Home buying thread

ToeMissile · Nov 30, 2023

Sanrith Descartes said:
Better yet, make it that but its an Airbnb/Theme park where they pay you for the privilege'.

Yeah, that's the idea.

TJT · Nov 30, 2023

Daidraco said:
Not once, have I ever, EVER, tried to play the nice guy to people as a land lord or a property manager. Doesnt mean Im a dick to them - Im just not fucking Santa Clause. Rent or Mortgage, thats fucking life - you shouldnt get rewarded for doing the right fucking thing.

Never mind the fact that these people just dont give a shit about you, no matter how well you treat them. My favorite is when a tenant creates a fucking problem and then its you, the land lord, that has a specified amount of time before THEY can take YOU to court. Heres a random situation: After calling around all night and all morning - you finally find an overpriced ass fucking plumber that can go out there that day since sewage is backing up (according to the tenant) and what do they find? The tenant has been flushing their fucking tampons and wipes down the toilet and there are multiple blockages so snaking isnt an immediate fix. It doesnt fucking matter that I can bill it forward to the tenant - its the fact that their stupidity and negligence has cost me my time and sanity which I CANT bill them for.

Never mind the people that just wont get the fuck out when they mentally decide to stop paying rent. Ive fucking got that shit down to a science now, though. By the time the eviction is done - Im walking out of there with a judgement that not only covers all costs and damages, but also accrues interest. Accepted into and taking classes within Liberty's program this year, and you can bet your ass I'm adding a retainer fee onto fucking everything as soon as Im able. I really am hoping that when it comes to real estate, Ill be a regular fuck around and find out kind of guy when all the dust settles.

As for you @Tide27 - if you're even remotely considering the purchase of a house, then you're ready to do so. Dont let a down payment stop you. There are a ton of programs out there to help you get into a home. Then, when you've got some equity - refinance and get out of that program thats costing you a higher monthly payment. A proper inspection will alert you to any major fuck ups, and if you want - you can get a warranty so if the HVAC (example) does fuck up, you're covered. Renting, as nicely as I can say it, is dumb. Unless you're forced to rent via bad credit, no where to buy, low income, whatever - there is literally no benefit to renting. If you decide to up and move the fuck away, a property manager like myself will gladly scoop that shit up and maximize every dollar off it while you wait for it to be sold, or just hang on to it as an investment. Interest rates will rise and fall. House pricing will rise, and... well, rise.

What is this Liberty thing you refer to?

TJT · Nov 30, 2023

Gravel said:
Don't forget the moratorium's role in all this. While you were getting ass raped by rent increases, because you didn't want to be a deadbeat, there were plenty of people out there saying fuck it, I'm not paying anymore.

And so you shouldered more and more rent hike burdens until it eventually broke you. Part of the reason they kept jumping so high was the government intervention in the market. If I'm a landlord and half my properties have people who stop paying and I can't evict them, I have no choice but to try to salvage it by raising it on the people actually paying. And once I do, the "market rate" increases for every other landlord.

You can really expand this out to all areas of the economy right now. Insurance super fucked? Well yeah, more and more people decided to go without insurance. The people actually paying their premiums now have to make up for those people in addition to their own coverage. Fast food doubled in price? Of course, because the government paid people more than they were making in actual wages to sit at home, and when they got accustomed to that lifestyle, demanded more. See also student loan pauses and now people can't survive if they resume.

If I was your above average fresh college grad in 2023 like I was in 2012 entering into a job market where housing would be like $1000+ a month WITH a roommate.

Bet your ass I'd just live in my car. I've done it before for even less money in savings lol.

Captain Suave · Nov 30, 2023

Daidraco said:
Renting, as nicely as I can say it, is dumb... there is literally no benefit to renting

That's a little simplistic. Renting makes sense when you don't expect to be in given location for a more than 5-7 years and the transaction costs of sale would dominate any appreciation. I rented for nine years until this spring because it was legitimately financially advantageous. My rent was significantly less than the interest portion of the mortgage would have been had I bought the property, as landlords in the area tended to have bought in years ago at a vastly lower cost basis and were competing with each other for a small market of tenants. While I understand that situation isn't common, by my math I'm more than $50k up by investing what would have been the equity portion of the mortgage + maintenance into the stock market instead, even accounting for equity appreciation.

