Lets chat about the wonderful world of owning rental property

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Lets chat about the wonderful world of owning rental property

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My Rhythmic Crotch: Jan 13, 2011

Vote for local stuff is all I'm saying, I don't give a poo poo about your very cool and funny references.

# ? Apr 3, 2019 18:32

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# ? May 10, 2024 03:50

Ruzihm: Aug 11, 2010; Group up and push mid, proletariat!

indeed, and one of the coolest things to vote about is when to begin your local rent strike.

# ? Apr 3, 2019 18:37

ThatBasqueGuy: Feb 14, 2013; someone introduce jojo to lazyb

If anything that's a good insight as to why this thread is getting so much hate. In the same way that all politics are local and we should focus on the playing field an individual can most effectively influence, the landlords posting here are equivalent to our local bourgeois. Still small enough to have a face to put to the systemic violence, and not big enough to actually be able to hire people outside of a dead gay forum for advice.

# ? Apr 3, 2019 18:58

Ramc: May 4, 2008; Bringing your thread to a screeching halt, guaranteed.

"hm why do people keep calling me a monster"

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# ? Apr 3, 2019 19:01

Motronic: Nov 6, 2009; Can't post for 12 hours!

ThatBasqueGuy posted:

If anything that's a good insight as to why this thread is getting so much hate. In the same way that all politics are local and we should focus on the playing field an individual can most effectively influence, the landlords posting here are equivalent to our local bourgeois. Still small enough to have a face to put to the systemic violence, and not big enough to actually be able to hire people outside of a dead gay forum for advice.

How is that even helpful? Dealing with local politics can have tangible local impacts and create real change. Brigading a thread with a bunch of small time landlords scattered throughout the country/world is not something that creates any meaningful change.

It seems that if you really believe in what you're saying you are spending your efforts doing what is easy and makes you feel good rather than putting in the work to advocate meaningfully for the changes you want to see.

# ? Apr 3, 2019 19:02

Katt: Nov 14, 2017

If I ever put pressure on my local politicians when it comes to property and renting it would not be to give construction companies tax breaks in hopes that they trickle down some newly built real estate to poor families to rent.

There's no brigading going on here. People are individually finding out that this thread has a bunch of horrible people in it and they come in to say so.

Said horrible people respond with "stop being poor and you too can have real estate peasants... why are people calling me a monster?

Katt fucked around with this message at 19:14 on Apr 3, 2019

# ? Apr 3, 2019 19:11

Happy Thread: Jul 10, 2005; by Fluffdaddy; Plaster Town Cop

Does marrying your landlord count as praxis

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# ? Apr 3, 2019 19:19

ThatBasqueGuy: Feb 14, 2013; someone introduce jojo to lazyb

Motronic posted:

How is that even helpful? Dealing with local politics can have tangible local impacts and create real change. Brigading a thread with a bunch of small time landlords scattered throughout the country/world is not something that creates any meaningful change.

It seems that if you really believe in what you're saying you are spending your efforts doing what is easy and makes you feel good rather than putting in the work to advocate meaningfully for the changes you want to see.

What if I do advocacy and post? Misses my actual point anyways, which is that naw the landlords here deserve as much scorn as our local ones, of which they're functionally indistinguishable on a class level.

Really a bunch of this just comes down to the broke brains incentivized by capitalism and/or BFC where time, along with everything else, needs to be perfectly optimized to some mysteriously "nonideological" definition of productive. Anything that isn't that optimization is either the individual showing that they're too stupid to do the optimization right or are insincere in whatever task or goal they have because they aren't throwing themselves head-first into being a living robot.

# ? Apr 3, 2019 19:52

TheLawinator: Apr 13, 2012; Competence on the battlefield is a myth. The side which screws up next to last wins, it's as simple as that.

What about buying a duplex at retirement age?

# ? Apr 3, 2019 20:52

Mischievous Mink: May 29, 2012

osker posted:

You are making an assumption about the mindset and motivation of everyone here. I am an engineer who has very purposely moved away from residential work with the big developers because that poo poo fucks your soul up and moved towards cultural and infrastructure work "for the common good."

making GBS threads up the thread with clever posts asking how to evict or avoid providing heat are in bad faith and clearly misinformed because you literally cant do that poo poo without flaunting (often inadequate) laws and being a raging rear end in a top hat.

The fact is that renting is a necessity. I have been posted on projects overseas and throughout the states and it is great to show up and get an apartment for a year or two and then move on without a care in the world.

Also, there is a guide dog in my household and can attest to everyone that coops and their boards can suck my whole dick.

