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Old 01-29-2021, 11:18 PM   #101
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Risk reward is still good. But let us see how 2021 plays out.

A lot of the comments do sound a bit like when none stock investor people say "The stock market is just gambling. I would never put my money in there."

I think most people who actually own rentals are worried about the new risk but still understand the potential long term benefits.

Including rental income, appreciation, paying down the loan and other tax advantages rentals have been worth around 20% per year over 12 years from my experience.

My only regret is not buying more earlier.
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Old 01-29-2021, 11:58 PM   #102
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If our government imposes an eviction moratorium the taxpayers should cover any costs of the moratorium - not landlords. Ideally the renters would pay back any rent owed, but that wouldn't happen in many cases. I've never been a landlord, but can imagine what a burden this mandate could be.
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Old 01-30-2021, 01:52 AM   #103
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Yes. I said earlier if the government tells the landlords what to do (no evictions) then they should cover the landlords losses for that imposed decision.

If the government helps renters with money for the rent then the eviction moratorium should not be necessary.
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Old 01-30-2021, 12:27 PM   #104
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Risk reward is still good. But let us see how 2021 plays out.



A lot of the comments do sound a bit like when none stock investor people say "The stock market is just gambling. I would never put my money in there."



I think most people who actually own rentals are worried about the new risk but still understand the potential long term benefits.



Including rental income, appreciation, paying down the loan and other tax advantages rentals have been worth around 20% per year over 12 years from my experience.



My only regret is not buying more earlier.


Until you are ready for freedom from managing the rentals and wont use a property management company(Iíve found them to be universally bad) and must sell. The tax hit is massive (recapture depreciation, federal and state capital gains, net investment tax) and negates a lot of the benefit you list. Thereís also a massive effort involved in divesting out of rentals. Iíve been renovating and selling which is a pain but if you donít renovate and upgrade, real estate investors arenít willing to pay what the properties are worth.
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Old 01-30-2021, 01:29 PM   #105
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Until you are ready for freedom from managing the rentals and wont use a property management company(I’ve found them to be universally bad) and must sell. The tax hit is massive (recapture depreciation, federal and state capital gains, net investment tax) and negates a lot of the benefit you list. There’s also a massive effort involved in divesting out of rentals. I’ve been renovating and selling which is a pain but if you don’t renovate and upgrade, real estate investors aren’t willing to pay what the properties are worth.
And you don't get paid for all the hours you put into doing repairs or upgrades when you do them yourself.
You do get to deduct the expense, so spend 4 hours painting a room, and deduct $40 paint, $2 brush, $2 rollor, $1 tape, total deduction: $45
Means a tax savings of $9 (if in 20% taxable range). So worked for $2/hr savings.
Loss of 4 hours of life
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Old 01-30-2021, 01:56 PM   #106
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And you don't get paid for all the hours you put into doing repairs or upgrades when you do them yourself.
You do get to deduct the expense, so spend 4 hours painting a room, and deduct $40 paint, $2 brush, $2 rollor, $1 tape, total deduction: $45
Means a tax savings of $9 (if in 20% taxable range). So worked for $2/hr savings.
Loss of 4 hours of life


Yes thatís absolutely true. All in all real estate was good for my net worth but it didnít come without risk and hard work (read a lot of sweet equity).
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Old 01-30-2021, 03:40 PM   #107
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A sad example: https://newyork.cbslocal.com/2021/01...on-moratorium/


Dozens of independent landlords say their tenants have been taking advantage of the COVID eviction moratorium. CBS2ís Natalie Duddridge spoke to two elderly New Yorkers who are desperate for help. They say the state law is draining them of money they need to survive.
Gummints have learned that it's easy to be generous - with other folks money. YMMV
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Old 01-30-2021, 03:44 PM   #108
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Until you are ready for freedom from managing the rentals and wont use a property management company(Iíve found them to be universally bad) and must sell. The tax hit is massive (recapture depreciation, federal and state capital gains, net investment tax) and negates a lot of the benefit you list. Thereís also a massive effort involved in divesting out of rentals. Iíve been renovating and selling which is a pain but if you donít renovate and upgrade, real estate investors arenít willing to pay what the properties are worth.
I do not manage them. All remote property managers. I do appreciate the selling issue for the future. As I do with taxable stog gains and any other gain for that matter.
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Old 01-30-2021, 05:53 PM   #109
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While we have had a few late payments, we have

1) helped tenants find local programs to get current
2) made it very easy to pay in small batches
3) kept communication lines open
4) have seen some tenants just leave after a few months of non-payment, while this would usually bother me, I think they are doing to best they can to be fair by not occupying the unit that we could otherwise generate revenue on.

All in all, this whole period has been pretty smooth.
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Old 01-30-2021, 05:55 PM   #110
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So far no affect, keeping my fingers crossed.
Have in the pre-Covid days, had late rental payments, but tenant warns me, and does pay maybe a week late.

Reality is, now that we are retired, I'll be happy to sell off my rental property as I don't need the mental hassle and mental worry. I'll put the money into an ETF and take long vacations without thinking someone may email me about a plugged toilet.

We are thinking the same thing, I am targeting my kids graduation to wind down the properties. I have found that the tenants are great, but there are many forces against landlords and we are definitely isolated.
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Old 01-30-2021, 06:19 PM   #111
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Originally Posted by EA-Sports View Post
So thereís some money for landlords in the CARES act?

They just ran out of it here in Idaho, looks like they will turn that back on soon,
I think they got $200M.
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