All Forum Posts by: Diane G.

@David L Rucker

How much rent are you getting ?

@Jason Y.

It is only a matter of time that tenant will stop paying completely...

I would offer him money for key NOW... that would likely minimize your loss, compare to drag this out

@Vincent Serpico

Everyone that I know that bought after 2017, whether primary or investment, is suffering loss now....

But the slow down has not run its course yet...

Wait until 2022 or later...

@Vincent Serpico

You asked a very good question... what I am going to suggest below ONLY applies if you live in the coastal area like Bay Area.... if you live in Midwest, my opinion does not apply.....

So I started buying in San Francisco in 2007, and currently have 4 properties in SF...

I was asking myself the same question since 2018.....

I think if your properties were purchased after 2016, it is probably better to sell, pay the tax, and wait to buy lower later on...

If your properties were purchased long time ago and have significantly lower tax base, don’t sell.... instead try to refinance and get some money out and buy when the next recession comes around...maybe 2022?

@Pamela Sandberg

Phoenix was where I started my investing journey about 15 years ago, but I did not make any money that round.... So just curious now....

In the past, Phoenix MFH market is flooded with CA investors... Now that CA real estate has been dropping for the last 18 months, I wonder if that is starting to impact the Phoenix MFH markets?  Thank you

@Alan Ford

27.5 year is what IRS use to depreciate a property... Or, you can use 10% of rental income as a capex budget....which would still leave you with $7K net profit....

@Alan Ford

Maintenance, or Capex, is the other side of the coin of depreciation.... it runs about 3% a year of your purchase price in order to maintain the value of the property.... So $11K a year...Which reduce your net profit from $14K a year to $3K a year....

@Alan Ford

Say you bought your 4/4 for $300K, of which $60K goes to the land, $240K goes to the house itself... In 27.5 years, that $240K will depreciate down to $0, meaning a cost of $8.7K a year...

So your annaul profit of $14.4K is now reduced by $8.7K, leaving you with a net net of $5.7K a year...

Simply put, after 27.5 years, the house itself is going to worth $0 due to end of life..... assume you dont make any repair/remodel

@Alan Ford

While $1200/month NET profit looks very impressive, once you bake in depreciation over 27.5 years, the real profit becomes less desirable...sorry to be so blunt....