All Forum Posts by: Michael King

You could spend your life analyzing and not doing something. One that was over 10%? Has that slipped through your fingers already? Depending on all the details, I would have jumped on that. 

I have heard NJ is a tough market. In my market, it's hard to find any that return 6%. But, I like to buy new homes from builders that have warranty, 20 years worth of roofs, 10 years worth of water heaters and HVAC, etc. As long as I have a positive cash flow, I'm doing good enough, as I'm in it for the long haul and I'm doing it so my kids can have something when I'm gone. 

Don't get greedy. As long as you are doing the numbers well, and your estimates are in line with actuality, and it's positive flow...what's the holdup? Do something. Doing numbers is a good start and the first purchase is terrifying for sure. Have you thought about other markets? I have, but for now don't want to step outside my comfort zone. As long as I can physically see my investments, I have some sort of psychological ease of mind. But others don't care.

Good luck and keep us posted!

Like Theresa said. Your PM needs to take responsibility for that contractor and kick him to the curb. 

Condo fees are the killer. That's $350 a month? Wow. Not that I'm an expert, but I would steer clear of a condo unless I owned the whole building. If you're buying one unit, I think you're better off buying a standalone house. Good luck!

Now we're talking! 300 hours for $8K seems like it's viable then. A good start, a great learning experience! Keep going.

Not sure if I'm making it as I type. I just closed on a new house in an area outside of my usual feeding grounds, and feel it is going to struggle to rent out now that I own it. A lady I work with has a 21 year old daughter who wants to rent it, along with her 23 year old brother. Both work and I'm going to let them rent it. I've reduced the rent by $300 a month and pulled the PM out of the picture to make the numbers viable for them, and of course, me. Time will tell if this is a blunder or not. Will I regret letting someone I know into the house, will I regret not using PM in case I have to evict them? This could all go south very quickly. Or it could be a great thing for everyone.

That's good info Nathan, thank you. I'm in Wildwood MO (WiMo?) and have been investing in Wentzville (WeMo?), but looking at branching to other areas. CoMo has just hit the radar, thank you.

Agent ate up all your profit? How much time did you have invested?

I really enjoy visiting Jacksonville. I work at the air medical base up there sometimes and thoroughly enjoy the town. Gosh I just had my hair cut there 2 weeks ago! I would live there but I'm not going to. 

The way I look at your situation is whether you can afford to not sell it now, even if you take a hit. Pulling it off the market and having all that money tied up in it, not making you money, is not beneficial in my mind. And coming into the slower season, means it's a good time for you to buy after you sell yours, right? Others, like you, are probably getting antsy in that they want to sell up and get on with whatever their plans are. Meaning your next purchase or more. 

I don't think you have too many options other than sell and take the hit, or rent it out, or refinance and take the cash. You mentioned the ARV, would that prevent a refinance from being worthwhile?

As a side note, how does the listing appear? Is it cell phone pictures, or are they nice glossy magazine type? These matter immensely. The house I just bought in May had really crummy pictures and it sat for the longest time in a hot market. Like over a year. 

Lastly, chalk this whole thing up as an experience to learn from. Hopefully it won't be devastating financially. Good luck,

Mike

I lived in Texas for 12 years. Filed fed taxes every year, never once anything for the Great State of Texas. I assume Florida is the same?