The very first page of this thread has people debating how to best cut off the heat for an old woman to make her leave and get a more profitable tenant.

# ? Apr 3, 2019 21:05

ContinuityNewTimes: Dec 30, 2010; Я выдуман напрочь

Dumb Lowtax posted:

Does marrying your landlord count as praxis

gently caress landlords. checks out.

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# ? Apr 3, 2019 21:06

PostNouveau: Sep 3, 2011; VY till I die; Grimey Drawer

Mischievous Mink posted:

The very first page of this thread has people debating how to best cut off the heat for an old woman to make her leave and get a more profitable tenant.

Also, someone looking for advice on how to break Maryland's anti-Section 8 discrimination laws without getting caught.

# ? Apr 3, 2019 21:21

Crazycryodude: Aug 15, 2015; Lets get our X tons of Duranium back!

....Is that still a valid thing to jingoistically blow out of proportion?

Lol I missed that, incredible start, literally the 10th post after the OP is someone asking for help illegally discriminating

# ? Apr 3, 2019 21:36

Katt: Nov 14, 2017

But these are supposed to be the good, hard working landlords. Not like those evil landlords on TV.

# ? Apr 3, 2019 21:53

PostNouveau: Sep 3, 2011; VY till I die; Grimey Drawer

I think I might be able to dole out some valuable advice for these landlords. So many posters didn't get good advice the first time they posted.

Keetron posted:

What did you enter in the contract about these appliances? I have a similar situation where I rent out my apartment until the market for selling it moves up, but I explicitly said that the appliances present in the house are there on a as-is base, the tenant is granted free use while they function properly and I am not responsible for repairing or replacing them when they break down and the tenant is free to swap them for nicer things if they want.

I suggest you check with your lawyer on this one. I suspect your contract might skirt the law a wee bit.

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# ? Apr 3, 2019 22:21

PostNouveau: Sep 3, 2011; VY till I die; Grimey Drawer

kitten smoothie posted:

I rent out a townhouse in a larger development that has freestanding single family houses in it. There's an HOA for the street of townhouses and the whole development has its own master HOA. Both are represented by the same inept management company; I half wonder if they are some board member's cousin or something.

Apparently the master HOA had something like $80K worth of receivables on the books, and since the dues are $225/year that means that there were some people who never paid a dime of dues since the houses were sold in 2005-2006. They were going to try to offer these folks a payment plan first, under the threat of a lien if the homeowner doesn't hold up their end of the deal. When I asked why they won't just file a lien first to protect our interests the board president said they "wanted to be nice." It's not your fiduciary duty to be nice, it's your duty to protect the interests of those of us who actually pay the bills.

Hey buddy, payment plans are a valuable tool for a landlord or HOA. You should be more flexible so you can expand your landlord toolset. I bet those people probably like having a place to live.

# ? Apr 3, 2019 22:24

PostNouveau: Sep 3, 2011; VY till I die; Grimey Drawer

Bloody Queef posted:

Shielding Assets: It's something the extremely wealthy do and something you as a rental property owner should do too*

*I am not an attorney and nothing below should constitute legal or tax advice. Please consult your attorney before employing any of the below strategies (you'll pretty much have to anyway)

First: Why should you do it?

Let's say you own 2 rental properties, you're not Donald Trump, but you've got some serious assets. On one of your rental properties, a tenant falls down the stairs and decides to sue the poo poo out of you.
You're protected with an LLC, right? The tenant can't come after any of your assets outside of it, right? Nope. The corporate veil is pretty easy to pierce, especially if your tenant's attorney can prove negligence on your behalf. Stairs were 1/10" too short or too tall for code, carpet was slightly loose, whatever. So back to the tenant, he hobbles on in to an ambulance chaser's office and says that he wants to sue for a million dollars because his leg is broken and it hurts so bad. People in this position mostly are going to use an attorney who works on a contingent fee. So the attorney will run a title search on you, and BAM 2 rental properties and your primary residence show up. He sees that you have money, so he'll take the case! Now you're hosed.

If, however you shielded your rental properties (and even your primary residence) the title search will yield zilch, maybe your car (depending on the state and how thorough the attorney is) The attorney thinks you're poor, thinks that you don't even own the tenant's apartment and sends the tenant packing. If he's not going to be able to recover a lot of assets from you, he's not going to take the case for 35% of a few thousand dollars.

This scenario also applies to anyone in your life that may want to sue you, but this will NOT work if you're trying to hide your assets from someone that knows you.
Your bitter soon to be ex-wife, a business partner, etc are all going to be able to figure out your full portfolio of assets relatively easily, since they know where to look, and they'd get it all in discovery and subpoenas anyway.