Sanrith Descartes · Nov 30, 2023

TJT said:
If I was your above average fresh college grad in 2023 like I was in 2012 entering into a job market where housing would be like $1000+ a month WITH a roommate.

Bet your ass I'd just live in my car. I've done it before for even less money in savings lol.

No lie, I drive around my county and see multi acre lots with single and double wides on them. RVs also. They tend to be interspersed with same size lots with large ass houses built on them.

A couple acres for $60k or so and then the trailer/RV. If I was in my 20's, it's the route I would take today.

Daidraco · Nov 30, 2023

TJT said:
What is this Liberty thing you refer to?

Liberty University School of Law

Learn how to make a difference in the world. Study law at Liberty. We’re a Christian Law School based in Lynchburg, Va.

www.liberty.edu

Jerry Falwells school for the gifted autists like myself. I'm in their part time program in other words.

Captain Suave said:
That's a little simplistic. Renting makes sense when you don't expect to be in given location for a more than 5-7 years and the transaction costs of sale would dominate any appreciation. I rented for nine years until this spring because it was legitimately financially advantageous. My rent was significantly less than the interest portion of the mortgage would have been had I bought the property, as landlords in the area tended to have bought in years ago at a vastly lower cost basis and were competing with each other for a small market of tenants. While I understand that situation isn't common, by my math I'm more than $50k up by investing what would have been the equity portion of the mortgage + maintenance into the stock market instead, even accounting for equity appreciation.

Which, just like those stocks - you dont have any idea how the value of the real estate market will go over the nest "5-7 years." As my personal home has appreciated by 170k in the last two. Never mind the other properties that have done well. But congrats on making sound business decisions with stocks that amount to 50k. Im not belittling your achievement, but one is a much safer investment opportunity than the other in my opinion, and for me it has worked out exceedingly well. Im terrible with stocks, as I dont like the uncertainty that it exudes even if you know the ins and outs of the stock, its company, and are well aware of the economic and financial stability of the world.

Lets not also forget that you could have just rented it out when or if you had to move, as I indicated earlier, and then someone else is paying the interest, the principal, a PM and you to keep the ball rolling as an "investment." Then, you can eventually use that house as a means to purchase your next home. Your snip at saying Im making it a bit simplistic is a one off, because in my head.. this shit is simple.

Captain Suave · Nov 30, 2023

Daidraco said:
But congrats on making sound business decisions with stocks that amount to 50k. Im not belittling your achievement, but one is a much safer investment opportunity than the other in my opinion, and for me it has worked out exceedingly well. Im terrible with stocks, as I dont like the uncertainty that it exudes even if you know the ins and outs of the stock, its company, and are well aware of the economic and financial stability of the world.

I don't have the time/energy/focus to pick stocks either. I took my differentials and put them in the S&P, fire and forget. The S&P has significantly outperformed the housing market, to the tune of 50% over the last 10 years, and almost a factor of four over the last 50.

Stocks vs. Real Estate - Updated Chart | Longtermtrends

The Stocks to Real Estate ratio divides the S&P 500 index by the Case-Shiller Home Price Index. Just like Market Cap to GDP, it has an interesting historical track record and clearly shows the stock market bubbles of 1929 and 1999.

www.longtermtrends.net

Daidraco said:
Your snip at saying Im making it a bit simplistic is a one off, because in my head.. this shit is simple.

I'm not saying that rolling your money through real estate can't generate satisfactory returns, but it's by no means an exclusive strategy in that regard and I suspect it's a generally inferior option for most people assuming that you've taken care of your primary residence. Real estate would be a much less attractive investment choice if we didn't have to live in it.

Noble Savage · Nov 30, 2023

ToeMissile said:
Pretty good bit of space, what are your plans for it?

I already owned a 30 acre spot that had the road frontage. The 160 acre farm sat behind my 30 acres at the end of a gravel driveway that splits my land. So there was an easement of the driveway and it bugged the shit out of me having to share it lol. I got to know the neighbor who owned it just through being neighbors and when he was ready to sell he let me have first crack at it. So that gives me about 190 and change total acres. Its a recreational getawy for me to go. It has a pond on it and ATV trails and is just fun to get away to on the weekends to get away and relax. I don't hunt but my family does so it gives them a place to go and do their hunting. I'm also a guy who loves tools and looks for any situation that allows me to buy them. So now I have an excuse to buy a tractor!

