It was imperative the our government bail out each and every commercial airliner after 9/11, to enable us hamsters to keep on consuming, keep going, don't stop whatever you do~
Quite a few of my friends are accidental landlords. They have no idea what they are getting into; most of them have trouble being responsible homeowners themselves.
There's also a strange habit of giving up the idea of living in the residence. They move into another place, often a family member's, for free.
In Oregon, IIRC, the landlord is liable if the tenant is running a meth lab-- and has to pay for hazmat. Which doesn't do the affordable housing market any good. And the local gendarmes can take your kids away if you are not providing suitable housing. So people just hide in the woods in trailers, and don't send the kids to school.
I thought of you this morning. The Starbucks line was out the door and everyone in it looked like they were waiting to try out for a bit part in Cougar Town
I can't stand Starbucks, but I like to stare @ Starbucks when passing by, always on the prowl for elusive prey, quadragenerian see me-dig me cougars...
scone,, months ago you motivated me to drive through random oregon town roads on google maps on rainy saturdays--there are alot of tall forests for people to hide their random proclivities!
@ TGR - thanks, I think. Someday I'm going to get over to "the empty quarter" in the south east. Hundreds of miles of nothing. The North West as a whole is so underpopulated compared to the East Coast, almost a different planet. Some of this area hasn't even been fully mapped yet.
I believe I remember reading that article, about outsiders "snapping up" rental properties in Pocatello. It was during a time when I was searching the media, trying to find an explanation for exploding house prices. The author of the article I read (maybe this very guy) found nothing wrong with trying to make money off the Poorer People of Pocatello. With great admiration, it was described how these properties were bought by outsiders from California and elsewhere, who have never seen them. These 'investor types' were lauded for not even taking a trip to Idaho, for the occasion. Contrary to the author, I had some choice words for these buyers.
Beware of "accidental property managers" as well. A lot of people got into the business who shouldn't have. A friend had her rental house destroyed by her gang-banger tenants because the property manager didn't do a background check.
She repaired it by maxing out her HELOC, then having her bankrupt brother in law move in. Who hasn't paid rent in a year.
This the typical school thinking let the tenant pay off the mortgage. There is no room to start and old properties need maintenance even if the tenant is good. Mortgages must be very small or none at all!
Over 20 years ago a co-worker told me his financial adviser, named - wait for it - Chuck Cheatum, had him buy rentals in Spokane WA and cut diamonds!!! Yikes! These investments did not turn out so well.
In my own case I rent out my old home. It is paid for but with the costs of landlordism the rent just pays for property tax and repairs. That is ok with me as it is a place for the kids in Wash DC to move to when they can move back to the Bay Area.
That just shows how this whole housing ballon happened in broad daylight. Who in their right mind spends over 60K on something you only ever saw photos of ? Come on that is just madness.
While not a good investment, it's hardly a horror story. Dude is only cash flowing slightly negative and he should simply sell it (especially since as he is a PT landlord all of his "losses" are passive until he sells the property, although it sounds like he is treating them as active losses). Homes that sold for 62k aren't going to sell for a whole lot less now, so he should sell it and move on. So he loses a few thousand dollars but he's got some good war stories. Hardly a life altering event.
A horror story is having the bulk of your portfolio in C or GE or GGP about 2 years ago and watching it disappear. Now THAT'S something worth lamenting.
I doubt rental investments can stay in the black if the owner doesn't maintain them personally.
WHEN & WHERE
Are the other lessons CalculatedRisK has taught me about Real Estate.
I plan to use them well.
Re: "Accidental"
You keep using that word. I do not think it means what you think it means.
(offal leftovers)
It was imperative the our government bail out each and every commercial airliner after 9/11, to enable us hamsters to keep on consuming, keep going, don't stop whatever you do~
But what do they matter now?
And that guy is stuck with just one garbage asset. Can you imagine how the Fed must feel?
I once invested in a four unit building in the Midwest indirectly, by loaning a cousin the money for a down payment.
Huge mistake, it was a total loss. That when I learned that you never want to be an absentee landlord.
We are all accidental slumlords since the Fed began buying MBS.
How about "unintentional"? ROFLOL.
I started using "accidental landlord" as a homage to "The Accidental Tourist".
It just has a nice ring
best wishes
I invested in a laotian wife sight unseen and she had holes in her but no buyers remorse--caveat emptor!!
Quite a few of my friends are accidental landlords. They have no idea what they are getting into; most of them have trouble being responsible homeowners themselves.
There's also a strange habit of giving up the idea of living in the residence. They move into another place, often a family member's, for free.
In Oregon, IIRC, the landlord is liable if the tenant is running a meth lab-- and has to pay for hazmat. Which doesn't do the affordable housing market any good. And the local gendarmes can take your kids away if you are not providing suitable housing. So people just hide in the woods in trailers, and don't send the kids to school.
I think it'd be cool to be an accidental landlord for like a day or something.
Buy 43x one dollar homes somewhere on just other side of nowhere in rusted out America. Give em' back the next day.
Tell everybody I once owned 44 houses...
Juv,
You remind me of an insane lad...
Anyone see a CDS or a synthetic CDO before they bought it? Y'know, in the wild, not captivity.
C
Juv,
I thought of you this morning. The Starbucks line was out the door and everyone in it looked like they were waiting to try out for a bit part in Cougar Town
People deserve the consequences of their choices.
