Wish me luck I have another eviction hearing coming up . - Page 3

McLovin · 03-01-2022, 08:50 PM

It’s a risky business, but by far and away, with no doubt, the biggest risk and threat to housing providers and to good tenants is the Government.
That’s just a fact.

rrental · rrental's Garage

Did you guys consider commercial real estate? In 14 years of renting multiple buildings I evicted 2 tenants for not paying and both where out in no time. First one we called the bailiff and sold some inventory to make up for the missed rent.

The second one gave me the key of the business in exchange for voiding the lease. We auctioned off the inventory and almost made out on the missed rent.

Might be different in the US but here in Canada a solid commercial lease with personal guarantee seems to work well.

McLovin · 03-01-2022, 10:51 PM

I have residential and commercial.
Yes, commercial can be very good.
A good long term tenant on an NN or NNN lease is very nice.

Steve Carlton · 03-02-2022, 05:06 PM

So, how did it go?

pwd72s · 03-02-2022, 06:55 PM

Quote:

Originally Posted by Aurel

I think I will stick to REITs for my real estate investing...

Wise of you. A well funded REIT can afford a competent legal staff. Mom & pop landlords end up being taken advantage of.

look 171 · 03-02-2022, 10:00 PM

Quote:

Originally Posted by masraum

Sounds like it's time to sell any property that you don't live in. I've been to Cali several times to several locations (Orange Co, LA, San Jose, San Fran, etc...). It's a really beautiful place with fantastic weather. I can see how you'd consider it paradise. But I don't think there's any way that I could live there, at least not the crazy places. I guess I've heard that there are smaller towns or maybe stuff in the west part of the state that's more reasonable, but I think the west part of the state is not as idyllic as the coast.

Nice place to visit, but I wouldn't want to live there unless I was so rich that I could pay lawyers to navigate all of the BS and isolate myself from the BS.

You mean the east part of the state where its hotter and desert like. They are plenty of nice places out that way even though its 8-10 degrees hotter in summer and a bit cooler in winter.

There are lots of very, very nice places to live in Socal and that's why people are still moving here looking for their big break. All the movie stars, rich folks still own homes or other types of properties here. In terms of lawyers, there isn't a need because its like living anywhere else. If you own a business, its not too friendly where everyone and their mother is trying to tax and fee you to death. It is more then most states, but businesses operate year round and can charge higher amount compared to other places so it all pencils out. Stay away from the politics and you wouldn't be too piss off. People get too involved and angry and there really isn't too much anyone or anything can be done about it. No too different compared to other places. its getting crowded for sure, but there's a bit of up side to that if you are involved in real estate. supply and demand no different then NYC, Tokyo, London and Hong Kong. LA compared to all those cities are considered CHEAP.

This place isn't as bad as most people think. If one goes to utube looking for the bad, you will find it.

fastfredracing · 03-03-2022, 05:00 AM

Ye ole tenant no show trick. She called in and tried to get a postponement , but they would not allow her, and awarded me possession .
She has 10 days to appeal , and make me jump through all the hoops , I will if I have to .

A930Rocket · 03-03-2022, 06:38 PM

Good luck! 10 days and counting…

fintstone · fintstone's Garage

I have not really had problems with single family rentals that exceeded the benefits. Especially now when rents and values are skyrocketing. But I use managers (tax deductible) for a lot of my properties that are in other states. While tenants are annoying (as are the management companies), they have been great long-term investments. while it is not really a get rich quick scheme like they sell on TV and symposiums, over a long period, it is a great way to accumulate wealth.

The biggest issue for me is the massive tax hit when you sell. If you have fully depreciated a property, you essentially pay capital gains taxes (23.8%) on the full sale price (since basis is reduced to zero). One is almost better off to never sell. It seems that simply collecting the increased rents or borrowing against the value of the home if you need funds would be a better idea financially.

If anyone has a solution to this, I would be glad to hear it.

Good luck on the eviction!

fastfredracing · 03-04-2022, 07:17 AM

I am all ears as well, but I am selling . I am 100% done with lower income rentals in the city .
I will try to parlay the funds from the proceeds of the sale of one home into another investment property . I know you can shield yourself from the capital gains that way . I believe they call it a 1033 exchange, but you are really just kicking the can down the road .
The recent run on prices will more than make up for the capital gains tax in my case . I'm willing to take the spankin'

fintstone · fintstone's Garage

Yes, a 1031 exchange allows you to immediately reinvest in a similar investment (some or all of your proceeds), but you are still in a rental (or some sort of investment property) and don't have the cash. Of course, you can increase the quality of your investments that way. All of mine are in upper middle-class areas.

