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First Time Being Crushed by the Zestimate

I’ve seen Zillow as a mighty good friend since I started recording these but this was the first time that Zillow did me dirty… The seven unit that we just purchased went down on Zillow. When I say down I don’t mean a little down but lost over 50% of its previous value. Now this could be a mistake as one of the other properties, in a less good neighborhood, went up about 50%. I keep reminding myself though that as long as the renters pay it doesn’t really matter because it’ll cashflow and we planned on holding this for a very long time.

Speaking of renters paying. The transition has gone a bit rougher than I would have liked/expected. The first three properties I purchased I did not reach out to any of the tenants and still have never spoken with them. The property manager has dealt with them the entire time, as he managed them for the prior owner. This time, for the seven unit, since there was going to be a transition from management I did elect to reach out and explain the situation to the tenants and who they’d be paying, and who to contact in case of a maintenance issue. I feel some of the tenants have used the transition as an excuse to not pay rent on time; four of the units as of now haven’t paid July rent. I’ll keep updates going on the transition and how we proceed. That being said, let’s get to the numbers 🙂

10-day BS Refresh

Analysis Intelligence

Like I said the Zillow Zestimate took a nose dive on the seven unit 🙁

The Opening NW in the 7/10/2021 column is the closing NW from the 6/30/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 7/10 column are the changes that I estimated on 6/30). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior.

Crystal Ball:

NW/Learning Wins:

Ideas for increasing NW/Learning

Notes:

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