Foler said:
What’s the land like? Forest? Completely undeveloped?
Congrats. With all that land I look forward to hopefully seeing you post in homesteading thread.

Mostly undeveloped wooded areas. It has several pastures that are used to grow hay that are cleared. Pretty good sized creek that runs through the back half of the property that has some areas cleared out that they used to raise tobacco on. Its mostly hilly but has some decent flat spots on it to explore and possible grow some sort of crop if I wanted. It has a few barns that are in bad shape that need to be tore down. There is a pond with a decent enough garage building that is on the 30 acres I previously had. The new land I got has a house that was rented out with cistern water and septic system, but it needs a ton of work. There is county water at the road so probably my first main project will be to get water pipes run to the garage building since it sits so close to the road and have running water at that building. Long term plan is to fix up the house on the back property and make it as off grid as possible. So independent water source, working septic system, solar power. Basically, make it my prepper compound for the fall of western civilization =)

I'll check out that thread!

Palum · Dec 1, 2023

TJT said:
If I was your above average fresh college grad in 2023 like I was in 2012 entering into a job market where housing would be like $1000+ a month WITH a roommate.

Bet your ass I'd just live in my car. I've done it before for even less money in savings lol.

But have you thought about how uncool that would be for you in social media? Best to just pay 3k/mo for that loft studio.

Foler · Dec 1, 2023

Noble Savage said:
I already owned a 30 acre spot that had the road frontage. The 160 acre farm sat behind my 30 acres at the end of a gravel driveway that splits my land. So there was an easement of the driveway and it bugged the shit out of me having to share it lol. I got to know the neighbor who owned it just through being neighbors and when he was ready to sell he let me have first crack at it. So that gives me about 190 and change total acres. Its a recreational getawy for me to go. It has a pond on it and ATV trails and is just fun to get away to on the weekends to get away and relax. I don't hunt but my family does so it gives them a place to go and do their hunting. I'm also a guy who loves tools and looks for any situation that allows me to buy them. So now I have an excuse to buy a tractor!

Mostly undeveloped wooded areas. It has several pastures that are used to grow hay that are cleared. Pretty good sized creek that runs through the back half of the property that has some areas cleared out that they used to raise tobacco on. Its mostly hilly but has some decent flat spots on it to explore and possible grow some sort of crop if I wanted. It has a few barns that are in bad shape that need to be tore down. There is a pond with a decent enough garage building that is on the 30 acres I previously had. The new land I got has a house that was rented out with cistern water and septic system, but it needs a ton of work. There is county water at the road so probably my first main project will be to get water pipes run to the garage building since it sits so close to the road and have running water at that building. Long term plan is to fix up the house on the back property and make it as off grid as possible. So independent water source, working septic system, solar power. Basically, make it my prepper compound for the fall of western civilization =)

I'll check out that thread!

That’s awesome. What a find… congrats.

Fucker · Dec 1, 2023

Sanrith Descartes said:
No lie, I drive around my county and see multi acre lots with single and double wides on them. RVs also. They tend to be interspersed with same size lots with large ass houses built on them.

A couple acres for $60k or so and then the trailer/RV. If I was in my 20's, it's the route I would take today.

I saw that shit often in Idaho. Brand new $1MM house built next to old house that never had upkeep.

Sanrith Descartes · Dec 1, 2023

Fucker said:
I saw that shit often in Idaho. Brand new $1MM house built next to old house that never had upkeep.

The American dream of home ownership isn't dead. It's just been perverted by social media and the media n general telling us we all need to own a McMansion at 25 and the builders feeding into it.

There is absolutely nothing wrong with buying a nice parcel and using a mobile home until you can afford to build a permanent house on it. The parcel of land is the real investment and it's still affordable is non-urban areas. WFH or drive a commute.

TJT · Dec 5, 2023

I am going on 2 years of renting out my old house here in Austin. The last renters I had in there ran the water heater scam on me and got ~$10k or something from insurance. Scam being the water heater "broke" but they had a dismantled car in the garage so I was unable to replace it. I couldn't move their car nor could I replace the water heater which I am obligated to provide. I got some new renters in there and I replaced the following:

Dishwasher
Fixed fence/gate
Tree trimming.

