Are you changing or complaining?

[furnishedowner]

Dang, fdjake, thanks for the pat on the back, but I'm one of the herd as for as the 30-year mortgages.

I'm thinking exactly on the lines of justin0419.  I've paid off all personal and business debt except mortgages and the credit line.  I've shrunk my inventory of furnished homes -- sold one, and didn't renew other leased homes.

But three big new suite hotels are opening here in the next few months.  I have no idea of how that will directly impact this furnished rental home business.

It would be real nice to have less mortgage debt.  My payments are pretty big, as a couple of them were 10-year commercial variable loans.  When interests rate go up, and they will eventually, the payments will be even bigger.

The idea of taking on new mortgage debt now, and hitting a 50% vacancy rate....can't do it.

I've gotta be conservative on this debt, even if it ain't contrarian.  There will always be good deals.

Furnishedowner

[furnishedowner]

jfpen,
Okay, I got the irony...  Politically, we are on different ends of that pendulum, which is weighted pretty far to the right on this site.  So sometimes, I have to speak up just for a little balance.

As for our landlording methods, I could probably step right in and manage your units, and you mine.  I give you applause for TWO quotes of the week:  "When managing rentals, TAKE OUT THE TRASH!"  Also, I liked "like in a marriage, it's the little things that count." 

propertymanager,
Our different landlording styles could make a great script for a movie, were I to handle your places for a month, and you mine, don'cha think?

SCRIPT: 

FURNISHED TENANT phones Mike:  "I hate to complain, but I just saw A BUG outside my door, AND my pizza cutter is broken!"
MIKE:  ?!#&"XXX!!!

MIKE'S TENANT phones:  "Damn! They shootin' right outside the door!"
FURNISHEDOWNER:  "You poor thing!  Why don't I just upgrade you to a better unit?"

Furnishedowner

[propertymanager]

I'm thinking exactly on the lines of justin0419.  I've paid off all personal and business debt except mortgages and the credit line.  I've shrunk my inventory of furnished homes -- sold one, and didn't renew other leased homes.

But three big new suite hotels are opening here in the next few months.  I have no idea of how that will directly impact this furnished rental home business.

I think paying off debt is VERY smart.  This is not the same cycle that we've seen before in the United States - because the big bankers have reached the end game.  They've successfully stolen a HUGE portion of the country (and the world) and now are intent on destroying our way of life.  They want POWER - not money.  To get that power, they've indebted the governments of the world to the point of being broke.  The countries are broke; the states are broke; the cities are broke!  Instead of stimulating business and jobs by lowering taxes and cutting regulation - they are DRASTICALLY raising taxes and increasing regulation which they KNOW will make things worse (have I mentioned Cloward and Piven).  We are at a tipping point.  The parallels to 1930 are clear.  The game is up - except the coming depression will be MUCH worse than the 1930's!

As for your issue with the competition FO, why not just add some typical low income rentals to supplement your Furnished Business?  It will be a culture shock, but the money all spends the same.

Great points.I see so many that when they do make more$$,they spend more,therefore to me they make no change.If you still are in the weekly cycle just on a higher scale,you're still no better off.

My sentiments exactly!  If you have to work around the clock and keep a 9-5, then what did all that work get you?  I guess more digits in a checkbook is a good thing - IF IT'S NOT WIPED COMPLETELY OUT BY THE IDIOTS IN OUR GOVERNMENT!  Personally, I'll take being semi-retired and enjoying life any day of the week.

Mike is a section 8 slum lord, who loves section 8 government $ but hates the government that pays him.

Ridiculous!  First of all, I'm certainly not a slumlord.  All of my rentals are safe and clean and I am one of only 2 or 3 landlords that pass my Section 8 inspections almost always on the first inspection.  Also, I don't love Section 8 - I think that Section 8 and all other entitlements should be terminated and it wouldn't affect my occupancy one bit.  I'm absolutely certain that if people were given the choice of working or starving - they would work.

[furnishedowner]

Wait, wait, pm, I thought it was the Socialists who were ruining us, but now you say it's the BANKERS?!   They must be SOCIALIST BANKERS, then, right?  No, wait, Bankers are CAPITALISTS...unh....

Having low income rentals is not a bad idea.  It has always been the back-up plan.  If the market here won't cover the higher costs of a furnished rental, pull out the furniture, stop the utilities and just go with the market.  $400/month units will always rent.  I bought all houses with that bottom-line number in mind. 

I would rather have more rent though.  I would rather get $1200 for a 1-bedroom than $400.  And deal with a middle-income working professional than an entry-level tenant.

robdegar,
I like your plan.  But are you flexible enough?  If you meet someone who says, "Do you want to buy a cheap little house?", can you shift gears and do it?  Quickly?

A couple of years ago I bought a nice, level, utilitied city lot for $400.  I wasn't shopping for one, didn't want one, couldn't use one.  But that owner needed cash, THAT DAY, and it was only $400.  Now I am going to put it up for sale..$2500-$4800 somewhere in that range.  A few thousand profit for being flexible and for saying, "Yes, okay, let me go get the cash."  Not a big score, but a score nevertheless.

I am still chewing over the idea of getting rid of debt.  As quickly as possible.  But I want to keep that edge, that openness towards getting some piece of real estate for a quick profit.  I want to have it both ways!

Furnishedowner

[propertymanager]

Wait, wait, pm, I thought it was the Socialists who were ruining us, but now you say it's the BANKERS?!   They must be SOCIALIST BANKERS, then, right?  No, wait, Bankers are CAPITALISTS...unh....

FO, your local banker is a capitalist; the bankers at your regional banks are capitalists; the "bankers" who own and run the member banks of the Federal Reserve are NOT CAPITALISTS!  They are thieves!  They have STOLEN TRILLIONS of dollars from the American People in the greatest theft in history (as I have repeatedly explained).  The Fed creates money out of thin air; loans it to the big banks at near zero percent interest; and then these banks loan it to the treasury at 3% interest.  THEFT - PLAIN AND SIMPLE (and unconstitutional, of course).

[John_in_NC]

Well I changed. I am selling my rentals. They are not worth it. I am right now enjoying my recent money just a tad. I'm in LA spending the night in the exact same room jim morrison lived back in 68-70. Pretty cool eh? Well at least i'm not blowing everything on a car!!

Thank you real estate and FDJake

[robdedgar]

I like your plan.  But are you flexible enough?  If you meet someone who says, "Do you want to buy a cheap little house?", can you shift gears and do it?  Quickly?

I would put it under contract and flip it to another investor.  Without even thinking, I have built up a decent sized buyers list in my area. If no one wanted it I would probably just start calling all of the landlords on craigslist.

[REIER]

Well, based off of my bank account numbers, they keep telling me I'm changing. And I'm sure not complaning about what I see!!