All Forum Posts by: Courtney M.

The other shoe that will drop is no state, city or county revenue. Police have already laid off in LV and it will get worse with no room taxes being collected. Plus paying out giant unemployment. The low property taxes and no income tax means the state is rolling the dice too hoping the casinos are filled. They will be empty for a long time. Heard today that the dispensaries are suffering. They can't get federal money and stores closed. Sure people will still buy pot but your neighborhood weed dealer is selling the same quality and maybe even the same merchandise with much better prices. Things are falling off trucks. Planet 13 just called off a big acquisition. Vegas will get people to come back. Will it be enough to return to previous levels. No. Will conventions come back? Will a company send a person to a Vegas convention and risk the liability? Trade shows are getting slammed. Everyone crowded into the Sands Hall? Shaking hands, eating free samples, exchanging business cards and making plans for the club later. Only in the movies. The two big fights will play to empty arenas or on Dana's Fight Island.

This is truly a bad situation. My big question is how are the big shows/artists/musicians going to presume? These are big reasons why tourists visit Vegas. I say the resorts should reduce the resort taxes which everyone hates, and make all parking free. Us professional real estate investors really need to absorb the fact that things in Vegas will be messed up for up to 36 months before it can become the busy festive place it once was.

This would be the only good thing to come out of this pandemic - getting rid of those damn resort fees! :)

1 Vote

I have one rental and the tenant paid. So 100% paid. :)

0 Votes

Originally posted by @Keith C.:

@Adam Tafel

As a Loan Officer Anyone who is in the process or was considering a ReFi or new Purchase I suggest you continue to make timely payments .

Any new lender will run a supplemental credit pull which will have the most current history from your mortgage company . Even though borrowers are exempt from making payments for 90/120 days depending on your bank leeway - No New Bank will look lightly on skipped payments. They have no obligation or govt incentive to start a new loan and rely strictly on your credit worthiness and track record.

If borrower was actually laid off there is concern for future payments and or if the borrower just wants to take advantage of a free period - banks see this is disingenuous.

In summary if a new loan is in process or possible in the next 6/12 months - I would advise if you can make the monthly payments on time ,,, or more than likely the new bank wont fund it . Let’s all make out of this period health and wealthy - stay safe and smart

This is my thought process. I think some are looking at forbearance out of caution but I still have some refis on the horizon and I don't want any negative impacts to my credit. Thanks for providing some insight.

2 Votes

I think there is panic on both sides. I've seen quite a few "rent strike" threads on Twitter and the prevailing logic is that landlords are getting mortgage breaks, tenants should get rent breaks. Also, landlords need to get "real jobs." LOL.

They're also digging up threads where landlords are panicking about rent strikes and posting them so...just be careful what you post, folks.

I do have empathy for tenants and this is a terrible time to bring up the many flaws to our social system, which would be an entirely separate thread. But I have no doubt the paper-thin feeling of security most working people feel is a huge reason behind the heightened reactions right now, in addition to the uncertainty of the pandemic.

2 Votes

@Elizabeth Zielinski - there are plenty of blue-collar type neighborhoods that are close to Detroit that have solid tenant bases and are much lower-maintenance compared to Detroit proper. Cities like Redford, Westland, Wayne, Garden City, Dearborn and Dearborn Heights, and Taylor are all good areas to look into. A good realtor is really key, there are better neighborhoods within all these cities and you want to make sure you're buying in the most desirable blocks. If you need realtor/PM recs let me know! This community is a great source of information.

2 Votes

Last year I received a nasty surprise when my Westland, Michigan mortgage jumped $143/month. This was due to the new property tax assessment. Unfortunately this happened just after I re-signed my current tenant for another year.

I just found this tool to help you determine Michigan property tax values. The SEV (state-assessed value) is half the value of the house. Make sure you are putting in either 1/2 your purchase price or 1/2 the ARV.

https://www.michigan.gov/taxes/0,4676,7-238-43535_43540---,00.html

It's critical you put this in your numbers when analyzing Michigan deals. Investment property millage rates are higher compared to principal residence rates. Moreover, mortgage calculators are flat-out wrong if you're trying to estimate payments. The taxes in Michigan will easily be 2-3x higher compared to their general estimates.

3 Votes

Hi Amanda, I'd personally rather mortgage a property for a longer term and treat it like a 15-year mortgage. You can still pay it down but worst-case scenario, you have the flexibility of the longer mortgage.

I would not get in a situation with negative cash flow. Things come up as a landlord, and ideally you shouldn't be coming out of pocket to pay.

0 Votes

Awesome job, Tom! I'm also an out-of-state investor in SoCal and a great team is key! Congrats on your success!

3 Votes

Gorgeous rehab! Sounds like you had some stress but got through it. Fantastic job!

1 Vote

@Jandy Stiff, this means you have a better education than about 95% of the investors here, myself included! Fear isn't typically a logical emotion but having that type of experience is a huge asset to you as you start your journey.

0 Votes

All Forum Posts by: Courtney M.

Courtney M. has started 21 posts and replied 224 times.

Post: Corona Virus Impact to Las Vegas Market

Post: OK who has received all or most of their rent this month ?

Post: Mortgage forbearance - yes or no?

Post: Rent Strike Will Become Psychological Nemesis

Post: New Investor in the Metro Detroit area!

Post: Michigan property tax estimation tool

Post: Newbie question! Balancing Cash Flow vs. Loan Payoff

Post: Just closed on my 23rd Door and I haven't seen 1 property!

Post: Barely a sucess but lessons learned in Ann Arbor Michigan

Post: Risk Adverse Turned Risk Taker