Even the old timers are starting to get fed up.Mondays at eviction court used to be maybe a dozen evictions a week,now it's up to 50 to 60 every week.
There are good deals that can be made.After the market crash of '01 many decided that they wanted to be landlords.They would bid up houses to the point of negative cash flow.Now they are loosing big time.
As for payoffs,I deal with a local bank that never sells paper.In doing that I don't have to worry about fannie may guidelines and the amount of mortgages that I can have.I also bundled a number of homes under a jumbo loan.I only have notes remaining on 14 of 53 units left.The amount left is quite small,if the market turns good again I may just pay off those early as well.
leverage is ok for younger folks just starting in the business and accumilating more units.At my age I would rather sell than buy.
The management companies around here want over 10%.I tried one a number of years ago and that cost me tenants.Repair service was terrible,they also imposed rediculous late fees that they kept and the screening they did was unacceptable.This was one of the better agencies around.
We do all of our own work,just two of us,my wife and I.Only thing I hire out for is roofs,or in this case a fire rehab.
Had to learn how to do most of it as in my younger days I never worked on houses.Fortunately all of my units are 1978 and up so there are no lead issues,no basements and all but one are individual baseboard heat.That makes it very easy.
Still waiting to hear again from the ins.company for more info.They want to base everything on not what I originally bought the home for plus appreciation.as I mentioned earlier,I literally stole this house.When I bought it the same homes in the area were going for 60k.I got two 2 bdrm ranches and a 3bdrm side by side for a total of 51k with the seller paying all closing costs and giving me 3.5k in cash to boot.He was still in them at 13% and was being ripped off by the management company handling the homes.Best deal I ever made
)). I want to just demolish the property and donate the land to the city for a tax write-off,the ins.company wants to rebuild.
Lorain is going the way of Youngstown,rents are dropping like a rock.Even sect8 has lowered what they pay.But sect8 tenants are ever harder to come by as they are all moving to Avon,Oh into new state and fed government subsidized townhouses that are all decked out.
Just goes to show that the government rewards deadbeats and punishes tax producers.
There are good deals that can be made.After the market crash of '01 many decided that they wanted to be landlords.They would bid up houses to the point of negative cash flow.Now they are loosing big time.
As for payoffs,I deal with a local bank that never sells paper.In doing that I don't have to worry about fannie may guidelines and the amount of mortgages that I can have.I also bundled a number of homes under a jumbo loan.I only have notes remaining on 14 of 53 units left.The amount left is quite small,if the market turns good again I may just pay off those early as well.
leverage is ok for younger folks just starting in the business and accumilating more units.At my age I would rather sell than buy.
The management companies around here want over 10%.I tried one a number of years ago and that cost me tenants.Repair service was terrible,they also imposed rediculous late fees that they kept and the screening they did was unacceptable.This was one of the better agencies around.
We do all of our own work,just two of us,my wife and I.Only thing I hire out for is roofs,or in this case a fire rehab.
Had to learn how to do most of it as in my younger days I never worked on houses.Fortunately all of my units are 1978 and up so there are no lead issues,no basements and all but one are individual baseboard heat.That makes it very easy.
Still waiting to hear again from the ins.company for more info.They want to base everything on not what I originally bought the home for plus appreciation.as I mentioned earlier,I literally stole this house.When I bought it the same homes in the area were going for 60k.I got two 2 bdrm ranches and a 3bdrm side by side for a total of 51k with the seller paying all closing costs and giving me 3.5k in cash to boot.He was still in them at 13% and was being ripped off by the management company handling the homes.Best deal I ever made
)). I want to just demolish the property and donate the land to the city for a tax write-off,the ins.company wants to rebuild.Lorain is going the way of Youngstown,rents are dropping like a rock.Even sect8 has lowered what they pay.But sect8 tenants are ever harder to come by as they are all moving to Avon,Oh into new state and fed government subsidized townhouses that are all decked out.
Just goes to show that the government rewards deadbeats and punishes tax producers.
