All Forum Posts by: Earl Howard

So you would have a stagnant growth and a very good positive cash flow? it sounds like taxes would be greater in the long haul.  I'm thinking to grow (may be I didn't get that point across) which one would you pay off first, to buy another property?

I'm seeing that is pays to actually pay off a mortgage of course. but My question comes from a tax stand point:

If you can pay off a mortgage which one should you pay off first?

Rental that has income coming in? or Your primary residence?

I'm interested in the choice.  I've been doing taxes for ever, and thought that if you paid off your rental mortgage your taxes would be increased due to all of the rental income being profit (except for the operating expenses). 

If you paid off your primary residence you would expose yourself to the same thing , no mortgage interest, But it would Not be profit. This would escalate you to paying more in taxes.

Of course one would have more cash to buy another rental if your Primary mortgage is paid off and that would be moving from on mortgage to another one. in a sense giving you the ability to have another mortgage with more property.

So I'm thinking if you get rid of your Primary mortgage you should get another rental right away, Any thought?

I went to one I listened and they talked about buying real estate tax stressed properties in general. Then decided to show pictures of nice houses and smiling people. Then started signing up people for 1200 dollar next level stuff and pitched a $20k program but if u signup now it was reduced. I also think there are plants in the audience that jump up to sign up to get the train line going to the sign up levels. Basic mind hype. - just like the selling of water filters. Bull crap If you have $20k go look for a house on the open market! If you are looking in certain areas that's like buying it over the 20% down or buying it out right. Then you have something that will teach you much more than *** sitting and being hustled. After your purchase you don't have to call anyone to ask what to do you just need to address the problems with YOUR property situation. The most important thing with this model is to refin the flaws to maximize profits.

I like let them replace it. They can stay as long as they want. Send addendum saying that they can change carpets at their expense. You are going to replace after they leave anyway. Do they get what they eNt new carpets and respect from not cleaning them over the year with big dogs. I don't think they will change they might clean. Which they might try and get you to pay for sheepishly but tell them it's their dogs they can clean every month if they don't want to be embarrassed. People with dogs think landlords love their dog as much as they do. Landlords don't. Lol Any pet is the owners responsibility- the dogs made it worse. When they moved in they were happy.

I want in! That's how you get into commercial deals. Sounds like the work has been done all you have to do is move in decide who in the company you want to keep and which ones you want to let go. But the down fall is you are going to have to take care of relatives because you going to be pushing paper and making calls. Jump in quick.

How about getting renters from a property management co. Then u deal with them and nothing else You pay them to manage and you go get yourself a single family Then you can drive by it while making money.

There are a couple of things that you could have done:

1 If you were happy with the house in general, you could have put in the closing docs an escrow clause that would have stipulated way m ore than enough cash be set aside for them to do it at that later date.  If they did not do it by then atlas you would get ore than enough money to compensate for you labor.  I would have done it this way if my financing was on the line or interest rate would have changed etc.

2 Push the closing to a later date, if the financing was ok.  but stipulate that if the work is not done by then. The compensation price would be in your favor so you would be compensated.  This way it encourages them to make due on the bullets that you are extending a closing for.  

3 Get a dumpster and pay someone or kids to stack in them to remove asap - get money from seller for amount of dumpster. (before closing)

4 Go to the City and see if you can arrange a pick up before then - Talk with someone and then someone above them even offer to have some help to actually load and make sure they see and know that you are the in coming owner and that you are doing this for the out going owner.  

5 push the fact that you can't change your financing sometimes that works (but in your situation you are fast that)  Bigger housing you could have did a walk through a week before hand and then the day before.  You would have saw that early on.

Im assuming that you want the house and they want to sell it. Some sellers will extend a property to get interest if they said yes to an offer too fast.  Also they might not want to do the work to get rid of the "trash" and know that you want the property which gives them a chance at just walking away from it, with minimum effort.  

It also seems like if you decide to walk away (due to financing, you don't want it, or you have something else that comes up)  he will be at a loss.  That is something that you could talk about if it goes past the so called City coming to pick up date.  But put in writing that you have the right to walk without loosing anything.

 In all never really be in a rush

Earl