All Forum Posts by: Paul Doherty

Housing Council of mortgage lenders contemplating a plan by April 1 that will stop mortgage payments until this thing blows over.

https://www.nytimes.com/2020/0...

"A broad group of bankers and other mortgage industry participants is working on a plan to offer a temporary pause in payments on home loans, according to the Housing Policy Council, a trade group that includes Citigroup, Wells Fargo, JPMorgan Chase and Quicken Loans.

Details were still being decided, but the plan would allow borrowers to stop paying for as long as the public health and economic disruptions lasted, said Ed DeMarco, the chief executive of the council. Once the economy gets going again, borrowers would resume making payments. Mr. DeMarco said he had been talking with banks,  servicers and mortgage bond investors to complete the details of the policy. He said that it was not clear when the plan would be announced, but that the group wanted it in place by April 1."

I just confirmed with my insurance company that my landlord policies do indeed cover lost rent in a situation like this.  I’m covered up to 20% of each home’s value.  If a renter approaches me or misses April’s payment I’ll just thoroughly document the situation and get proof of their situation and make a claim for it.

Is that how other industries work? Are grocery stores selling everything at cost? Having done this a while, I don't think that advertising to renters exactly what my PITI is, is a very great idea.

Being generous is one thing, but to hear some of the folks on here, they’ll run themselves into financial ruin in order to prevent evicting one of their renters.  I’m sure your renters appreciate that sentiment, but everyone has a limit for how long they can carry non-paying renters before their own finances are ruined.

I don't see how evictions can be prohibited if it's not accompanied by a hiatus on mortgage/interest/taxes as well. Private landlords aren't simply rolling in dough and have to maintain the properties as well as pay PITI every month. Multiply that responsibility by several units and then suggest that you can't remove tenant (at which point you're likely to have more than 1 not paying) and even a good cash buffer, like most of us regularly keep, is going to be gone fast if we have to toe the line and the renters do not.

I found Rich Dad Poor Dad fairly poorly written (feels like it's written for a 6th-grade rewarding level). That being said, when a friend suggested it to me about 25 years ago it literally changed my life and is the reason I decided to get into real estate. 25 years later I have slowly and steadily done so, and now have my house plus 5 other SFH rentals. So, I recommend the book, despite its flaws!

I'm a 22-year IT veteran.  Part of the senior technical folks (Director-level individual contributor) in a large IT company.  Specifically I'm in the automation team where we spend time developing new software or investigating/implementing tools to automate various aspects of managing enterprise systems.

I'm a SFH investor looking to swap out of some (or all?) of my SFH rentals into multifamily. Anyone interested in partnering?

@Glenn - Interesting take.  That's a strategy I used a couple years ago - cash-out refi on a paid-off rental to acquire two more.  I hadn't considered the tax implications of that, however, thanks.

@Andy - I'm in the DFW area too - what's your take?  I'm not seeing anything worth buying that will cashflow well.  You?