Investing, Rentals, Retail Space etc.

#26
#26
Thunder Good-Oil said:
I wonder what the longer term outlook is for the 3/4 BR, 2.5 Bath structures will be in the next few decades. The 2,000 SF buildings that are all over West Knoxville. Does the surge to live downtown level off?

If it's less of the American Dream to own them, will they be viable as rentals?

Will Millenials grow tired of living that close to their neighbors in the downtown condos?
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to your last what is going to change that is the change in the areas. the suburbs have been jamb packed for years growing ever outwards. the cities were open and relatively cheap. and as people invested downtown it became a better place to live. that plus the added density keeps the prices down relatively vs what you would have to see in the burbs with similar amenities.

considering a lot of development in the burbs is all the way down to 5 or 10 foot separation between houses I wouldn't say the burbs offer much more room between people.

probably in about a generation you will see the switch happen again. its all the natural cycle. right now cities are the places to be. but as people are raised there, they will gravitate away from it.
 
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#28
#28
1972 Grad said:
I wonder what will happen to all these million dollar plus McMansions in 50 years.
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a lot of them will literally fall apart. if it was built during the 07/08 booms its probably a crap product. a good investment once the prices drop would be to buy them and make them duplexes, or some sort of communal living.
 
#29
#29
for whatever its worth in Atlanta right now you either want to be investing in the high end homes, million plus. or down near affordable, less than 350k.

anything in between isn't getting bought right now, market saturated. probably similar elsewhere or will be. we have developers shifting away from those mid range prices. also a victim of its own success. so much of the mid range stuff was going up that quality fell. like the mcmansions. so now its not worth spending the money on the mid range stuff.
 
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#31
#31
Thunder Good-Oil said:
I wonder what the longer term outlook is for the 3/4 BR, 2.5 Bath structures will be in the next few decades. The 2,000 SF buildings that are all over West Knoxville. Does the surge to live downtown level off?

If it's less of the American Dream to own them, will they be viable as rentals?

Will Millenials grow tired of living that close to their neighbors in the downtown condos?
Click to expand...


It's not 2006, but as I drive around Cebtral Florida I see building after building after project after etc. being built with almost no one living in the last 6 of those they built before. I'm suspicious there is a long con afoot due to low rates and these properties just getting moved around the Monopoly board. But for the life of me I can't figure out what it is.
 
#32
#32
LouderVol said:
thoughts on using a service to handle your properties vs doing it yourself?
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I highly value tenant screening, placement, and rental rates from my service. I do not value the services handling tenant complaints, repairs, or collecting rent.
 
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#34
#34
Big Gucci Sosa said:
For people who own multi or single family home and rent them. How did you get started?
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Both McMom and I grew up with parents who rented property. My father built them, renovated them, and rented them. I bought my first rental property in 2000 when I was 29. I held it for a couple of years, then sold it when the market was stronger. In 2008, we cashed in every asset holding cash (retirement, etc) and leveraged to the maximum because of the housing bubble. We bought a handful of properties for about 40% lower than they sold in 2006. It almost bankrupted us, but we stuck it out as occupancy and rental rates climbed. We sold the commercial building last year and applied the profit to reducing principle on our other mortgages.
 
#35
#35
lawgator1 said:
It's not 2006, but as I drive around Cebtral Florida I see building after building after project after etc. being built with almost no one living in the last 6 of those they built before. I'm suspicious there is a long con afoot due to low rates and these properties just getting moved around the Monopoly board. But for the life of me I can't figure out what it is.
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We are waiting for the next bubble. It will be smaller than 2008, but it is coming.
 
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#37
#37
McDad said:
We are waiting for the next bubble. It will be smaller than 2008, but it is coming.
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Thoughts on when and what kind of drops we'll see?

Browsing zillow and seeing stagnant listings that are well over a year old with massive drops already.
 
#38
#38
DynaLo said:
Thoughts on when and what kind of drops we'll see?

Browsing zillow and seeing stagnant listings that are well over a year old with massive drops already.
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Out of my depth, Dyna. I really suck at estimating the timing and depth of corrections. Here's what I know. A large real estate firm in Columbia, TN did an in depth market analysis. Their indicators point to continued appreciation through 2022. They anticipate a reset at that time. Additionally, as long as interest rates are low, buyers are more numerous. The hottest sections of the marketplace are smaller homes and larger home. The tweeners are cooler by comparison. My banker, who also invests in real estate, is waiting for a 10% reset to start exanding his personal portfolio.

