All Forum Posts by: Ryan Kraft

Thanks to both of you for your Insight. Being that my area is hard to cash flow in I have been waiting for equity games by holding on to them.  I feel the market has a little more room for equity gains in our area but am leaning towards cashing out. I'm still a little bit paranoid from 2008

This is a question for investors who invest in buy and hold suburban areas. I would like feedback on the numbers I am getting on my 3 rentals. 1 is a rental I intend to keep long term. The other 2 I am holding till I feel prices have maxed in the short term. All of which I would like your perspective if they are worth holding long term as rentals or even how these numbers compare to deals you currently hold. Keep in mind my market is not the low value high rent high turnover area . 

#1 ( I would like to keep)

90k mtg

130k Current Market Value

$950 pr/m rent tenant pays all utilities

good condition / good tenant

$2300 taxes

$450 P & I

$650 insurance

self managed, tenant does lawn and snow and general maintenance. 

#2

150K mtg

215k current market value

1300 pr/m rent tenant pays all utilities

good condition / great tenant

3200 taxes

742 P&I

700 insurance

50 pr/m water softener/iron filter

self managed, tenant does lawn and snow and general maintenance. 

#3

135K Mtg

205k current market value

1250 pr/m rent tenant pays all utilities

good condition / bad tenant

3500 taxes

670 P&I

700 insurance

self managed, tenant does lawn and snow and general maintenance (sort of) 

These were all purchased a few years ago with the intent to flip when deals where easy to come by. I am currently holding on to them and am undecided if I should sell or not. They were all remodeled nicely and I hold very little for Capex and Management.

Roy N. Could you elaborate on your thoughts about the housing market in Canada. I've only read bits and pieces and I'm under the impression foriegn investors have pushed up the higher-end market which is now on the downswing because of a new tax which has brought more foreign investors to America.

James Barnhart that sounds like a wise strategy in the localized super hot markets. I tend to agree. Interestingly though I just spoke to a more experienced (than me) investor today  who said to not miss out on short term opportunity in fear of long term planning. I thought that was a pretty good statement. I feel it's important for investors to have discussions such as these so we can all be on top of Market changes I hope this discussion goes on and on and on

Francisco   not sure what the problem is. sorry to hear you are having difficulty. 

Marcus, I tend to agree. Some of the market indicators I'm currently looking at that i think will indirectly affect residential housing are the rising subprime auto loan delinquencies, subprime commercial loan delinquencies, HELOC loan delinquencies an oil industry salivating at the chance to make more money, downgraded ratings on Wall street, interest rate hikes and home values outpacing wage growth. None of these are indicating imminent correction but are on the rise/fall making it currently a cautiously optimistic opportunity for us investors to capitalize.

David Faulkner   I don't know their business models either but I am sure appreciation was a component to those companies initial investment strategy. The securitization on Wall Street component certainly seems like a long term steategy to me. A less gov regulated and possibly higher leveraging capacity investment seems like a good reason to not sell those properties. I'm of course only speculating here as I'm not the go-to person on that but it sure is fascinating. 

coal country could make sense.  Trumps slogan in those regions was practically dig baby dig. 

correct me if I'm wrong on the blackstones and the hedge funds out there. they are making money off the bonds or cdo's they've developed based on the performance of rent payments not necessarily based on the value of the property. I don't recall rents going down drastically during the crash. In fact, they went up in some locations (around my market anyway) . So theoretically looking for them to sell might not be a wise decision when trying to predict a market correction???

Jay.   yes, blueound. if you remember the area they tore down the menards right next to I 94. It's funny how this development concept is fairly new to our area and it's been done years ago in CA. We're not exactly trendsetters here in Wisconsin lol. good luck with your project. Keep me updated in the future if this chat had an impact on your development.

@Jay Hinrichs   thecornersofbrookfield.com they are just about done building it. 

very interesting to here about the regulations and fees developers deal with. I suspect developers have similar problems here in Wisconsin but maybe not to the same degree. 

@William Wiebolt  thanks for your input. I am always curious about those markets. I often get snow bird clients moving south.   I recently read that Miami condo sales are slowing down. Do you think that is any indication,,,,, do you have any thoughts on that?.  

There's a new development  here with a fairly new concept to my area . The developer has incorporated apartment living with dining and a shoping mall basically under one roof. It's basically mixed-use property on steroids. I think it's absolutely genius maybe this could be applied towards condos or housing.