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All Forum Posts by: Timothy W.

Timothy W. has started 210 posts and replied 4398 times.

Post: Is the 1% rule dead in 2023 ?

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

 Again, it doesn't matter how much you "can" cut the rent when the tenant pays zero.  Let me ask you this, when the tenant doesn't pay the rent and the landlord turns around and doesn't pay the mortgage because the tenant doesn't pay the rent, does the bank accept a technical explanation of hypothetical loan terms in lieu of payment?  Is that the procedure? 

Post: Is the 1% rule dead in 2023 ?

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

 It's actually pretty easy in a market where people just don't have the income to pay rent and stop caring about their credit.  I'm sure you know people who knew people when you were one of the securities salespeople behind the collapse from your office 2,000 miles away, but I was there on the ground.

Post: Is the 1% rule dead in 2023 ?

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

 Yikes.....  This is EXACTLY what people were saying in 2007/2008.  Down to the same cities named.  This is not a good sign.  Trust me, you can look back at my old posts from then and I was that guy, saying the same thing about South Bend, Indiana.  Yeah I could find stuff at the 1%, 2%, 3%, 4%, 5% rule all day long.  The reason why is no one could afford to buy anything.  They also couldn't afford to pay their rent.  No percentage matters when people don't pay their rent.  Be careful.  Make sure you can cover the costs of these turning cashflow negative.

Post: Is the 1% rule dead in 2023 ?

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

It's been so long since I've land lorded so I decided to look just to challenge the presumption that it doesn't exist in my area. I did a search in my area and found a house I could Section 8 and easily hit the 1% rule.  Now my neighborhood I can't and that's by design.  I live in an expensive neighborhood of hoity toity fops and I love it.  However, I'm within driving distance of at least one deal though.  

The real challenge is though when you're gotten to a point where you can really cover the expense of getting rental goings, you have to ask if it's worth it.  An 8% dividend nets better than a rental on the 1% rule and you never have to go anywhere.  You get capital gains.  Sure you don't get passive losses.  You gotta weigh your options.

Post: Would love some Floridian Advice!

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569
Quote from @Gary L Wallman:
Quote from @Timothy W.:

This is the most accurate statement on investing in Florida I've seen.  I have a son with autism so I live near NASA where autism rates are high and thus services for him are the best in frankly the Eastern half of the US.  I like the particular community I'm in for now for what he needs, but I will probably choose St. Augustine at some point.  I'll take an aged port in a 200-year-old masonry wine grotto over a margarita at a tiki bar.  Prices are high right now but they are stagnating while rents are continuing to rise.  

I saw your comment re the Midwest and I get where your mind is at. One thing about the Midwest that is an advantage over Florida is the weather isn't out to destroy everything you own, generally. Even "good" weather here eats everything. Construction has risen to combat that but it still exists. Frankly if you had a modern Florida built house in the Midwest it'd last forever, through tornadoes and all. You might also want to be wary of HOAs. We don't have local zoning like most states. In fact the most recent update to our building code took away a lot of local code authority. What we do have to make up for that is a robust HOA bylaws.


 Timothy,

Not only the weather but the salt air. I had a personal Gulf front home in PCB. When I got tired of the drive I sold it. I did consider keeping it an an STR, but my experience with the maintenance convinced me otherwise. It's nearly unbelievable.

During 4 years of ownership I went through 8 barbecue grills that rusted out (all stainless steel). Stainless steel deck screws rusting away. HDMI cables corroding IN THE WALLS. Door knobs falling off. Had to replace a two year old heat pump unit. Outdoor furniture lasted one year, even expensive aluminum and rattan. Outdoor speakers and surveillance cameras were impossible to keep working. Had to replace outside electrical panel as well.

Literally had a $30 an hour handyman work nearly full-time at the house just trying to stay ahead of the corrosion and humidity issues. Not to mention 3 hurricanes in 4 years.

Now I own a lake front on fresh water near my home in Ohio. LOL

Gary


 Yep, I live on the water, but on fresh water, 8 miles inland from the ocean.  Sun eats just about everything still but the salt isn't too bad.

The terrible legal advice in here by non-attorneys is why you go to an attorney.  

HUD Updates Rules on Emotional Support Animals - Lazega & Johanson (ljlaw.com)

Post: Would love some Floridian Advice!

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

 For the record, Ibuys*itholehouses.com is the funniest URL I've ever seen in this business, lol.  I could have used that in Indiana.  It was very accurate there.

Post: Would love some Floridian Advice!

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

State Golf Association says it's Darryl but like Lucie said, so glad you are so well connected.  All the best, Bob.

Post: How to narrow down locations for long distance investing for LTR SFR

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569

I hated living in Indiana because nothing ever happens there.  I loved investing in Indiana because nothing ever happens there.  Never had an earthquake, hurricane, tornado, ridiculous hail storm.  It was just blah all the time, which for sitting on a long-term rental is great.  If I learned anything it's make sure you rent to a market that actually cares about protecting their credit.  Beyond that, it's boring, which is good for rentals.  I ended up selling most of my portfolio there to an Israeli hedge fund.  Not what I anticipated but they must have seen something in it.  Most of my stuff was around Notre Dame university.   I figured the power of the Catholic Church would never let that go down.  I should have bought more.  There was a major redevelopment immediately around the University.  Ah well, hindsight.

Post: Would love some Floridian Advice!

Timothy W.#3 Off Topic ContributorPosted
  • Attorney
  • Viera, FL
  • Posts 4,906
  • Votes 1,569
Quote from @Dana A.:
Quote from @Timothy W.:
Quote from @Dana A.:

Hey Everyone! I am looking into the Florida Market (From Palm Beach to Miami) 

Crazy thought, have you looked at The Keys or the USVI? It's a different kind of market doing mostly vacation rentals but it's not as unattainable of a price point as you'd think. Lowest priced SFR in the The Keys right now is 350k. I had to stay in St Croix for a couple weeks for hurricane recovery and there's a Home Depot right there so that tells me managing a property wouldn't be impossible. Check out the one for sale at 38 S Slob Eb in Christiansted, VI. It's pending but at 495 it's not crazy. Needs a repaint bad. That view though is INSANE and it's on half an acre overlooking the ocean. You'd be like a Bond villain on that porch, lol. I will tell you thought the construction force is on island time, lol. However, if you have to put in the time to check on your investment, it may as well be awesome.


 That looks like it could be a nice place to live. Unfortunately it's out where the buses don't run lol Airbnb?

Car rental at the airport.  Super easy there.  Just get ready to drive like in Europe, lol.  I always did Airbnb when I went there.  I actually stayed in a place that was on HGTV.  Highly recommend.  The hosts were awesome and gave me some insights on doing vacation rentals on the island.  Here it is:  

HGTV & People Magazine featured Villa! Large Pool & Best Ocean View on Isle! - Houses for Rent in Christiansted, St. Croix, U.S. Virgin Islands - Airbnb