Okay sounds great: How do I do it?
Trusts are great. They're the primary step. This varies on a state by state basis (and you can get trusts in another state, Nevada is popular for this) but the beneficiary of a trust is impossible to find out without a court order. I would have an attorney set up the trust, tell you what type of trust you need exactly for your estate planning and tax circumstances, and he'll be the trustee.
Who/what exactly do you make the beneficiary?

If you bought the house in cash, it's easy. Make it an LLC/an LLP(if you have partners)/S Corp/whatever works out best for your business case, but don't be the beneficiary of the trust, you do want the corporate veil.

If you used a mortgage to buy the house, your mortgage almost surely has a due on sale clause, which would trigger if you put the house's name in an LLC or almost any vehicle other than your name. However, the due on sale clause is NOT triggered by actions for estate planning purposes. You can tell your bank you are putting the house in an trust for estate planning purposes, but you'll have to be the beneficiary, you can't have an LLC be the beneficiary.

Great! I just put all my investment properties in the Bloody Queef Trust, and the Beneficiary for each one is Bloody Queef, LLC! Anyone with moderate intelligence will be able to figure out who is the owner of the property.

Here's were more strategy comes in. You don't want anyone thinking a business owns since they'll think the business has a lot of money, so Main Street Ventures Trust with a beneficiary of Main Street Ventures, LLC is out. But as above, you can't name it in your name, because that would ruin the whole exercise. So you can use a fictitious name (Ronald J McHengenberger Trust) or even better, the name of the person that was the previous owner of the house! Sounds kind of lovely, and it might be. But if someone is looking at your property's records, they'll see that Jim Smith bought the house 10 years ago, it was bought by some dude, and a day later is now in the Jim Smith Trust. They'll assume it was some kind of complex transaction and think that Jim Smith owns the house. They won't look too closely at the owner for one day, assuming he was an intermediary.

In order to keep this up, you're going to have to tell your tenants that you're the property manager, not the owner (which is technically true, because the trust owns the house) Keep each property in a separate trust and LLC as well. This probably doesn't make a ton of sense if you're only going to get a property or two. Note, you probably will not have to file a different return for each trust and LLC, they'll most likely be treated as disregarded entities for tax purposes. Please consult your accountant on this.

E: Ask any questions below and I can update the post to clarify things. I'll update the post to make it make sense if it doesn't.

Hey buddy, I don't think that's the intended use of these laws. You should probably invest in keeping your rental property safe and following all major codes to prevent lawsuits in the first place rather than abusing tax laws to hide your assets.

# ? Apr 3, 2019 22:32

PostNouveau: Sep 3, 2011; VY till I die; Grimey Drawer

Bloody Queef posted:

I just had my offer on a sweet 3br 1.5ba row home right in the heart of a downtown office business district accepted for 40% less than the original listing price.
Listed for 130, seller is in a nursing home and running out of money, dropped to 98 for a quick sale and accepted my offer of 80!

With a little (sub 3k worth) of floor refinishing, paint and polish I'm fairly certain I can get 1200 a month in rent as a residence. It's also zoned for dual use and I'm hoping to find someone who would use the downstairs as an office and upstairs as a residence for maybe 1,300.

My advice is give it back to the desperate old lady you stole it from.

# ? Apr 3, 2019 22:40

PostNouveau: Sep 3, 2011; VY till I die; Grimey Drawer

SpclKen posted:

So I haven't posted in here, but I thought since the thread is slowing down and I enjoy it. I will share my landlord by accident story.

I graduated college in 2004 with no debt. I got a moderately paying job in Los Angeles, and was still living with college buddies in a cheap house. After 6 months of spending way too much in discretionary spending I decided to look for a job in my home town (Bakersfield ca) and put money down on a new development there.

Things worked out well, new job, secured a lot in a very nice master planned community in the first phase of development. Secured a loan for $200,000 in addition to my 40,000 down payment (2nd loan from family). First loan was a 5 year ARM at 5.5%.
This was a hugely risky thing to do as a young kid a year out of college, but I figured that the roommates and the forded saving of a mortgage and 2nd would be like a forced savings plan.
My job moved me in 07, and I have rented since then. I was not able to sell since 2008 and the market crashed. I have been extremely lucky in several areas. I have had only 1 month of vacancy since it became a rental in 2007. My ARM has decreased every year and I just got the notice yesterday that I have a 2.75% interest rate for the upcoming year. I have had to do repairs/painting/cleaning for around $1,000 a year. I have family in the area that keeps a good eye on the house.
I would not recommend anyone doing what I did. I am aggressively paying off the mortgage and am now down to only $130,000. I just secured a new renter on a 2 year term and am $300 a month cash flow positive which is enough to cover repairs. I would have sold the house last year when prices finally rebounded, but with the low interest rate I decided to continue renting.