What I've noticed. It is impossible to travel anywhere in my area and not see new construction, renos, and expansion going on. The best trades folks can be booked out for up to 1 year. Apartment complexes and huge single family developments are underway. I don't think it is sustainable. I think the rush to fill the demand will cause over speculation. Im hoping for 15 to 20% correction in certain types of properties.
 
#39
#39
DynaLo said:
Thoughts on when and what kind of drops we'll see?

Browsing zillow and seeing stagnant listings that are well over a year old with massive drops already.
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House in my neighborhood same build just sold for 40k more than we bought 2 years ago..it does half golf course view but donā€™t see that justifying +40
 
#41
#41
ajvol01 said:
Own any property in Baltimore?
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LOL. No. But here is a pro tip about investing in heavily gentrified areas. Follow the artists. When the artists move to a neighborhood for the cheap housing, buy as much as you can. It is the signal that the neighborhood is about to rebound.
 
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#42
#42
McDad said:
LOL. No. But here is a pro tip about investing in heavily gentrified areas. Follow the artists. When the artists move to a neighborhood for the cheap housing, buy as much as you can. It is the signal that the neighborhood is about to rebound.
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I was about to lump you in with Kushner šŸ˜‚
 
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#43
#43
If I was going to invest, it would be in a downtown area. Suburban areas, due to what young people nowadays are looking for will take a hit before a downtown walking distance home(condo, flat, etc.) will.

I believe industrial is where money is to be made in the next five years for the Nashville MSA. It will be neat to watch what happens to Nashville in the next 3 years.
 
#44
#44
McDad said:
Out of my depth, Dyna. I really suck at estimating the timing and depth of corrections. Here's what I know. A large real estate firm in Columbia, TN did an in depth market analysis. Their indicators point to continued appreciation through 2022. They anticipate a reset at that time. Additionally, as long as interest rates are low, buyers are more numerous. The hottest sections of the marketplace are smaller homes and larger home. The tweeners are cooler by comparison. My banker, who also invests in real estate, is waiting for a 10% reset to start exanding his personal portfolio.

What I've noticed. It is impossible to travel anywhere in my area and not see new construction, renos, and expansion going on. The best trades folks can be booked out for up to 1 year. Apartment complexes and huge single family developments are underway. I don't think it is sustainable. I think the rush to fill the demand will cause over speculation. Im hoping for 15 to 20% correction in certain types of properties.
Click to expand...

Awesome info, thank you šŸ˜Š
 
#45
#45
Big Gucci Sosa said:
We need a thread on financial intelligence/investing rentals, retail space, etc.
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I like it. Currently planning two investments for my business as supplier/distributor of catalysts with a small warehouse where I do it all.

(1) An electric forklift so I don't have to breathe fumes & ventilate my main building (esp. in Houston summer) every time I run the propane unit in there. Looking at Toyota, Jungheinrich, and Crown. I had a Toyota demo for a couple days but it had a higher step and more narrow leg opening than my propane units (which are both Toyota), not easy getting on & off, do not want. Crown guy is coming tomorrow and their little 3-wheeler that handles up to 4000 lbs looks pretty sweet. Probably will rent one first before I buy. Investment is probably in the $30-40k range for a new one.

(2) A semi-automatic stretch-wrapping machine. Up to now we wrap our pallets the old-fashioned way. Just looking to make my work/life a little easier. There look to be a half-dozen potential makes in the $6 - 8k range that should do the job... but seems to be a potential pitfall with sensor optics detecting the top of the load if the goods are dark in color... and I commonly use black drums. Maybe a laser option?

Any comments/advice/experience welcome.
 
#47
#47
I don't own any, but the specialty REITS are interesting. Public Storage. There's one that's into cold storage of food. Another that leases to marihuana grow operations. I think that the big communication tower companies might be organized as REITS... American Tower and Crown Castle. Then there are some in healthcare offices and assisted living rentals.

Edit: I didn't realize that Lamar Advertising and Weyerhouser are REITS.
 
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#48
#48
McDad said:
LOL. No. But here is a pro tip about investing in heavily gentrified areas. Follow the artists. When the artists move to a neighborhood for the cheap housing, buy as much as you can. It is the signal that the neighborhood is about to rebound.
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Where did "The artist formerly known as Prince" move to?
 
#49
#49
Thunder Good-Oil said:
I don't own any, but the specialty REITS are interesting. Public Storage. There's one that's into cold storage of food. Another that leases to marihuana grow operations. I think that the big communication tower companies might be organized as REITS... Tower and Castle IIRC. Then there are some in healthcare offices and assisted living rentals.
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I own a few REITs.
 
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