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13 December 2024 | 13 replies
:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.
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14 December 2024 | 13 replies
Overall, it is okay, but it still requires relinking the accounts periodically, which seems more security-related than anything else.
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14 December 2024 | 6 replies
If you're ARV is high enough (relative to your purchase price), you can get away with 20% or less down.
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24 December 2024 | 44 replies
Why would you buy an out of state property, with all the related risks, when you can get a similar if slightly smaller yield on a completely liquid investment?
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19 December 2024 | 8 replies
Since the home health is provided by a third party, the community does not need to be licensed as a care facility, so costs related to regulatory compliance with inspections and staffing are facilities are not added to the cost of care.
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13 December 2024 | 8 replies
., $250K on a $1M property with a $500K loan) is treated as a loan and generally has no tax implications related to the 1031 exchange.
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17 December 2024 | 8 replies
Given Covid related material and supply shortages, should I plan additional buffer time around my contractor's estimates.
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13 December 2024 | 4 replies
It also becomes more difficult to separate out construction related liability when there's one partner who is responsible for the construction management.
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16 December 2024 | 7 replies
finding land that relatives bought years ago.. inherited owners just dont know what it is or have even seen it.. dont want to pay tax.. and will sell for quick cash at signficant discount to market.. buy and then market and resell..
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13 December 2024 | 7 replies
Protecting yourself from any future issues will require a good understanding of the situation your house is in when you buy it.Tl;dr: crime here is relatively low, declining population numbers don't take students into account, properties are cheap, rents are high BUT be careful where you buy.This concludes my TED Talk, ha!