All Forum Posts by: Albert Hasson

I was in the exact same situation earlier this year. At first I thought that paying for the second appraisal was BS but, of course, I relented and paid for it. The house closed, I banked my profit and haven't thought about it until I read this post. Just pay for the appraisal. Who knows, if you play hardball on this deal whose to say you won't find yourself in the exact same situation with the next buyer.

Actually Bob I cant verify anything because you provided no addresses so the link you sent is worthless. I did input 3721 Kanaina Ave and 3741 Kanaina Ave and it said such an address does not exist.
However, I will concede its theoretically possible for a particular property to double in two years. If all your four properties did that then congratulations. Of course, I would only be really impressed if you sold at the peak.
I have been investing for about 20 years and have bought and sold close to 75 properties and currently own 21 cash flowing SFH's. None have ever doubled in any time frame, ever.

The point I would like to make to all young investors or those that are doing this FOR A LIVING is DO NOT RELY ON APPRECIATION when making investing decisions.
That's exactly what millions of so called "investors" did in the mid 2000's and with rare exception they lost their investments to foreclosure or short sale, ruined their credit, and caused the worst recession since the Great Depression.

Of course, if you are so wealthy that shelling out cash each and every month on a property doesn't bother you then go ahead and gamble with the appreciation game but realize its nothing more than chance whether or not the property will appreciate in the short term.

What you are arguing makes absolutely no sense at all.
Absense a dramatic collapse in rents (no modern historical precedent for that) or a dramatic rise in expenses (i.e. quadrupling of taxes, skyrocketing insurance rates, etc.) a house that cash flows today will cash flow tomorrow whether or not the value of the house rises or falls.
I'm also calling BS on all your properties doubling in value in 2 years, very unlikely.

I would respectfully disagree with Bob. All my houses cash flow nicely and that cash flow has funded additional down payments for properties, vacations, and other non-necessities. So I would argue that cash flow (rent minus ALL expenses)does equal profit. I would never buy a house based solely on the expectation that it will appreciate in value or that the rents will rise dramatically from year to year. Now that is foolish.

Where do you get your info from Joe? Arizona's foreclosure rate is 0.7%. The national average is 2.1%. At the peak of the foreclosure crisis our foreclosure rate was 4.2% but that was several years ago. In addition, the delinquency rate in AZ is the 8th lowest in the nation. Decent foreclosures are few and far between here these days. Our foreclosure crisis has long since passed.

Hi Erin, I have been a landlord for a while now (15+ years) and I have only had one tenant (out of hundreds) ask for a 5 year lease and that was when I allowed one of my SF rentals to be turned into a group home for the elderly. I would be very cautious about this deal, it sounds like the turnkey provider may be "overpromising" to try and sweeten the deal. A five year lease from an unqualified tenant is worthless, you need to research the tenant in more depth. Ask the turnkey provider for their credit history, criminal background check results and most importantly give you a credible reason why they want to sign up for 5 long years.

Hi Justin,

I will be there, I am registering now.

Craig, any idea about the construction costs? How long is the expected build time?

Hey Aroldo, when a realtor tells you they would "buy it myself but my money is tied up in another deal", run far, far away. This sounds like a terrible, horrible deal to me. I would offer 70k , if the realtor refuses to present the offer I would get another realtor.

Things are much slower here in the Metro Phoenix area this year vs. the last two. Price appreciation has slowed markedly, inventory is up and demand down. This is not necessarily bad, it feels like a sane, balanced market right now.