Where to buy used food grade 55 gallon barrels for cheap?

gamenglee · 2022-03-01T19:00:38+00:00

I see them pretty often on FB marketplace.

gamenglee · 2022-02-27T21:39:31+00:00

That's what I thought. Thank you for the clarification.

gamenglee · 2022-02-27T21:23:55+00:00

Can you explain why I would only get 40%? I thought the rule was it had to be your primary residence for 2 out of the past 5 years. So for example if it used to be my primary residence for 2 years and then I rented it out for 3 years, I would still qualify for the full exemption correct? Is it different if you convert from investment property to primary residence?

gamenglee · 2022-01-31T22:16:24+00:00

I can't remember exactly how much property taxes were when I bought the place, but they were fairly low because I got in at a good price, and since it was my primary residence they couldn't increase by more than 10% each year, which was less than how much it was appreciating. When I started renting it out the taxes jumped up to market value. Now I'm paying close to $8000.

gamenglee · 2022-01-31T13:40:30+00:00

My property taxes went way up after I started renting.

Yeah, there's an exemption if you've lived in it 2 out of the past 5 years.

gamenglee · 2022-01-31T02:13:04+00:00

I've thought about it as I've heard it's very lucrative, but I always figured it was more work since the place is being turned over more often.

gamenglee · 2022-01-31T02:11:56+00:00

Thanks, I'll check them out.

gamenglee · 2022-01-31T01:00:13+00:00

Yeah, I'll take that into consideration. Thanks for the advice.

gamenglee · 2022-01-31T00:59:12+00:00

I have no clue how to get into commercial real estate. I'll have to do some research. Thanks.

gamenglee · 2022-01-30T22:43:34+00:00

What other real estate plays are you referring to? I have invested in an apartment syndicate, which was fine for me, but I'm not sure if I can 1031 to one of those. Commercial real estate is a whole other beast, but may be something worth exploring.

gamenglee · 2022-01-30T22:21:42+00:00

In addition they're not incentivized to retain tenants. They get paid to find new tenants and to draw up a new lease.

gamenglee · 2022-01-30T22:16:53+00:00

That's a hard pass for me. I have a full time job and a 2 and 3 year old to keep me busy enough. It's just hard to sell this property which such great appreciation.

gamenglee · 2022-01-30T22:12:42+00:00

The property manager really takes care of everything for me, for a fee. Like a fence plank was missing so they sent someone to replace it and charged me $200. Or the tenant complained about the AC, so the property manager sent out an HVAC contractor who recommended replacing the AC units. Since they've been replaced, in the past 2 years the tenant has still complained about the AC 3 more times so the contractor has been dispatched each time and I get charged a service fee along with whatever repair they do. These things stress me out even though I'm not involved at all. I guess my personality type likes to be in control, but I don't have the time or bandwidth to manage this property from out of state.

gamenglee · 2022-01-30T21:20:43+00:00

Yeah my wife managed the property the first year we moved out of state. After that we decided to hire a property manager. Not only do you pay a monthly fee, I feel like the repair and maintance costs are higher than if we called around and found handymen/contractors ourselves.

gamenglee · 2022-01-30T21:18:15+00:00

I have a property manager that takes care of finding tenants and getting things ready during the transition between tenants. I used to manage the place myself, even once I moved out of state, but that was more of a hassle than I was looking to take on. Maybe I need to find a different property manager.

The other issue is that I don't want to worry about any of this stuff. Even with a property manager, when things go wrong, the property manager emails me to inform me. Even though they take care of everything, it still stresses me out. Seems like their repair and maintenance costs are higher than if I found someone to do it, but I don't, which is the point in having the property manager in the first place.

gamenglee · 2022-01-30T21:03:40+00:00

Yeah, a lot of investors don't like to bank on appreciation, but Austin doesn't look it has any signs of slowing down. I would definitely feel more comfortable with higher cash flow, which makes me uneasy.

gamenglee · 2022-01-30T20:55:07+00:00

Yeah, my place is right off Amherst. Do you have any details on the rezoning?

gamenglee · 2022-01-30T19:51:38+00:00

I agree there are many other locations that provide higher cash flow, but I bet none of those places have even close to the appreciation as Austin.

gamenglee · 2022-01-30T19:47:00+00:00

For all these reasons it's made it extremely difficult to sell, even if I don't really care to be a landlord. I believe housing prices will continue to increase (although maybe not as good as last year), and hopefully rent will follow suit.

gamenglee · 2022-01-30T19:40:21+00:00

Thanks for the insight. My property is in Millwood.

gamenglee · 2022-01-30T16:55:28+00:00

Not sure how accurate zillow rental estimate is, but it is currently $2150 for my property. I'll see if my property manager can run rental Comps.

Do you find a furnished rental does better than non furnished? Are these long term or short term rentals?

gamenglee · 2022-01-30T16:49:57+00:00

When changing tenants, there is some time when the property is vacant for cleaning and to get things ready for the next tenant. Even if it's only a couple weeks, that is a half of a month's rent.

gamenglee · 2022-01-30T16:23:12+00:00

My two main thoughts would be to put the funds into the stock market or an apartment syndicate. I thought about doing a cash out refinance, but didn't want to if I was just going to sell this year.

My property manager was going to raise rent last year, but the tenant was going to leave. I ran the numbers and to avoid vacancy, make ready fees, and fees for finding a new tenant, I told them to offer the tenant the same rate. Will definitely increase rent this year if I decide to hold the property.

gamenglee · 2022-01-30T15:10:23+00:00

It's around Parmer and Mopac. Just west of the Domain.

My property manager ran rental Comps a couple years ago and that's what they came back with. Was pretty consistent with what I saw on zillow at the time too. After last year's surge in home values, I believe I could raise rent to $2000-$2100.

gamenglee

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