All Forum Posts by: Nicholas Hernaez

@Joe Villeneuve Care to expound?

I’d love to see a break down of a specific property based on today’s number.

@Joe Villeneuve

The fact of the matter is I just really like making money and taking advantage of good deals. I understand your concern with the stock market, but like warren buffett has said “Be greedy when others are fearful”

And in response to your game show analogy, it would be more constructive if you used actual numbers as not to mislead people that will take your advice at face value and not actually run the numbers. And you may argue that under the right circumstances if you use private money, no money down, invest long distance for better returns those numbers are completely achievable. Sure, but that isn’t exactly risk free is it? And if we’re going to cherry pick, I could tell you since the bottom of the market in 2009 google has gone up 2122%.

If you’re landlord insurance was due 6 months from now and they called to tell you they’d give you 30% off today, would you say “no thanks, I’m good, I’ll wait to pay full price in 6 months”?

Don’t get me wrong, I’m not arguing that stocks are better than real estate. I’m a member of a RE forum, and am a RE investor with multiple properties. But at the end of the day, I’m an investor and I look for deals.

But I still greatly appreciate your feedback. I think discussions like this help us all grow.

I appreciate everyone's input and after sleeping on it and having some time to let the adrenaline flush out of my system I've made my decision. If anyone is interested in what I'll be doing, here's my plan:

I'll be setting aside $6000, which I will be allocating to max out my 2021 Roth IRA anyway(I've already maxed out my 2020, in my haste to take advantage when the market was down 5-10%). And since no one know's where the bottom will be, I'll be setting buy limit orders of $1000 at intervals of 5% drops in relation to the peak of the market in february. After a year, I'll be able to sell it, then buy equivalent investments in my Roth IRA. If it's grown past the original $6000, I don't mind taking the 15% hit for capital gains.

This way I can DCA as the market goes down and I don't feel like I'm missing out on the FIRE sale. And if the state of emergency announcement was the jump start we needed for the economy to recover, then non of my orders will trade, I was worried for nothing and I'll have $6000 more in my down payment fund...

@Trent Stone Thanks for your input. If I did put that money it’d be in something well diversified like a total market index fund, and I’m willing to sit on it for many years. If the total stock market index went to 0, there’s other things we’d have to worry about.

But it is a bit of a bet, I’m just seeing giant SALE SALE SALE 30% off signs and it’s getting to me.lol

Can you imagine if SFH prices got cut by 30% in a couple of weeks? 😳

Just wanted to get some opinions from the pros..

I've been watching the stock market(probably my first mistake..lol) and every time it drops I get more of an urge to click that buy button. Since the real estate market doesn't necessarily follow the stock market exactly, there's no guarantee that real estate prices will drop the way the stock market has now. So I'd like to take advantage of this FIRE sale.

 That being said, should I dump the money I've been putting away for a rental property, into the stock market? Unfortunately, I dont have enough dry powder to do both to any meaningful degree. It seems like too good of a deal to pass up, but my fear is that if the real estate market tanks, I'd already deployed all of my cash into the market. 

Any thoughts?

It’s not possible to put the window back in because it’s surrounded on all sides now by other rooms due to the add ons. There’s a den that I could convert into a bedroom, but it’d be weird because the tenant would have to pass through it to get to the back bedroom. Unless I made a hallway, which is more work than I’m willing to do on my first property. I was considering posting it as a 3bd+office, but it wouldn’t rent for as much as a 4bd. The reason I want this one so much is because it has built in tenants that are willing to sign a 1 year lease. My concern is for after they leave. More numbers for anyone that’s interested it’s 173,000 and is currently bringing in 1200/mo. If the tenants leave I’ll probably only get 1050-1100 in this area for a 3bd2ba.

So I’m looking at purchasing my first rental. It’s a 4bd 2ba SFH here in the North Las Vegas area. After the inspection it turns out and addition to the house has blocked off what used to be a window of one of the bedrooms. The inspector told me to be considered a bedroom it has to have a closet and a window. On the assessors page it says 4bd so that addition might not have been permitted. The agent and lender say it’s not an issue but I don’t want to find out later that it can’t be rented out as a 4bd and would be a losing investment. Should I just back out? I’d appreciate any feedback from the veteran investors.

Does anyone think it's still feasible to invest in single family homes for buy and hold rentals within the city or even up north? 

I'm a beginning investor looking for my first property. I'd like to keep it simple and find something turn key, but nothing I've seen even comes close to the 1 percent rule.