All Forum Posts by: Bill B.

I do because I live in a much cheaper market than Chris. You can live quite well in Vegas on a little over $200k/yr.  it took 10 homes and 10 years but the very low cost of living and a simple life made it relatively easy. Insurance is “cheap”, property taxes are VERY low, and the lack of state income tax is a bonus 10% tacked on to your income. 

Spend the beginning buying new primary homes that you move out of and rent to get the lower interest rate, not necessarily the lower downpayment. Unless you need that. If at all possible get 15 year mortgages. Again, lower your interest rate even if it increases your payment. The primary home and 15 year loan might save you more than a point. While that $5k/yr every year won’t come in cashflow, it is real money. Accumulate the number of homes you need. Then sink all the cashflow/profit back in paying them off. If you have a pension, a working spouse, or live in or move to an even cheaper market than me 5 homes should bring in $100k/yr. MUCH more than the average retiree. 

I chose 10 because those were the cheap and easy loans and I didn’t need more. I did it for freedom and because the idea of hoping I died before I depleted my retirement accounts scared me. I’m a saver and will never touch the retirement funds I wasted the first 10 years of my life accumulating. I met my wife too late for us to have kids. But I can’t even imagine working until you’re 50 or 60 if you have kids. They say you’ll spend more time with them before they’re 18 than after, no matter how long you both live. But the real number is probably 14 or 15. Enjoy them while you can. It’s one of the few regrets I have.  

Don’t compare your journey to anyone else’s. And Good luck. 

Can’t you get another cellphone number, especially an e-sim without any, or very little  data for $10/mo? MAYBE $20?

Does Google still have their primarily/only WiFi cellphone? Or did they give up on that? Either way, just buy another phone, use an old phone, or sign up for an e-sim. It’s a tiny business expense. 

If you own a condo in a high rise you own zero land. 
if you own a 400sf shack on Lake Tahoe you own 100% land. 

Remember, you aren’t creating ANY tax deductions. You are only pulling them forward to have fewer deductions in the future. And if you ever sell they get paid back. So make sure you think your income and taxes will be lower in the future. 

Your CPA should answer the before / after Reno, and maybe even if it’s worth doing if they’re any good. Your cost segregation company or your CPA or both will have to come to an agreement on what percent the land is. There is NO standard percent rule. 

Good move. I spent a couple, years in Bakersfield. I didn’t mind, wife hated it. Of course she worked at the hospital and didn’t really encounter the brighter side. 

If you are a named insured you will get notified if the policy lapses or is cancelled. 

Did you move intrastate or from out of state?

Or as I should have simply said.,,

Where’d you move from 3 and half weeks ago?

Look at the county your property will be located in. That county assessor will tell you the formula and when/how they are reassessed. 

It will say something like 1.02% of the value, due may 3rd and October 10th. The values are determined November 10th or upon sale. 

You may even find states like Nevada with a huge advantage that they don’t reassses at sale and have a cap on value increases, so you can use the current taxes plus 3-8% max increase. 

But you have to watch out if you don’t do the above math.  The previous owner might be getting a discount for being blind, over 65, a veteran or an owner occupant. Or as mentioned above. Sometimes properties are only re-assessed at sale. So be extra careful on properties owned over 3 or 4 years. Good luck. 

Jule’s example is how states/markets I’ve dealt with run, automatic conversion to month to month. Can you prove the tenant got the lease? What if I said I sent out a lease where the term was 5 years at double rent and they never responsed, so that’s what they’re liable for?

Anyway, I’d change your lease procedure. Send out an addendum/lease renewal every year. It should have any changes to the existing lease but rates for terms that are acceptable to you. 

Through our leasing portal (so we know they’ve seen it.) They are offered a year lease at price x, or the choice or MTM or 2 years are X + more dollars. You want the higher rate for MTM because you’re giving up predictability, you charge more for the 2 year lease because you’re building in next years increase. (Though it can be less because you’re collecting it both years.). Imagine you’re charging $1,000/mo and the lease ends. Dear tenant, we appreciate your time with us and we’d like you to stay. At this time we can offer you another full year lease for $1,100. If you’d like a longer or shorter commitment we’d offer a MTM lease or a 2 year lease for $1,150/mo. (This is the same as $1,1100 this year and $1,200/mo next year.)

I certainly wouldn’t go shorter lease and cheaper. But I also wouldn’t make someone stay. I’ve found that many people who switch to MTM, even because they’re “going to buy a home” end up staying years. Without a lease ends they never have a reason to go shopping for a new place. But don’t try to force someone to stay. Give them thsi opportunity to move out. Sorry for the misunderstanding, here’s the terms I can offer. If they don’t work for you let’s have you move out at the end of August

Good luck. 

You agreeable grey people are still painting ceilings white right? (I saw someone reply “paint walls/ceiling gray and trim white.” And nobody said no on ceilings?) I can’t tell you how much it bothers me when ceilings aren’t a clean white  

We used Nomadic taupe from D&E for walls, bright white and ceiling white for doors/trim. 

Ps. My first 5 years in Vegas were spent in a builder painted BRIGHT white walls/ceiling home. I didn’t realize how much it hurt my eyes and how horrible it was until I saw homes with blue or grey tinted walls. Please don’t go all pure white. 

They will obviously find out. The property tax won’t be owner occupied if you have a local discount. The mailing address won’t be the property address. The checks will have a different address. And if all else fails. You’ll be changing the insurance from a homeowners policy to a landlord’s policy, because otherwise you would have zero insurance, and that’s not good. 

Will they care? Depends.

“Several months later” did they move in yet or have they never moved out of their original home? (They signed paperwork saying they would move in within 30 or 60 days.) if they moved in that’s a good sign, if they never even cancelled their old lease, packed up, rented a truck, less good. 

Why are they (hopefully) leaving the place? Are they leaving the state because of the death? Very reasonable. Or are they saying they’re not even going to leave their original housing (less reasonable) or they’re going to buy another local house? (Even less reasonable.) It’s highly doubtful they’d go after them for mortgage fraud on a first time thing, even if it involves a federal loan. MAYBE they’d call the loan due but even that is unlikely unless they showed no intent of moving in.)

TLDR: 95-99% chance nothing happens and they get away with it. Hopefully they moved in at least. They got a discounted interest rate and maybe a lower downpayment from the bank because they were going to live there. They could always get an investment loan to replace their current loan. That would be the “fair” thing to do. Luckily the bank is probably happy with the current interest rate they are collecting. (It’s not like you’re paying 3% instead of 6 or 7%.)

Good luck.