All Forum Posts by: Account Closed

Venezuela outlawed ownership of more than 2 properties. The rest the government stole. Living in Illinois (currently) I am concerned about taxes. All my renters are working and on time with rents. The exodus out of Chicago is pushing prices up in the surrounding suburbs which was my original strategy for selling out and buying in better managed states. I still like RE but need to diversify internationally as well. Peurto Rico looks good now but if they become a full state status tsxes will go up there too.

Any thoughts or what are you doing?

With your appreciation you will get a great balance on your HELOC. Ususally its 75-80% on current value like a mortgage precentage.

My suggestion:

Conver mortgage to HELOC so you can reduce the balance monthly use to calculate interest

Paydown loan with revenue in less than 3 years.

Use the HELOC with 0 balance as downpayment for new properties.

Forget a 30 year mortgage. HELOCs are cheaper to close on. So what if the HELOC interst rate is floating you are paying down the loan balance aggressively.

When ?

Please see my post i didn't reply to yours properly.

@Justin Kurpius

I never said "this is nothing" or buy the dip. My advise which you may not understand is: wait until credit spreads run their course like 2008 and watch the price of copper. Wait until the corporate financial catastrophes compete with the CV headlines. I got out of everything on Jan 14th. I don't mean to brag since i have enough of my own failures. I realized the market went up quietly on bad news and articles reflected greed more than fear. I know where i want to buy and we are not there yet in price or volume.

I bought real estate with the business model that included being able to survive more than 1 business cycle. Finally, we will have a necessary recession. If we avoid recessions we end up with a depression. The american household is the strong pillar in our economy. Times will be tough, time to trim the fat. If you trade the markets you know life punishes the unprepared, the lazy, the greedy. It is never too late to repent of those destructive sins and live.

My bids are lower. I will walk and miss a deal rather than grab that tempting apple. I will select renters in good jobs that are less cyclical and consumer or luxury based. My mortgages are partially floating rates and helocs to reduce cost of leverage. Interest rates will remain low because governments can manipulate short term rates and can't afford them going higher.

I learned from my own mistakes and others advice based on their  mistakes and successes. 

Are you kidding? 

You haven't given enough information about this person to make an informed suggestion.

Is she older or younger? sec-8, credit score? If you are not kidding about this, I suggest you try to get inside her head to know why she asked this? Something she is not telling you. Is she playing you? Being a landlord is like being a boss, you can't be friends. Its a business relationship, period.

I hate alarmists with statements "experts say". Well, here is your source. Read lower " between 200k and 1.700k" 

https://www.businessinsider.com/coronavirus-150-million-americans-may-get-infected-2020-3
Paul ignore this link. Everyone else please listen to this CDC video 

Coronavirus Epidemic Update 34: US Cases Surge, Chloroquine & Zinc Treatment Combo
https://www.youtube.com/watch?v=U7F1cnWup9M

Don't allow maggots to make you primal and reactionary. This shutdown is appropriate and resaonable. What the Trump admin and local govts are doing will reduce the impact. Desocializing will bring benefits. I am selective with my renters. 

Research for knowledge. Level of emotion and fear is the inverse of your knowledge and sense of hope. The S. Koreans used anti-malaria to reduce their numbers greatly. NL and others are redearching a solution. The capitalist system is natural and gives incentive to inventors to find solutions and they deserve the financial reward of saving people's lives.

Fear-mongers not worth responding to.

My position: i got out of the stock market Jan 14th. Went to all cash. Waiting for a bottom to form.

RE: I am closing on another property next week. I borrow throughout the yield curve but this is a great time for LT and HELOC borrowing. HELOCs have been lowered .5% and more coming if the 10 year treasury continues below 1%. I bid on another property this friday but the seller said they wanted to wait before responding since they expect weekend viewers. I pulled my bid right away so he doesn't use me to juice up the price in a "best bid" play.

I am raising rents minimally 1% since I have high demand for 1 bedroom units. 

@Troy Sheets you said "My guess is you're severely overextended and your reaction is coming from a place of fear..." My words exactly about I hope he is doing okay but its too early to forecast 1 million deaths because my rentals are sitting empty. ouch. Normal is being redefined but people need places to live. Consumers are a strong part of the economy unlike 2008. The USA is the best place to be. Airbnb were already in a bear market the last 3 months. STRs are not a necessity but rather a luxury. Luxury is a bad segment to be in for the foreseeable future. But lower priced 1 bedrooms working classes rentals are good from my experience. But 1 million deaths is just too superficial of point with shock value. I think the world is overreacting but the overreaction will turn out to be the best medicine until a vaccine emerges.

@Paul Durham

Please listen to this video. A lot of credible information not on MSM.

https://www.youtube.com/watch?v=_a7HaWqFh24&t=11s

We will definitely have a world recession. The numbers just have to come out after the fact. My top risk was taxes now I need to include job employment numbers. That's where type of job/industry of a tenant is important.

The video implies the potential for another wave of infection in China. Hopefully only within the Chinese communist party.