V&V Wood Crafts

Unfettered Thoughts

Won’t always be the most interesting of reads, but may be some good nuggets scattered throughout. This is more of mental practice for myself to see how I change over the years. When I take the time to journal regularly, I usually find a sharper mind and memory as the reward.

Good Neighbor Association - Operations

2/5/2021 Friday

-GNA owns the property and manages the finances & escrows. This shelters the individual Houstorians, and helps retain tax benefits like depreciation and mortgage interest.

-This potentially creates more borrowing power against collateral. Might make sense to let moderately staked Houstorians cosign refinance.

-Monthly rent/ living costs are a preset formula/ rule of thumb. Amortized market value matching current GNA bank terms (incentive to refi together?) + taxes and insurance (should adjust over time) +.1% market value for Repairs and Maintenance (opportunity for Houstorian to reduce monthly cost, or make extra income with extra work beyond normal house keeping)  + .1% market value for Capital Expenses (roof, siding, etc) + .1% market value for management (pays me for all accounting and tax prep, will also pull from to pay for professional tax/ accounting services, or refinance closing costs).

-After 6 month operating funds saved in bank, look into holding the excess funds in a simple index fund, CD, or other investment.

-If CapX savings exceed new build cost, maybe self insure and maximize savings in investments.

-Interest gains from these prepaid repair funds should go to Houstorians based on their ownership stake percentages.


Daniel HankinsComment