Home buying thread

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Khane

Khane

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Fogel said:
I'd also research the landlord/tenant laws in the area. Certain cities are pretty hostile to landlords and evicting a shitty tenant can be a long and expensive process
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Most of the country has laws that heavily favor tenants. But most tenants dont have the wherewithal to understand or challenge this. Which is why so many people are under the impression the opposite is true
 
P

Pharazon2

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Araysar said:
Assuming the possibility that Fed moves this year will crater the stock market for a good chunk of the year, would it make more sense to pivot investments into real estate instead of the stock market?
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Market has already started pricing in 3-4 rate hikes. If it craters it'll be now, but wouldn't be surprised to see S&P pass 5k by end of year.

On the flip side real estate has already run so far so fast, can it keep rising? Maybe.. we moved into our house 15 months ago and the price has appreciated almost 70% since, no exaggeration.
 
Khane

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Investment properties dont move the same way as the rest of the market. If the population of a certain area is mostly transient the market there will be fairly insulated. Which seems to be the case for what Araysar Araysar is suggesting.
 
Control

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Araysar said:
I can't really think of any major drawback here.
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How about the government deciding that you can't evict your tenants, so they essentially get to live for free while you still have to pay mortgage and maintenance costs for months, maybe years?

When I had a rental, I was mostly worried about property damage (google some landlord horror stories, it can get pretty bad), but clownworld has added some new things to worry about now. Of course, the risk of individual bad tenants is mitigated when you have more units, but that also increases your exposure to broader shifts. If you have one unit, you can probably swing the costs if it takes a year to evict someone. It would be a very different situation if you have 10+ units and a culture shift makes it makes it much more likely/acceptable for people to just stop paying rent. If you're renting upscale units and requiring perfect credit, that's less likely of course, but you're probably trading off some cashflow and increasing the potential property damage/maintenance downside going that route. Also, thinking long term, many units in the same area are easier to manage but doesn't give you much diversification. What happens when that plant or base closes?
 
Araysar

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Control said:
How about the government deciding that you can't evict your tenants, so they essentially get to live for free while you still have to pay mortgage and maintenance costs for months, maybe years?

When I had a rental, I was mostly worried about property damage (google some landlord horror stories, it can get pretty bad), but clownworld has added some new things to worry about now. Of course, the risk of individual bad tenants is mitigated when you have more units, but that also increases your exposure to broader shifts. If you have one unit, you can probably swing the costs if it takes a year to evict someone. It would be a very different situation if you have 10+ units and a culture shift makes it makes it much more likely/acceptable for people to just stop paying rent. If you're renting upscale units and requiring perfect credit, that's less likely of course, but you're probably trading off some cashflow and increasing the potential property damage/maintenance downside going that route. Also, thinking long term, many units in the same area are easier to manage but doesn't give you much diversification. What happens when that plant or base closes?
Click to expand...

Dont know what to tell ya other than that I addressed this exact same concern in my earlier post.

The base won't close. Plant might but unlikely (it's an electric battery plant for this major automaker's all current and future EVs)
 
Araysar

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Control said:
"Addressed"? Ok then, no major downsides at all...
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Covid nonpayments have been reported to be less than 5%, and that's in major blue cities like Denver

daniels.du.edu

Apartment Survey Shows Low Eviction and Nonpayment | Daniels College of Business

Researchers at the Daniels College of Business released the fourth quarter Denver Metro Apartment Vacancy and Rent report.
daniels.du.edu

I live in a deep red state and a good portion of my renters will likely be military. While I allow for the possibility that this might happen to me...

1. the likelihood of another black swan event like Covid which will produce another rent moratorium is very slim
2. having military servicemen as my tenants
3. living in a deep red state, and a deep red county
4. rent nonpayments being fairly low according to studies

i dont think the risk is significant at all
 
Control

Control

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Look, I agree that it's unlikely, maybe even highly unlikely if you do the right things, and if you don't consider the possibility as a "major downside", then ok, no problem. It's not that I don't think rentals are a good idea, but there's a lot that can go wrong even in the best of times. Anyone buying their first rental needs to be sure that they're both capable and willing to weather the storm if their first roll on tenants comes up shitty.
 
Lanx

Lanx

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Araysar said:
I live in a deep red state and a good portion of my renters will likely be military. While I allow for the possibility that this might happen to me...