I didn't particularly care about this as the dishwasher was probably 13 years old and I used it for the entire 7 years I lived there. So whatever. This was last month mind you. Now they are telling me the fridge is broken. Okay.

I don't dislike these renters they're nice enough but what is this bullshit? Why does everything break for them constantly? Are they fucking with me somehow and I am too dumb to recognize it?

Sanrith Descartes · Dec 5, 2023

TJT said:
I am going on 2 years of renting out my old house here in Austin. The last renters I had in there ran the water heater scam on me and got ~$10k or something from insurance. Scam being the water heater "broke" but they had a dismantled car in the garage so I was unable to replace it. I couldn't move their car nor could I replace the water heater which I am obligated to provide. I got some new renters in there and I replaced the following:

Dishwasher

Fixed fence/gate

Tree trimming.

I didn't particularly care about this as the dishwasher was probably 13 years old and I used it for the entire 7 years I lived there. So whatever. This was last month mind you. Now they are telling me the fridge is broken. Okay.

I don't dislike these renters they're nice enough but what is this bullshit? Why does everything break for them constantly? Are they fucking with me somehow and I am too dumb to recognize it?

Renting in liberal areas increases the likelihood of the renters being liberals. Liberals are shitty human beings. Maybe they feel their rent "entitles" them to new appliances.

Key takeaway: don't rent to liberals.

Ishad · Dec 5, 2023

TJT said:
I am going on 2 years of renting out my old house here in Austin. The last renters I had in there ran the water heater scam on me and got ~$10k or something from insurance. Scam being the water heater "broke" but they had a dismantled car in the garage so I was unable to replace it. I couldn't move their car nor could I replace the water heater which I am obligated to provide. I got some new renters in there and I replaced the following:

Dishwasher

Fixed fence/gate

Tree trimming.

I didn't particularly care about this as the dishwasher was probably 13 years old and I used it for the entire 7 years I lived there. So whatever. This was last month mind you. Now they are telling me the fridge is broken. Okay.

I don't dislike these renters they're nice enough but what is this bullshit? Why does everything break for them constantly? Are they fucking with me somehow and I am too dumb to recognize it?

Sometime shit goes sideways, I’ve had to replace a furnace a pool heater and fix the fridge in the past two months.

Sanrith Descartes · Dec 5, 2023

I had no idea what the "water heater scam" is that renters use so I looked it up. Lol and behold I found out not about this scam, but about how many people actually rent a water heater instead of buying one. Like this is a thing? People rent water heaters for their house and don't buy them? WTF?

OU Ariakas · Dec 5, 2023

One of our properties had the goddamn outside AC unit stolen while it was being made ready for relisting.

TJT · Dec 5, 2023

Sanrith Descartes said:
I had no idea what the "water heater scam" is that renters use so I looked it up. Lol and behold I found out not about this scam, but about how many people actually rent a water heater instead of buying one. Like this is a thing? People rent water heaters for their house and don't buy them? WTF?

You are legally obligated to provide hot water. If the hot water heater breaks you as landlord must replace it. But if the tenant blocks it with a disabled vehicle you do not have physical access to the water heater to replace it. While simultaneously you have no legal authority to move their property. This allows them to file an insurance claim for unreasonable living conditions or something. Even though they are preventing you from upholding your obligations.

For the insurance company its cheaper to just pay this out 9 times out of 10 so they do. I never heard about it until I encountered it but certain people see this as an easy $5k-$10k

Gravel · Dec 5, 2023

I'm confused how the renters profit from this water heater scam? Unless there's another one (the one I read is basically about contractors)?

Edit: Nevermind,

TJT responded while I was posting that I guess. So are they filing a claim against their property owner's insurance, or their renter's insurance?

TJT · Dec 5, 2023

Gravel said:
I'm confused how the renters profit from this water heater scam? Unless there's another one (the one I read is basically about contractors)?

Edit: Nevermind, TJT responded while I was posting that I guess. So are they filing a claim against their property owner's insurance, or their renter's insurance?

Against mine, renters insurance covers like personal stuff or damages beyond what the landlord would be obligated to fix.

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