Being a long distance landlord is not a good thing, but I have been very fortunate. Without family in the area and the rental being in a highly desired gates community, it could have been a disaster and I could have lost a significant amount of money. I would be very happy to answer questions, but I honestly think I am more of something to avoid doing even though everything worked out well.

I think the bolded part is mortgage fraud? Consult your attorney.

# ? Apr 3, 2019 22:49

baquerd: Jul 2, 2007; by FactsAreUseless

PostNouveau posted:

I think the bolded part is mortgage fraud? Consult your attorney.

Only if you don't declare that it's a loan to the underwriter for the primary mortgage.

# ? Apr 3, 2019 23:08

Tollymain: Jul 9, 2010; by Jeffrey of YOSPOS

Dumb Lowtax posted:

Does marrying your landlord count as praxis

put a knife through their eye in their sleep after, sure

# ? Apr 3, 2019 23:57

Irony Be My Shield: Jul 29, 2012

It's a shame that C-SPAM keeps making GBS threads up the thread and preventing landlords from getting advice on how to perpetrate life-ruining crimes.

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# ? Apr 4, 2019 00:02

Gumball Gumption: Jan 7, 2012

osker posted:

You are making an assumption about the mindset and motivation of everyone here. I am an engineer who has very purposely moved away from residential work with the big developers because that poo poo fucks your soul up and moved towards cultural and infrastructure work "for the common good."

making GBS threads up the thread with clever posts asking how to evict or avoid providing heat are in bad faith and clearly misinformed because you literally cant do that poo poo without flaunting (often inadequate) laws and being a raging rear end in a top hat.

The fact is that renting is a necessity. I have been posted on projects overseas and throughout the states and it is great to show up and get an apartment for a year or two and then move on without a care in the world.

Also, there is a guide dog in my household and can attest to everyone that coops and their boards can suck my whole dick.

The first page is about how lovely section 8 renters are and how it's good to fine your tenants for turning on the heat. You might be one of the good ones but the majority of landlords are trash who see people as an open wallet.

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# ? Apr 4, 2019 00:02

Normal Adult Human: Feb 12, 2012; by FactsAreUseless

PostNouveau posted:

Also, someone looking for advice on how to break Maryland's anti-Section 8 discrimination laws without getting caught.

An official representative of Something Awful, LLC Copyright �2010 has already made it extremely clear that The Something Awful Forums must have a place where people can discuss tactics for legally refusing rentals to smelly (weed) urbans.

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# ? Apr 4, 2019 00:08

osker: Dec 18, 2002; Wedge Regret

Gumball Gumption posted:

The first page is about how lovely section 8 renters are and how it's good to fine your tenants for turning on the heat. You might be one of the good ones but the majority of landlords are trash who see people as an open wallet.

If someone says a lovely or illegal thing, call them on it, or have the mod close the thread, but this whole shitposting brigadeering thing painting everyone in the same stripe is dog poo.

osker fucked around with this message at 00:53 on Apr 4, 2019

# ? Apr 4, 2019 00:50

ContinuityNewTimes: Dec 30, 2010; Я выдуман напрочь

Irony Be My Shield posted:

It's a shame that C-SPAM keeps making GBS threads up the thread and preventing landlords from getting advice on how to perpetrate life-ruining crimes.

Many of the outrages perpetrated the people in this thread are merely moral abominations, not legal offenses. Good to go!

# ? Apr 4, 2019 01:00

Tollymain: Jul 9, 2010; by Jeffrey of YOSPOS

hm, alternative proposal: cede your property

# ? Apr 4, 2019 01:00

Crypto Cobain: Jun 17, 2018; by Reene

osker posted:

If someone says a lovely or illegal thing, call them on it, or have the mod close the thread, but this whole shitposting brigadeering thing painting everyone in the same stripe is dog poo.

Shitposting? On MY something awful forums?! Say it ain't so!

poo poo threads deserve poo poo posts

# ? Apr 4, 2019 01:00

Tollymain: Jul 9, 2010; by Jeffrey of YOSPOS

the quality of the thread has risen dramatically since nonlandlords started posting imo

# ? Apr 4, 2019 01:07

Crazycryodude: Aug 15, 2015; Lets get our X tons of Duranium back!

