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All Forum Posts by: Christopher B.

Christopher B. has started 26 posts and replied 686 times.

Post: What do you suggest I do?

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

Buy the book: Set For Life, written by BP's own CEO. It is literally written for this exact scenario, for you, the young professional that doesn't like their J.O.B. 

Saving is good as it leads to investment but Dave Ramsey isn't a model you follow to acheive financial freedom or wealth. Some debt isn't worth paying off, not if you can achieve higher returns elsewhere.

Good luck.


Post: Quality of life or invest in RE

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

Never lived in Cali, while I hear it is pretty I also regularly meet people that claim to have moved from there for a better quality of life. For the cost of your average house in Cali you can buy a luxury home on the water here. Lower taxes, on and on. That's what I hear from local transplants anyways. 

My 2 cents... go for the quality of life first. If you don't have that then what's the point of anything else? 

Post: Does your first duplex (owner occupied) have to cash flow?

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

This is how I started my career and it was a big help financially in those early years. As mentioned in the thread just make sure it cash flows appropriately when both sides are rented. In the meantime why don't you rent a room on your side to a friend for $300-400/month??

Post: Climate controlled Self storage

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

What's the supply of that 3 mile radius though? You need to ne confident the market can support it. Copper is well known and pretty good, that'd be a good place to start. A desktop study is a couple grand. 

Post: Cringeworthy self promotion on BP

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531
Originally posted by @Bill F.:

@Jeff C.

I have noticed this about BP for awhile and it has recently crept into the forums. I think the golden age where the forums was just a bunch of RE nerds who really liked talking to other RE nerds about investing and helping others is coming to a close. No one in particular's fault, simply a bunch of factors coming together. The two big ones I see:

1. BP took Private Equity money and now they have have bosses and those bosses like to have as much stable recurring revenue as they can. That means BP needs to monetizes as many users as they can. They do that in the forums through the memberships and by giving access to lots and lots of people who are interested in RE to people who make their living off of people who are interested in RE: agents, wholesalers, turnkey, syndicators and the like, all who will pay lots of $$ to get their product in front of eyeballs. Of course this comes with a free rider problem where people will use the forums to start "discussions" about inflammatory/absurd/ feel good topics that they know will get lots of views which they hope convert to active leads for their business.

2. The market is in such a place where if you have a pulse you can get great returns with a modicum of skill and/or if you bought in 2009-13 you can confuse luck with skill because you have made tons of cash. C'es la vie. This optimism drives lots of new people into the market, which reinforces the feedback loop I mentioned above.

Anyway, I too was annoyed by this for awhile. I have come to accept it for what it is. BP still has lots of great folks to interact with, learn from, and help. At the end of the day it is a hell of a lot better than most social media platforms and we are lucky to have it. 

The golden-age of BP forums has long since passed my friend. Once upon a time... 

Post: I just built a 36 unit apartment complex.

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

@George Yu

Since you are looking for energy efficiency and more innovative building techniques/products, check-out the Tstud. It sounds like this product may meet a lot of your goals from thermal breaks to strength and sound barriers. It is a trussed stud that has closed cell spray foam on the interior. I haven't used it yet myself but it is an intriguing product. 

I have no affiliation with the Tstud company. 

Post: Keeping Expenses Low Build New Single Family Homes

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531
Originally posted by @Jay Hinrichs:
Originally posted by @Christopher B.:

You're not going to use HD or Lowes to source items for new construction. At least not on framing or most major items. I do get a couple things from HD but in general the supply houses will crush their prices on most items. 

Buying from the supply house is generally (90% time) cheaper. But, if you are spec building then the box stores do have some items cheaper. For example, I get my front doors at HD, saves $300. I buy my plumbing fixtures there too. Probably save $1K over the supply house. They aren't as high quality as the supply house but these are modest homes. On the opposite side, I pay. 45 cents/LF for 5 1/4 mdf speed base, its $1.50+ at HD. 

