Landlords: How are you doing this year?

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tomtoms
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Landlords: How are you doing this year?

Post by tomtoms » Wed Jul 01, 2020 10:04 am

My brother and I own close to 10 rental properties...all single family homes just outside of a big city. We have been very fortunate. Rent collection is 100%. Surprisingly, no one has asked for any maintenance or repair work.

How is everyone doing this year? Do you see yourself buying more rental properties?

Clemblack
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Re: Landlords: How are you doing this year?

Post by Clemblack » Wed Jul 01, 2020 1:01 pm

I own 6 single-family-homes and all rents are current. Yes, I will be buying more.

jand87
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Re: Landlords: How are you doing this year?

Post by jand87 » Wed Jul 01, 2020 1:26 pm

I'm in Las Vegas, we have 1 rental property. Our tenants moved in on Sunday March 15th, the day Sisolak announced closing the schools. My tenants are 3 young-ish aged people around 30 years old, no kids. So far they haven't missed any payments or requested any assistance. I'm assuming it's because of the extended unemployment. One of them works for a strip club so I know he's unemployed. Another works for Enterprise, so I assume they're hurting too.

So far so good though, which is really nice because we purchased our new home in February with the intention of having the rental cover most our mortgage, which it does.

scubadiver
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Re: Landlords: How are you doing this year?

Post by scubadiver » Wed Jul 01, 2020 1:54 pm

scubadiver
Last edited by scubadiver on Sun Jul 12, 2020 12:36 pm, edited 1 time in total.

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steve321
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Re: Landlords: How are you doing this year?

Post by steve321 » Wed Jul 01, 2020 2:04 pm

We have 12 properties and all tenants are paying. Wehadg tenants leaving one maisonette yesterday found new tenants starting today without us needing to go to the place and show it to them (which we preferred not to in this time of Covid 19). Exchanged contracts through the post. So things are fine so far.
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Lumpr
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Re: Landlords: How are you doing this year?

Post by Lumpr » Wed Jul 01, 2020 2:10 pm

Business as usual (mix of multi-family and SFH). Offered rent deferral in April to tenants who lost jobs or were otherwise suffering financial hardship. It was an honor system (i.e. we didn't require proof). Not a single person took us up on it.

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unclescrooge
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Re: Landlords: How are you doing this year?

Post by unclescrooge » Wed Jul 01, 2020 2:31 pm

Two rentals in Indianapolis. So far so good.

Although I need to replace the roof on one, so there goes the entire cashflow for the year.

dms1709
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Re: Landlords: How are you doing this year?

Post by dms1709 » Wed Jul 01, 2020 2:33 pm

We have six single family rentals, all are up to date.

TLB
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Re: Landlords: How are you doing this year?

Post by TLB » Wed Jul 01, 2020 2:43 pm

All is good, everybody has been on time paying rent.

No, I don't plan on buying anymore SFH's or Commercial real estate in the future. Retired this year and I would like to start selling off my SFH's when the renters vacate. Have a 5-year lease on my commercial properties, maybe after the lease is up.

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Stanczyk
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Re: Landlords: How are you doing this year?

Post by Stanczyk » Wed Jul 01, 2020 2:45 pm

Two rentals. So far so good.

bac573
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Re: Landlords: How are you doing this year?

Post by bac573 » Wed Jul 01, 2020 3:07 pm

We own a beach rental condo in Destin, FL. Obviously we were hurting in the spring when the Fl governor banned all beach rentals for well over a month. But since the re-opening, we have been pretty steady with the short term rentals and we have reservations booked thru mid-September with only a few open dates here and there. We shall see...
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1andDone
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Re: Landlords: How are you doing this year?

Post by 1andDone » Wed Jul 01, 2020 6:39 pm

Tenant still paying as agreed. We had previously negotiated a small rent increase due to signing a two-year lease. Tenant asked for relief from the rent increase due to a recent 15% pay cut. I agreed to delay the rent increase.

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GMCZ71
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Re: Landlords: How are you doing this year?

Post by GMCZ71 » Wed Jul 01, 2020 7:10 pm

We have one rental all paid up.
A friend has 3 and all paid.
Another friend manages 5 and all paid.
Oregon.
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Re: Landlords: How are you doing this year?

Post by flaccidsteele » Wed Jul 01, 2020 7:11 pm

tomtoms wrote:
Wed Jul 01, 2020 10:04 am
My brother and I own close to 10 rental properties...all single family homes just outside of a big city. We have been very fortunate. Rent collection is 100%. Surprisingly, no one has asked for any maintenance or repair work.