My biggest problem is that tenants' expectations are super high, and they call for maintenance on every tiny issue. Sometimes they move in and soon afterwards ask for a kitchen renovation or new carpet...because the kitchen is "dated" and not as nice as on HGTV (even though in perfect condition) or the carpet does not match their curtains. I usually tell them that it is exactly as they agreed to rent it...and if I make anything a lot newer/nicer, it increases the value of the property, and I will have to increase rent to pay for it. Sometimes they will even damage something over and over and pretend it is just too old thinking they will get a new one. Sometimes it works as the paid managers sometimes look for what is easier as they are spending someone else's money (yours). It seems that most renters simply do not realize that the landlord has mortgages, taxes, insurance, etc. to pay for...and think the entre rent is profit. Personally, I am ok with breaking even or even losing a little each year as the mortgage gets paid down and the home value and rents continue to go up...but hate to be taken advantage of. Eventually, you do quite well as they pay off.

KFC911 · 03-04-2022, 07:48 AM

.... and they say "White men can't jump"...

But "they" never met Fred

...

Best to ya bud .... "yer outta here"... in 9 mo' daze

Cdnone1 · 03-04-2022, 08:19 AM

Has anyone here bought a rental property through a self checkbook IRA?
I've been doing that and it seems almost to good to be true.

Eric 951 · 03-04-2022, 08:51 AM

Quote:

Originally Posted by fastfredracing

I am all ears as well, but I am selling . I am 100% done with lower income rentals in the city .
I will try to parlay the funds from the proceeds of the sale of one home into another investment property . I know you can shield yourself from the capital gains that way . I believe they call it a 1033 exchange, but you are really just kicking the can down the road .
The recent run on prices will more than make up for the capital gains tax in my case . I'm willing to take the spankin'

Fred--a good buddy of mine just did this. He sold off his rental Lawrenceville properties for stupid money and purchased a rental in Deep Creek.

Evans, Marv · 03-04-2022, 11:09 AM

Quote:

Originally Posted by fastfredracing

The recent run on prices will more than make up for the capital gains tax in my case . I'm willing to take the spankin'

When I retired, I sold my rentals outright in an up market. Between the Fed and State (CA) capital gains, it cost me 25%. I just dumped the proceeds into a Vanguard fund and let it ride. I was done with tenants, repairs, etc.

McLovin · 03-04-2022, 01:08 PM

Quote:

Originally Posted by speeder

As. much as I feel for you, htf do you get people this awful and rent to them?

There is no way on earth that someone like this has good credit, much less a rental history that is satisfactory. Do you not screen people at all? That would be a problem.

California getting ready to “fix” that, lol.
Because of course good credit and good rental history are racist indicias of white supremacy.

Steve Carlton · 03-04-2022, 02:04 PM

You should be able to convert a property obtained through a 1031 exchange into a personal residence after you've rented it for a while.

cabmandone · cabmandone's Garage

Quote:

Originally Posted by fastfredracing

I am all ears as well, but I am selling . I am 100% done with lower income rentals in the city .
I will try to parlay the funds from the proceeds of the sale of one home into another investment property . I know you can shield yourself from the capital gains that way . I believe they call it a 1033 exchange, but you are really just kicking the can down the road .
The recent run on prices will more than make up for the capital gains tax in my case . I'm willing to take the spankin'

Yeah, as fint mentioned, 1031 tax free exchange. You have a certain amount of time to identify a "like kind" investment and close. Is farmland crazy where you are?

Quote:

Originally Posted by Steve Carlton

You should be able to convert a property obtained through a 1031 exchange into a personal residence after you've rented it for a while.

Not sure about that. It has to be a "like kind" transaction.

look 171 · 03-04-2022, 04:16 PM

Quote:

Originally Posted by McLovin

California getting ready to “fix” that, lol.
Because of course good credit and good rental history are racist indicias of white supremacy.

You must be from CA.

It was send to my email a couple day ago and I jsut had tome to read that this afternoon while sneaking in a break. What a bunch of BS especially on the approval to sell

look 171 · 03-04-2022, 04:21 PM

Flint, leave it for a couple years (since you are rich

), change your address and use that as your primary res and get the 500k tax break between you and your wife. You primary will become your vacation home.

Hate to tell you this, but there is a reason its called Investment property. Its there to make money, and making money need to be taxed.