1. the likelihood of another black swan event like Covid which will produce another rent moratorium is very slim
2. having military servicemen as my tenants
3. living in a deep red state, and a deep red county
4. rent nonpayments being fairly low according to studies

i dont think the risk is significant at all
Click to expand...
are they gonna plant/factory workers wife and i had to deal w/ factory workers in mgmt, of course every segment (white colar/factory/ceo) have their bad apples but these factory workers seem to gravitate towards bad life choices

they also have knack of "not doing" if they can not work, they will if they can get for free, they will. how that might translate to paying rent, i have no idea.

maybe find the landlord chamber of commerce and ask em what to expect
 
BrutulTM

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I don't have any statistics or anything, but from experience there are some real entitled assholes often with severe drinking problems in union shops. Plenty of good union workers too, but it does keep some bad apples employed. Sometimes a lot of them depending on the job.
 
fris

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anyone here ever use or evaluate Orchard? a buddy is using them because of the convienece, he wants to be out quick and doesn't want to fix the wear & tear around his home.

Their main business model is they will 'buy' your home while you are still in it, opening you up to buy something w/o having an existing loan over you. they work both as a seller and buyer, and they try to get you to buy one of the homes they have bought from another customer. after you move, they fix up your home, then sell it, and deduct the cost of those repairs from the selling price, then charge you 6% on the transaction.

as someone w/ dogs, kids, and working out of the home 100%, i'm really not wanting to do repairs while i'm living here, but can't really afford to move out while i still own this home. so their model is appealing.

I did a quick eval of my home and they offered about 20% what Zillow thinks my home is worth. seems good. i then look at the homes they have for sale, and recognize one that was previously on zillow. the catch is it's about 35% higher than what I remember zillow thinking it was worth. so their model seems to rely more on inflating the cost of the homes, so their 6% cut on each side is more, plus whatever overpirced repair services they employ.
 
Cad

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fris said:
I did a quick eval of my home and they offered about 20% what Zillow thinks my home is worth. seems good. i then look at the homes they have for sale, and recognize one that was previously on zillow. the catch is it's about 35% higher than what I remember zillow thinking it was worth. so their model seems to rely more on inflating the cost of the homes, so their 6% cut on each side is more, plus whatever overpirced repair services they employ.
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My guess is it's just like car dealers.. they fuck you on the trade-in side and fuck you on the purchase side both, making margin both ways. You need some kind of agreement that they are buying your house for X price before you move? Do they give you that or do they pay you a nominal amount and then the difference once they sell it to a real customer?
 
fris

fris

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i've got a 2nd call later this week, hopefully i get clarity.

they give you an initial value of your home, and minus 6% commission and typical expenses (tax/title/etc), they predict what you would get in the sale. they give you 85% of that value to use as your down payment on your next home, to see what you qualify for mortgage wise. you get 6 days to live in both homes/move. then when you're out, you can approve them to make repairs so the actual sale of your home is higher. i'm assuming you see the actual sale/contact on both ends. that's my biggest question right now.
 
Lanx

Lanx

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fris said:
anyone here ever use or evaluate Orchard? a buddy is using them because of the convienece, he wants to be out quick and doesn't want to fix the wear & tear around his home.

Their main business model is they will 'buy' your home while you are still in it, opening you up to buy something w/o having an existing loan over you. they work both as a seller and buyer, and they try to get you to buy one of the homes they have bought from another customer. after you move, they fix up your home, then sell it, and deduct the cost of those repairs from the selling price, then charge you 6% on the transaction.

as someone w/ dogs, kids, and working out of the home 100%, i'm really not wanting to do repairs while i'm living here, but can't really afford to move out while i still own this home. so their model is appealing.

I did a quick eval of my home and they offered about 20% what Zillow thinks my home is worth. seems good. i then look at the homes they have for sale, and recognize one that was previously on zillow. the catch is it's about 35% higher than what I remember zillow thinking it was worth. so their model seems to rely more on inflating the cost of the homes, so their 6% cut on each side is more, plus whatever overpirced repair services they employ.
Click to expand...

Orchard Reviews | HomeOpenly

Reviews for Orchard, a multi-state Fintech-enabled Realtor and Direct Cash Buyer that offers consumers bridge loans as leverage to buy and sell homes.
homeopenly.com homeopenly.com

it was fun reading all these 1star reviews
 
Oblio

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If it sounds too good to be true then it probably is, Real Estate 101.1 because Real Estate 101 is Location! Location! Location!
 
Araysar

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Would there be any interest in a Landlord & Rentals thread?

I know some folks here own rental properties and I'd love to get their feedback. Or should I just ask in this thread? 🤷
 
Fucker

Fucker

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Araysar said:
Would there be any interest in a Landlord & Rentals thread?

I know some folks here own rental properties and I'd love to get their feedback. Or should I just ask in this thread? 🤷
Click to expand...
Just ask here. I used to have a handful of small house rentals. Got out of it a while ago after meeting my goals.
 
Araysar

Loser Araysar

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Fucker Fucker

I plan to own a couple of rentals

1. Is it worth forming an LLC for the rentals?
2. Should I form 1 LLC for each rental, or just put all rentals under 1 LLC? These will be single family homes.
 
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