How is everyone doing this year? Do you see yourself buying more rental properties?
I own 15 properties. Bought after the US housing crash a decade ago. No debt on any of them

Some maintenance but nothing unusual. No problems collecting rent so far which surprises me a bit. Rent came in today nice and full. Renewed a couple leases higher. Business as usual

I’d like to buy more rentals but prices don’t make sense, but compared to when I bought them I guess prices will never make sense like they did after the US housing crash
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat

WJW
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Re: Landlords: How are you doing this year?

Post by WJW » Wed Jul 01, 2020 8:15 pm

2 properties - 5 units. No issues at all, not raising rents in 2020 as a token of appreciation.

I would buy additional properties if the deal makes sense.

Bobby206
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Re: Landlords: How are you doing this year?

Post by Bobby206 » Wed Jul 01, 2020 8:19 pm

I have over 30 doors and things are normal.

Always have one eviction going in the low income properties and I do now.

Probably one other empty unit in the low income stuff as they turn over a lot.

High level ones are paid up and paid on time... thus far.

Knocking on wood that the government keeps giving people money to pay their rent as landlords get no breaks and no gifts in all the PPP stuff.

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AerialWombat
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Re: Landlords: How are you doing this year?

Post by AerialWombat » Wed Jul 01, 2020 8:21 pm

No issues at all. No lates, no missed. All leases renewing.

Other investors I know, some with hundreds of doors, have reported the same thing to me regarding their properties.

Cycle
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Re: Landlords: How are you doing this year?

Post by Cycle » Wed Jul 01, 2020 9:09 pm

One property (2 units), lots of maintenance requests this year, for dumb stuff... E.g. tenant was turning key wrong way to unlock door, tenant closes window too hard and glass shatters, tenant reports garage door broken (replaced remote batteries). Have 2nd kid due in August and no longer want to do this stuff.

It goes live on the market on Friday... My landlord days may soon be over.
Never look back unless you are planning to go that way

annu
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Re: Landlords: How are you doing this year?

Post by annu » Wed Jul 01, 2020 9:41 pm

What are thoughts on commercial? Seeing some coming up in market, after a while for my region.

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Re: Landlords: How are you doing this year?

Post by LadyGeek » Wed Jul 01, 2020 9:51 pm

This thread is now in the Personal Finance (Not Investing) forum (real estate).
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kevdude
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Re: Landlords: How are you doing this year?

Post by kevdude » Wed Jul 01, 2020 10:28 pm

We own 20 units in the Seattle area (not Seattle proper) and, fortunately, all have paid as agreed. We did just receive notice for one that will be vacating at the end of the month.

Regarding commercial - at this time, as a small time investor, the only commercial I would want to own is multifamily. The rest scares me. I certainly would not want to be investing in retail, office, or small industrial. That being said, the main reason we are in multifamily is I didn't want to be too dependent on the economy, which the other classes are to a much higher extent. Even in a down economy, people still need a place to live. I may have to reduce rents a bit, but I won't experience 0% occupancy. Or have to give away free rent for an extended period of time just to get a tenant.

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tomtoms
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Re: Landlords: How are you doing this year?

Post by tomtoms » Wed Jul 01, 2020 10:58 pm

What % of rent do you put away each month for repairs and future vacancies? I have been putting away 20%. That seems like a good number for single family homes in a good neighborhood.

I don’t know anything about commercial RE. I guess I can learn but it seems like there is more risk and headache. I like to keep it simple. That is why I am sticking to residential.

LittleMaggieMae
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Re: Landlords: How are you doing this year?

Post by LittleMaggieMae » Wed Jul 01, 2020 11:20 pm

I have 2 rental properties (with yearly leases) in SW Florida. One is a townhouse (in a subdivision of townhouses). The other is a small SFH. So far so good. Both tenants are current and neither has asked for help with rent. Both tenants are working from home. One lease ends in August. I'm hoping the tenant will stay for a 3rd year. I'm not expecting the rent to go up. The other lease doesn't end until January 2021.

I would buy another investment property if the right one comes along.

(A younger relative has 2 rental properties and is also current on all rents. They also are open to buying another if the right one comes along.)

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Re: Landlords: How are you doing this year?

Post by LittleMaggieMae » Wed Jul 01, 2020 11:31 pm

I reserve 20% of rent per month for repairs/reconditioning of the property. It really helps when a tenant stays for two or more years - as I can build up a better sinking fund for repairs/reconditioning.

