward to the time when the general population is doing better- or at least thinks they are! I'm with Nathan about the next three years. I plan to take advantage of it.

I am not a super techie, but have an iphone and love it soooo much. I did not text before- but on the iphone I do because it's like sending an email. My kid has an android based tablet. I think iphones are slightly easier to use, but they are basically the same.

I agree that your telecom provider might be the deciding factor in getting a smart phone. Get a good rubbery type case, and use a screen protector too. My daughter has shattered two screens by dropping them with no extra protection.

On the other hand, my husband has a military grade phone (not smart phone). He lost it and a teenage girl found it in a puddle in a grocery store parking lot- after she had run over it. She returned it safe and sound. The other day my husband called me from Under the surf in the atlantic ocean! I couldn't understand him- but the phone worked. He loves that phone! It's more than a phone- it tells the temp, elevation, tides etc.-- but it is in no way a smart phone- with internet connection, maps, skype etc.

My summary: a military grade phone is a super hero tough phone and a smart phone is a mini computer with a phone as one feature.

If we could get a military grade smartphone- wow!

@Rich - Good to hear from you! I want to do my first spec near to home. Infill (city) specs are good here. You can get up to 195sqft if you do it right- this is for smallish homes say under 2000 sqft. Rehabs sell for up to 175sqft. (My last one sold for 164sqft.). This is all for stuff under 370k. I do not know what goes on above that. Still seems all frozen up.

I am willing to look elsewhere to invest, and even move as you have suggested- but not for a while. Right now there are more opportunities here than I have the capacity to take advantage of.

@Steve K - I'm sure there is 40k or more to be made- but I doubt I would be the one making it! Ha.

@Josh D- How do you make the @someones hot on an iPhone?

I talked to a realtor that I trust on these issues. She said it is valued at 50% of main floor if finished nicely, but even with that it's hard to get your money out.

Bill Gulley- Yes, there is a deck off the back, and the shaded patio area below. ARV will be no more than 300k.

Jim S- I've never done an apt either. If I do go that route, it would be minimal kitchen, so someone could see it as a rec area, or a mother in law. I don't want it to have a duplex feel.
Wine cellar! too fancy for this place. I will post some pics (not that I know how) next time I get over there.

Mark Yuschak- There is already a bedroom with closet and window. There is also a non-bedroom room (no closet or window) right next to it. I might make it one big bedroom. It's all covered with fake wood paneling, so will need to drywall everything anyway.
I probably could push it to a 5/3, but I wouldn't want to list it that way.

This is good feedback. I'm obviously going to make my main focus the above ground level and curb appeal. I think I'll have 10-15k for the basement level, since the rest of the house is in such good shape.
The basement needs at least 3k for demo, clean up, paint which would add virtually nothing to the sell price. So, it seems worth it to spend 7-12 more for 20-40k in extra value.

Thanks for your answers Steve. I appreciate it. I'm a curious cat about details.
Luckily it hasn't killed me yet!

I got my next house under contract, a 60's ranch on a full finished basement (my first ranch). What do you do when you rehab a ranch w/basement?

I know it is very specific to each market. Basements are common around here- our uneven terrain allows for walkout basements. This is a walkout on the long back side, and could be walkout on the driveway short side. There is a fireplace and bathroom down there. There are full size windows on three sides.

My friend bought a ranch recently. Her basement is a not very nice 2/1 that gets $750/month rent- with walkout on the short side and no other full size windows. We used to live in a basement apt- somewhat common here.

I plan to resell not rent- just giving a perspective on the value to people.

I can see everything from ripping everything out, to putting in a 2/1 guest suite.
The ARV on this house will be 250K (very conservative)- to 300K. The neighborhood is very desirable to professionals, walking distance to the regional hospital and five minutes to downtown.

Love to hear stories of past successes (or failures) with basements!

Either you or your attorney need to consult a real estate attorney.
Get the house included in the settlement- you have much more leverage now while all the moving parts are on the table.

If it was me, I'd talk to a real estate attorney where you are as well as one in NC. Maybe there is a way to force the sale. If this is the case, he might come up with the money even if he "doesn't" have it. I'm guessing it's around somewhere, from your other posts indicating high income & assets etc. If he really doesn't have it, maybe bankruptcy or foreclosure would have to happen. ??

If you take your name off the deed, you have no control, yet you will still be liable for the full amount of the loan (not just 1/2). Yikes!

I know you are tired and worn down- but cross your t's and dot your i's now, or it will come back to bite just when you thought you had moved on!

Be very clear and firm with your attorney that you want to have no ongoing dealings with your ex.