I prefer to buy from supply houses and HD/Lowes are retail stores, not supply houses. I look to get all my purchases from the real supply house because it's so much easier. Your salesmen handle measurements and orders for you then deliver onsite. 

One thing contractors are notorious for is being cheap. They save everything and spend more time on saving than it is worth. Don't get caught up in that. Focus on efficiency. Construction is wildly inefficient, there are going to be plenty of things to keep you occupied besides driving around trying to save every little $50 or keeping a pile of 2x8 drops because you can use it for dead wood at the next project.

Efficiency and Ease. Ignore the rest.

this was a little lesson i learned  comparing supply house ( fergusons) to HD or lowes..  supply houses make sure that for instance all plumbing fixgtures shower inserts etc. meet STATE guidelines.. HD and lowes do not.. so we put a shower insert into a big remodel we did it broke.

they sued me.. and sure enough it was bought at HD but NOT certified approved plumbing fixture by the state of Oregon that one cost me 3k to fix. when if i bought the one at Furgosons i would not have to worry about state approved.. so little things like that.

Builders dont buy from HD and lowes  rehabbers and do it yourselvers do.. we all have our Lumber yard salesmen who caters to us.. Along with our door and finsih materials.. in our area one store does all flooring and counter tops.. they design it for you and install. etc etc. thats the only way you can get any kind of scale building you need pro's to get the jobs done in a timely fashion trying to drive around and save 50 bucks is a very poor use of your time.

One thing i will do is at our big appliance suppliers they will have a yearly sale of their last years models on high end stuff.  I will go there and many times.. pick up say a wolf range that is retail 12k for half price that is worth doing then store it and use when ready. 

I only get trims at HD, all hardware and tubs come from the supply house. I'd prefer to buy from my local supplier, like Ferguson but haven't been ready to eat the $1K yet. 

This is a really good point too Jay. My salesman have inspectors on speed dial and keep up with code requirements through self education, attending city seminars, etc. They provide tremendous value by knowing the codes and requirements that helps eliminate quality issues or mistakes that result in a larger headache or cost. 

Post: Follow my progress of developing a subdivision of duplexes

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

Interesting. I have about 12 lots right now and have looked at building duplexes on them as well. Do you mind sharing your projections of build cost, rent, cash flows, etc? I can build my duplexes at $90sf but need to get them in cheaper to make the numbers truly work. Curious to see where you are and I'll be following your progress. 

Post: Funding a new construction for rent

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531
Originally posted by @L R Wadsworth:

@Tamara Deering I’ve approached him in the past and no financial favor would be given. This type of home would not fit the reputation of homes that we build. The company I work for builds high end customs and this would be exactly the opposite.

In TN, a person can serve as GC on a home being built on their land. Is this an option in your state? Sounds like you have the knowledge. 

Some will say the numbers dont look as good in building rentals, but I have looked into this myself. The maintenance/repairs/capex should be significantly lower the first 7-10yrs+ making up for the higher upfront costs. If the rent growth is projected to be normal, you should make up the difference there once repairs/capex start rising a little bit. 
 

Post: Issue with construction manager

Christopher B.Posted
  • Rental Property Investor
  • Knoxville, TN
  • Posts 701
  • Votes 531

Welcome to construction. 

You may think it is supposed to go differently, but you're not experiencing anything out of the ordinary. I know high-end and volume tract builders that have people issues regularly. That is the single largest challenege of the construction business. It is very people dependent but then a large portion of the people in the business are unreliable. It can be madenning but think of it as a symphony and you/your PM are the conductor weaving it all together. 

There may be a little BS on the PM part and honestly your job likely isn't no.1 because those subs are gonna come when someone like me calls. That's reality of the business, regulars get taken care if. In time you will become that regular though. So if you come in close to your budget and learn a lot then consider it a big win on your first project. Good luck with your project.