All Forum Posts by: Kyle Sosnowski

You can make money is most markets if you know what you are doing. The best market to invest in is the one where you have an unfair advantage, advanced knowledge, relationships, or another compelling reason to invest. Both Cleveland and Columbus are good places to make or lose a pile of money. Your team, your own studying and due diligence (you better get on a plane before you cut a check - if you are out of town/state), solid management of the property if you do pull the trigger, and a clear plan or strategy is what will result in success - not the market you choose.

What is SD?

I appreciate your response. I am skeptical about their request too. Changing the lease to a month-to-month (M2M) arrangement would be the logical solution, but I'm faced with a mortgage clause that stipulates rentals must be for a minimum of 6 months. Given their consistent lateness with rent payments, I'm quite hesitant to commit to another 6-month term. In all honesty, I would prefer if they decided to move out.

I think that nobody has a way of forecasting what the future holds in the real estate market. Nobody knows where things will be in 3 months, 6 months, 12 months, 18 months. Not even the most skilled economists or biggest hedge funds out there. It is literally impossible to forecast with any degree of accuracy.

That being said, you asked for my take on things so I'll throw it out there (although to re-iterate, my opinion is meaningless). I think that 18-24 months ago there was a large pool of buyers who were sitting on the sidelines waiting for prices to come down. And now that pool of buyers has ballooned even further, because nowadays you have that same pool of buyers from 18 months ago PLUS an additional pool buyers who are ready to purchase, but this time everybody is waiting for rates to come down. Not to mention all of the inventory issues that we had back then are even worse today. If I had to guess, if/when rates go down, prices will go up. Which means that now might be a good time to buy a residential property. I'd rather buy a deal now and refinance later than wait for lower rates only to pay more for the house.

I can't help but look back to 2011 when I bought my first house (and the dozens of deals I've done since then). There have always been people trying to push a narrative based on their view of the economic conditions that it was a bad time to buy in 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and now 2023.

If you have strict underwriting criteria, you're in the right market, you buy deals under market value, and you deeply understand your sub-market, it is my opinion that it is never a bad time to buy.

Oh wow, learning a lot on this thread.  Great points of view that I never thought of.  I was also in the camp of buy materials yourself for most of the reasons David Greene has highlighted.  

I guess as long as I can use a credit card with the contractor for final payment of the materials it's all the same.  My main reason for wanting to buy the materials yourself are the rewards/cash back.  It's a real nice benefit on some of these projects.  So far it's worked out as a few of my contractors place the orders with their distributors and then I call in for payment (@Svetlana Kazantseva - this might be a good compromise).