All Forum Posts by: Joey Fontenot III

I have a dilemma on if I should sell a paid off rental property. Property was purchased in a section 8 neighborhood all cash for $22k including rehab back in 2011. Has been rented for $675 month and average net after expenses $5k profit a year. During this time I've done a fair amount of Capex (roof/ HVAC/flooring), so not a ton of deferred maintenance . I've been offered $54k cash out of the blue and am not sure if I should take the profit or keep long-term. Ive been lucky with a good tenant during 9 years, but know they won't be there forever. I also feel neighborhood is not a long-term appreciation play, but values have come up a bit since early 2010s.

Steve,

I agree does any on on BP have experience with loaning from their SDIRA? and the tax benefits

I wanted to get some advice/feedback regarding how private lenders handle the tax consequences of the income they receive from their loans. Is your Income taxed the same as your income from whatever tax bracket you fall into or are their ways to defer these taxes based on the way the loan is structured. In addition, if lending out of an LLC does being taxed as an S corp prove advantageous. Can you keep the income as retained earnings under $250,000 in the LLC and pay yourself a fair salary and invest the rest directly back into Real Estate. Not sure if these are viable options, just looking for some creative strategies!! Thanks

I have had a tenant call and tell me he will be paying his rent 2 days after Rent is Late. (Late on the 6th, says he will pay on the 8th). I have told him he needs to pay by that day and pay the late fee. If he fails to pay on that day, I will be placing a 7 day non-compliance warning for termination of lease on the front door and document this through pictures. I want to be firm, but still be as smart as possible about my approach to this kind of situation.
What would be your response to this situation when you have tenants calling your phone and telling you they will be late on rent?

Thanks,

Albert thats great. I was going to ask you are your rentals in lower-middle income areas where rents go from $650-$850 or are your properties in the middle class neighborhood where there are many homeowners? Also since your rentals are rented most of the time does your rental income come close to matching your full-time income where you would one day be able to retire off of the rentals? What would your exit strategy be?

I definitely agree than having all of your rentals fairly close to each other is the way to go. When you say your 4plex's were hands off do you mean you had a management company for those. In addition, I think having rentals that are not low income if you screen fairly well is going to be less headaches

I wanted to ask all of the landlords that own more than 10 rentals.
Do you manage them all yourself and if so how much time do you spend a week doing it? Do any of you have a property manager and if so how involved are you in the process? Do you live within 30 minutes of all of your properties or do you not find it as important to be so close?
I feel once you get past 5 or 6 properties your time commitment is going to be pretty significant. Of course it all depends on what kind of tenants you have in the properties because 1 bad tenant for someone with 1 property can be more time than 5 properties with good tenants.
Thanks

Thanks for the replies how much is your property insurance costing per unit based on your yearly rental income and how much for your liability insurance

I wanted to find out what the general consensus was for landlords in terms of their insurance. I was told for liability protection to obtain $300k in liability on an umbrella policy for all of one's rentals. Also. I was told to obtain property insurance for each property. What is the best cost-savings method to take for insurance? I live near the coast so insurance is on the high side and I wanted to find out how many people out there have insurance on all of their property or just for properties in certain neighborhoods? Thanks

I am curious about some ideas about this too. Where I am from you are only allowed to take a 1 month deposit so I can't charge more than that amount. How could I create an incentive to pay the last month's rent without taking more of a deposit