All Forum Posts by: James Lanier

@Kumar Gaurav

Sorry for the late response. If I was personally in a house hack situation with tenants who couldn’t pay I would immediately call my mortgage company for a forbearance to avoid late fees in anticipation that I would have to collect rent later than usual and might even receive less then usual.

At the end of that forbearance I would utilize either tenants deposits from reduced payments or my own personal funds to cover the balance at the end of forbearance.

I know this response has a couple assumptions. One being that you work while also house hacking, two that your mortgage company grants you a forbearance, and three that your tenants will at least have the decency to pay something. Hopefully, these assumptions are correct and you can make out it on the other end.

The reason I love the Buy and Hold strategy though is because as long as you hold on you are pretty much garaunteed to come out a winner.

Good luck!

@Kumar Gaurav

I actually started by house hacking can you elaborate a little. Multi-family? Single family w/ Roommates? I feel like a house hacker has a better chance in this situation.

@Joe Splitrock

That’s exactly what I was trying to do guess I was not gentle enough. I’m definitely not the expert on anything just trying have a discussion on how to do better and how we adapt to our new situation with the government overstepping.

@Jeff Copeland

Lol actually meant formal.

@Wesley W.

So they basically took away any incentive for them to be a decent tenant if they decide to not pay and/or not take care of the unit.

There is definitely going to be a backlash. I think it might be harder for people to find housing as we (landlords) are going to be even more strict on screenings due these new laws.

@Jeff Copeland

That’s exactly why I don’t ever want to aggressively expand because I’ll become more leveraged and lose the flexibility that I have while also working.

From PM perspective it has to be much tougher though more doors to manage, and I imagine it’s more informal because it is so many more to manage?

I only ask for first month rent and either equal to the rent for security deposit or a little less.

@Jeff Copeland

I’m not calling anyone out. I simply posed questions for others to answer.

@Nicky Reader

I think tenant screening is relative maybe not in your case. Especially for the tenant that takes advantage of the new legislation and decides not to pay at all even if they could.

I’ve had a few tenants impacted so I decided to reduce rental payments until they are employed or resume normal work hours.

I’m not saying anyone is unskilled. All I’m saying is to reflect and what conclusions do you come to personally.

@Jeff Copeland

I currently own and manage only six doors. I admit I have more flexibility than others still having a full time job, but I even had to make adjustments due to the pandemic.

For tenants who became unemployed and hours cut I reduced their rent. It did hurt my bottom line but I’ll survive and I know they appreciated it.

As in the future improvements I should make. I probably should set aside more cash reserves. I got lucky that my job is essential and I only lost overtime hours.

@Greg M.

I’m sorry if I offended you. I wanted my post to be more of a reflection piece. It wasn’t meant to attack you or anyone else.

I didn’t anticipate any of these events either and that’s why I’m saying it is putting us to the test of how good we can be. Either we fold under the pressure or find solutions to our respective situations.

I listed those questions as a starting point to reflect on. If your answer is “no I couldn’t have prepared any better for this and there’s nothing I can do now.” Then I have to respect it.

Thank you for the response