All Forum Posts by: Account Closed

- Occupancy Tax

- Landlord Tax

- City Inspections (No matter what violation I fixed, a new one would come up.) My PM would say yes, basically they just want the check.

- High turnover in some areas

I can only talk about my 4 years in the Cleveland Market, being an OOS investor and I felt nickeled and dimed from the city and the high turnover (4 years, 4 different tenants) was the last straw, as the cost to redo the place after every tenant, was too much.

Yes, I invest in high yield dividend stocks, that have good revenue and dividend growth (other benchmarks as well I check before buying) for cash flow, as well as a LTR and a STR, and a couple of notes for a good mix.

I get about $800 a month in dividend payouts, much like a rental property, but no tenants :)

The state of Alabama, good for some of the lowest property taxes in the nation, and very landlord friendly.

Cities like Huntsville for the appreciation and Birmingham, for good cash flow. 

Could you sell and close on one of your rental properties in 45 days to finance this one? Not much time.

Just be aware that with the cheaper homes, that are older, come with higher insurance premiums, not to mention more headaches in terms of repair and maintenance costs, and in some cases higher turnover rates, as well as a modest appreciation.

I've already begun my semi exit from LTRs. 

My reasons are, retiring in 2023, increasing property taxes, insurance, repair costs, maintenance costs, fees, turnovers, etc. while rent prices were more difficult to increase in the market area I was in.

My portfolio was 7 SFHs and I've sold off 4 of them so far, and they all appreciated nicely. 

My exit strategy was to sell all but two properties, keeping one, the new construct I had built (2018) in the Atlanta area, and flip it into a luxury corporate rental which is now cash flowing what 3 of my other LTR properties were cashing flowing combined. The other will stay a LTR.

The cash from the house sells will be reinvested in mortgage notes that I currently collect on monthly at 12% yield as well as REITs and high yield dividend stocks that pay out monthly or quarterly. 

Write offs and child credits will help to ease some of the tax burdens of these income streams. 

If the property is in Cleveland, sure to ask the property owner if the house is clear of all city inspection violations. 

Ask for the latest city inspection report on the property.

About as passive as you can get

* High Yielding Dividend Stocks 

* REITS 

* Buying Mortgage Notes (professionally managed by a mortgage administrator)

* Professionally managed high end luxury corporate rental property

That was odd to me as well when I had a property in Cleveland. It was the only property I have ever had where I had to pay some of the bills and then get reimbursed later. 

The reasoning from the PM was they didn't trust the tenants to pay it, or pay it on time, so it was part of the rent charged.

Not to mention all the occupancy tax, landlord tax, city permits, city inspections, turnover (the property was never up to code no matter what I did) 

I sold and got out a couple of years ago.

5% annually does nicely for me in keeping up with the increase of taxes and insurance. 

Although sometimes I don't touch it every year, as not to lose my tenant.