All Forum Posts by: Account Closed

@Kirk R. Crazy how $4 trillion is being given out and not a single dollar will come to me nor my family (other than rent money flowing thru tenants)

your mom can probably confirm, but I don’t think Alameda County is even recording deeds right now 

Wholesaling is like the dude who plays “the field” in Craps.

Looking to make a quick buck on something that requires very little skill. In and out. Hoping for a pay day but usually walks away from the table with no money and discouraged.

I’m wondering if I’m immune to this. I’m in a HCOL area and 90% of my rentals are Section 8.  The overwhelming majority don’t work and are receiving some sort of gov’t assistance. The ones who do work are hourly/labor so I think they will be affected.
I have 6 months PITI as reserves for each property. Most are 30 year fixed; some are balloons due in 7-9 years. Cash flow average $500/unit after all expenses.

Should I start worrying? 

Peter maybe I missed it but when did Brandon advocate for not keeping adequate reserves? He has been promoting BRRRR for sure but I think he's always advised to keep strong reserves in case of a downturn.

We BRRRR apartment buildings and refi to 70% of the ARV (banks are typically more conservative on apartments) and keep 6 months PITI reserves per property. I agree that there are many gurus out there that will likely get wiped out in a downturn but it's not fair to judge everyone who adds value or BRRRRs and assume they aren't planning for the worst.

@Jay Hinrichs another reason why I only rent to Section 8 households. Nothing is stopping that rent from coming in. Not even a government shutdown.

In a recession credit tightens and banks stop lending to investors. Even at 50% LTV it is hard to get a loan, but not impossible. Cash will be needed if there is a major downturn.

There is really no point in waiting for a recession. Those who started waiting in 2015 missed out on 50% appreciation and 30% rent growth. 

Even if you wait, like I said banks won’t lend. How much cash are you going to have stockpiled? Enough to buy 10 houses? Probably not. Don’t wait to buy real estate. Buy real estate and wait. 

I’m a landlord in a rent control city and I am actually a fan of it. Our rents are among the highest in the nation because supply is limited - the below market tenants don’t move keeping overall supply low.

It also ensures we have rent growth which makes any so-so investment a great one eventually. I haven’t even mentioned the appreciation that we get as a by-product of keeping supply low.

ABB - Always Be Buying

@Jonathon Thompson unfortunately this is Commiefornia (as my bud @Dennis M. calls it). Tenants here have a “life-lease” meaning they can stay for life as long as they don’t break the rules (very few exceptions such as Ellis Act and owner move-in evictions)

@Andrew Frank by accepting rent from the new tenant, you have created a new tenancy and that person has a right to stay. Not having a written lease means nothing. You do not have “just cause” to evict. You’re stuck with them. Contact a local attorney ASAP to discuss strategy. You have a few options.