All Forum Posts by: Marian Smith

@Theresa Harris I was thinking the same thing. We paid 7 something a stud early last spring and now pay 3 something. At Home Depot.

@David Song T-11 is plywood. The Masonite type siding OP has is called, I believe, hardboard. The replacement material, smartside, etc is resin impregnated and quite durable. The older hardboard is still holding up/performing in drier climates when installation was good, eg no nails overdriven and z flashing used where needed, and it was kept caulked and painted, including the seams, window trim and paint on the lower exposed edges and it was installed a distance from the ground. The lack of gutters and the short roof overhangs don't help. No doubt it was a poor product and newer, better materials are available today. Looks like OP has a poorly done repair to a product that easily deteriorates when not properly installed or maintained. As siding mainly protects the house framing, it is pretty important to identify where water can penetrate the building envelope and repair it sooner rather than later. Sometimes caulk, patching material and paint will allow you to kick the can down the road, but not if it is flashed wrong. You have to keep water out.

You got some good responses. Putting the money in a low fee stock fund would work well if you can "not panic" and sell before your retirement age...not as easy as it sound. Buying somewhere to live will allow you to save what would have been rent towards investments. That is a great, low risk plan for some folks. But the poster who recommended you buy with an FHA 3.5% mortgage makes a very valid point, why not leverage at these low rates and let inflation "lower" your payment over the years. That is how a great number of ma and pa landlords cashflow, they bought a primary residence a decade ago and now they can rent it out and cashflow nicely. Lastly, the poster who cautioned that you can run through 100k more quickly that you'd think is spot on. A very smart endowed chair at Boston University advises everyone to save for retirement exclusively in inflation protected bonds..or he did a decade or so ago. Be careful with a once in a lifetime opportunity. If you go FHA 3.5%, lock up the remainder in where it will work for you with a level of risk you can stomach and some cash for emergencies. You can lose spending power to inflation but you can lose your shirt elsewhere.

@Pete Perez I am in the same situation but I don't know what I'd do with the cash. I don't think stocks are any safer than real estate that has appreciated so much in such a short period. Both seem risky. (Thing about stocks, you can sell part of your position.) Since you want to flip, I would sell in your situation. Selling would allow a flip project to operate with less risk of financial stress. But that is me and I hate stress. It can motivate others, so I am told.

@Imeh Esen Flippers, homeowners and landlords all cut corners. Flippers because the best returns are on cosmetics...you can give some of the blame here to buyers. Homeowners because the best return is on cosmetics and the cut corner is often expensive which is why they never fixed it in the first place. Homeowners lie, too. And landlords because again, the best returns are on cosmetics...but it really makes less sense when holding as paying up a degree for durability is usually worth it. For future reference, 1) you can float a cheap, durable great looking floor (laminate) over many bad floors and 2) heed what Greg said about the condenser stolen in a " safe" neighborhood. The neighborhood cannot be fixed like a peeling vinyl floor.

@Will Barnard Congrats. When I see your name I usually click to see what you have to say...or is it dictate, because that would have been a lot of typing. You guys really created something! Thanks for the info and entertainment.

@Jacob Wiltshire less water on the floor with tubs and showers kind of need shower doors and that would eat your savings plus pita to keep clean.

@William Hutchinson My brother-in-law's inlaws told me that one rental wasn't worth the work. In his experience, he suggested three. I would add that you might buy a little nicer property and leverage because rates are cheap, you can write it off and you need a rainy day fund. And nicer properties attract easier tenants. As you figure out leases, advertising, inspections, all the little annoyances you can add a property or two...or duplex as Greg suggested...and with inflation and debt paydown it slowly becomes well worth your time. Think of it as diversification.

@Daniel Kevin Lara To add value you have to buy cheap or add value. Paint, flooring (unless hardwood) and general fix up will not justify a higher appraisal unless you bought below market. Remodeling a bathroom will, but if you look at a cost vs return estimate on remodels you loose money on almost everything. So a nice diy will allow you to appraise higher but after costs you may break even. If your market is rising and you buy lower than nicer comps in the area you may be able to refinance and pull money out after a rehab. Thing is, your appraiser knows what you paid. A buyer will likely pay more than your appraiser's estimate because they want a freshly painted and rehabbed house, but an appraiser can only arrive at that number if a buyer has paid it for a comp in the last few months.

@Joey Gorombey Prospective property? out 1k month? why not find something with numbers that look better?