All Forum Posts by: Bill B.

The taxes HAVE to be wrong. The property is selling/worth $90k and the taxes are $7400? (More than 8% per year?)

I have a $640k property in MN where the taxes are $5500 and a bunch of $300k properties in Vegas where the taxes are under $2200.  (less than 1% per year)

If you are leaving the city I would sell. Mostly because of the tax free appreciation. (Assuming over $100k of the $325k is appreciation.) 

If you are staying in the city and the appreciation is over $150k I would sell. (You’d have to make $22k in rental profit just to equal the tax savings.)

If the appreciation is under $50k and you’re staying in the city, keep it. People are buying the equivalent of $325k properties for $1800 in rent all the time, and this is a property you know. If you need the money or are mentally tied up on the equity not earning enough take out a home equity loan or refinance it. But only if you need the money or can’t stand to have the equity tied up. 

I can't speak to Vegas MFR rents, but rents for SFR have actually increased in Vegas before during and after the recession. And those increases actually accelerated during the recession. I raised rents almost 10% yearly from 2008-2013. Rent growth has since dropped back down to about 5-7%, about the same as before the recession.

Cashflow skyrocketed in Vegas during the recession (at least in my market, NW valley SFR) as people who had recently, or perhaps only, ever lived in houses had zero interest in renting an apartment. They wanted yards, garages and in unit laundry.

But like Dan mention on his duplex my ROE is dropping like a rock as the equity increases. 

Below is how wacky the numbers can get. Which numbers are good and which are bad?

Not once did I hear a timeline over 2 years when these predictions were being made daily in 2008 and 2009. You can’t say something that happened 10 years later stalled a prediction. You’re left with two possibilities  they were wrong or they were deceitful  I’m pretty sure if they KNEW the MASSIVE INFLATION (their words) wasn’t going to happen for 10 more years, a couple presidential elections and congresses later, they would have said so.

Saying you were early when you “Predicted” something that will certainly happen sometime in the future is no predicting and certainly isn’t helpful, maybe even harmful. 

I predict there will be another major war! You should worry  

I predict the US will face massive damage from a hurricane! Worry worry worry  

I predict a world leader will be assassinated!  plan plan plan  

“Predicting” something has to come with a timeline, or as any smart predictor knows, one will be assumed. And by default the predictor accepts that timeline or is being deceitful. 

How many years from today can his “prediction” still be right? Does it have to be the next recession? Or can it be 3 recessions from now and he was still just early?

How many years from now will he apologize to the people he talked out of the massive stock market rally and into a money losing gold investment?

Is he the same clown that predicted MASSIVE inflation every day on every podcast and in every interview for the first 3 years after the recession because of the stimulus  package? Over and over and over. Or the guy hyping gold was going to $10,000/oz? Or both?

If he was, he wasn’t alone. Some of those guys from 2008-2012 owe MASSIVE apologies, or at least an acknowledgement that they were wrong again. 

@Jonathan Aymin

Thanks Jonathon, say Hi next time you're in town. I have pizza with many of the California guys (and gals) who come here for the low entry prices. But, you're right, we do seem to have a lot of good quotes going around lately.

One response to a guy who posted saying the crash was finally here, trying to convince people properties were down 20% in his neighborhood. "Well, the crash everyone's been waiting for is here according to you, lets see how many "buyers" were really waiting.

But my favorite was someone that asked "How do the people who lack the courage to invest during a booming economy expect to have the courage to invest during a recession?"

Personally, I think a lot of people think saying they are thinking/preparing/planning, to invest in real estate is the same thing as investing in real estate without any of the risk. There's always one more thing stopping them from investing, but when that goes away they're going to set the world on fire.

Your current insurance agent should be able to give you a quote in less than 5 minutes. I simply email the address to my agent and he responds with a quote for the property with my current limits. 

Jennifer is right about options and variances. 

In Las Vegas or north Las Vegas the utilities will switch the name back to me when tennant leaves so they stay on for make ready and avoid turn on fees. 

In north Las Vegas and tonka bay Minnesota they will lien your house with past due amounts. In Las Vegas it’s all on the renter. 

The first link is to the state’s landlord info and the second to a respected website. It looks like I may have imagined or just played it safe with the separate  account, but the interest is 1% and required. 

It’s my only MN rental and they have a state income tax  so I kept it separate  

https://www.ag.state.mn.us/consumer/handbooks/lt/default.asp

https://www.landlordology.com/minnesota-landlord-tenant-laws/

At the end of the tenancy, the landlord must return the deposit to the tenant with interest. Presently, the required interest rate is one percent, which is calculated as simple noncompound interest.

I pay the Hoa fees, my tenant pays everything else. 

Make sure you keep their security deposit in a separate account and pay them interest (I believe it’s 1%) (I use a Wells Fargo cd to keep it separate and earn the interest I have to pay.)

There’s also a year end form you must send them that says how much rent they’ve paid for tax purposes. 

I think you can find most of it with a quick MN landlord laws.