How has the coronavirus affected real estate investors?

Question

How bad has it affected your real estate business?

Drew Sygit · Answer

Here are our numbers for April:

Mostly white-collar tenants: 100% paid

Mostly blue-collar tenants: 78% fully paid, 4% partial paid, 18% nothing paid

Mostly no-collar tenants: 60% fully paid, 13% partial paid, 26% nothing paid

Greg Parker · Answer

Nothing so far. But, diversity in your portfolio is always a good idea. STR folks may be experiencing some income loss. Not sure what's gonna happen with all these folks that decided to not pay rent. My tenants paid.

My flip project is almost ready for sale. Thankfully, the prices have not dropped, yet.

Michael Wentzel · Answer

@Tony Marcelle

Good question. As we head into August, I'm wondering what other landlords are experiencing with their tenants.

We have 25 units in Pueblo, Colorado and 10 units in NE Ohio. We would consider most of them C-class properties. They are older houses and we have fixed them up. We have only 3 or 4 of the units on section 8. With all of that said, we have one tenant behind on rent in Colorado and one behind on rent in Ohio.

We do feel fortunate to have great tenants and property managers. But I still wonder what is happening. Did the majority of our tenants just manage to keep their jobs. Or did tenants use their stimulus checks and unemployment to pay rent and the worst is still in the future?

On the good side, we have found title companies much more willing to do online closings. We live overseas, so this is pretty key for us acquiring new properties and refinancing loans. Six months ago, many title companies we dealt with in Colorado and Ohio didn't want anything to do with online notaries or online closings. Now it seems much more common.

Mike

Gloria C. · Answer

@Greg Parker

Would like to connect with you. I have 2 properties in Montgomery.

Mikael Winkler · Answer

I agree with @Remington Lyman regarding Columbus for sure. As with a lot of places, everyone was holding their breath. But, it seems prices have remained high or higher, with relatively short days on market.

Regarding rentals, I don’t think collections have been much lower than usual. Columbus does have a pretty diverse economy, though, so perhaps that is helping.

Remington Lyman · Answer

I have seen the demand for real estate increase. Everyone is trying to hedge against inflation. I am seeing a lot of cash offers in my market of Columbus, Ohio

Charles M. · Answer

The Creator Giveth The Creator Taketh no virus formed against us shall prosper

Tony Marcelle · Answer

Account Closed That biggest concern is how people are going to afford to pay for a home or rent a home now that so many people have lost their jobs. Where is the money coming from now that their employment is gone which was the only source of income to pay for a home? Are title companies still handling closings despite the coronavirus? I know a lot of banks are closed too with only drive thru service available, so it is tough.

Account Closed · Answer

@Tony Marcelle here in NC people have not lost jobs like maybe other States. Only ones with out a job are waitresses really. Everyone else is working.

Account Closed · Answer

Right now is has not affected my rental income. I guess ive been lucky.

	April	May	June	July 15th
< 30 Days	72%	73%	75%	67%
30<60 Days	16%	11%	11%	16%
60<90 Days	7%	8%	4%	5%
90+ Days	5%	8%	10%	11%

How has the coronavirus affected real estate investors?

How has the coronavirus affected real estate investors?

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