The Stock Market Is Not The Economy Thread II

**archibaldcrane** · 2024-01-29 19:45

8m loan at 6.58% is 51k a month.

If I got 3800 for the 3bd, 3100 for the 2bd and 2500 for the 1 bd, thats...

37600 a month for the 12 market rate units. Maybe another 6000 for the 3 affordable ones.

Would be a money loser from the start at today's rates/construction costs.

If interest was 4%, now you're at $38,193/mo. That's borderline from day 1, but even with full occupancy and no management/maintenance/property taxes/insurance costs (lol) you're clearing a pathetic amount on an 8M investment.

If you can build it for 6M at 4% you're down to $28,645/mo, now you're approaching something. But sub-500k/unit builds are rare, especially for larger than 1 bedroom units, and rates aren't 4%.

It's a nice dream to fantasize about, but very hard to make work, especially as a newbie.

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**Outlaw** · 2024-01-29 20:53

You have to have money to make money.

I'm not joking. These days it's especially relevant. If you are already rich it's easier to get richer.

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**Meresgi** · 2024-01-29 20:58

Originally Posted by Outlaw

You have to have money to make money.

I'm not joking. These days it's especially relevant. If you are already rich it's easier to get richer.

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wtf I thought shit trickled down!!

**Outlaw** · 2024-01-29 21:03

You have to be in the right place at the right time to catch a scrap that falls off their banquet table.

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**Cantih** · 2024-01-29 21:07

Originally Posted by Outlaw

You have to be in the right place at the right time to catch a scrap that falls off their banquet table.

**arus2001** · 2024-01-30 02:10

Me looking at the blueprints and just thinking about the best place to hide the missile capacity upgrades.

**Jaybar** · 2024-01-30 08:59

I have been summoned.

This deal is one tragic house fire away from being repealed. Gotta be some serious non-combustible, low-flame spread construction with sprinkler systems in there.

Anyway, all for the lot upgrades in the future, get em Archie.

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**Zetanio** · 2024-01-30 09:09

just slap some fire escapes on the outside and print some cash money.

**Roranora** · 2024-01-30 10:01

Archi build a hempcrete multiplex

**archibaldcrane** · 2024-01-30 12:43

Originally Posted by Jaybar

I have been summoned.

This deal is one tragic house fire away from being repealed. Gotta be some serious non-combustible, low-flame spread construction with sprinkler systems in there.

Anyway, all for the lot upgrades in the future, get em Archie.

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Sprinkler systems have long been required in new multifamily construction, which is why they basically never burn down (once fully enveloped - construction sites burn like crazy if you want to get sparky) unless you are Zealot. But yeah they do some sort of negative pressure stairwells or something on top of that.

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**Zealot** · 2024-01-30 12:47

Technically my apartment didn't burn down, it was ruined and condemned due to smoke and water damage.

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**Jaybar** · 2024-01-30 15:30

Sprinklers just give people more time to escape before fire completely inhibits your ability to get out safely. So for small, 3 story 6 flats they aren't usually necessary. But larger, taller buildings need them for combustible construction (like wood frame), but not necessarily for non-combustible construction (metal stud/CMU/concrete structures).

California is probably weirder about it though, so idk.

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**archibaldcrane** · 2024-01-30 17:51

Since 2011 fire sprinkler systems are required in all new residential properties, including SFHs. ADUs are exempt only if on a SFH property that doesn't have sprinklers.

https://journal.firsttuesday.us/fire...lifornia/8052/

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**Emphasis** · 2024-01-30 20:05

I guess I'll post this here since it was a shareholder that sued and caused this. I wonder what the reaction and reasoning from Tesla/Musk will be.

**Jaybar** · 2024-01-30 22:37

Originally Posted by archibaldcrane

Since 2011 fire sprinkler systems are required in all new residential properties, including SFHs. ADUs are exempt only if on a SFH property that doesn't have sprinklers.

https://journal.firsttuesday.us/fire...lifornia/8052/

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Well that's overkill, of course California is weird and of course that's a huge cost to construction.

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**Zetanio** · 2024-01-31 07:49

Originally Posted by Emphasis

I guess I'll post this here since it was a shareholder that sued and caused this. I wonder what the reaction and reasoning from Tesla/Musk will be.

the guy proved that musk stuffed the board with personal friends and biased investors to make that decision so they're gonna have to majorly change the comp structure and board structure to make this judge happy and more importantly their other major shareholders. honestly i think unless they get a ton of independent board members and oversight involved they're going to start losing ground in a major way. i remember a conversation about Tesla being added to the S&P 500 with some people arguing that they should have never done it because if you are trying to accurate measure the FMC (floating market cap aka actual shares for purchase not owned by insiders) at that time, the shares owned by board members + musk would have put it out of contention for addition because of conflicts. I hated covering them and was glad whenever i got to pass that on to someone else.

Originally Posted by Jaybar

Well that's overkill, of course California is weird and of course that's a huge cost to construction.

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california is indeed weird but also they have monstrous wildfires with decent regularity. i would bet this is a result of huge pressure on the insurance companies to keep writing policies there and the companies being like "ok, put a fucking sprinkler system in bc otherwise we're just gonna hemorrhage money and will leave"

**Zealot** · 2024-01-31 08:52

My girlfriend's an architect and her firm won't do business in California because of the costs associated with it.

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**Jaybar** · 2024-01-31 13:01

Originally Posted by Zetanio

california is indeed weird but also they have monstrous wildfires with decent regularity. i would bet this is a result of huge pressure on the insurance companies to keep writing policies there and the companies being like "ok, put a fucking sprinkler system in bc otherwise we're just gonna hemorrhage money and will leave"

Fair point, but when you got a wildfire in your backyard and you haven't evacuated....Idk. Sprinklers aint gonna save you there. Gotta drench those rooftops!

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**Zetanio** · 2024-01-31 13:29

Originally Posted by Jaybar

Fair point, but when you got a wildfire in your backyard and you haven't evacuated....Idk. Sprinklers aint gonna save you there. Gotta drench those rooftops!

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oh you're right i'm just sayin insurance companies usually make these kind of things happen.

**Zetanio** · 2024-01-31 13:30

they're still hemorrhaging money fuck em.

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