All Forum Posts by: Fred Cannon

@Kyle O'Donnell I have two rentals that have the rents being paid to me by the cares act. Think most landlords are being kept whole with this money. None of my rentals have a mortgage so I am not feeling any pain. Also in Florida homes that have gone up for sale rarely last the week so I don't foresee a housing crash coming, if anything it's just the opposite. I want to buy a couple more but am being priced out of the market because of supply vs demand curve.

Are we heading toward another RE crash. The value of my RE holding are certainly goes up rapidly and that should make me happy right. I'm feeling a little nervous right now. As an investor I am, for the most part, on the sidelines. Same feeling for the stock market as well.

@Minna Reid I just wait for a good buy in a good market. Real estate investing has a lot of different avenues. My strategy changes as the market changes. Right now STR market is great and combine that with good prices on condos and the return on cash invested is very good. 2-3 years from now maybe that shifts when the SFH market pricing recedes. Just stay flexible and don't put all your eggs in one type of basket. Right now I am

Doing extremely well with 1 bedroom condo's renting to traveling professionals. However after Covid this might cool down, but this trend is here to stay. There are bears snd bulls in every market and they are all 100% accurate as long as they don't put a date with there analyses.

@Johnny Quilenderino. Everything is under contract or pending. If you listen to the news it's gloom and doom but in Florida we are experiencing a real estate boom. Unfortunately not good for investors, I'm on the sideline but watching.

@Nathan G.I been call heartless by tenants because I serve them

Eviction notice. I just say hey I'm not you parents or your family, if they love you go live with them. I have never served an eviction notice until the third month of no pay, an I always try to work something out before the eviction but it seems the car payment is more important than the rent payment. When I was much younger I worker full time , went to school at night coached my sons soccer team and was in the military reserves So I am heartless when someone uses every excuse in the book not to pay their rent.

@Jason Young at your age I would suggest to carry a mortgage, even on a couple of properties. The bigger question is will your debt to income ratio give you the opportunity to get these low mortgage rates. If you can put 30-50% down on rentals as is I would go that route. As long as you are under 5% mortgage you will make out in the long term. Just be sure you have an emergency fund and stash a goodly sum of your cash flow to take care of issues. Get as many investment properties that you can support at your age. When you are 70 you will live a great life. Awesome tract you on on.

@Will Fraser. Thanks Will. I was hoping that would be the case and I wouldn't be taxed twice

I have received 1099 from the county for the rent subsidies I received in 2020 thru the Cares Act. How will this money be taxed and why should I receive the 1099 and not the tenant. I understand the money was paid directly to me but it was a subsidy for the tenant.

@Nathan G.being in the landlord business is risky even during the best of times. There always have been and always will be renters who won't pay rent and you will need to evict. If you are foolish enough to buy property that only cash flows $100 or $200 dollars per month and on top of that you have no reserves then it really doesn't matter what the economy is, you are setting yourself up for failure. Before the crash of 2008 misinformed investors thought going into massive debt to buy real estate was their ticket to wealth. It wasn't the case then, as you can see it's not the case now, and I assure you the number of people who achieve financial freedom using RE leverage is far smaller that the number of people who achieve financial disaster.

On a side note. Lost projected income is not a tax write off. My question to my CPA is how will the1099's I have received from the county for Covid care affect my taxes. Seems like those 1099's should have gone to the tenant not to the landlord. Am I going to have to pay tax on their income subsidies as well as mine. Just a government mess.

@Karen A.