All Forum Posts by: Bill B.

15% on $273k is a little under $41k a far cry from $50k  

You’ll also owe 25% depreciation recapture on 7 years of depreciation. But in your case that’s almost nothing. I’m going to assume you’re depreciating the 20k of Reno along with the 32k purchase price. So about 4% per year of 52k is about $2100 x 7 years is $14,400 times 25% $3600. 

So back of the envelope I would guess a little under $45k in capital gains and depreciation recapture. 

@Jim Deshler

Jim, I ran in to the same problem, almost. I had 7 properties with them when they made the rule, so I had to use another insurance company for 6 other properties. After a couple years that insurance company changed hands and didn’t want to do rentals any more. 

I contacted my allstate agent and said I would be shopping around my insurance so I could get all my properties under one company and therefor had to leave him. 

He called allstate and they asked him to write up a “business case” for accepting all my properties. A couple weeks later they underwrote all 13 properties at an even lower rate. This was just over a year ago (maybe 13 months)

If your agent wants to call my agent pm me and I’ll give you his info and maybe he can walk your guy through it, or give him some pointers. 

You have to have landlords insurance or you might s well have no insurance and just take the loss. You aren’t covered right now without it. I can’t imagie anyone on BP doesn’t have it, unless they just don’t know any better. 

As long as you don’t live in a community where you have to rebuild destroyed/damaged buildings it’s an option. You’ll just be taking the lower acv amount and not rebuilding the property In the case of a massive loss. It would be one way for you to exit the rental property. 

The city might make you pay for demolishing the property when you don’t rebuild, but maybe you could get a developer to take the land for free if they pay for demolition?

@David Woz

David, if they do find good tenants, can you ask if they offer that service ala carte?

I know several property managers separate that part of the business. 

Have them find the tenants and then try managing them yourself. 

I’ve only done this with one of my properties, the one in MN. I did it for a few reasons, the rent is my highest ($2700/mo) so the savings were healthy.  The property manager (renters warehouse) didn’t arrange for repairs, they simply told you of a problem and gave you a list of some suppliers you could call and schedule yourself, it’s a townhome which is low maintenance, and I had a good rapport with the tenants and we’re on year 4 of a 7 year lease. 

The employees at the Las Vegas pm keep me signed up for full service with them. They come through in the clutch even as I butch about release fees and the occasional high repair bill. (They also keep tenants informed to Hoa complaints and make sure they get take ]n care of.)

At least they got in the news for taking private property rights. 

Nevada is considering not letting landlords consider previous failures to pay rent in selecting tenants  no late fees for 3 days, capped at 5%  hand delivered pay or quit by a constable and the pay to stay doesn’t have to include any late fees, just past due rent  

Just change the name from Nevada to Eastern California already  

Nevada law prohibits property owners from refusing to rent to someone based on factors such as race, religion and familial status. For low-income housing projects, SB256 would expand that list to include applicants with “a prior history of an inability to pay rent.”

SB256 would also prevent a landlord from charging a late fee until the rent has been late for three days. It would restrict the amount of the fee to 5 percent.

Those who are late on their rent currently have almost a week to pay or leave. Nevada law also allows landlords to remove delinquent tenants shortly thereafter without having to go to court. SB151 would change this. It would increase the amount of time delinquents have to pay or quit to 10 judicial days. It would no longer be acceptable to use certified mail to deliver a pay-or-quit notice. Those notices would need to either be delivered by hand or posted by the constable, potentially creating further delays.

I think there’s also a winter summer component. Though I don’t remember which read lower. Our MN property read 3.8 on the long test. (Might have even been a week?) during our inspection. It’s got s crawl space so fixes could run from as cheap as plastic sheathing over the ground to a pvc pipe vented out the side of the house. 

There have been some horrible scare tactics used in regards to radon. I would like the cdc or a college or somebody without a vested interest to do a study to see if there is any lung cancer variances among non-smokers in areas with high radon and those without. Shouldn’t be hard. I grew up in MN and nobody did anything about radon when I was young. So had lung cancer gone way down in the last 20 years? I tend to doubt it. 

It is one of the weird substances that the government says there is zero safe level of. But they figured out they couldn’t make every house read zero, to they picked a number. I THINK, today’s number is lower than the random number they first guessed at. (From previous studies I did back when I cared about the house I was buying.)

One year awhile back they offered free kits to everyone here in Vegas but then they went away. I assume all the numbers were low enough they couldn’t sell anyone on the dangers and make money so they went away. 

@Jonathan Newsome

No worries, I figured I was missing something and just wanted to get it straight so advice would be more on point. GL  

Is VA a horrible market (I thought prices were booming all along the east coast) or did they just buy the property? Hard to see how they could be upside down or low equity on a 15 year investment property loan?

Put down 20%+ and pay off on 15 year schedule and still be low/no equity? Find another market?

@Bryan Devitt

No kidding. I’m 20 years in and interest rates went down for 18 years straight. Now they’re up 1% off all time lows. Lock in the rates now if you didn’t last year. 

Imagine 5 years from now and property prices are only 15-30% higher and rates are only 1-2% higher and people are still praying for a crash. 

If you can’t make money with 4% loans in a booming economy  you’re in trouble. 

My favorite quote so far this year was basically “why do people who lack the courage to invest during a booming economy think they’ll have the courage to invest during a recession?”