All Forum Posts by: Mark S.

I have several investment properties and have a weird one here.

My tenant, who the lease is with, passed away from natural causes in the summer.

We found out he passed from some caretaker living there (that we had no idea was living there with him).

She wanted to remain there for a few short months, before moving elsewhere.

She wanted a 3 month lease, we gave it to her.

Lease expired in August and then she wanted to continue staying there, month to month, claiming she needed some more time to move to wherever it was she was going to.

She paid last month.

This month no payment came in on October 1, no returned calls to my property manager asking about the late payment and eventually she sends over some CDC letter and doesn't want to pay anything.

I have no doubt she will ride out the CDC order for however long it lasts.

I'm afraid this CDC order will prevent me from evicting her, even though she has no lease. I have no idea what could be going on there or if the property is being demolished.

I've never been in a situation like this, have no idea what my options are given the facts.

I own 10 high equity properties. I paid all of them off. I'm not sure why anyone would want to carry debt and multiple mortgages if they don't have to.

My buddy has 22 properties (mortgages on all) and I make more money on my 10 than he makes on his 22. And right now, due to COVID-19, he has 7 vacancies - and it's burning a hole in his pocket and he's hurting.

Mine are all rented, but if any of them went vacant then at most my only expense is an HOA fee until a new tenant is secured. I don't have to worry about the market crashing or a bank taking one of the properties. Paying off properties gives you a real sense of security and peace of mind.

I've received 8 out of 11. The next two are due next week. I own all of them free and clear, and have a very lucrative 9-5, so I can wait it out if anyone has problems. I'll let my property managers handle things if someone has issues next month or so.

I have eight properties with one management company, which I haven't had too many issues with but a few bumps here and there.

I just went into contract for a ninth property, and the seller is an agent representing a big investment firm with a property management division. He's pitched me on keeping the property with their company, in order to test them out (and hopefully bring over my other eight).

Offered a lower percentage than what I currently pay and also offered to kick in a few "free" months where I don't pay any percentage on it.

Has anyone else, owning multiple properties, tested out a new property management company in this manner?

The only con I see, and the biggest one at least for me, is dealing with two property management companies. 

Yes, budget has been done. Currently I would have around 4,000-4,500 left over after bills (should insurance cost no more than 1,500 per month)

Numerous members mentioned some of my ideas, and there has been some great advice given in these replies.

At the moment my wife is not working because she's taking care of the kids and their day to day duties. Both are just starting out in school. She can work part-time at best.

I should mention that she also has two rentals of her own, that she owns free and clear. They are located out of state and her taxes are much higher than mine on an individual property basis, but she doesn't make much from two in comparison to me, around 1,800 per month I think. But with most properties, things happen, and this month she had to replace a toilet and a water heater that took almost all her profit.

A lot of people in the city use the local insurance carrier that is much cheaper than the big boys. I remember when I lived in NYC for most of my life my family used a local carrier for health coverage. Another friend pays pretty cheap insurance for a family plan and said he went through Obama Care to get the rate.

As someone had stated, I've pondered the idea of getting a job just for the benefits and not really focusing on the pay. I know a retired athlete who has seven figures in the bank, but works full-time at Target just for the benefits.

At the moment, when doing my budget based on my rental income and using 1,500 as a conservative number for insurance, I would have around 4,000-4,500 left over per month. 

 My job pays me well. I can probably buy another one or two in that time frame. The only problem I have with mortgages, is unless I drop a seriously large down, there is very little profit (1-300 a month if you're lucky) since Vegas rental prices are rather low compared to most states. The cost of living in Vegas is cheap in general.

About two years ago, I sold a business that I created to a large corporation. With those funds - I purchased (in full with cash), numerous investment properties.

I focus on nice-sized condos or townhouses in high demand areas with good equity growth.

I currently own 9 rental properties. I own all of my properties free and clear. I also own my home free and clear.

At the moment, minus HOA fees and the percentage taken by my property manager, I bring home 9,000-9,700 per month.

Some of the people I've come across who invest, they have like 12-15 properties but make around the same amount of money as me (some even less) - because they have mortgages on all of them. And when the units are vacant, it really hurts their pockets due to the mortgages, where I only pay my HOA fee.

Obviously there are property taxes, income taxes and various other expenses that come up.

And my revenue depends on all properties being rented at the same time. Currently they are. With Vegas being a hot market and owning nice units in nice areas, they don't last too long once vacant. And rent prices, and property prices, are rising at a rapid rate year to year (probably a big boost once Raiders start playing here).

The company that bought my business have me under contract to continue running it until mid-2022.

When my contract ends, they might re-sign me or they might let me go.

If they let me go, who knows how long it might take me to find another job, certainly one even close to the level of pay that I'm making now.

I viewed those properties as a security blanket in the event of being let go at the end of my contract, so I took what I bought, and property upgrades, very seriously.

I wondering if I banked enough properties to live on? I do have a wife and 2 small kids. My biggest cost would likely be medical insurance, food being the second, quarterly tax payments, normal bills for the home.

Is anyone here living off their rental properties? How is my situation looking if I find myself without a job by mid-2022.