I can't stand Starbucks, but I like to stare @ Starbucks when passing by, always on the prowl for elusive prey, quadragenerian see me-dig me cougars...
scone,, months ago you motivated me to drive through random oregon town roads on google maps on rainy saturdays--there are alot of tall forests for people to hide their random proclivities!
I can't believe this guy was writing about the housing market and bought in late 2006.
... and in Pocatello of all places! Sheesh!!!
I was screaming sell everythin early 2006 before i ever heard of CR
Juvenal,
It is cheaper to buy it.. who wants a 40-something cougar anyway.
Pocatello, isn't that where retired FBI agents go to die?
"I can't believe this guy was writing about the housing market and bought in late 2006. "
Who knew that you could get a contact high from RE Kool-Aid?
@ TGR - thanks, I think. Someday I'm going to get over to "the empty quarter" in the south east. Hundreds of miles of nothing. The North West as a whole is so underpopulated compared to the East Coast, almost a different planet. Some of this area hasn't even been fully mapped yet.
Some clown named Newton lost his ass in a bubble, euphoria does that.
Pocatello, isn't that where retired FBI agents go to die? - nova
Isn't that a David Lynch movie?
scone - I heard even lewis and clark got turned around. Beautiful country though and I'm told the blue meth is really cheap!
Diablo,
Not that i'd know what a cougar does in her spare time away from me, which would be everything aside from a fleeting glimpse...
I'm happily married, with corrected 20/20 vision.
I believe I remember reading that article, about outsiders "snapping up" rental properties in Pocatello. It was during a time when I was searching the media, trying to find an explanation for exploding house prices. The author of the article I read (maybe this very guy) found nothing wrong with trying to make money off the Poorer People of Pocatello. With great admiration, it was described how these properties were bought by outsiders from California and elsewhere, who have never seen them. These 'investor types' were lauded for not even taking a trip to Idaho, for the occasion. Contrary to the author, I had some choice words for these buyers.
I'm told the blue meth is really cheap!
You get what you pay for. Please, we have enough drooling zombies here, try the pot instead. Jeez, try the beer and wine, for that matter.
Santa Fe is full of accidental landlords.
Beware of "accidental property managers" as well. A lot of people got into the business who shouldn't have. A friend had her rental house destroyed by her gang-banger tenants because the property manager didn't do a background check.
She repaired it by maxing out her HELOC, then having her bankrupt brother in law move in. Who hasn't paid rent in a year.
The default will come sooner or later.
This the typical school thinking let the tenant pay off the mortgage. There is no room to start and old properties need maintenance even if the tenant is good. Mortgages must be very small or none at all!
"This is more nightmare than investment. But it could have been worse. I'll never understand why people invest in properties sight unseen. "
For the same reason they buy shares of RIMM without wanting to be shown the conditions of the Blackberry factory.
You killed the thread Yogi....
No, it's pining for the fjords.
No thread is ever dead, as I've been preachin'.
Ha - just you and me here - how poetic...
Bank.
4. Have some student loans - don"t worry put them "OFF-THE-BOOKS"
Also, like Banks can do lets allow All Americans to ignore "MARK-TO-MARKET!"
Good articles: Financial Opinions Updated Daily iamned.com
Over 20 years ago a co-worker told me his financial adviser, named - wait for it - Chuck Cheatum, had him buy rentals in Spokane WA and cut diamonds!!! Yikes! These investments did not turn out so well.
In my own case I rent out my old home. It is paid for but with the costs of landlordism the rent just pays for property tax and repairs. That is ok with me as it is a place for the kids in Wash DC to move to when they can move back to the Bay Area.
My God what a sucker.
Having a TOTAL DUMP shackled to your ankle.
"Just hang on a little while and then sell." How about get one of the degenerates to torch the place and take the money.
Just the fact of having those people for tenants...and having to RELY on them to NOT LEAVE...all for the joy of losing money!
No way, no how will anyone ever talk me into being a landlord. Next door neighbor here is a land lord. Complains endlessly about it...
Bottom line, people are Pigs and don't respect their stuff, much less YOUR stuff...
Oh and I had to laugh about him thinking, "its not so bad, I really didn't lose that much money....I can still salvage something..."
DUDE....YOU GOT SNOOKERED. YOU ARE F*CKED
That just shows how this whole housing ballon happened in broad daylight. Who in their right mind spends over 60K on something you only ever saw photos of ? Come on that is just madness.
While not a good investment, it's hardly a horror story. Dude is only cash flowing slightly negative and he should simply sell it (especially since as he is a PT landlord all of his "losses" are passive until he sells the property, although it sounds like he is treating them as active losses). Homes that sold for 62k aren't going to sell for a whole lot less now, so he should sell it and move on. So he loses a few thousand dollars but he's got some good war stories. Hardly a life altering event.
A horror story is having the bulk of your portfolio in C or GE or GGP about 2 years ago and watching it disappear. Now THAT'S something worth lamenting.
For properties, and even cars, I think 'smell unsmelled' is almost as important. A picture can be OK, but a stench can be impossible to get out.
I doubt rental investments can stay in the black if the owner doesn't maintain them personally.
WHEN & WHERE
Are the other lessons CalculatedRisK has taught me about Real Estate.
I plan to use them well.
What else would a winning genius do?
Juvenal Delinquent (profile) wrote on Tue, 6/16/2009 - 8:51 pm
I think it'd be cool to be an accidental landlord for like a day or something.
Buy 43x one dollar homes somewhere on just other side of nowhere in rusted out America. Give em' back the next day.
Tell everybody I once owned 44 houses...