Landlords: How are you doing this year?
Landlords: How are you doing this year?
My brother and I own close to 10 rental properties...all single family homes just outside of a big city. We have been very fortunate. Rent collection is 100%. Surprisingly, no one has asked for any maintenance or repair work.
How is everyone doing this year? Do you see yourself buying more rental properties?
How is everyone doing this year? Do you see yourself buying more rental properties?
Re: Landlords: How are you doing this year?
I own 6 single-family-homes and all rents are current. Yes, I will be buying more.
Re: Landlords: How are you doing this year?
I'm in Las Vegas, we have 1 rental property. Our tenants moved in on Sunday March 15th, the day Sisolak announced closing the schools. My tenants are 3 young-ish aged people around 30 years old, no kids. So far they haven't missed any payments or requested any assistance. I'm assuming it's because of the extended unemployment. One of them works for a strip club so I know he's unemployed. Another works for Enterprise, so I assume they're hurting too.
So far so good though, which is really nice because we purchased our new home in February with the intention of having the rental cover most our mortgage, which it does.
So far so good though, which is really nice because we purchased our new home in February with the intention of having the rental cover most our mortgage, which it does.
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Re: Landlords: How are you doing this year?
scubadiver
Last edited by scubadiver on Sun Jul 12, 2020 12:36 pm, edited 1 time in total.
Re: Landlords: How are you doing this year?
We have 12 properties and all tenants are paying. Wehadg tenants leaving one maisonette yesterday found new tenants starting today without us needing to go to the place and show it to them (which we preferred not to in this time of Covid 19). Exchanged contracts through the post. So things are fine so far.
Success does not bring happiness. In fact, happiness IS success. |
'There are only two tragedies in life: one is not getting what one wants, and the other is getting it.' Oscar Wilde
Re: Landlords: How are you doing this year?
Business as usual (mix of multi-family and SFH). Offered rent deferral in April to tenants who lost jobs or were otherwise suffering financial hardship. It was an honor system (i.e. we didn't require proof). Not a single person took us up on it.
- unclescrooge
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Re: Landlords: How are you doing this year?
Two rentals in Indianapolis. So far so good.
Although I need to replace the roof on one, so there goes the entire cashflow for the year.
Although I need to replace the roof on one, so there goes the entire cashflow for the year.
Re: Landlords: How are you doing this year?
We have six single family rentals, all are up to date.
Re: Landlords: How are you doing this year?
All is good, everybody has been on time paying rent.
No, I don't plan on buying anymore SFH's or Commercial real estate in the future. Retired this year and I would like to start selling off my SFH's when the renters vacate. Have a 5-year lease on my commercial properties, maybe after the lease is up.
No, I don't plan on buying anymore SFH's or Commercial real estate in the future. Retired this year and I would like to start selling off my SFH's when the renters vacate. Have a 5-year lease on my commercial properties, maybe after the lease is up.
Re: Landlords: How are you doing this year?
Two rentals. So far so good.
Re: Landlords: How are you doing this year?
We own a beach rental condo in Destin, FL. Obviously we were hurting in the spring when the Fl governor banned all beach rentals for well over a month. But since the re-opening, we have been pretty steady with the short term rentals and we have reservations booked thru mid-September with only a few open dates here and there. We shall see...
One thing to know about this town; not a person doesn't want me underground.
Re: Landlords: How are you doing this year?
Tenant still paying as agreed. We had previously negotiated a small rent increase due to signing a two-year lease. Tenant asked for relief from the rent increase due to a recent 15% pay cut. I agreed to delay the rent increase.
Re: Landlords: How are you doing this year?
We have one rental all paid up.
A friend has 3 and all paid.
Another friend manages 5 and all paid.
Oregon.
A friend has 3 and all paid.
Another friend manages 5 and all paid.
Oregon.
John |
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Re: Landlords: How are you doing this year?
I own 15 properties. Bought after the US housing crash a decade ago. No debt on any of themtomtoms wrote: ↑Wed Jul 01, 2020 10:04 am My brother and I own close to 10 rental properties...all single family homes just outside of a big city. We have been very fortunate. Rent collection is 100%. Surprisingly, no one has asked for any maintenance or repair work.
How is everyone doing this year? Do you see yourself buying more rental properties?
