All Forum Posts by: Todd Powell

@Casey Mayton really simple: BOTH! I have done both. Once you pick a diversified group of quality stocks with dividends, there is no longer more work. Its truly passive. With that said, I love the thrill of RE with some 40 flips and ownership in 100 units physically and some other RE syndications. RE is far from “passive” as I self manage 16 doors currently. I do not think you have to chose one bucket. You cannot show the Amazon stock pick or Blockbuster as someone mentioned, but stocks are about diversification. I think a solid blend of RE and stock holdings will be the wiser choice and its an easy argument for me, but realize this is a RE site so the bias will lean heavily for “passive” income, but stocks are much more passive for sure. If you want RE holdings, then syndicated RE deals are truly passive. Just my two cents, and yes, I owned $35k of Apple stock in the early 90s and traded it for a hot stock tip and lost most of that money. Would be worth millions today obviously! RE is about LOCATION, while stocks is about quality holdings over the long term. Both avenues have legit value! Its a matter of perspective

@Nick Anderson he also says buy silver on TV commercial. Which statement do you believe?

@Bryan Potter I just had a childhood buddy literally just move to North Carolina last week. He says prices there are a much better value than Oregon where he was from. My question is, can you sell the Utah property and move your money into your market successfully and without getting hammered on taxes, or do a 1031 exchange? Its about cash flow and buying in the right neighborhoods, and you understand your market better I am assuming. Personally, I would want rentals close to home if it were me.

@Sara W. It will be hard to get compensated. I went through an eviction where the sheriff was coming to remove a tenant but she decided to stab two women go and go to prison. She had her friends train wreck her unit. The lawyer costs, lack of rent, and rehabbing cost me $7000, so since she was in jail, I did not pursue the final step in court to place judgment on her credit. I was tired of spending money and my lawyer said I would never see a dime. BIg lessons learned here and it was the first and last time I ever took a “chance” and deviated from my rental policy!! I have had bad inherited tenants upon purchasing but this one was my own acceptance! One bad one in 14 years is not too bad I guess but still painful, and the money did NOT compare to the emotional and mental strain she put on me.

@Mario Casarez add to your list new roof, gutters, garage door, exterior doors, AC, and new furnace with some siding replacements, and we did a 1500 sq foot house for $70k. Its in Albany, Or and was a 90 day flip that my son is now buying. I had a GC for $40 an hour and I paid T & M and I did most of the larger scale shopping, while he made Home Depot and Lowes visits for many other items needed. I also did some painting here and there, and did a weekend install in the LVP floors with a couple guys with free labor. In the end, your price sounds REALLY high and I know the average person on my flip would have spent an easy $100k or more. I have done many flips in the past and its always costing more now and hard to make a dollar in this market. Hope that helps!

@Adam Kruse choose another battle, or another way is “lose the battle, win the war”. This issue is because you see his truck. You live above him. You feel violated. Its not really about increased expenses. I would settle for your tenant issues if this is it.

@Bryan Stocklas is this market a buyers market? I mean why would the seller actually want to spend money on this issue? Have him drop the price of the panel so you can hire an electrician properly, or counter sue when he loses. He has no case IF the panel prevents your closing correct? I cant figure this one out. Negotiations before lawyers! Work to find a win-win, and why back out of a deal that is so simple. We are talking $1000-1500 max right?

@David Kuhlke seems high. I have W2, wife is self employed, did 5 flips in one year, have 4 separate 4 plexes, and a few K1’s, as well as stock income. My highest bill ever was $2400 as they charge per form. I think this was high but yours seems crazy high based on 3 properties, unless they are large apartments.

@Shiyuan Zhang this makes zero sense to me. Why gamble and hope for future appreciation. Buy somewhere else or go to the casino if you want the gamble. Cali is not for me as you can see. Too liberal. Too expensive.

@Gareth Knight I know someone at 70 years old that owes $70,000 I kid you not. He went to get a Masters after the Bachelors, and this all began in his 40’s and he put off paying anything as long as possible and then made only the minimum payments. His goal now is to die and claims the government cannot lay any claim against his estate, which is not much. This was the same guy who made fun of me for building a house back in 1999. Mine is now paid off and worth $600k and he bought 17 years ago for $135k but now owes $160k today. Yup, all true and what NOT to do!