All Forum Posts by: Rich Senyszyn

@Rick Browning We don’t allow smoking or any burning materials on the entire property. We make It clear we dont want smokers. Our property manager inspects quarterly. They have smoking/MJ detectors available, but I’m not convinced they are better than just good screening and monitoring.

@Tom R. Once or twice per year I will play. It’s worth talking about winning and a lIttle entertaInment. However, I feel bad looking at obviously poor people putting $20 or more down for the scratch off ones. Gambling is usually a tax on people who are bad at math. After living frugally for so long, I hate giving any of my money away for any type of gambling. It just makes me feel bad.

@Agastya Malatker We allowed it once. Then they lost the password. Pain in the a.s. You may be liable for illegal downloads and other similar types of activity. It opens your end to intrusions. We use the net for our business and can’t have any of these issues. We tell everyone (3 rentals in our four plex) to get their own and have never had pushback.

@Terrell Garren I agree. People who haven’t lived long enough underestimate the risk of being wiped out from a change in the housing market, stock market, divorce, and unexpected loss of job. We only hear people brag about their earnings/growth for 2-5 years and then suddenly are nowhere to be found. I’ve seen it too many times. Leverage cuts more people to pieces than it helps after considering all costs. I personally think if you can’t pay all the mortgages on all your properties if they are vacant 6-8 months, it is a problem (unless they are no recourse loans).

@Samantha Miller If I couldn’t get out and it’s not against the law, I’d rent them. What are they going to do? The most they could get is your 3% and by that time you’d be at break even from rents. Another option: as part of your rental agreement, sell a 0.5% (or less)ownership that can be bought out by you only at the time of your choosing. That would make them owners.

@Kristian A moreno When prices are high, it is way cheaper to rent. This is the case in Hawaii as well. A primary home is a debt and an asset. However, the debt side usually outweighs it from a cash perspective and is a money loser. HOWEVER: 1. At least in Texas, we get almost bulletproof protection of our homestead, some possessions, and cars. Even if your properties are in LLC’s, these do not always protect you money from being attacked in a lawsuit or bankruptcy I have been through this and IRA money and my primary residence was not touched. 2. Owning a primary residence allows the equity to be used in an emergency. 3. Owning a primary residence allows one to consider not paying for disability, life insurance, and the substantial costs involved with moving wIth rentIng. 4. Owning a primary residence keeps you from being homeless and from taking less desirable jobs because of need to pay bills. 5. Owning a primary residence allows you to tap a large amount of equity for investments at the low of an investment cycle. 6. OwnIng a prImary home gIves you favorable lendIng optIons I didn’t begin thinking about these things until my mid 40’s. If I had to do it again, I’d buy a multi family unit on a 15 year mortgage for a homestead with as big a downpayment I could afford. It would be big enough for me to live in with a growing family for 10-15 years. I’d pay it off as fast as I could and then invest. I know most here like to leverage, but I’m not a believer of this for a primary home.

@Wayne Brooks Thanks. Didn’t know about bonding off liens. Really good to know.

@Curtis Stoddard All tennanants must go through all the same checks for me. No exceptions. I deal with a fair number of criminals in my job and when they refuse a request there is pretty much always a problem.

@Collin Schwartz Great summary. Very helpful. Thanks.

@Holly Williams Congrats!