I keep a "basic" EF for of 3K for the Townehouse and I have a 5K EF for the SFH (it's gonna need a roof in a couple of years) - I build on top of these "EFs". This money lets me sleep at night.

mx711yam
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Re: Landlords: How are you doing this year?

Post by mx711yam » Thu Jul 02, 2020 12:04 am

5 doors, all paid up. 1 just left and trashed the place, but it rented out 3 days later after a ton of time and money fixing it up. Crappy tenants are the worst.

av111
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Re: Landlords: How are you doing this year?

Post by av111 » Thu Jul 02, 2020 12:37 am

LadyGeek wrote:
Wed Jul 01, 2020 9:51 pm
This thread is now in the Personal Finance (Not Investing) forum (real estate).
This IS about investing in my opinion. Unless separate forums are required for all investment vehicles
AV111

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alexp
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Re: Landlords: How are you doing this year?

Post by alexp » Thu Jul 02, 2020 12:42 am

Two rentals - both tenants are current with the rent payments.

PavlovsCat
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Re: Landlords: How are you doing this year?

Post by PavlovsCat » Thu Jul 02, 2020 12:44 am

One rental, renters are 2+ months behind on rent now. Haven’t paid this month, so it may be three months unpaid. Evictions halted until end of September, so not really sure what to do other than hope they make good on their word that they’re going to catch up once unemployment comes through. Rough times.

av111
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Re: Landlords: How are you doing this year?

Post by av111 » Thu Jul 02, 2020 12:46 am

We rent single family homes. All tenants are current. We have raised 2% to 3% rent at lease renewal. We do the assessment every 6 months and decide if the rent will be raised or reduced at the renewals in that six months period

Want to raise on a mtm but holding back because of covid. Maybe will convert them to a lease

We already keep significant cash reserves so don't hold a % from rent for repair or vacancy
AV111

IMO
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Re: Landlords: How are you doing this year?

Post by IMO » Thu Jul 02, 2020 1:36 am

mx711yam wrote:
Thu Jul 02, 2020 12:04 am
5 doors, all paid up. 1 just left and trashed the place, but it rented out 3 days later after a ton of time and money fixing it up. Crappy tenants are the worst.
3 days later is a "ton of time"??

3 doors, everyone's paying on time

travellight
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Re: Landlords: How are you doing this year?

Post by travellight » Thu Jul 02, 2020 2:36 am

Also lucky all rents have been paid. I discovered that one of the rents wasn’t paid a month ago due to the tenants bank screwing up. Late fees are a few hundred dollars. Tenant was upset about the late fees but I think their bank should pay for failure to deliver on their bill pay service... so far bank refuses.
364

sharp1aarohead
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Re: Landlords: How are you doing this year?

Post by sharp1aarohead » Thu Jul 02, 2020 3:28 am

I have 7 units. All paid until last month when 1 did not. They claimed they would catch up in 1-2 weeks and I haven't heard from them since. This is one of two that I use a management company and the company is against contacting them to get more information so unfortunately that's where I stand for the foreseeable future! The bummer is that this one of 7 accounts for 30 percent of my rental income...ouch!

Paddygirl
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Re: Landlords: How are you doing this year?

Post by Paddygirl » Thu Jul 02, 2020 6:17 am

Sold all 3 of mine right before the Covid hit town, fortunately. Retired and enjoying the fishing life.

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Harry Livermore
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Re: Landlords: How are you doing this year?

Post by Harry Livermore » Thu Jul 02, 2020 6:35 am

Just one SFH, and tenant pays on time, all good. They were expecting that he would receive his green card back in early spring, and they were planning on buying a home here in our town. COVID temporarily suspended in-person interviews, which is one of the final steps (I think?) so they did not put an offer in on the house they were looking at due to the uncertainty of their situation. I offered them month-to-month at lease renewal time, for a higher monthly rent, and they took it. So they could go at any time, but I think they will likely stay at least another 3-6 months (that's a guess based on the fed's process for reviewing green card applications)
The vacation rental, surprisingly, has 5 weeks booked. Last year we got 10 total weeks between 5/1 and 10/31 (2 of those "weeks" are actually made up of 2- or 3-day stays in the shoulder seasons) so we are down quite a bit. But the governor of that state has been pretty aggressive about restrictions, including a mandatory 14-day quarantine upon a vacationer's arrival. No grocery store, no CVS, no nothing. Pull up to your rental, go inside, and hide for 14 days. What a vacation! So I'm actually surprised that 5 families are still coming. Our property does include pools, tennis courts, a fitness center, etc. (all of which are open and being sterilized multiple times per day) so I guess these people figure that even if they can't go to the beach, they can still enjoy themselves. I should also say that she has lifted this requirement for residents of nearby states, so that may have some positive effect.
Cheers

ETA: clarification, spelling

alwayshedge
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Re: Landlords: How are you doing this year?