Some maintenance but nothing unusual. No problems collecting rent so far which surprises me a bit. Rent came in today nice and full. Renewed a couple leases higher. Business as usual
I’d like to buy more rentals but prices don’t make sense, but compared to when I bought them I guess prices will never make sense like they did after the US housing crash
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
Re: Landlords: How are you doing this year?
2 properties - 5 units. No issues at all, not raising rents in 2020 as a token of appreciation.
I would buy additional properties if the deal makes sense.
I would buy additional properties if the deal makes sense.
Re: Landlords: How are you doing this year?
I have over 30 doors and things are normal.
Always have one eviction going in the low income properties and I do now.
Probably one other empty unit in the low income stuff as they turn over a lot.
High level ones are paid up and paid on time... thus far.
Knocking on wood that the government keeps giving people money to pay their rent as landlords get no breaks and no gifts in all the PPP stuff.
Always have one eviction going in the low income properties and I do now.
Probably one other empty unit in the low income stuff as they turn over a lot.
High level ones are paid up and paid on time... thus far.
Knocking on wood that the government keeps giving people money to pay their rent as landlords get no breaks and no gifts in all the PPP stuff.
- AerialWombat
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Re: Landlords: How are you doing this year?
deleted
Last edited by AerialWombat on Sat Feb 05, 2022 9:09 pm, edited 1 time in total.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
Re: Landlords: How are you doing this year?
One property (2 units), lots of maintenance requests this year, for dumb stuff... E.g. tenant was turning key wrong way to unlock door, tenant closes window too hard and glass shatters, tenant reports garage door broken (replaced remote batteries). Have 2nd kid due in August and no longer want to do this stuff.
It goes live on the market on Friday... My landlord days may soon be over.
It goes live on the market on Friday... My landlord days may soon be over.
Never look back unless you are planning to go that way
Re: Landlords: How are you doing this year?
What are thoughts on commercial? Seeing some coming up in market, after a while for my region.
Re: Landlords: How are you doing this year?
This thread is now in the Personal Finance (Not Investing) forum (real estate).
Re: Landlords: How are you doing this year?
We own 20 units in the Seattle area (not Seattle proper) and, fortunately, all have paid as agreed. We did just receive notice for one that will be vacating at the end of the month.
Regarding commercial - at this time, as a small time investor, the only commercial I would want to own is multifamily. The rest scares me. I certainly would not want to be investing in retail, office, or small industrial. That being said, the main reason we are in multifamily is I didn't want to be too dependent on the economy, which the other classes are to a much higher extent. Even in a down economy, people still need a place to live. I may have to reduce rents a bit, but I won't experience 0% occupancy. Or have to give away free rent for an extended period of time just to get a tenant.
Regarding commercial - at this time, as a small time investor, the only commercial I would want to own is multifamily. The rest scares me. I certainly would not want to be investing in retail, office, or small industrial. That being said, the main reason we are in multifamily is I didn't want to be too dependent on the economy, which the other classes are to a much higher extent. Even in a down economy, people still need a place to live. I may have to reduce rents a bit, but I won't experience 0% occupancy. Or have to give away free rent for an extended period of time just to get a tenant.
Re: Landlords: How are you doing this year?
What % of rent do you put away each month for repairs and future vacancies? I have been putting away 20%. That seems like a good number for single family homes in a good neighborhood.
I don’t know anything about commercial RE. I guess I can learn but it seems like there is more risk and headache. I like to keep it simple. That is why I am sticking to residential.
I don’t know anything about commercial RE. I guess I can learn but it seems like there is more risk and headache. I like to keep it simple. That is why I am sticking to residential.
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Re: Landlords: How are you doing this year?
I have 2 rental properties (with yearly leases) in SW Florida. One is a townhouse (in a subdivision of townhouses). The other is a small SFH. So far so good. Both tenants are current and neither has asked for help with rent. Both tenants are working from home. One lease ends in August. I'm hoping the tenant will stay for a 3rd year. I'm not expecting the rent to go up. The other lease doesn't end until January 2021.
I would buy another investment property if the right one comes along.
(A younger relative has 2 rental properties and is also current on all rents. They also are open to buying another if the right one comes along.)
I would buy another investment property if the right one comes along.
(A younger relative has 2 rental properties and is also current on all rents. They also are open to buying another if the right one comes along.)
