All Forum Posts by: Maxwell Lee

@Kevin McNeill

Thanks Kevin! They look like they handle everything...retail, apartments, etc. What kind of property/ies do they manage for you and do you feel like small potatoes for them?

Hi anyone with any recs? Looking for NE Humboldt Park area. TIA! @Brie Schmidt

Sorry I'm not reading through all the replies so far so maybe it's been covered. But from your opening post quite simply you are right the deal isn't as good as other examples that people have put out there. You can either find a better deal in your area or find a better market to do this in. I don't know if either is feasible or wise, just making the point that not all markets are created equal. 

Having said that, you do not need to necessarily pass on this opportunity. It still might make sense. Even if you are at negative cash flow after accounting for Capex and vacancy, you'll note that you should have some cash reserves already (at the very least, the extra $5k in your hypothetical example). Another thing many people do is borrow less. If you pull just 60% of your ARV back out then the cash flow numbers should look much better. Yes you leave some of your cash stuck in the property but you can build it back up and you might get a better rate. Just keep your mind open...your options aren't as rigid as you are making them.

Good luck!!

This sounds awesome! My wife and I are hoping to make it out tonight. What is the general footprint for the airbnbs in this group?

 Lol I don't live in Murray Hill and it's certainly not my favorite area. Our Jax properties span six different neighborhoods and yes, I would say I like them all as they were each strategically chosen, MH included. I chose to speak up cause I simply didn't agree with your assessment and particularly the way you tried to make your point. So it wasn't a misunderstanding then? You just completely made up a story about breweries and clubs closing and thought no one would notice? That's kinda sad. 

Quick...without researching first...what are the "very solid streets" of MH where your properties are? Not that I suspect you'd be audacious enough to lie about owning rentals in the area, but your post and lack of knowledge at least invites the question. 

BTW, you did recommend Riverside as an area to invest, didn't you? (Which I agree with). Have you crime mapped that one on JSO's site? Take a look and see how it compares to MH. You might be surprised...

 If you can find investment properties that suit your criteria in Riverside then absolutely it should be your top choice. Riverside is excellent but just very difficult to find any "good" deals. 

Re: Springfield, I do think we have reached the tipping point and Historic Springfield is going to be noticeably improved every year for the foreseeable future. The folks who said Springfield has been "on the cusp" for over a decade are absolutely correct. However, I think the past 6 months have indicated that they are reaching a critical mass that is driving enough baby steps of progress on the commercial side. And I say this as an investor who has not believed in Springfield for the past decade. So while I could be wrong in my prediction now, I have not been bullish on the neighborhood until about a year ago. That said, the problem is that prices for this area (mostly just the historic district) are already very inflated as investors have been pouring in for many years in anticipation of what we are seeing now. While I think they many of them entered too soon and for too much money, it's now pretty hard to find anything that's a slam dunk. I waited for years til I felt Springfield was on the cusp and the risk would be relatively low, and when I started making offers 12-18 months ago I think the window was rapidly closing on the good deals and sadly I missed out entirely. 

I am confused and flabbergasted. I haven't seen or heard about any crime increase at all. I feel like you're talking about a different Murray Hill somewhere far away. Although Murray Hill in Manhattan is doing pretty well too.

Hint: There are zero clubs or breweries in Murray Hill so not sure how any could be closing down. In fact there is one brewery planning to open this year and they are doing a MAJOR rehab on the first block of Edgewood Ave. Clubs? I guess there are two music venues but I'm not sure anyone would confuse them as clubs and in any case neither is closing. My only thought is that you are referring to Fat Kat Nightclub? That place closed down over 4 years ago so maybe you are posting 4.5 years too late? The problem with that theory though is that the club was closed down by the city because of the crime it was causing...not because of crime increasing in the neighborhood lol. Many view that as the turning point for MH, when it finally got over the hump if you will.  

And which are the "nice places to eat" that are closing? At least some of those actually exist but I'm not aware of any that are closing. La Cena and B Street Eats opened in the last 1-2 years. Magnolia's did close...for a few days as it changed ownership and rebranded. El Jefe is nearing completion of an over $1 Million renovation and plans to open soon. Moon River, Maple Street and Community Loaves could be nice I suppose. Are any of them closing? Do you have some insider info? I think you are batting 0 for 3.  

Paul B, of course!! We are probably making the same point but I said you could objectively compare travel habits, and that was listed first cause it is foremost in my mind. Your travel habits are the largest factor in determining the value of travel rewards as it has the greatest effect on conversion rates. 

It can be objectively measured by comparing travel habits, spending habits and the bonuses that come with them. The only subjective area is just how much you can maximize the travel benefits (assigning a dollar value to your points) and how quickly they will be devalued by the travel companies (it is inevitable like inflation, but how much and how soon is unknown)

Very generally speaking, the best cash back cards provide better rewards than travel cards, however signing bonuses tip the scales in favor of travel cards for the first few years. I've also found most airline-branded cards to be better than hotel cards.