All Forum Posts by: Marc Winter

@Jaron Walling, You know when things start to slide downhill?  When we start breaking our own rules and go chase a "deal".  @Andrew Shumate made good sense.  I'd be patient, keep looking, inspecting, and making offers that work for you.  

Keep shaking the bushes and those deals will show themselves.

Keep investing and moving forward!

Ana, to my knowledge, you won't qualify for a 1031 exchange unless you sell the property.  I didn't see where you want to sell your lake house, however, if you sold the lake house rental and bought another rental, you could (probably) do a 1031.  What am I missing here?

Best to contact a qualified 1031 intermediary for exact rental requirements on the named (new) exchange property.

That's a great problem to have! From what I read, you have the solution already--with the cash flow and equity, pull out some cash from a property you already own either by cash-out refi, or HELOC. Rinse and repeat.

Speak to your local, smaller bank or credit union, preferably a portfolio lender.  Get to know each other, and after a few deals, you just might find all the funding you can use.

Keep investing and moving forward!

There's an old adage: you can't go broke taking a profit.  I'd add to that--depending on what you do with the profit and how you handle any taxes.  

We've replaced many entire houses with pex, including the  crawlspaces and basements.  We NEVER had a problem with mice chewing the plastic (over the last 12+ years).

One method of keeping the lil critters out is to parge around the foundation on the outside.  Also, planting mint or peppermint around the foundation is a known deterrent to mice.  

One other note:  mice have poor eyesight, so they mainly stay close to a wall.  If your lines are running along the floor joists towards the center of the space, you should be free of mice damage.

Oh, and by the way, having a wireless alarm for a water leak in the basement is always a good idea!

Keep investing and moving forward!

The general numbers are in the ballpark.  Remember, prices are very geocentric--they can vary greatly based on location, especially for labor.

@Andrew O. you are so fortunate to have these 'headaches'.  Remember these famous words:  "If it was easy, everyone would do it!"

I'd keep in mind that real estate is cyclical, and we won't always be in such a strong market.  If you can't handle the stress of growing (too fast?) what will you do when SHTF? 

Pay attention to @Jonathan Greene; slow down, sell a couple, two-three, take a deep breath, take the family on a vacation, and regroup.  

If we're in this game long-term, slow and steady growth with a lower cortisol level will beat explosive growth with high blood pressure levels every time.  Have some fun with it and count your blessings.

Good luck, keep investing and moving forward.  (Perhaps a bit more slowly?)  LOL.

To cut to the meat of your story:

1. ALWAYS BE LOOKING for another deal!

2. Remember, just because interest rates fall, housing prices don't necessarily appreciate right away.  Prices can (and have before) tumbled after rate cuts.  It can take several years before the prices come back up to pre-drop levels, and then as per the usual cycles, continue higher.  

3. The question is, do you have the staying power to weather a multi-year storm?  If you have several months of vacancy, you'll be out of pocket at least $1,730 each month.  

4.  How familiar are you with the subject property's location and demographics?  If/when the SHTF, will there be any qualified tenants to rent to?  Will the rents be rising or declining?  A five-hour drive gets even longer when you are traveling to a vacant house.

5.  To get a feel for what history can teach us, talk to some seasoned investors who lived through the real estate market from 2007 to 2010.  I'm not saying that we are looking at a repeat of those times, or trying to discourage you.  Just be informed and prepared.

Good luck.  Keep investing and moving forward!

Five Things I Wish I Knew...

Student housing can be profitable.  But be aware of these items before you jump into that pool:

1.  Know your local zoning laws, building codes, and licensing/permitting regulations.

2.  Cement block construction works great.  Covering all drywall or plaster with 3/4" plywood is second best.

3.  Female students tend to be messier than male students; male students tend to cause more property damage than female students.  (I understand this statement is not PC, but after 30+ years in the industry, I'm speaking from my own personal experience.)

4.  Qualify all student applicants AND THEIR PARENTS OR GUARDIANS before renting.  Both must be on the lease as responsible parties.

5.  Structure your lease to spell out house rules and who is responsible for what.  All students and their parents/guardians shall be responsible for all the rent, ie if one student bails out, the remaining tenants shall still be responsible for that missing part of the rent.

6. (Bonus) Have at least 2 (two) local handypeople on call for regular maintenance and emergency calls.   

Keep investing and moving forward!