The basis starts when you inherit. Not went it was built.
Besides most 1965 houses have already been remodeled in the last 52 years. Probably 2 or 3 times.
If you buy a fixer, it is probably better to fix and flip than rent. I put the min into my old rentals. Will fix and flip when I sell. Renters don’t care and just trash the places.
I just put in the real cost not assume 1%, 2%… some of the costs can be cheated as in use cheap stuffs… I think because of prop 13 which a big disruption, some do get very high cash flow. If you think is complicated, it sounds like you don’t maintain a house before? Everybody who stay in a SFH should know because you face those costs eventually.
I think now is the time to buy REIT’s. Many got beaten down due to rate scare. Is the REIT’s earning power going down massively due to slightly higher rates? Or does it look less attractive compared to no-risk treasury? It depends on the REIT case by case. But if the answer is the latter it’s a good time to pick some up at massive yield.
Thats what ive been doing - buying REITs in small nibbles. I avg-ed down once in last week’s 1000 point slide. For me to avg down more, prices have to fall by a deeper % than they have in the last week.
It is truly case 2 case basis, depends on REITs business like mortgage REIT, hotel REITs, Mall REITs or Datacenter REITs (so many) and their future market.
I have been watching REITs esp like NLY and NRZ.
NLY is long standing mortgage REIT, but went down to $9 level during 2008, but constantly paying 10%+ dividends more than a decade. When it comes down to $9 or around, I may set aside some percentage from taxable account to get cash flow.
I have heard of apartment REITs, but not MF specialized ones.
AVB-Avalon community is one among them.
NYSE:INVH is another one, basically Black rock investment group.
I do not know how low their debt. We need to review the individual REITs Qtrly and Monthly report. Normally, they hold short term loans like 3 year or 5 year term loans.
Go through his postings, you will get all information about REITs…etc. Ignore some of his useless comments (2 liners or 3 liners or youtube links), focus on his big paragraphs about REITs.