All Forum Posts by: Fred Cannon

@Dennis Soto. I recently did the following. I have a rental that was cash flowing around 800 a month at a 5 ,5 interest rate I was able to refinance into a 30 year loan at 4.75 and kept my loan payment the same plus go $60K boot. I used that pot to invest with a partner and paid cash for another rental. I cash flow around 500 a month on that plus more appreciation and write offs. Paid no taxes on the boot Try to work that angle into your game plan and see what you can come up with

Thanks Joe. I always clean between tenants but now I know there are companies that come in an use ultraviolet light to kill all the viruses. Not sure what the cost might be but intend to check it out My tenants in this STR are mostly traveling nurses

I have a small condo that I rent to traveling nurses in Ft Myers Florida. Now I am wondering in I should be getting that unit cleaned and then sanitized in between travelers. Anyone else facing this issue

@Wade G.

A lot of post on this thread and a lot to think about. 12 years ago I bought my first rental from a friend who was declaring bankruptcy because she was caught short when the bubble burst. It was a short sale and a cash deal. Over the last 12 years I have bought 7 other properties, all cash So I sleep well at night during the COVID crisis and the Reign of terror we are now experiencing. I have a couple of tenants who have lost their jobs and are getting assistance so I gave them a deal that covers all my monthly cost, they are grateful and I even sleep better that before because I don't worry about evicting them. If they were deadbeats I would certainly put them out but they are hard working people just caught in a bad time. So there is something to be said for Paying off a mortgage, Oh sure I could parlay these properties into another 6-8 more rentals and have more income perhaps but then I would have 15 mortgages, would have to hire a property manager, most likely evict hardworking people in these uncertain times and have a lot of sleepless nights. Maybe next year I can find a few good deals. I see a lot of investors putting properties on the market but the banks haven't foreclosed yet but that day could be coming. If it does I will be ready with cash in hand

Has anyone tried to take out a HELOC on a rental that has no mortgage. Would you consider this a good strategy to reinvest. Similar to BRRRR

@AR Rodriguez

If you have her address try to knock on her door. Maybe she would love to have someone visit, especially if she is 81.

@Andrea Finkelstein

I think this is a landlord issue. The owner of that unit needs to correct the problem. The tenant will not do anything. Also put more pressure on the HOA to put pressure on the landlord. That is the best route to take maybe get some other owners to back you at the next meeting. Does your condos have a management company. If so go to them as well.

@George Iliev

Going thru the class is great but if you are not going to pursuit being n agent it can get expensive with the fees you pay. To have access to the MLS and to work thru a broker cost a good bit of money

@Sean McCluskey there is a web site call furnished finders that is used by travelers looking for 30-90 day furnished rentals. Most of the travelers are nurses or medical workers. I call it a short term rental for that reason. I can book the place in advance and have 3 bookings Kind of like VRBO but for workers. Brings good income and if in the right place has a lot of interest. My unit is on the west coast of Florida, Ft Myers area.

@Patrick M. A couple of months back I bought a nice 1 bed one bath furnished condo that I use for STR primarily renting to traveling medical professionals. I have no mortgage so after my expenses of taxes, HOA, and insurance I make around 15% off the 95K investment. The day I closed on the property I had a tenant and I am booked thru March of 2021. The only tax benefit as compared to holding a mortgage, I don't get, is to write off the interest of a loan. If for some reason I don't have a tenant for a month or so I don't have to worry about paying the mortgage Sure I could have bought 4-5 properties with 20-25% down but then would I have gotten more cash flow. Maybe or maybe not Would I have gotten more tax money deferred definitely, but eventually those dollars are paid. The ratio of managing one property in time, effort, expenses, verse managing 5 to gain a tax deferred write off and appreciation doesn't appeal to me. I fully understand the long game of debt in REI, looks great on paper and is a great theory of how to gain wealth. We all run the race just have different pace.