Will check it out.
I’ve really come to hate carpet. We did put carpet in the bedrooms during our major remodel, but part of me regrets it (and I knew I would at the time). Everything else in the house is hardwood flooring and tile in the baths. I don’t like any of the popular fake garbage either lol. Obviously it makes sense in something like a rental property, but I don’t want to look at it daily in my house.
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Great info and insight above but this is armchairing a financial decision in a vacuum. Ultimately, @RobC2 has to put this decision into the context of his larger quality of life/financial planning.
Unless he’s worth a significant amount, and a property with a basis of 130k is peanuts in the grand scheme and carries a legislative risk until his heirs get a basis step up.
Likely have to view the money in a long-term lense than the shorter volatility housing/equity markets experience routinely
Look there’s always the ‘park the Grandwagoneer electric close to the house’ strategy as well if push comes to shove
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Funny enough I bet that Grand Wagoneer Electric will cost as much as the house originally did.
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King County, Washington which is essentially the Seattle-Tacoma metro area, now has a $1M median home price. An increase of 10% YOY.
Mama Mia!!
Totally agree. Nobody likes to consider it but a single eviction could cause huge negative returns too. I unfortunately had to deal with a couple very costly evictions in a state very friendly to the human trash squatting in my place. Ugh!
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You can’t have stagflation without rent increases, which would make a rental profitable despite high rates.
Sent out an increase letter just this week on one of my rentals. Increase of 7%. This is why renting long term is never a good bet.
Yep exactly. You can’t have stagflation without high rent increases with rent being 36% of CPI and even more for core.
I wouldn’t necessarily go as far as saying all long term rentals are bad, I think it depends on where you live and the type of accomodation. A lot of downtown condos were horrendous purchases that hasn’t appreciate in a decade.
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What an incredibly disingenuous post. The average earnings is meaningless, 90% of listings goes to the top 10% of realtors. Plus this is taxable earnings which probably everyone here knows is wildly below actual earnings due to BS “business expenses”.
As to your long list, I’m licensed and have bought and sold my own investment properties and it was maybe 5 hours of work total. Flat fee broker charges me under $1k per transaction, full 3d photo with drone is only $600. On a $1m transaction I save around $4,000/hr of work.
Even if there is no appreciation your mortgage payment stays fixed. Tax and insurance increases but the bulk of a monthly housing costs stays fixed. With rent 3-10% yearly increase is guaranteed. And with a mortgage there’s principle payback every month as well. Rent? Landlord’s principle payback.
Your statement is only accurate if rent and PITI are similar but that is not the case right now. For most of the country, rent is far below mortgage. In my neck of the wood, homes that are rented for $4.5k a month would have an equivalent PITI of $12k. Even with a 10% increase in rent per year, it would take 10+ yrs to get to the mortgage.
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That’s only true if cost of ownership is equal to or less than rent. In these downtown condos I mentioned the cost of ownership is 2 or 3 times as much as rent. Condo fees often run $3000+ month or more, and that’s before taking into account depreciation and maintenance.
You’re thinking of a house that maintains its value, these condos are more like cars.
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Because we’re investors not true agents. Being an actual agent sucks more than selling volvos. 99% of your time is spent hunting for new buyers and listings not providing service to those listings and buyers. I saw what “real agents” do and I said I’d rather make memes on LH then deal with that BS lol
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Property #3 was a disaster. Tenant occupied for many years and the tenants basically destroyed the place. Deferred maintenance issues in every room.
Moved onto property #4, only to find it had a sub-standard septic system. After not making an offer, was contacted by listing agent and told price was flexible. Made a cash offer 20% under list to cover the septic and a few other issues. Have found out I’m 1 of 3 offers, seems like a long shot.
Property #5, I got tired of touring distressed assets, so I increased the budget. Property is overpriced, has been on market for 15 days, and includes a solar lease. So basically, asking price plus the $17K debt you are forced to inherit. Was also told price is flexible, no offers yet. Considering 10% under list (at least this one has public sewer).
This must be what it’s like to be a broker on this forum.
Brokers on this forum provide a valuable service for a reasonable fee. Realtors like you try to charge $20k for 5 hours of entry level work that anybody with basic intelligence and the ability to do research can perform.
I know it’s 5 hours of work because I’ve done it quite a few times. Your wall of tasks BS only works on the uninformed. 15 years of experience and you claim you’re still working under a broker and getting only 50%? Who do you think you’re trying to fool?
You act like realtors provide value when in reality empirical studies have shown realtors(listing agents in this example) provide negative value.
What is interesting is the data suggests the average full-service listing agent garners a sales price that is 1% to 4.4% lower compared with homeowners who sell only with the assistance of a flat-fee broker. In other words, when left to manage and negotiate their own sale, sellers did a better job of obtaining maximum value than real estate agents working on a seller’s behalf.
The study suggests median full-service listing agents complete transactions six to 10 days quicker than if the property sold via a flat-fee broker arrangement.
Homeowners themselves, not even experienced RE investors, did a better job selling their house than realtors.
Yep, it shows the problems with the current system where 99% of an agent’s time is spent promoting themselves and finding new clients than providing actual value for what they charge.
Most other countries have much lower commissions and do just fine. The NAR lawsuits will eventually cause the industry to change.
Well then I’m sure that a someone such as yourself, with tremendous intelligence and a diligent research ethic, would have caught on to the fact that you’re not actually replying to the resident forum real estate agent but instead to the resident forum shitposter.
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Harsh but fair.
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