All Forum Posts by: Nicholas U.

Ask for a higher security deposit or are you willing to just sell it to them?  

I generally don't recommend touching a Roth but I did it once. I have a lot saved in my 403B and I had an old Roth IRA with an old employer so it made sense to me to use it for diversification.

So none of my rental properties have had water issues but the places I have lived all seem to have had water issues.  At my last home we did a sump pump and trenched the walls so it would flow into it.  Solved the problem completely but cost me about $5,000.  Also making sure your gutters are properly draining away from the property is key.  Bad gutters are something you should not wait to replace on.

Water is the worst thing to homes.  Roof/Foundation - if anything is somewhat discouraging it is almost a deal breaker for me.  

#2 - Appreciation is more of a gamble and is making assumptions on the future.  Cash flow you should have a good idea going in and how much it can improve by.  Good cash flow properties also are always hot commodities.  

Indianapolis is very tricky.  I do suggest you get in touch with a good property management group that knows the area well but Northside of Indy is going to be your safest and most expensive.  Fountain Square is another good place.

@Dave Woolwine honestly just start cold calling places.  If you are looking for business loans there are plenty of good banks but right now multifamily loans are getting tougher and tougher.  I probably talked to 10+ banks before settling with 1 on my most recent investment.  Rates and requirements are changing a lot around here.  

There is always a market value in any sector of the economy.  You could be willing to pay $100,000 for an individual stock of Tesla but it doesn't mean that is advisable.  

I agree that some people might value properties different than I do, and as such is willing to pay more than me, but your apartment example that little to do with Opportunity Cost and more to do with the sellers value of the property .  The choice of buying the apartment and forgoing the other opportunities you could have done with that money is the Opportunity Cost.  You could choose to buy the apartment instead of buying a short term CD.  You value the idea of investing in the apartment over the short term security of a CD, but the question is buy how much?

I disagree with the people who state that it isn't "overpaying" to some extent.  

I have stated before that it looks like we are in a real estate bubble on some of these properties.  In my area, properties that go on the market go off incredibly fast, but I have been in many of these properties.  If the idea is to hold for cash flow or long term growth then they are overpaying because the properties need a lot of repairs.  If it is simply to buy and hopefully sell a few years down the line in the hopes of real estate appreciation then someone will eventually come out a big loser because at some point the roof is going to cave in, the foundation needs repaired, or the electrical needs updated.  

So in the end it depends on what people are getting into.  If your hope is to put 20-25% down get some cash flow for a couple of years, sell and get 10-20% property value growth, and then move on to the next property (1031) this is the riskier route and are the people paying more.  Right now it is working out but it is like people investing in the stock market without knowing anything.  Ya you might get lucky and make a good return or you might really get kicked in the teeth.  

So I searched to look for a link on this and read up 

https://www.cnbc.com/2020/07/21/biden-to-unveil-775-billion-plan-to-fund-child-care-and-elder-care.html

It sounds great to me.  Child Care is a major issue in this nation and in my opinion would help people property owners as it would allow tenants to have a more stable work and family environment. 

@Damaso Bautista 100% agree.  As long as you know the area you are getting into you are good.  A duplex came on the market very late yesterday and already has an accepted offer in my area.  Homes are still flying off the shelf here but to me it is making sure value is still good and long term potential.  In certain areas I will be happy to buy in others closer to campus I am not.  

To many questions long term for me to justify cost and risk.  

@Chevas E. I live in Lafayette which is close to Purdue University.  I would expect to see more and more of this as time goes on.