All Forum Posts by: Phil LoCicero

Ok. So far I’ve heard section 8- not happening. I don’t want any government entity regardless of party affiliation in my business. I appreciate the thought but no thanks. Also heard self storage. That’s more like it. Like I said, I’m not here to argue politics. Everybody’s mind is already made up on that front. I’d sure like to hear more suggestions. @Nicky Reader, I agree- hostility towards landlords is very real and seems very acceptable to some- including both political parties. 

Thanks Ronald. I read more than that. I read some ideas suggested by congresswoman Omar from Minnesota which included forcing landlords who accept federal help to give tenants a 10% equity stake in the rental. That’s not happening with me. I’d rather sell them and find something else to do with the money. This isn’t good. Hopefully reasonable people will prevail. 

The Biden administration has me a little nervous. I have great tenants. It appears that there are some radical ideas being tossed around by some members of congress such as complete rent forbearance and forgiveness along with radical ideas attached to acceptance of federal rent assistance- such as  being forced to accepting tenants I would normally pass on ie. poor credit, felons, regardless of offense etc. 

I’m not here to argue politics. I’m not going to change anyone’s mind nor will anyone change mine. I rely pretty heavily on my rents. I’m a small landlord with only a few sfr rentals. I own them outright and as such have a considerable amount of money wrapped up in them. I’m kind of looking for alternative ideas for generating income from the money if I were to sell them. I have one lease ending in March and the thought of collecting zero rent on even one property doesn’t sit well with me. 

Anyone else thinking along these lines? Definitely fishing for ideas. 

Happy New Year 

I would save up as much as I possibly could before making the leap. The less you owe the bank the better. There are times when leverage is advantageous. This is not one of those times. Six months ago maybe. Now no. With the eviction moratoriums possibly getting strung together like paper dolls, you have to ask yourself one very important question. Seeing as the very heart of rental properties depends upon the consistent payment of rent, can I afford to have renters tell me to get stuffed and have the entire United States government and court system standing behind them saying, “Yeah, get stuffed!” That means no recourse for you. 
 
Are there ways around it? Sure. I own my properties outright and I screen tenants to the point of being ridiculous. But in the end I also have tenants with credit scores similar to mine. Mine typically stay only a year or two and 80 percent of them leave due to buying their own house. I end up with very little damage- none of it intentional, and I also happen to live in an area that cannot build ‘em fast enough. Needless to say, I’m extremely conservative  in my investment strategy. In good times I no doubt do not make out as well as some others who have more stomach for risk- but during times like this I rest a little bit easier. 

Good luck!

Where I sit in a landlord friendly up and coming red state, the price of real estate has gone absolutely crazy. I'm all in on SFH and the rents are being driven sharply higher by the sheer lack units as people pour into the state from Seattle, Portland, and the Bay Area. Covid has somewhat slowed construction which has created a perfect storm for investors. Especially when people are dumping million dollar properties on coast are viewing $400k homes as a smashing bargain. So I'm making money and things are good. What I'm mainly concerned about at this time is the "cure" as being administered by the fed. I'm under no illusion that the dollar is less than resilient but I just can't help but wonder how long that credibility will hold if the fed continues to print more money in an effort to soften the blow.

Thanks Mary. Yes I don’t think illegals have much interest in taking an annual vacation to Mexico. Getting back in would be expensive, dangerous and sketchy at best. Those holding work visas can move about much more easily. It may become a moot point. I had an applicant tonight who probably will work. Good credit, steady income, no pit bull, etc

That’s my fear Dennis. If the company is based in North Dakota and the employees damaged it, it would be very difficult going after them if I’m in Idaho 

I have a home that has come available since my previous tenant bought a house. She’s currently paying rent on the lease since she wanted out in winter but it’s sitting empty. I’ve been trying to get it leased out for the past few weeks but it’s been tough finding potential applicants who meet my credit requirements and/or income or who don’t own a dozen pit bulls. I’d like to get it rented quickly because she has been a great tenant. 

Today I got a call from a guy who wants to use the place to house a couple of foremen from the landscape company he works for. I’m not quite clear if it’s him who’s on the lease or the actual company since his English isn’t great. I’m pretty sure it’s the company. There wouldn’t be kids but they would have their wives with them. I He said the home would be empty during the off-season (winter) since the foremen would be back in Mexico during that time. I’m familiar with this practice since I’m also a teacher. Families from Mexico commonly take a winter break around here. Especially farm workers. 

Does anybody here have experience with this? I told him I would have to look into it. He said the company is based out of North Dakota. This is truly a first for me. I’m all ears. 

I’m with you Chris. Truthfully not by choice. I own 3 homes outright. I live in one. My wife wouldn’t go for anything on a mortgage with the possible exception of our primary residence. She says that we’re the only people she trusts enough to make our mortgage payment. Never tenants. We make a couple grand on the paid for rentals and we’re only on the hook for taxes on our house. My biggest goal is getting her to agree to downsizing and freeing up some money to buy another rental. We could easily buy 2 smaller homes in decent neighborhoods for what our primary residence is worth. Our youngest just moved out last summer for the military. We don’t need 5 bedrooms and 4 complete baths and two living rooms. Selling her on it isn’t so easy.  She loves her house. 

That said, if I would have had that money spread out over 8 houses I would have made a fortune in Boise’s white hot market the last few years. I made one on what I do have. On paper anyway and rents to some degree.  Thing is I could have just as easily went upside down and lost it all if the market tanked. I’m in my early 50’s so I’ll take safe at this point. 

Hello all,

I consider myself a relative amateur at real estate investment. I’ve done well so far. I owned a rental quite a while back and it didn’t work out so well. Deadbeat tenant. This time around I’ve managed to patch together 3 homes, my personal residence included. This time around has been easier although I’m not renewing a lease on a consistent late payer. 

I owe nothing on any of my properties, carry an umbrella policy and make a decent amount of money a year on them. I don’t find being a landlord particularly stressful- mainly because my daytime job is a real pressure cooker at times. 

I’m in my early 50’s and would like to find a way to retire early. I could probably pull it off in about a year with a small pension, my rent and some other semi- passive income we have from my wife’s business. For the record, I would consider managing my properties, and helping my wife as being retired.  I doubt I’ll ever want to do nothing. 

I guess my question is if there might be something I’m missing in the way I’ve currently set up. As someone who narrowly avoided being financially ruined by getting my money out of real estate (other than my home) before the crash, I’m a little hesitant to leverage anything. 

I’m wondering more about prime location, apartments vs. sfh, etc... I am open to listening to leverage strategy though. 

Thanks