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Re: Landlords: How are you doing this year?
I reserve 20% of rent per month for repairs/reconditioning of the property. It really helps when a tenant stays for two or more years - as I can build up a better sinking fund for repairs/reconditioning.
I keep a "basic" EF for of 3K for the Townehouse and I have a 5K EF for the SFH (it's gonna need a roof in a couple of years) - I build on top of these "EFs". This money lets me sleep at night.
I keep a "basic" EF for of 3K for the Townehouse and I have a 5K EF for the SFH (it's gonna need a roof in a couple of years) - I build on top of these "EFs". This money lets me sleep at night.
Re: Landlords: How are you doing this year?
5 doors, all paid up. 1 just left and trashed the place, but it rented out 3 days later after a ton of time and money fixing it up. Crappy tenants are the worst.
Re: Landlords: How are you doing this year?
This IS about investing in my opinion. Unless separate forums are required for all investment vehiclesLadyGeek wrote: ↑Wed Jul 01, 2020 9:51 pm This thread is now in the Personal Finance (Not Investing) forum (real estate).
AV111
Re: Landlords: How are you doing this year?
Two rentals - both tenants are current with the rent payments.
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Re: Landlords: How are you doing this year?
One rental, renters are 2+ months behind on rent now. Haven’t paid this month, so it may be three months unpaid. Evictions halted until end of September, so not really sure what to do other than hope they make good on their word that they’re going to catch up once unemployment comes through. Rough times.
Re: Landlords: How are you doing this year?
We rent single family homes. All tenants are current. We have raised 2% to 3% rent at lease renewal. We do the assessment every 6 months and decide if the rent will be raised or reduced at the renewals in that six months period
Want to raise on a mtm but holding back because of covid. Maybe will convert them to a lease
We already keep significant cash reserves so don't hold a % from rent for repair or vacancy
Want to raise on a mtm but holding back because of covid. Maybe will convert them to a lease
We already keep significant cash reserves so don't hold a % from rent for repair or vacancy
AV111
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Re: Landlords: How are you doing this year?
Also lucky all rents have been paid. I discovered that one of the rents wasn’t paid a month ago due to the tenants bank screwing up. Late fees are a few hundred dollars. Tenant was upset about the late fees but I think their bank should pay for failure to deliver on their bill pay service... so far bank refuses.
364
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Re: Landlords: How are you doing this year?
I have 7 units. All paid until last month when 1 did not. They claimed they would catch up in 1-2 weeks and I haven't heard from them since. This is one of two that I use a management company and the company is against contacting them to get more information so unfortunately that's where I stand for the foreseeable future! The bummer is that this one of 7 accounts for 30 percent of my rental income...ouch!
Re: Landlords: How are you doing this year?
Sold all 3 of mine right before the Covid hit town, fortunately. Retired and enjoying the fishing life.
- Harry Livermore
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Re: Landlords: How are you doing this year?
Just one SFH, and tenant pays on time, all good. They were expecting that he would receive his green card back in early spring, and they were planning on buying a home here in our town. COVID temporarily suspended in-person interviews, which is one of the final steps (I think?) so they did not put an offer in on the house they were looking at due to the uncertainty of their situation. I offered them month-to-month at lease renewal time, for a higher monthly rent, and they took it. So they could go at any time, but I think they will likely stay at least another 3-6 months (that's a guess based on the fed's process for reviewing green card applications)
The vacation rental, surprisingly, has 5 weeks booked. Last year we got 10 total weeks between 5/1 and 10/31 (2 of those "weeks" are actually made up of 2- or 3-day stays in the shoulder seasons) so we are down quite a bit. But the governor of that state has been pretty aggressive about restrictions, including a mandatory 14-day quarantine upon a vacationer's arrival. No grocery store, no CVS, no nothing. Pull up to your rental, go inside, and hide for 14 days. What a vacation! So I'm actually surprised that 5 families are still coming. Our property does include pools, tennis courts, a fitness center, etc. (all of which are open and being sterilized multiple times per day) so I guess these people figure that even if they can't go to the beach, they can still enjoy themselves. I should also say that she has lifted this requirement for residents of nearby states, so that may have some positive effect.
