All Forum Posts by: Noah Bacon

I haven't seen a discussion about this on the forums yet, and figured I'd start the conversation.

In case you missed the news this week, billions in trade came to a screeching halt at U.S. East Coast and Gulf Coast ports after members of the International Longshoremen’s Association, or ILA, began walking off the job after 12:01 a.m. ET on Tuesday. The ILA is North America’s largest longshoremen’s union, with roughly 50,000 of its 85,000 members making good on the threat to strike at 14 major ports subject to a just-expired master contract with the United States Maritime Alliance, or USMX, and picketing workers beginning to appear at ports.

I have been reading that if the strike drags on, we can expect some shortages on perishable items that the US imports.

One of those is bananas; the US imports 100% of its supply. More than half of banana imports, America’s most popular fruit by volume, comes in through the ports being struck as of Tuesday morning, according to the American Farm Bureau Federation.

Other items I have read that are at risk are: cherries, cocoa, sugar, imported wine, beer and hard liquor.

In the spirit of the strike impacting more than just materials and labor directly correlated to real estate, I intentionally posted this in "Off Topic" as I want to get a better understanding of what your concerns are with an ongoing strike.

Are you anticipating another spike in inflation? Are there goods you are worried that you won't have access to on time?

This post is largely not staying on topic anymore and we feel like the majority of points made on this subject are already posted. Please reach out to me or [email protected] if you have questions or comments.

In last nights debate, Vice President Harris emphasized housing affordability, addressing the shortage of homes and proposing a plan to increase housing supply by 3 million units. She also highlighted her background and connection to first-time homebuyers, contrasting it with Trump’s real estate wealth. 

Harris proposed tax credits for builders, cutting red tape, and a $25,000 down payment assistance for first-time buyers. She also touched on the rising cost of property insurance due to climate change. Trump did not address housing as directly but has previously suggested cutting regulations and using federal land for new construction.

Sharing this because it could have a significant impact on the housing market in the near and long term. 

To read more, you can check out HousingWire's full article here: https://www.housingwire.com/articles/harris-touches-on-housi...

 I am actually asking for a friend who is a first time homebuyer! Do you have experience with this loan product? 

I know this thread is from 10+ years ago, but has anyone used this loan product? 

The Homebuyers Choice Loan from Navy Federal is very enticing from my research, and am also wondering if anyone has house hacked with this loan?

I can't wait to meet so many of you!

😁 Your Name
Noah Bacon

🧠 What would you consider your area of expertise 
House Hacking, property management, deal analysis, watching the Philadelphia Eagles

🙌 What are you most looking to get out of BPCON 2024
Connecting with first time investors that have closed on their first deals this year!

🤝 Fill in the blank: If I could make a great connection with someone who is an expert in _________ at BPCON2024 then I would leave BPCON happy
Value Add, International Investing, and/or 1031 Exchanges

🗓️ What session are you most looking forward to? 
 The Small & Mighty Investor: How to Invest in Rentals For Lifestyle, For "Enough," and Not Another Job with @Chad Carson

Great replies here, and thank you for sharing examples of what you have or have not done as a private landlord.

I do think there is a time and place to offer concessions, just not for people like you and me that are owning/managing portfolios smaller than an apartment complex with 100's of units.

@Ray Hage thank you for your example, and can say I've done the same thing for as long as utilities are setup prior to move in, security deposit is paid, and first month's rent in full is paid. I would warn you though as soon as you give an inch, the next month if rent is not paid on time you may have opened up a door of forgiveness that was not intentional. One day is not a big deal for a weekend move in, but one day late every month is a problem that may have been created from day one. 

I am not a fan of concessions as I believe that it will attract lower quality, shorter term tenants. Dropping your rental rate and remaining competitive in the market, will attract the right tenant based on your initial application and screening requirements. Do not go changing your processes! 

I believe value add is still on the table, and an even more enticing option now with rates from the looks of it on a downward trajectory. Many small multifamilies in markets that I either invest in or have considered investing in recently are typically built in the 1980s and earlier which are in need of major upgrades. 

All four of the options you outline I believe work in today's market and with the ability to refinance after a rehab, you may be able to break even or cash flow with an improved equity position. 

It is certainly market dependent, but there are deals out there that will cash flow right out the gate and some that will take time to hit your metrics. It's all about your time horizon and if you are more focused on immediate gains, or long term appreciation. 

The webinar replay is on the Resource Hub, but is only available to Pro Users. If you'd like to sign up for Pro, you can find the information here!

This is one I'm sure many investors are feeling right now, and don't know where to turn if they decide to fire their property manager. I just wrote an article about how to recognize when it is time to move on, and how you can do it swiftly.

I see time and time again property managers, owners, and tenants having a great debate on what is functional necessity and what is decorative. As the the lines get blurred on who is interpreting the definition of these terms correctly, the desire from the owner to update a property that from the naked eye needs work should be absolutely heard. The scope of your property managers responsibilities will vary, and it is crucial to read your property management agreement whenever a dispute arises to familiarize yourself with your rights. 

Speaking from personal experience on the management side of things and on the owner side of things, if you are paying a property manager 10% of your rent collected, they should absolutely be responsible for the coordination of proactive repairs based on their teams property inspections. I have had turns where things are recommended to repair based on the field operator and my property managers notes, and I would expect the professionals with eyes on the property to have the best opinion on when the inevitable concern arises. 

I do not think your concerns are unreasonable, and the response from your PM being aware that the property is falling apart is more alarming. Being aware of issues and taking no action is absolutely a red flag in my eyes. Additionally, from the PMs perspective, why would you turn away an owner who is willing to improve their asset that you manage? If the owner is happily paying for repairs, the PM gets paid, the owner improves the value of their property, and the tenant now have improved living conditions.

As the great Michael Scott would say: win, win, win. 

Maybe my expectations are too high due to the quality of my property manager.

Do you agree that a PM should be proactively pointing out future maintenance issues, or am I expecting too much as well?