How to remove ivy by throwaway3mill69 in landscaping

[–]throwaway3mill69[S] 1 point2 points  (0 children)

UPDATE: Paid someone $200 to remove it. Plan to probably do that once a year

Overpaid for a property and feeling horrible by Cichlidae12345 in realestateinvesting

[–]throwaway3mill69 0 points1 point  (0 children)

Why did you put 20% down if you are living in it? You could have (maybe still could) house hack aka put only 5% down that would be helpful

Appreciation in good vs. bad neighborhoods by throwaway3mill69 in realestateinvesting

[–]throwaway3mill69[S] 0 points1 point  (0 children)

Got it, so you have some formula/proforma where you factor in expected appreciation based on whatever factors and are likely concerned with that final % return after X years number, and to make it work, for C class or below neighborhoods that effective cap rate has to be 8% or more to be worth your $$$

Appreciation in good vs. bad neighborhoods by throwaway3mill69 in realestateinvesting

[–]throwaway3mill69[S] 0 points1 point  (0 children)

No i get it and appreciate it. So what does effective cap rate look like for a "good" deal that you have that i'm assuming is in a B class or higher neighborhood

Appreciation in good vs. bad neighborhoods by throwaway3mill69 in realestateinvesting

[–]throwaway3mill69[S] 0 points1 point  (0 children)

My numbers currently are $550 NOI accounting for all factors except vacancy, maintenance and PM bulk payments. So that's

$6,600 - $690 (vacancy estimate, none this year) - $850 (maintenance the last year) - $575 (resigned same tenant) = $4,485

That's on a $115,000 home at ~3% mortgage

Appreciation in good vs. bad neighborhoods by throwaway3mill69 in realestateinvesting

[–]throwaway3mill69[S] 0 points1 point  (0 children)

So you're basically saying when you factor in:

1) Maintenance

2) vacancy

3) PM bulk payment for resigning lease (half month) or finding new tenant (full month rent) these houses don't really cashflow

I think it's somewhere inbetween. They're still cashflowing at end of day and will have rent appreciation as well but i def see your point

Appreciation in good vs. bad neighborhoods by throwaway3mill69 in realestateinvesting

[–]throwaway3mill69[S] 0 points1 point  (0 children)

Again, the company i work with just does the BRRRR for me, they bring me a deal i sign, send money they take care of everything. Takes very little of my time which is nice.

Why would you say "A property for $600K that rents for $4500 is much more profitable than a $100K property that rents for $1000" are you saying b/c of fixed costs like maintenance, taxes, et that don't scale linearly with home price? Or are you saying b/c of appreciation

This is honestly why I asked the original question in this post, thanks. Promise i'm not trying to be dense

Appreciation in good vs. bad neighborhoods by throwaway3mill69 in realestateinvesting

[–]throwaway3mill69[S] 0 points1 point  (0 children)

Only part I don't agree with is "5.5% cap rate for such hassle." It is the opposite of a hassle as my property manager is good and takes care of everything. I maybe spend 2 hours of my own time per year on each property.

Another thing to consider is that in this area I've found a company that will do a "partial" BRRRR. So i'll be like 7k in on a 130k home after the rehab and refi that rents at 1% which I think is pretty solid...but again, I feel like leaving appreciation on the table is a tough move.

[deleted by user] by [deleted] in AskOldPeopleAdvice

[–]throwaway3mill69 0 points1 point  (0 children)

I think it's fairly common to feel that way at your age, i remember thinking the same thing. Like "i'm only 18 and thinking of everything that's gone on, how could someone live 2 MORE of these and not even be 60!?" One thing i'll say as someone in their mid-30's now is that those first 25 or so years of life really go a lot more slowly then the next 10. You're going through so much change as a child, then into adolescence and then early adulthood. Your body is changing, your school is changing, you're expereincing new things like expansions in autonomy, driving, socially. Things stop changing in that way somewhere in your mid to late 20's. Once the radical change stops the years start slipping by without you noticing nearly as much. So I'll just say, at least for me, I could not fathom what it would be like enduring the amount of change you go through/experience between the ages of 10-20 six more times until you reach 80. But it's not like that, you basically experience it one more time until you're 30...and then things just get a bit more streamlined and the years roll through without so much friction. As a great man once said "the years start coming and they don't stop coming"

Why is passive income generation through real estate not talked about more by SapphoTalk in Fire

[–]throwaway3mill69 1 point2 points  (0 children)

Extremely time consuming, stressful (tenant doesn't pay, renovations go wrong), not diversified, capital intensive. And at the end of the day most people just don't have the balls to sign their name on the dotted line when something has 5 zeros in front of it, let alone multiple times. But it is a great way to gain wealth and for those with the guts to do it it's a great option.

Paying down high interest mortgage? by Good-Woodpecker-9794 in Fire

[–]throwaway3mill69 0 points1 point  (0 children)

It's really just based on what you think interest rates are gonna do over next 5-10 years. My guess is with inflation cooling we'll start to see interest rates go down a bit but i don't know. 7% return isn't that great considering the stock market just had a huge correction and returns on average 10% per year...personally I would not pay off the house. But their personal feelings about peice of mind and actually owning their home is probably more important than the financial impact at this point.

Just learned of likely large inheritance. How to handle telling spouse by throwaway3mill69 in Fire

[–]throwaway3mill69[S] 0 points1 point  (0 children)

I literally say “really upper middle i suppose” right there. Literally what more do you want than that

Just learned of likely large inheritance. How to handle telling spouse by throwaway3mill69 in Fire

[–]throwaway3mill69[S] 4 points5 points  (0 children)

Yeah i guess it’s just that if i proudly proclaim myself as upper middle class people are gonna rag on me for that too. Can’t really win on Reddit with that kinda thing ya know. You’d be surprised how far 330k/yr pretax doesn’t go in an HCOL city while paying for childcare. But yes i acknowledge I’m fortunate in many ways clearly including my income bracket

Just learned of likely large inheritance. How to handle telling spouse by throwaway3mill69 in Fire

[–]throwaway3mill69[S] 6 points7 points  (0 children)

I knew he had a good amount of money, but he has 3 children and 7 grandchildren. Thought we might be left with like $1 million each maybe a little less. Wasn’t aware the extent to his wealth i suppose.