All Forum Posts by: Bill B.

I send an extra $8,000/mo to my one adjustable loan so it will be paid off prior to adjustment. (Currently 2.5%, will adjust to 6.5% in 30 months at current interest rates.)

I bought enough to retire so I’ll probably keep paying them off fast after this one. The Chas flow is insane on paid off properties. :-)

I would agree with Kevin. I woulda say the first month of the month to month is plus $100/mo (or why bother if you can’t make a $100.), the second month is plus $200, etc etc. 

Explain to them that it will be harder to rent later in the season and you aren’t trying to penalize or take advantage of them but an earlier empty is better for you. 

For the new tenant if you truly believe the time of the season makes a big difference, offer them a 10 or 22 month lease. 

You only had $300 in repairs, inspection woulda cost at least that. You’re not behind yet. Who would you have called to do those repairs without a PM? Pry just some random guy in the phone book/on the internet that coulda charged you any amount they wanted. 

So far I’d say you’re startup was an 8 out of 10 for lack of real problems. 

Negative cashflow isn’t negative profit, not even close. There are already several forum topics that go on for hundreds of posts if you’re interested. 

I have a property with negative $6,000/year cashflow with positive $12k/year income. Change your financing and you’ll change your cashflow  

Imagine almost every vacant land investment purchase in history. Almost zero cashflow and yet people keep doing it, I assume they’re making a profit. 

And a bonus one from Dave foster...

You can live tax deferred, but you have to die to be truly tax free. 

Why do those who lack the courage to start investing in real estate during a booming economy think they’ll have the courage during a recession?

A Forgotten BP member who should take creidit. 

@Merritt Eaton

This is a “no-maintenance” townhouse (1 of 3 in a group of 2. (6 total) on the largest lake in the Mpls/Saint Paul area. 

So if you have money, or a good paying job, and want a place on the best lake, but don’t want to shovel snow, mow the lawn, or put the docks in and out, this is your ideal location.  (In other words, my ideal retirement location if I can tolerate the humidity after 20 years in Vegas.)

It’s an example of why you’ll see me as a defender of negative cash flow rentals still making sense.

This property is about $200/mo negative, but it pays off $1870/mo in mortgage balance. (15 year loan). When I live there the mortgage interest won’t be deductible so I’m taking the expense now. It’s also gone up in value about $150k in the last 3 years as others figured out they didn’t like the work of living on the lake. 

So I could take all my money out with a refi or brrr. But I want it free and clear by the time I live there. 

I “self-manage” (deposit, talk to tenant every 6 months give or take and check in, have Lowes replace the garage door opener and microwave, etc... it may be counter intuitive, but the people who pay the highest rent are often the least demanding)

Sorry to get so long winded and ramble, but the explanation is worth as much as the answer sometimes. 

Find something the well off, or well enough off, want and are willing to pay for and supply it. :-)

2 x Nopes. 

Can’t 1031 in to a primary residence. 

Can’t use a 1031 for a refi, only purchases. 

A “creative person”, someone who didn’t post this idea on a public website, might suggest you could do a 1031 exchange in to a property (h3) that might someday, say more than a year later, become your new primary after it was a rental. 

PLEASE STOP “quoting” or “mentioning me” if you’re not quoting or mentioning me

I don’t need 35 mention alerts per day on this thread. 

Thank you. 

@Cameron Riley

5 years in to a 7 year lease at $2700/mo. 

Had to replace a garage door opener and a microwave so far, about $300ea  

We’ll either move there or raise the rent in 2021 as we decide if we can tolerate the humidity to live on the water.