All Forum Posts by: John Morgan

@Kuriakos Mellos

This describes about 7 or 8 of my tenants every month. lol. They all pay the late fees and we all survive. I don’t sweat it. I’m still waiting on 4 tenants to pay Feb me rent and it’s Feb 24. They’ll come through. Not a big deal. But if it stresses you out or you don’t have any reserves, then boot them out.

I’d let her do it. I’ve had some great tenants that have done it and seem like they want to stay for years/decades. So I l think them make themselves at home. lol

@Charles Adams

Buy your first 10 in your personal name to get low interest rates. Then get an LLC to buy more. LLCs are pretty much worthless. Any attorney can pierce it and prove you're behind the LLC. Just get a mil in liability and you'll be fine.

@Jesse Valdez

I just evicted someone in a house I rent by the room. It’s pretty easy. Just give them a non renewal notice. I’m dropping one off tomorrow for another tenant. It needs to be a 30 day notice so I’ll to keep her for all of March. I’ll say she needs to be out by the end of March. If she doesn’t leave then I’ll file for eviction in April.

I’d just non renew the lease. Drop off a notice. Go to court if they fail to vacate after a month.

Quote from @Brian Hunsaker:

Quote from @John Morgan:

Quote from @Brian Hunsaker:

Quote from @John Morgan:

@Brian Hunsaker

I have 25 SFR and do mine on turbo tax. You shouldn't be owing anything for many years if ever the way the tax code is for investors. Even if they're paid off and you don't have the mortgage interest to write off. Are you depreciating your property over 27.5 years? Subtracting your property taxes, insurance and repairs? I can't imagine you're still able to show a 9k profit on each one. Something isn't right.

Yes, I am. The depreciation for Unit A is $4546 this year. After Real estate taxes, insurance, HOA fees and repairs (only $340 for repairs this year), we still are up like $12k for the year, subtracting all that from the rents. Then minus the depreciation. Does that make sense? It's a townhouse.

How much are you netting each month? Like around 2k/month after all your expenses? How much is rent? You must be absolutely crushing it. Well done, if that’s the case. 

 2k a month, between the 2 of the paid off ones, that's about right. 

Rent is just over $2k, HOA is $400 (hate those), Real Estate tax $250, insurance $20, all monthly.

I paid off my first two properties and realized I could make a ton more if I took that equity and bought more rentals with leverage. I learned about the power of leverage and used that equity in my two paid off rentals to scale up to 25 SFR with debt (on 18 of them) vs just my original  two paid off properties. My cash flow went up from 2k/month to 17k/month profit. You might have already hit your financial goals so are probably fine with the cash flow from your paid off properties. But if you’re interested in making much more cash flow and pay zero in taxes, consider scaling up. All my write offs and depreciation show a yearly loss due to our tax code. So it’s all tax free income. And having 25 rentals appreciating vs only 2 properties adds up over time. Numbers don’t lie! I’d do cash out refis on your two paid off properties and buy as many cash flowing SFR as you can get with 20% down. 

Quote from @Brian Hunsaker:

Quote from @John Morgan:

@Brian Hunsaker

I have 25 SFR and do mine on turbo tax. You shouldn't be owing anything for many years if ever the way the tax code is for investors. Even if they're paid off and you don't have the mortgage interest to write off. Are you depreciating your property over 27.5 years? Subtracting your property taxes, insurance and repairs? I can't imagine you're still able to show a 9k profit on each one. Something isn't right.

Yes, I am. The depreciation for Unit A is $4546 this year. After Real estate taxes, insurance, HOA fees and repairs (only $340 for repairs this year), we still are up like $12k for the year, subtracting all that from the rents. Then minus the depreciation. Does that make sense? It's a townhouse.

How much are you netting each month? Like around 2k/month after all your expenses? How much is rent? You must be absolutely crushing it. Well done, if that’s the case. 

@Brian Hunsaker

I have 25 SFR and do mine on turbo tax. You shouldn't be owing anything for many years if ever the way the tax code is for investors. Even if they're paid off and you don't have the mortgage interest to write off. Are you depreciating your property over 27.5 years? Subtracting your property taxes, insurance and repairs? I can't imagine you're still able to show a 9k profit on each one. Something isn't right.

@Andrew Stouse

I had 25k to my name 9 years ago and lobbed out a low ball offer that was accepted. I found ways to buy 2 buy n hold SFR a year for the first 7 years. Patience is key. And I have plenty of patience. I currently now have 25 SFR and profit 17k/month off them not counting vacancies, cap ex or random maintenance work. Give yourself 5-10 years investing in RE and you'll be set for life. Do whatever it takes to use OPM to snag cash flowing RE and keep recycling equity to buy more and more properties. That's what I was able to do without much out of pocket $. I've paid myself back a few years ago all the $ I've ever put into RE from the cash flow, so I'm zero out of pocket on investing in RE with infinite returns from here on out. Good luck!

My first SFR in the DFW area (Grand Prairie) was in a good school district with almost no rentals. My ROI still isn't that great compared to my rentals in working class hoods that weren't nearly as nice. I would buy cheaper homes in blue collar areas that rent for $300/month less. Your profits will be much higher.