All Forum Posts by: Bill B.

You’re trying to invest for cash flow in a world where you’d make mor “cash flow” putting your money in the bank.

You have to appreciate the many over reasons people invest in real estate or you need to invest in something else. 

As I’m sure you know, Las Vegas is SUPER cheap compared to most of California, Miami, or NYC. And yet 1000’s, 10’s of thousands, maybe millions of people invest in those areas. The argument you make against Las Vegas is a joke compared to those markets, and yet people invest there. Why? 

Because real estate investing is not for people who NEED cash flow. Can you imagine the “cash flow investors” who needed that cash flow when COVID hit? They were told appreciation was speculation when it turned out cash flow was speculation. That won’t happen again you say? E government won’t use its ne found power to invalidate contracts to reward a bigger group of voters at the expense of a smaller group? I’d say that’s pretty naive. 

But it won’t take that kind of event for someone who needs cash flow to fail. If you have $150/mo cashflow and your $2,400/mo property is vacant 2 weeks during a turnover you’re down to $50/mo. Better hope paint,carpet,advertising, commissions, and utilities don’t cost $600 or you blew your cash flow, it’s zero. Or it takes a third week for your new tenant to move in, now your negative $200 if all the previous expenses were paid by the landlord fairy. (Do you really want an applicant who can and wants to move in tomorrow?

God forbid the ac dies 5 years or there goes 5 years of cashflow. 

On the other hand, if you “just” break even for 30 years on your previous primary home with 5% down. It will probably quadruple in value at less than 5% annual appreciation. So that’s a 8000% tax free return. Hopefully you did that 4-5 times in your lifetime and you’re sitting on many many millions in tax free equity you can pull out at anytime. Oh yeah, you can leave it tax free to your heirs, like an unlimited 401k. Oh look, you get to deduct your cell phone, your internet, your tax prep, all kinds of other things regular people don’t. 

If you truly don’t believe the property will appreciate and that rents will increase faster than expenses you should NEVER buy that property. Your cashflow will increase yoy if it does. It will go away if it doesn’t. 

In 10 or 20 years you can be told you “got lucky” because you invested back when houses were cheap. Because obviously there was no skill or courage involved, and houses will definately be cheaper in 20 years. 

Sorry the rent went on and on. But as I once heard a young entrepreneur say. “This is Las Vegas. If you can’t make it here. You can’t make it anywhere…”

Everyone’s situation is different, probably every year. 

For me in 2023:

No LLC's, 12 properties in 2 states, only 1 state income tax, no w-2's, a pension and a 1031 exchange.

I was charged $1,275, up from 2022 when I was charged  $1,175 but didn’t have an exchange. They already have my records from the previous year(s), I’ve been a client for 20+ years, and I provide pretty detailed reports per property. All of which may factor in. 

I also only reach out once or twice a year for hypothetical advice.  If I sold this, or bought that could I do this or that, and what would I owe. 

I’ve never owned anything in Ohio or even been there. But a quick google says Jessica Miranda has had the position since April. And she’s the one that released the latest tax rates and year to year comparisons in September of 2024. So maybe you’re thinking of someone from 2023? Anyway, the current auditor set the current rates, and is still at the job..

https://www.hamiltoncountyauditor.org/

Yup. But MANY/maybe most people don’t know you need to spend that $10-15k on top of the solar. Heck. They could buy just the battery and not the solar if their problem is really the power company turning off the juice. 

With TOU service you charge it at night for 5-7c/kw and use it during the day to arbitrage the price difference. 

Two notes:

1) The solar company may give you the best interest rate.

2) If the power goes out, you still don’t have power if you have solar. 

You’re talking about 3% on $50k. That’s $125/mo. If this is a bad deal because of $1,500/yr in interest run away and have your family sell the property. 

Heck. You could get a new loan for $150k. (Give that to sellers, they picket $100k after paying off the loan.) and then pay them 4.5% interest (what they could get from the bank.) now you’re talking $750/yr extra interest, and it’s being paid to family. 

780 or higher should get you the best rates/terms available, no difference than 820 score. (Some people say 760 or higher.)

Again. They can’t delete your “old mortgage”. Even if they stopped reporting your payments the history would be there. 

You wouldn’t magically have access to hundreds of thousands of more dollars if your credit score was 20 points higher  

TLDR: You aren’t being harmed at all by being 780 instead of 800+. Get a free report from the credit agencies. If you want a second opinion check credit karma, ask your credit card or your bank. Many include them constantly. But there’s no benefit to be gained. 

Allstate says no to any trampolines at any of my Vegas properties. They give you 20-30 days to prove they are gone or cancel your insurance. They have no problem with in ground pools. Though USLI, one of the biggest umbrella policy providers, dropped my max coverage to $1M because I had pools. So I had to leave them. I’d never allow above ground pools.

Did you read the 7 day old replies by 4 experts before responding? SMH. 

I THINK what Kevin is saying is what I was thinking. 

If you’ve had a mortgage for 20 years and they stopped reporting your payments 6-12-18 or even 24 months ago. You’d still have 18-19.5 years of history. They can’t delete your payment history. 

Nor do I understand how it cost you hundreds of thousands in funding to not have payments recorded. I’m POSITIVE you aren’t saying they are reporting non-payment when you are paying. To prove payments you could simply show your latest statement to the lender denying you hundreds of thousands of dollars. But worst case they should assume you’ve paid it off, helping you. 

In any case reach out to the credit reporting agency in question after requesting your free credit report. It’s all free.