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01-29-2021, 10:18 PM
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#101
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Full time employment: Posting here.
Join Date: May 2010
Posts: 659
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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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01-29-2021, 10:58 PM
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#102
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Recycles dryer sheets
Join Date: Nov 2015
Posts: 442
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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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01-30-2021, 12:52 AM
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#103
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Full time employment: Posting here.
Join Date: May 2010
Posts: 659
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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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01-30-2021, 11:27 AM
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#104
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,250
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Quote:
Originally Posted by captain3d
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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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.
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01-30-2021, 12:29 PM
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#105
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,008
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Quote:
Originally Posted by Letj
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.
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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
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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01-30-2021, 12:56 PM
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#106
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,250
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Quote:
Originally Posted by Sunset
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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Yes that’s absolutely true. All in all real estate was good for my net worth but it didn’t come without risk and hard work (read a lot of sweet equity).
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01-30-2021, 02:40 PM
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#107
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,794
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Quote:
Originally Posted by Tekward
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. CBS2’s 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.
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Gummints have learned that it's easy to be generous - with other folks money. YMMV
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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01-30-2021, 02:44 PM
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#108
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Full time employment: Posting here.
Join Date: May 2010
Posts: 659
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Quote:
Originally Posted by Letj
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.
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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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01-30-2021, 04:53 PM
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#109
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Confused about dryer sheets
Join Date: Jan 2021
Location: Bosie
Posts: 3
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Not Yet
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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01-30-2021, 04:55 PM
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#110
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Confused about dryer sheets
Join Date: Jan 2021
Location: Bosie
Posts: 3
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Quote:
Originally Posted by Sunset
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.
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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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01-30-2021, 05:19 PM
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#111
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Confused about dryer sheets
Join Date: Jan 2021
Location: Bosie
Posts: 3
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yes
Quote:
Originally Posted by EA-Sports
So there’s some money for landlords in the CARES act?
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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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