All Forum Posts by: Sam Cherry

First off there are no "Cons" to being debt free.

Secondly, like you said we are at the top of the market so now is the time to sell.   

You question should be which property to sell.

I would look at selling the property with the most issues or worst prospects for future growth.

Not all properties are equal.  Things like distance, Age of Structure, Appliances, Flooring, HVAC, Roof, etc. are considerations. 

Also, you seem to think this is a zero sum game.  I say it isn't.  Real Estate is cyclical.  There will be a down cycle in the future so think about the possibilities of when others who get in over their head have to sell in the next market cycle.

The thing about BP is it wasn't around in the 70's,80's, 90's so most of the people here (Not ALL so don't beat me up) haven't experienced the wild rides and don't have a true long term perspective on the market.

The best place to be is in a position to take advantage of the next market cycle and pick up more then than to try to hold on to what you have now and service debt.

BTW I have 9 properties and I'm looking at doing the same thing.  4 are paid off and I'm looking at selling 1 or 2 to pay off the other debt.  I'm still working but being threatened with termination because I won't participate in the COVID scam, so I'm stuck on the next move until that plays out.  My net income from rentals basically replaces my salary so I can walk away from my job if need be.  I've been using all the rental income to pay down the loans.  

The wild card for me is I'm thinking of building a duplex which would allow me to get rid of my lowest potential properties and transform that capital into my highest performing properties.

I have almost a remaining 300K in tax losses from 2008 that I can basically sell property tax free and not have to do a 1031 into an existing property which gives me some options.

Again, being debt free gives you options.

GLTA





 

Well it looks like the next battle is about to begin with the CDC finally loosing is scamdemic eviction moratorium.  

Can't wait to see the tsunami of evictions that will be occurring.

The leftists have ruined many landlords with is B.S.

Well it looks like the SBA really came through.  

Can't wait to see all the convictions for fraud that will soon start appearing.  

Looks like the leftists got what they wanted.  To run landlords out of business.  

This scamdemic isn't over but at least it looks like the CDC is going to finally loose it eviction moratorium. 

I feel so bad for all the landlords whose lives have been ruined by all this total B.S. 

As if NY was alone read what Congress is about to do to all of us....

If you own regular rentals, be prepared to subsidize your tenants.

Unfortunately, there is a whole lot less help if you own regular rentals. The following applies for all property, referred to as “covered dwellings” in the Act:

Basically, all residential rental property falls into this category.

Here is what is said,

The period to be covered is from the date of enactment of the bill until 6 months after the end of the emergency declared on March 13, 2020 (page 526).

That means that the landlord can’t evict a tenant who doesn’t pay. It also means that the landlord can’t evict a tenant who vandalizes a property, rips out all the appliances, equipment, furnishings and floor coverings or who is threatening to other tenants. It also means you can’t evict for petty crimes. You can only evict if there is a serious criminal act that threatens your life or that of other tenants.

That’s a pretty broad window.

Read More here.....

https://www.theorganicprepper....

Someone needs to start a website listing all the tenants that are refusing to pay rent.  That way when these people escape NY and go to other areas of the country we will know who not to rent too.

This is why everyone who is a landlord in NY should write the Governor and inform him that you will be taking as a CREDIT (not deduction, big big difference) on any lost rent and any and all damages and legal fees when you finally get to evict again from your  NY State and local taxes this year.

See how he likes that that.

The unfortunate thing is everyone is trying to escape from New York and unfortunately they will be trying to move to states that don't have Communists as Governors.

The winds of the Fourth Turning are blowing hard.  The Constitution is like Clorox to Politicians and Congress is a toilet bowl right now.  Congress and The People who think they need free rent right now need a good disinfecting of Constitutional Clorox.

The problem is the Federal Reserve must be dissolved because this is were the Treasury gets the money.  

Don't worry the Federal Government is coming to the rescue!

Get a load of this.

Congress is now considering the Rent and Mortgage Cancellation Act which would cancel all rent and mortgage payments for the duration of the pandemic, and possibly beyond for up to a year.

And the law would be retroactive, so they’d go back in time to March 13 to cancel rent.

The government would then set up a fund for landlords and mortgage holders “allowing them to recoup their losses, so long as they agree to abide by a set of fair renting and lending practices for a period of five years.”

Some of those conditions include not raising the rent for five years, and not denying renters based on credit history, or criminal record.

This is insane. First the government will tell landlords that the contracts they signed are void. And then, if someone wants to rent your property who has a history of not paying rent, you’re not allowed to reject them.

But as long as you bend the knee to DC, they’ll print the money to pay you.

You better call congress now and tell them to reject this bill.

The cure is worse than the disease.

OPEN AMERICA NOW!

WE DON"T NEED THE SBA DISASTER.

Don't worry the Federal Government is coming to the rescue!

Get a load of this.

Congress is now considering the Rent and Mortgage Cancellation Act which would cancel all rent and mortgage payments for the duration of the pandemic, and possibly beyond for up to a year.

And the law would be retroactive, so they’d go back in time to March 13 to cancel rent.

The government would then set up a fund for landlords and mortgage holders “allowing them to recoup their losses, so long as they agree to abide by a set of fair renting and lending practices for a period of five years.”

Some of those conditions include not raising the rent for five years, and not denying renters based on credit history, or criminal record.

This is insane. First the government will tell landlords that the contracts they signed are void. And then, if someone wants to rent your property who has a history of not paying rent, you’re not allowed to reject them.

But as long as you bend the knee to DC, they’ll print the money to pay you.

You  better call congress now and tell them to reject this bill.

The cure is worse than the disease.

OPEN AMERICA NOW!  

WE DON"T NEED THE SBA DISASTER.

Maybe landlords will finally listen to what I am saying.

This is not the solution for you.

https://www.washingtontimes.co...

This is .....

Dear President/Govenor/Senator/Congressman/HUD Secretary/Govenor (You Fill in the blank)

Thank you for all that you are doing to help citizens and businesses affected by COVID-19.

As you are aware, Landlords provide a vital service to many millions of Americans. We provide safe and affordable housing to citizens who can't afford to purchase homes themselves.

Second only to to food, shelter is important as a basic need that no American should live without.

This is why I am writing to you to ask for help in the implementation of emergency changes to the Federal Housing and Urban Renewal Section 8 program.

As a landlord I propose the following:

The qualification for Section 8 should be opened to all unemployed Americans receiving unemployment benefits.

All Landlords who file a IRS Schedule E are eligible to receive benefits based on properties listed on their Schedule E for 2018 or for any 2019 tax return filed.

Section 8 will waive the home inspection and Landlord requirements for the participants in this emergency program and will not remove the traditional application process for those seeking to participate in the Section 8 program. Section 8 will only provide payments while the citizen is receiving unemployment insurance.

This emergency program requirements are easily verified for participates through the unemployment insurance offices and the Internal Revenue Service.

The program limits payments only for the rent amount. At the end of the year the citizen receiving benefits will receive a 1099-MISC for rent paid subject to their tax bracket.

The Landlord will receive a 1099-MISC which they will file with their Schedule E as rent received. This will not require any tax difficulty for the landlord and is subject to depreciation and valid deductible property expenses.

This provides benefits to two segments of the population simultaneously, efficiently, and seamlessly.

Housing and Urban Development is the correct office to manage this program and provide rapid relief to the people who need it the most.

I can be reached for further questions at.........

Thank you,

J.Q. Landlord

Learn more here.....

https://www.biggerpockets.com/...