....Is that still a valid thing to jingoistically blow out of proportion?

Tollymain posted:

the quality of the thread has risen dramatically since nonlandlords started posting imo

They're getting gentrified out of the posting neighborhood

# ? Apr 4, 2019 01:12

Pentecoastal Elites: Feb 27, 2007; Can't post for 2 hours!

Irony Be My Shield posted:

It's a shame that C-SPAM keeps making GBS threads up the thread and preventing landlords from getting advice on how to perpetrate life-ruining crimes.

*as I am being dragged to the gallows* wow this brigading has GOT to stop

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# ? Apr 4, 2019 01:13

Ramc: May 4, 2008; Bringing your thread to a screeching halt, guaranteed.

that feeling when you realize the new weekend web is coming from inside the forums

# ? Apr 4, 2019 01:15

Tollymain: Jul 9, 2010; by Jeffrey of YOSPOS

man it sure sucks that after decades of mistreatment people are starting to think violence is inescapable

lets double down tho, surely this won't go anywhere

# ? Apr 4, 2019 01:20

Ramc: May 4, 2008; Bringing your thread to a screeching halt, guaranteed.

Tollymain posted:

man it sure sucks that after decades of mistreatment people are starting to think violence is inescapable

lets double down tho, surely this won't go anywhere

"haha wow you're real mad huh and say you wanna punch me you won't do it coward haha what if i take a dump on you nothing huh that's what i thought how about i take dump on your famil- oh poo poo you stabbed me"

# ? Apr 4, 2019 01:25

Droo: Jun 25, 2003

This thread has averaged less than 1 post per day since it started, I don't really think anyone notices or cares about you guys posting in it.

On an unrelated note I am not a landlord but you all seem like you would be some nightmare tenants, maybe that's why you all have problems with your landlords. Perhaps the landlords in the thread could throw out some helpful tips on how to be a better renter?

# ? Apr 4, 2019 01:29

Pibur: Jan 28, 2019

Droo posted:

This thread has averaged less than 1 post per day since it started, I don't really think anyone notices or cares about you guys posting in it.

On an unrelated note I am not a landlord but you all seem like you would be some nightmare tenants, maybe that's why you all have problems with your landlords. Perhaps the landlords in the thread could throw out some helpful tips on how to be a better renter?

I have a good relationship with my landlord and would consider myself a model, low effort tenant. I'll even do repairs myself if I'm reimbursed for parts because it's just faster and I can do simple stuff myself. Doesn't change the fact that he's a leech on my life.

# ? Apr 4, 2019 01:34

Ramc: May 4, 2008; Bringing your thread to a screeching halt, guaranteed.

Droo posted:

This thread has averaged less than 1 post per day since it started, I don't really think anyone notices or cares about you guys posting in it.

On an unrelated note I am not a landlord but you all seem like you would be some nightmare tenants, maybe that's why you all have problems with your landlords. Perhaps the landlords in the thread could throw out some helpful tips on how to be a better renter?

We own our own home now but we used to rent. My spouse brought up mold concerns and was told by the building people it was just dirt but she's a scientist so she loving cultured it so if you were bad then we were bad.

# ? Apr 4, 2019 01:38

baquerd: Jul 2, 2007; by FactsAreUseless

Droo posted:

On an unrelated note I am not a landlord but you all seem like you would be some nightmare tenants, maybe that's why you all have problems with your landlords. Perhaps the landlords in the thread could throw out some helpful tips on how to be a better renter?

Pay what you are contractually obligated to pay, report issues early so landlord can address. Don't get arrested. Understand that you are paying extra for not taking on risk of buying and selling property.

# ? Apr 4, 2019 01:47

Ruzihm: Aug 11, 2010; Group up and push mid, proletariat!

Pibur posted:

I have a good relationship with my landlord and would consider myself a model, low effort tenant. I'll even do repairs myself if I'm reimbursed for parts because it's just faster and I can do simple stuff myself. Doesn't change the fact that he's a leech on my life.

Same

# ? Apr 4, 2019 01:51

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# ? May 10, 2024 03:50

Tollymain: Jul 9, 2010; by Jeffrey of YOSPOS

baquerd posted:

Pay what you are contractually obligated to pay, report issues early so landlord can address. Don't get arrested. Understand that you are paying extra for not taking on risk of buying and selling property.

shut the gently caress up about risk you leech, you take no risks beyond those inherent to being a loving financial vampire in a climate where the social mechanisms meant to prevent violent revolution have been themselves looted

# ? Apr 4, 2019 01:54

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Lets chat about the wonderful world of owning rental property

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