Cheers
ETA: clarification, spelling
The vacation rental, surprisingly, has 5 weeks booked. Last year we got 10 total weeks between 5/1 and 10/31 (2 of those "weeks" are actually made up of 2- or 3-day stays in the shoulder seasons) so we are down quite a bit. But the governor of that state has been pretty aggressive about restrictions, including a mandatory 14-day quarantine upon a vacationer's arrival. No grocery store, no CVS, no nothing. Pull up to your rental, go inside, and hide for 14 days. What a vacation! So I'm actually surprised that 5 families are still coming. Our property does include pools, tennis courts, a fitness center, etc. (all of which are open and being sterilized multiple times per day) so I guess these people figure that even if they can't go to the beach, they can still enjoy themselves. I should also say that she has lifted this requirement for residents of nearby states, so that may have some positive effect.
Cheers
ETA: clarification, spelling
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Re: Landlords: How are you doing this year?
Three rentals. All paying. No assistance requested.
I bought these properties shortly after the financial crisis of 08 so they cashflow VERY well. I have a management company running handling them so it’s completely passive for me. I love it.
I bought these properties shortly after the financial crisis of 08 so they cashflow VERY well. I have a management company running handling them so it’s completely passive for me. I love it.
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Re: Landlords: How are you doing this year?
Between the $1200 per tax filer and $600 per dependent CARES act tax credits and the fact that the unemployment impacts started almost 4 months ago, I would urge to consider the likelihood that their unemployment will not be "coming through". I hope you get lucky and they follow through, but I would be expecting a very different outcome at this point.PavlovsCat wrote: ↑Thu Jul 02, 2020 12:44 am One rental, renters are 2+ months behind on rent now. Haven’t paid this month, so it may be three months unpaid. Evictions halted until end of September, so not really sure what to do other than hope they make good on their word that they’re going to catch up once unemployment comes through. Rough times.
I suppose if you own hundreds of rental units things will average out. Based upon this thread though it seems very much like a binary event. Either the tenants are paying as if nothing happened, which seems to be the case for most, or the landlord is going to take it on the chin.
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Re: Landlords: How are you doing this year?
It’s good business practice to treat each rental and each tenant on a case by case basis whether owning one rental unit or 300.scubadiver wrote: ↑Thu Jul 02, 2020 11:03 amBetween the $1200 per tax filer and $600 per dependent CARES act tax credits and the fact that the unemployment impacts started almost 4 months ago, I would urge to consider the likelihood that their unemployment will not be "coming through". I hope you get lucky and they follow through, but I would be expecting a very different outcome at this point.PavlovsCat wrote: ↑Thu Jul 02, 2020 12:44 am One rental, renters are 2+ months behind on rent now. Haven’t paid this month, so it may be three months unpaid. Evictions halted until end of September, so not really sure what to do other than hope they make good on their word that they’re going to catch up once unemployment comes through. Rough times.
I suppose if you own hundreds of rental units things will average out. Based upon this thread though it seems very much like a binary event. Either the tenants are paying as if nothing happened, which seems to be the case for most, or the landlord is going to take it on the chin.
An acceptance of a percentage vacancy or loss seems fine on a spreadsheet, but on a daily operational basis, not so.
Each tenant is a customer and treated like the only customer is a good way to approach things.
Physically owned Real estate Income property investments can best be approached the same way as index fund investing as far as long term survivability and profitability. Like many businesses, Sometimes measured in decades rather than year to year.
j
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Re: Landlords: How are you doing this year?
I own 2 rental homes.
One has a business owner that is thriving more than ever so don't expect an issue.
The second owns two small businesses and just informed me he was moving out 2 months before lease ends and moving into his land and motorhome. He indicated both businesses are tanking so going to let it go and hope he moves out.
One has a business owner that is thriving more than ever so don't expect an issue.
The second owns two small businesses and just informed me he was moving out 2 months before lease ends and moving into his land and motorhome. He indicated both businesses are tanking so going to let it go and hope he moves out.
Re: Landlords: How are you doing this year?
Has anyone heard of this?
1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence
Is this a legal loophole to not pay taxes?
1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence
Is this a legal loophole to not pay taxes?
- FelixTheCat
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Re: Landlords: How are you doing this year?
I own 1 rental. Tenant is paying on time. My only issue is getting the tenant to water the lawn.
Felix is a wonderful, wonderful cat.
Re: Landlords: How are you doing this year?
