All Forum Posts by: Lesley Resnick

I would not sweat the $5 bucks or late fees provided they are not chronic offenders.  This is one of the areas that landlords are at a disadvantage.  Some people take a very hard line approach PAY UP NOW or GET OUT!  The tenant could simply stop paying and force you to evict them.  Cost $250-$500 and the managements fees.  Could take 2-6 weeks depending on municipality and your ability to complete the paperwork correctly.  Try getting someone evicted during any holiday season or a particularly cold winter.  Assuming you can get them out quickly and they don't trash the place, you can now re-rent it.  You mentioned that it took 2 months or $2,000 to rent it last time.  My point is simple, sometimes it is cheaper and better for everyone to have some flexibility.  I do not advocate being taken advantage of, but it can be in your own best interest not to be a hard ***.  Furthermore, If my tenants pay the rent on time and take reasonable care of my place, I will not raise the rent.  The difference between profitability and loss in many cases is the vacancy.       

Asset protection is a function of where you are financially. The bottom line gets to, are you worth some bottom feeder lawyer chasing you? No contingent lawyer is going to sue you if they have no hope of collecting. Add an insurance company to the mix and there is a reason to sue. Lenders require insurance to backstop their losses. There have been a number of discussions of using paid off properties in LLC's with no insurance as a means of saving money. It has been advised that single entity LLC's be created and all funds flow through another LLC to avoid the cash being frozen should you be sued.

The other reason for using an LLC or C corp. is for tax advantages. You can issue dividends to yourself and be taxed at a lower rate. Hence, the Warren Buffet statement that his tax rate is lower than his secretary.

Charles, 

I have been in Jax all my life and real estate almost as long.  I may be able to offer some help.  PM me and we can talk more.

Lesley 

Jacksonville Florida is the place.

There are a ton of great deals, there a great duplex down the street well under $200k

hit me up in the morning, I can give you all the details.

I live in Jacksonville about 120 miles from Disney.  I looked into partnering with a friend of mine who lives in Orlando.  It is potentially an interesting market for shot term rentals. However, be cautious since most local municipalities do not allow short term rentals.  This does not mean it is not going on, but they are starting to crack down.  If you are small and local you would probably be alright, but being out of town and having a management company....  One could make the case you are a hotel.  In Florida, under a 7 month rental you are technically a hotel and have to be zoned appropriately.  My advice is tread lightly and do a ton of research before jumping in.      

To change he conversation back to some of the earlier posts....

Expensive areas, NYC, CA, etc. are typically not landlord friendly, which does matter.  It does not appear in any numbers.

I believe cash flow is king.  You can't eat equity or put it to work in these markets.  If you have limited resources and refinance / reinvest is party of your strategy, you are waiting for years for your next deal.  In cash flow, you can get qualifiede for more, through leveraging the cash flow.

I am interested in steady predictable passive income.  An unpredictable big hit every 10 years, is not a means of living off passive income. 

The fundamental problem is you are selling something you do not own.  That makes you an agent or a broker, thus the need for a license.  

It is easy to confuse that legality and enforcement.  At some point in time enforcement will catch up with the market.  The wholesale market may be tapped out by that point but it is coming.  There are only so many desperate homeowners out there.  As the housing market and the economy come back, there will be even fewer.

 I am with Patrick, buy a duplex to start.  I would look at the local credit unions.  I am a big fan of Vystar.  I believe they write loans in Tampa.

The multi family commercial loans are currently cheaper that the fannie mae standard loans by a point+.  Some of the portfolio lenders are running promotions like no closing costs.  I believe this is adding to the market action.

I am seeing a good number of quads (multi-quads) in the net $25k-$50k a door in Jacksonville.  Some are in need of work and some are move in ready.  They vary by neighborhood and age.  Rents ranging from $500-$750.  Putting them between 1% and 2% a month.

I generally find lowes to be better than home depot, but if you looking for close outs or clearance, I don't find there to much of a difference.  Most of my properties I look for new neat and clean.  The dated part of tile is less of a concern for my tenants.