How do you think an upcoming recession may affect home prices?

Discussion in 'Economics' started by farmerjohn1324, Feb 29, 2020.

  1. vanzandt

    vanzandt

    Ha!...
    A ton less than I used too. Trust me bro, I know all about the maintenance required and the pia it is to deal with renters when you're the one answering the f'ing phone in the middle of the night because Suzy'q flushed a tampon down the toilet and its getting her new pink bathroom throw-rug wet as it overflows.

    Yeah your billionaire friend has REIT money... its WS money.... its fucking funny money. Do you have that? I don't. I've been there and back probably a 1000 times more than you.
    I'm totally not trying to make this an internet argument over who's smarter that leads to name calling.
    Its just my opinion...

    CONDO'S ARE THE WORST REAL-ESTATE INVESTMENT... AS AN INVESTMENT... AN INDIVIDUAL CAN MAKE.

    Do I need to shout?
     
    #31     Feb 29, 2020
  2. Bum

    Bum

    You gave no reasons yet as to why single family is better than condos.
    Those tenant issues are worse for single family (exterior liabilities).
    Those maintenance issues are worse for single family (exterior maintenance).
    Condos are less risk. Own interior only.
    Condos have ZERO exterior maintenance.

    If you're so confident your opinion is correct, please give your reasons single family is better.
    You want to disagree but have provided ZERO evidence to back your opinion.
     
    #32     Feb 29, 2020
  3. It's impossible to make the returns I make by building with rentals. Not even close.
     
    #33     Feb 29, 2020
  4. Bum

    Bum

    I completely agree. You're risking more so should get a better return.
    Building single family is completely different than renting out homes.
    A few builders I worked for had rental properties but they bought condos rather than build properties for themselves. Better to buy a repair project.
     
    #34     Feb 29, 2020
  5. vanzandt

    vanzandt

    OK.... first of all, it depends on the house. Buyer beware. You don't buy a pos unless you steal it. If you are clueless about how homes are built, and you buy a POS for $100K and it needs a $20K roof the next year... then its on you bro. Buy a condo. Pay 35% of your total monthly payment to a bloated money making, cash hoarding "we're gonna paint the outside in phase one next Spring" local yocal operation that is f'ing tenants hand over foot.

    And it depends on your tenants. Are you a Wall Street REIT? I'm not. I know who the f I rent to. I'm not mass producing living units like Honda makes cars. Anybody here would do well by owning 20 sfh's at the max. You worry about the lawn?!!! You're right... its not for you. If you don't know how to get landscaping done cheap... its not your game, from a grassroots level... no pun intended. You gotta have some street smarts bud.

    Now... what are "exterior issues"? I have NEVER ONCE had anyone call me saying "the siding is falling off or the gutters are clogged". They could give a a flyin' F. That stuff is on me. Or whoever the owner is. And its probably because... you don't buy pieces of sh*t unless you want to be a slum-lord... and that works too btw... BETTER THAN CONDO'S.

    Whatever. Sorry I chimed in. Buy all the condos you want.
     
    #35     Feb 29, 2020
  6. Bum

    Bum

    Wow, what a lengthy waste of talk. Still not one reason to own single family over condo.

    I was in construction as an electrician for 22 years so probably know far more than you about how housing is built. All my condos are less than 20 years old. I do all maintenance so don't need to hire unless it's for air conditioning.
    No, I'm not a REIT. Just a guy buying condos.

    Please, make 1 or 2 points about why single family is better than condos.
    NO LONG RAMBLES. NO MENTION OF YOU'RE KNOWLEDGE OR MY LACK OF KNOWLEDGE. YOU CAN'T DO IT!
     
    #36     Feb 29, 2020
  7. It depends on the particular property in question.

    You can't make a blanket statement about one being better than the other?

    Why can't you fix ac?

    On the first house I flipped, I replaced a motor and transformer with no previous knowledge.
     
    #37     Feb 29, 2020
  8. Bum

    Bum

    Yes, I can repair AC if it's electrical.
    I've installed AC units but I borrowed the vacuum pump, guages and torches from a guy I worked with. Don't want to buy the tools to work with freon. All total unit replacements require a licensed AC installer to pull permit.

    As I stated earlier, single family has slightly better ROI but he can't make any major reasons condos are the worst residential investment. I gave my reasons I prefer condos. Seems if someone is so insistent that they're correct they'd have at least 1 point to back up the opinion.
     
    Last edited: Feb 29, 2020
    #38     Feb 29, 2020
  9. volente_00

    volente_00

    I'll play

    With a condo you have given the hoa a blank check to raise monthly fees on you forever. On SFR you aren't prisoner to this. I know of one person with a condo and the fees increased from 200 a month to 600 a month over a span of 10 years. The issue is as the building gets older they have no choice but to jack them up to cover issues that may or not be at your unit. For me the best investment rental you can have are SFR in a college town. 4 or 5 bedroom house getting $600 per room with parents paying the rent. Kids will trash it but that's what the $2400 -$3000 deposit is for. If you rent to a family the same house will only bring around $400 a room.
     
    #39     Feb 29, 2020
    vanzandt and farmerjohn1324 like this.
  10. Bum

    Bum

    The raise in rates is for something that usually applies to all units such as roof, exterior, parking lot, etc... and yes, if the board of directors isn't price conscious then costs can get a bit reckless. I've been VP of the board for 5 years with the billionaire being president. Fortunately, we both watch costs. You'd be surprised how price conscious a billionaire can be. :)

    Most SFR around here have HOA fees also so same issue as condo. If your SFR needs a new roof or siding you have to pay for that too, although you can probably get it done cheaper doing it yourself or finding a cheaper bid. HOA fees are voted on by the community so if they disagree then they can vote against it or discuss the reason for the raise in fees. Fees are just paying the bills and future bills if "fully-funded reserves" is approved.
     
    #40     Feb 29, 2020