All Forum Posts by: Sunny D.

I started creating a excel sheet to start tracking accounts for a duplex I purchased. Any thoughts on below approach. Also I am trying to keep it simple (not trying to deal with taxation, depreciation etc.)

1. Ledger - all transactions

2. Balance sheet

3. Cash flow statement

4. Income statement

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Cash flow- statement

Income statement

My neighbor is a Intero realtor and he feels that the market is slowing down. Everyone who had enough cash to buy a home has done it already and the remaining pool is shrinking. You can still sell, but DOM is slightly up and avg # of offers above ask for a fair price listing is getting lesser. All it takes is one large corp to announce big size lay offs for the buyer to take the covers. My expectation is end of 2017 will be when the prices start to slowing go south and we will see a relatively flat market for next 4 years.

, me and jumping on the MI bandwagon, not going to happen. Its my hard earned money, easier to lose and so much harder to earn. Good luck with your investing. If i do go to indy buys i will work with fs houses, reputation and track record matter plus ability to exit an investment matter most to me and hence i am sticking to holton wise in cleveland for now.

ok, thanks for the clarification. Hopefully a successful track record can get the conservative investors on board to this business model

Guys

A big fraud alert. I went over all the profiles of those who are pitching for morrisinvest or naively asking questions to build interest in them. Majority of them joined around 2 months ago in BP and this looks like a collusion attempt to pump up demand. I would proceed with utmost caution

Cheers

Before spending all the money on demolition etc. interview some local well reviewed realtors and see what they say, may be they have some creative ways to cut costs. Why r u still working with a agent who doesnt know how to price your neighborhood

@Sheeva R.

BTW, an advice I can give from a very bad decision I made. I lived in NYC area and paid an avg of 3000 PM from 2002 to 2013 for a 750 sq. ft  1BR. It was the dumbest decision which I wish could take back. I kept justifying to myself that having the freedom to move around and not worrying about taxes and fixing stuff etc. was worth it . If I put all that money towards my mortgage, my net worth would have been up a extra million bucks knowing how crazy that area has gone up.

So back to Bay Area and your situation, you are paying too much rent. Forget about investing elsewhere for cash flow and COC returns when you are focused on primary residence. Its a privilege that we are able to borrow for 30 yrs at such a ridiculous rate of 3.5 % fixed for a 30 yr loan. One more product that is coming back into vogue for aggressive savers who want to pay off extra principle and be debt free is a 10/1 ARM. You have 10 years fixed at a 0.6% less than 30yr fixed.

Instead of 3900 in rent it will cost the same for mortgage+taxes on a 600K loan. W.r.to tax savings from mortgage interest and property taxes you can assume it is around 12k+ of savings at year end. In addition you are paying off principal of 10K per year which is net new equity.  Add the joy of home ownership and it starts looking like a good deal.

Prices will soften hopefully in the next 6 months. Dont hesitate to buy a property that needs work and saves you good money ,  you can house hack on free time and fix the place. Work with a agent who is patient , understands your risk profile and goals. 

Once you get your primary, then its time to worry about a rental. :)

@Rahul Bhatt can you PM me his details. Not sure if he can handle electric stuff. 

Take the offer on the table, if it comes through. BTW, one thing I would always recommend in Bay Area you pay for a inspection report, get it and make it available for anyone willing to make an offer and let them know that they cant have inspection contingencies. The only contingency they can have is financing contingency and its harder for some one who has the means to back out of a signed contract. Seller providing inspection report for all potential buyers is a standard approach used by one of the top realtors in Mission Fremont that I got acquainted with few years back.

 Austin

My view is fund 401k always and then save up to do RE as well. If your tax bracket is low, when markets have a correction, consider some contribution to a roth 401k else traditional 401k is ok.

Cheers