Handful of units. All paid April-July.
Had one tenant that had problems pre-Covid that ended up with no Feb/Mar rent, but that’s on me for screening, not Covid. Luckily got new tenant in before our state’s shelter law kicked in. Tenant was thrilled.
I expect to be 1031ing out of one building as it’s mostly deprecated & delevered, but not sure what to next. Anyone selling?
Had one tenant that had problems pre-Covid that ended up with no Feb/Mar rent, but that’s on me for screening, not Covid. Luckily got new tenant in before our state’s shelter law kicked in. Tenant was thrilled.
I expect to be 1031ing out of one building as it’s mostly deprecated & delevered, but not sure what to next. Anyone selling?
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Re: Landlords: How are you doing this year?
"close to 10 rental properties" - does that mean you own 9?
Re: Landlords: How are you doing this year?
We have 13 units. All are current now. One tenant paid half rent for April and May, and agreed to catch up when his employer re-opened in June. He was true to his word and has now caught up. I consider myself lucky, as local law prohibits evictions through September.
I have seen a decrease in maintenance requests. Nobody wants a plumber or other worker in their unit.
I have seen a decrease in maintenance requests. Nobody wants a plumber or other worker in their unit.
- Harry Livermore
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Re: Landlords: How are you doing this year?
tomtoms, I think you are better off consulting, for starters, with a CPA, and then a tax attorney if you are really serious about this. There may be folks on BH who are in fact CPAs and tax attorneys. I don't know.tomtoms wrote: ↑Thu Jul 02, 2020 12:07 pm Has anyone heard of this?
1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence
Is this a legal loophole to not pay taxes?
I think what you are proposing is permissable, but you'll really want to dot the "I"s and cross the "T"s on this one.
I do know that there have been a fair number of abuses involving 1031 exchanges, and they are scrutinized, though I don't think they are "listed transactions".
You'll definitely want to hire someone to be the 1031 "qualified intermediary" and handle the whole process regardless.
Here's an OK article but it's over 10 years old; it could be full of misinformation at this point:
https://www.expert1031.com/articles/200 ... 1-exchange
Take everything I have suggested with a grain of salt; I have never done a 1031, only done some reading.
Cheers
Re: Landlords: How are you doing this year?
This looks workable but if you are planning to take mortgage on the big house, rates will be higher plus you have to delay moving into the dream housetomtoms wrote: ↑Thu Jul 02, 2020 12:07 pm Has anyone heard of this?
1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence
Is this a legal loophole to not pay taxes?
AV111
Re: Landlords: How are you doing this year?
Anyone know? Have they lifted the eviction ban in California
AV111
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Re: Landlords: How are you doing this year?
The first sentence explains the second
Reminds me of people who say, I don’t know anything about stocks. I guess I can learn but it seems like there is more risk and headache. I’ll stick to my savings account
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
- unclescrooge
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Re: Landlords: How are you doing this year?
Why are you the property manager? Why haven't you outsourced this?Cycle wrote: ↑Wed Jul 01, 2020 9:09 pm One property (2 units), lots of maintenance requests this year, for dumb stuff... E.g. tenant was turning key wrong way to unlock door, tenant closes window too hard and glass shatters, tenant reports garage door broken (replaced remote batteries). Have 2nd kid due in August and no longer want to do this stuff.
It goes live on the market on Friday... My landlord days may soon be over.
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Re: Landlords: How are you doing this year?
deleted
Last edited by AerialWombat on Sat Feb 05, 2022 7:04 pm, edited 1 time in total.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
Re: Landlords: How are you doing this year?
I live nearby, i am handy. I got quotes for management a couple years ago, it seemed steep, I want to say $400 per month for the building plus then every call has a charge.unclescrooge wrote: ↑Thu Jul 02, 2020 10:02 pmWhy are you the property manager? Why haven't you outsourced this?Cycle wrote: ↑Wed Jul 01, 2020 9:09 pm One property (2 units), lots of maintenance requests this year, for dumb stuff... E.g. tenant was turning key wrong way to unlock door, tenant closes window too hard and glass shatters, tenant reports garage door broken (replaced remote batteries). Have 2nd kid due in August and no longer want to do this stuff.
It goes live on the market on Friday... My landlord days may soon be over.
Never look back unless you are planning to go that way