Post by alwayshedge » Thu Jul 02, 2020 7:37 am

Three rentals. All paying. No assistance requested.
I bought these properties shortly after the financial crisis of 08 so they cashflow VERY well. I have a management company running handling them so it’s completely passive for me. I love it.

scubadiver
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Re: Landlords: How are you doing this year?

Post by scubadiver » Thu Jul 02, 2020 11:03 am

PavlovsCat wrote:
Thu Jul 02, 2020 12:44 am
One rental, renters are 2+ months behind on rent now. Haven’t paid this month, so it may be three months unpaid. Evictions halted until end of September, so not really sure what to do other than hope they make good on their word that they’re going to catch up once unemployment comes through. Rough times.
Between the $1200 per tax filer and $600 per dependent CARES act tax credits and the fact that the unemployment impacts started almost 4 months ago, I would urge to consider the likelihood that their unemployment will not be "coming through". I hope you get lucky and they follow through, but I would be expecting a very different outcome at this point.

I suppose if you own hundreds of rental units things will average out. Based upon this thread though it seems very much like a binary event. Either the tenants are paying as if nothing happened, which seems to be the case for most, or the landlord is going to take it on the chin.

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Sandtrap
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Re: Landlords: How are you doing this year?

Post by Sandtrap » Thu Jul 02, 2020 11:26 am

scubadiver wrote:
Thu Jul 02, 2020 11:03 am
PavlovsCat wrote:
Thu Jul 02, 2020 12:44 am
One rental, renters are 2+ months behind on rent now. Haven’t paid this month, so it may be three months unpaid. Evictions halted until end of September, so not really sure what to do other than hope they make good on their word that they’re going to catch up once unemployment comes through. Rough times.
Between the $1200 per tax filer and $600 per dependent CARES act tax credits and the fact that the unemployment impacts started almost 4 months ago, I would urge to consider the likelihood that their unemployment will not be "coming through". I hope you get lucky and they follow through, but I would be expecting a very different outcome at this point.

I suppose if you own hundreds of rental units things will average out. Based upon this thread though it seems very much like a binary event. Either the tenants are paying as if nothing happened, which seems to be the case for most, or the landlord is going to take it on the chin.
It’s good business practice to treat each rental and each tenant on a case by case basis whether owning one rental unit or 300.
An acceptance of a percentage vacancy or loss seems fine on a spreadsheet, but on a daily operational basis, not so.
Each tenant is a customer and treated like the only customer is a good way to approach things.


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Lobsdiver1
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Re: Landlords: How are you doing this year?

Post by Lobsdiver1 » Thu Jul 02, 2020 11:56 am

I own 2 rental homes.

One has a business owner that is thriving more than ever so don't expect an issue.

The second owns two small businesses and just informed me he was moving out 2 months before lease ends and moving into his land and motorhome. He indicated both businesses are tanking so going to let it go and hope he moves out.

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tomtoms
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Re: Landlords: How are you doing this year?

Post by tomtoms » Thu Jul 02, 2020 12:07 pm

Has anyone heard of this?

1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence

Is this a legal loophole to not pay taxes?

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FelixTheCat
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Re: Landlords: How are you doing this year?

Post by FelixTheCat » Thu Jul 02, 2020 12:39 pm

I own 1 rental. Tenant is paying on time. My only issue is getting the tenant to water the lawn.
Felix is a wonderful, wonderful cat.

dstac
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Re: Landlords: How are you doing this year?

Post by dstac » Thu Jul 02, 2020 1:14 pm

Handful of units. All paid April-July.

Had one tenant that had problems pre-Covid that ended up with no Feb/Mar rent, but that’s on me for screening, not Covid. Luckily got new tenant in before our state’s shelter law kicked in. Tenant was thrilled.

I expect to be 1031ing out of one building as it’s mostly deprecated & delevered, but not sure what to next. Anyone selling? :wink:

DaftInvestor
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Re: Landlords: How are you doing this year?

Post by DaftInvestor » Thu Jul 02, 2020 1:29 pm

"close to 10 rental properties" - does that mean you own 9? :)

LeftCoast
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Re: Landlords: How are you doing this year?

Post by LeftCoast » Thu Jul 02, 2020 1:34 pm

We have 13 units. All are current now. One tenant paid half rent for April and May, and agreed to catch up when his employer re-opened in June. He was true to his word and has now caught up. I consider myself lucky, as local law prohibits evictions through September.

