All Forum Posts by: Ryan Fox

I will ask my CPA this question, but was wondering what BP thought of this. I have a Roth IRA and I invest in stocks and bonds. Also, I trade stock options within the account. Will the income and capital gains from the stock options be subject to UBIT, UDFI, or any other tax, for that matter?

@Jomar Edwin Benoit- I've had no interruption in rents paid since the pandemic.  A quality property manager should be able to work out any communication difficulties.  

@Alexandra Hughes Pailet- The online reviews can be misleading.  For instance, I know of one PM company in the KC area that has a non-disparagement clause in its lease agreements with tenants and in its management agreements with owners.  The result is that there are only positive online reviews of this company.  How can you get reliable feedback??

Usually what you see in the online reviews is the bad reviews by tenants.  This is to be expected, as there will always be a tenant here and there who complains about being evicted, having to pay for damage they caused, ect.  I would be more concerned about poor reviews by owners.

I can send you referrals for PM companies if you are still looking - shoot me a PM.

@William Robison- Thank you for your insights.  

For C class properties, are you seeing tenants who could qualify for A / B class units downtrend into C class?  Is that how fear is translating into more interest in C class?

I would also recommend Kansas City.  It certainly has lower taxes and more population growth than Chicago.  Closing costs are also lower.  I bought a 4-plex in KC in 2018 for $275k, but it was in an A class area.

Congratulations!

I'm so sorry to hear that, Laura.  Does your homeowners insurance have coverage for something like this?

Looks nice.  How long did it take to complete the rehab?

We often forget that the Great Financial Crisis was accompanied by a huge spike in oil prices in 2008.  This led to a recession.

Now, oil is doing something different.  Russia shocked the world by refusing to cut production last week.  This led to a 9% fall in oil prices in one day.  Russia did this to take direct aim at small producers in the US oil industry, which cannot survive with oil at $40 / barrel.  These small producers are heavily in debt, and their eventual defaults could have ripple effects across the financial system.

So while the media is obsessed with Covid-19, it's important to consider other things that are going on.  Investments in areas heavily dependent on the oil industry are going to be hit by the double whammy of Covid-19 and low oil prices.  

Agree with @Alex Olson that Kansas City has some good opportunities.  Property taxes are pretty low.  There are local areas to position yourself in the path of growth.  Landlord / tenant laws vary by jurisdiction.