All Forum Posts by: Anthony Gayden

 This is from https://www.landlordology.com/portrait-american-landlord-infographic/

Portrait of an American Landlord

Gender and Relationship Status:

• 85% Male / 15% Female
• 62% Married / 38% Unmarried

Average Annual Income: $97,000

Number of Rental Properties Owned:

• 50% own 1 Property
• 18% own 2 Properties
• 6% own 3 Properties
• 26% own 4-25 Properties

I personally would roll it over into a traditional IRA. That will give you a lot more flexibility than an employer sponsored 401K.

My first purchase was a 4-plex in Phoenix, AZ in 2014. I still own it. 

I have done two cash-out refinances on the property and pulled out $110,000 in equity. I used that money to purchase more real estate.

The way you are doing it is smart. Eventually, you will have a vacancy and that means you will have to pay the entire mortgage on your own. I would suggest an emergency fund that would cover 3-6 months of mortgage payments. 

 I recently got 3.99%. 

This actually happened to me. The answer is nothing happens. There are no penalties. The bank does not care.

I was living in one of the units of my 4-plex house hack in Tucson, AZ when I was offered a job in Omaha, Nebraska. I had only lived there for 10 months. I moved to Nebraska.

In fact if you relocate far enough away you actually become eligible to get a second FHA mortgage. I actually talked to a mortgage lender in Nebraska and found out I was eligible, though I decided against it.

@Jorge Abreu

There are several states that have rent moratoriums in place. Those states also seem to be the ones where restrictions will be removed at the latest date. Those landlords will probably suffer the most from the shut down. Landlords in other states where there are no rent moratorium shouldn’t have the same issues and once the economy opens back up things will go back to normal for them.

I'm pushing ahead with my initial plan for this year. My plan was to sell one of my properties and using the 1031 exchange move that money into more properties that get me better cash flow. I have 4 duplexes under contract right now.

I just secured 3.99% financing on a 30 year fixed rate mortgage on an investment property. That is unbelievably low. My thought is that it may be a lot harder to access credit in a few months. That would mean that even if you have good credit and enough cash for a down payment, you may have difficulty getting a loan. 

My other thought is that we will be moving into an inflationary environment. Those who hold onto cash in that kind of environment will not do as well as those who hold assets like real estate. For that reason I am keeping the majority of my wealth in real estate, though keeping enough cash on hand to cover 6+ months of expenses.

There is no stay at home order here in Nebraska, though there have been limits placed on many businesses and those rules are similar to stay at home orders in other states. Many businesses are still open here including gyms as long as there are no more than 10 people in a single room and they are able to maintain social distancing. 

The city parks here in Omaha are closed, however you can still bike, fish, exercise and use the trails in them. The police are not arresting or ticketing anyone that I know of for social distancing or having a gathering, but they have asked people to stop. We have very few cases in Nebraska overall, even here in Omaha. 

My thoughts on this virus lean toward the side that says we need to get the economy open ASAP. The reasons should be obvious, but it amazes me when I see some people suggest a 12-18 month lock down. We all know that mass poverty and anarchy would be the result.

I called all of my local tenants and asked them how they are doing. I also let them know that if there were any issues I would be willing to work with them. They all assured me that they would be fine making the rent for April.

My property manager reached out to my tenants in Arizona but I don't know yet if they all are going to pay.

As for me personally, I have already paid all of the mortgages, insurance costs, and utilities for the month of May. I also have enough reserves to cover 6+ months without any rental income. I still am working full-time (I work in law enforcement), so my pay isn't threatened by this situation.