I have seen a decrease in maintenance requests. Nobody wants a plumber or other worker in their unit.

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Harry Livermore
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Re: Landlords: How are you doing this year?

Post by Harry Livermore » Thu Jul 02, 2020 1:56 pm

tomtoms wrote:
Thu Jul 02, 2020 12:07 pm
Has anyone heard of this?

1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence

Is this a legal loophole to not pay taxes?
tomtoms, I think you are better off consulting, for starters, with a CPA, and then a tax attorney if you are really serious about this. There may be folks on BH who are in fact CPAs and tax attorneys. I don't know.
I think what you are proposing is permissable, but you'll really want to dot the "I"s and cross the "T"s on this one.
I do know that there have been a fair number of abuses involving 1031 exchanges, and they are scrutinized, though I don't think they are "listed transactions".
You'll definitely want to hire someone to be the 1031 "qualified intermediary" and handle the whole process regardless.
Here's an OK article but it's over 10 years old; it could be full of misinformation at this point:
https://www.expert1031.com/articles/200 ... 1-exchange
Take everything I have suggested with a grain of salt; I have never done a 1031, only done some reading.
Cheers

av111
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Re: Landlords: How are you doing this year?

Post by av111 » Thu Jul 02, 2020 9:42 pm

tomtoms wrote:
Thu Jul 02, 2020 12:07 pm
Has anyone heard of this?

1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence

Is this a legal loophole to not pay taxes?
This looks workable but if you are planning to take mortgage on the big house, rates will be higher plus you have to delay moving into the dream house
AV111

av111
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Re: Landlords: How are you doing this year?

Post by av111 » Thu Jul 02, 2020 9:43 pm

Anyone know? Have they lifted the eviction ban in California
AV111

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Re: Landlords: How are you doing this year?

Post by flaccidsteele » Thu Jul 02, 2020 9:57 pm

tomtoms wrote:
Wed Jul 01, 2020 10:58 pm
I don’t know anything about commercial RE. I guess I can learn but it seems like there is more risk and headache.
The first sentence explains the second

Reminds me of people who say, I don’t know anything about stocks. I guess I can learn but it seems like there is more risk and headache. I’ll stick to my savings account
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat

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unclescrooge
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Re: Landlords: How are you doing this year?

Post by unclescrooge » Thu Jul 02, 2020 10:02 pm

Cycle wrote:
Wed Jul 01, 2020 9:09 pm
One property (2 units), lots of maintenance requests this year, for dumb stuff... E.g. tenant was turning key wrong way to unlock door, tenant closes window too hard and glass shatters, tenant reports garage door broken (replaced remote batteries). Have 2nd kid due in August and no longer want to do this stuff.

It goes live on the market on Friday... My landlord days may soon be over.
Why are you the property manager? Why haven't you outsourced this?

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AerialWombat
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Re: Landlords: How are you doing this year?

Post by AerialWombat » Thu Jul 02, 2020 10:12 pm

tomtoms wrote:
Thu Jul 02, 2020 12:07 pm
Has anyone heard of this?

1) Sell 5 of your rental properties at one time
2) Do a 1031 exchange and buy an expensive house
3) Rent out the expensive house for a couple of years
4) Finally, move into the expensive house and make it your primary residence

Is this a legal loophole to not pay taxes?
If you continue living forever in the final house, then yes, your heirs get the step-up in basis when it transfers to them when you croak.

If your objective is to live in it for a few years, then sell it with the idea of getting the entire Sec. 121 capital gain exclusion... Think again. Look up "non-qualified use" and "depreciation recapture".

Also, good luck coordinating the timing on selling 5 to buy 1 within the 1031 time limits.

Cycle
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Re: Landlords: How are you doing this year?

Post by Cycle » Thu Jul 02, 2020 11:07 pm

unclescrooge wrote:
Thu Jul 02, 2020 10:02 pm
Cycle wrote:
Wed Jul 01, 2020 9:09 pm
One property (2 units), lots of maintenance requests this year, for dumb stuff... E.g. tenant was turning key wrong way to unlock door, tenant closes window too hard and glass shatters, tenant reports garage door broken (replaced remote batteries). Have 2nd kid due in August and no longer want to do this stuff.

It goes live on the market on Friday... My landlord days may soon be over.
Why are you the property manager? Why haven't you outsourced this?
I live nearby, i am handy. I got quotes for management a couple years ago, it seemed steep, I want to say $400 per month for the building plus then every call has a charge.
Never look back unless you are planning to go that way

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