Rental Cash Flows
Question: do you all have to pay taxes on your rental income? if so, doesn't that take a chunk out of your cash flow?
Also, while I am on the subject, I do strongly agree with those in here that attibute conditions to their respective markets, here in Indiana the major problems I encounter are less than willing lenders when it comes to interest rates on rentals, people who wont pay their rents, a depress economy in my area - in which almost all potential renters have cruddy credit and tear up the rentals which makes it more cumbersome to make repairs with the marginal rents, and more diffucult to refincance because the properties are not apprecaiting enough to refinance. Moreover, it is becoming more and more diffucult to command good rents when the local ecomomic conditions are so poor.
I would rather, like some, rehab and turn the properties but then you'll pay the taxman for it.
Sorry, I think I just in a gripy mood.
In the situation that you are in I reach into my magic chest of potions and pull out the little kit on carrots.
What motivates a tenant to pay his rent and to take care of the place?
Future Ownership.
What makes dear old fat dad break his habit of a drinking binge every Saturday Night.
Future Ownership
What makes the single mother, her fingers worn to the bone with many needle pricks from her day job as a seemstress Go out and take a job hustling drinks at night in a bar?
Future Ownership
You are fed up with the units you rent out to others. You would like to just stay at home and count a monthly check from some mortgage or trust deed you own. Now how do you do that.
Future Ownership.
Yes dear friend, If you do not want to get down and dirty and solve the problems of the world. Then start working to enhance the dreams of those who pay rent. Some future time when they can own the place. Or at least their crummy little unit.
You refinance your way as high as ever you can go. To recapture capital. For profit you creat a second that the new corporate owners of your units (the tenants themselves now stockholders entitle to posession of a unit by virtue of such being. will send you a monthly check. For dear Sir it was with this check and who knows how many side deals you made that they were able to buy that wonderful bunch of units that was driving you to the nut house.
Now every Saturday instead of fixing plumbing, associating with managers foul of breath and smerky of habit, you can play golf and indulge your desires to climb the social ladder. Join a country club whatever.
Sort of fun is it not. Lucius