All Forum Posts by: Mark F.

Disagree. I've spent 15 years (and continue to this day) in C- and D neighborhoods for work and have zero desire to invest in them. Low appreciation and a much higher rate of tenant drama/problems. I'm acutely aware you can make money but the time/stress value is too out of whack for my personal investment philosophy.

I'll pay (and plan on continuing to) a higher premier for solid B neighborhoods and a more normal class of tenants. I know no class of tenants are without some drama but I also know C/D/ neighborhoods have more. Maybe also that I have a decent paying, very stable W2 job that I thoroughly enjoy so I can park my money into higher priced assets.

I'd invest in funds/syndications/stocks before I throw any money towards them. If your counter argument is that some C neighborhoods gentrify into A and B, I'll happily miss that boat still.

Lol bed slats? I wish I was there for this. You can easily put bed slats back since they obviously weren't attached or just velcroed in place. This is a literally a nothing burger. He isn't hitting up a lawyer. And even though there was no context behind Henry's post, do what you can to get the tenant out. Guy sounds like a tool. Leave them on a m2m lease and keep raising rent.

Why doesn't the tenant just go under the bed and put the bed slats back in place.

Your work is not unreasonable as long as it's during the day (9 to 5) and on weekdays. When else are you suppose to get the work done, or are you not supoose to fix issues? I'd tell her nicely tough sh*t as it's necessary work. Plenty of houses and apartments around the US get work done for days, weeks and months. People adapt. Let her take the lease out early option. I've filled units during the winter months with no problem. If people left over this stuff, there would be a ton more of tenant turn over.

I've lived next to projects that go on longer but again, they worked during normal business hours and only M to F.
 

I had this issue years ago, as my dog was barking non stop at night when I wasn't home. I worked night shift and my roommate didn't bother to call my dog in after leaving the dog door open. Instead of anyone telling me, I came home to a citation from the local cops. While I understood the neighbors frustration, I was pissed they didn't at least inform me and let me resolve the problem first. Obviously it wasn't an issue on my days off. They apparently put up a no bark device and it did f all of nothing. Our relationship didn't get any better.

All this to say, talk to the neighbor by note or stopping by. If that doesn't work, call the local cops or code enforcement. They can issue a citation.

But I thought investing in C and D class areas was worth it for OOS investors looking for cash flow?

You should post this anytime someone comes on here asking about investing in low income areas as well.

I know a guy who does just that. @James Hwang

Asked on the BP FB group but hoping for a few more opinions here.

Heard this topic talked about on episodes lately but are there resources on selling VS holding with a decent equity positions? Websites or podcast episodes specifically? Refi makes zero sense with current interest rates (mine is at 2.25%). It would kill my cash flow and I wouldn't be able to pull out as near as much equity as if I sell. But I'm looking at $250-$275k in equity I can't fully tap into, minus $40k in closing costs. I'm not looking to go full time in RE as I love my W2, but trading my duplex to a 4-6 unit is a goal of mine as I love managing my rentals. I'm currently not occupying this duplex.

Another pro of selling is its tax free w no 1031 rules due to the 2/5 year rule (waiting on a conferral call with my CPA). This same scenario will play out in another two years with my current house hack (forced and natural equity, low 2% mortgage, $5k gross rents etc). The numbers- property value is confidently appx $700 to $725k per my realtor and comps I've looked at. Purchase price was $492k, $450k mortgage balance @ 2.25% rate. I put 0 down as I used a VA loan. I'm into the house for closing costs and repairs for appx. $50k at most. Cash flows appx $20k per year. Brings in $4500 gross rents, market rents are $5000/month but the units are outdated as the tenants stay when I keep increasing rents. Area is a solid B. It's not a headache property. Area is a solid B and has been on fire recently from what I've been told at multiple RE meet ups. Neighbor across the street went under contract with multiple offers at and over asking, realtor told me $25k over so $825k. That comp does have 600 sq ft more than my place. The market I'm in is a strong appreciating market and actually was listed as the top rent growth per the latest Drunk Real Estate Podcast episode.

Needs about $15k in updating to get $725k or it could go for more the way our market is. If I bought a 4 to 5 unit, it'd be around $1mil give or take. Would bring in around 10k in gross rents per month. Thoughts or resources? Can provide more context if needed. As I'm writing this, it kinda seems like a no-brainier to sell. But don't wanna regret holding on to it years down the road. Thanks BP!

 There is no 5% down on a duplex anymore unless some local bank/lender is offering that specific product.