Hey lads. So my dad died a month ago. He was a landlord, and I'll be set to figure out what to do with 12ish properties of his that he was renting out.. So my primary goal here is to figure out how to support my mom since she isn't really in a position to work, and I'd rather not spend all my money keeping her afloat since I'm already getting hit by a wave of bills.
So... The houses are all in varying conditions, some have tenants, but generally are all in lower income areas. Mortgages arent up to date and some bills are behind, but I know mortgage companies don't wanna get stuck holding property right now so I'm sure they would work with me given the opportunity. So it's a matter of -- what's the best financial decision here? Sell them, pocket the money, or keep renting them and try and get things current? I have a management company who would be glad to do so, and even offered to do it for free while things get figured out. But I don't have the income to really dump to try and keep the more difficult ones, but despite my dad being a solid real estate agent, he was a bad manager and I don't know shit about the market. I'm an engineering autist.
So... What do? I know the biggest issue is that he wrote off depreciation on a lot of them for taxes, so those will either be left to go into foreclosure or kept if I can extract money out of them.
following, my old man has lots of properties and I may be in this position in the future
Gabriel Robinson
Personally I would firesale two of them just to raise the cash you’re clearly lacking. Then I’d use the money to hire a property manager or take sufficient courses that I could do it muh self.
Oliver Brooks
This
Andrew Lewis
I'd touch base with him desu. I'm picking up the ashes right now because my father didn't really leave a great plan. His mind got fried by drugs and just being senile. I think poking through his documents, things went wrong for him in 2017...word around the office too is that he was too nice to be a property manager and so I think they really drove him mad. But yeah, didn't renew his life insurance policy, will was stashed in a box and really is incomplete. I'm an only child too...so that's something
Yeah, I definitely think that sounds like a good idea. All the bills are behind, but if I can get rid of them for a profit and get ourselves into the green WITHOUT the IRS and debtors taking everything I make, then I think I'll be good. I'd like to net ~1000 after putting aside money for repairs and shit a month if I can, because then with that, my dad's SS going to my mom, and my own income, I can probably support her until she passes. Thanks for the advice.
Reason I don't manage them myself is because I don't live in the city anymore, and I wouldn't be comfortable doing it anyways even if i DID have my CCW permit. Thankfully, the property manager DOES so I don't mind working with him.
Wyatt Watson
>Larping this gay
Juan Jackson
>inheriting property is such a foreign concept that some retard thinks this is a larp
Ian Thompson
Land ownership is a precious thing, don't sell it. Just get everything ship-shape and retire off the rental income.
Mason Diaz
Yeah I don't plan to. I'm a millennial with student debt senpai, if this let me achieve any stability in my life going forward I would welcome it.
Anthony Baker
fpbp
Austin Scott
Honestly your dad fucked up hard. Rather than getting a real job he expected others to pay his bills for him. Now all that laziness has come crashing down on you. Of course, being the son of a “landlord” you deserve as well. You’re family are leeches on society. You’ve accomplished nothing of value and you’ve never contributed to society. I’ll laugh when the banks take your properties and give real people the ability to live without dropping more than half their paycheck on your “property”
Carson Ross
Actually my dad was an extremely successful real estate agent who helped a lot of people find and buy a home. There has been a huge outpouring of people who have reached out to offer help. And desu if he had actually run his property management as a business, he probably would not have been stressed, because apparently there is a running joke that a tenant would come in short on cash and he would give THEM money. I guess the running joke on biz is OH LANDIESSSSSS but money that just sits idly is a waste. God bless friendo
I meant to troll you because there was a 99 percent chance your dad was a fucking piece of shit. Pretty surprising he wasn’t. RIP in peace anons dad ???-2020
Zachary Sanders
Yep. He wasn't the greatest of guys I know, but his passing was pretty untimely and I think he just got stuck in a hole that he couldn't get out of. I would have loved to have had more time with him, or wish I had saw the signs. But my relationship with my mom was never "great" and so I just assumed it was 100 percent marriage quarrel. He never was open with me that he was struggling with anything. Sad indeed.
Cheers friend, we are all just big shitposters here, and a lot of landies are pretty shitty. I live in a college town where the average rent is like 1400 for a studio so I'm used to it at this point.
You are going to fail in landlording. Your dad did great. But you fall for the lowest of the lowest twitter tranny to bite you into justifying yourself.
Henry Rivera
keep the properties, keep track of daily finance needs/bills needed. Fix whatever you need to fix to turn a profit if you're not. Don't spend any money on personal shit. fuck your student loan. let it sit and make minimum payments. dont accumulate any credit/personal loan debt. continue collecting checks for rent payments, save all of it for 5 years before you spend any money on personal shit and use all of the 5 year savings to keep the units profitable. dont be a dumb fuck and sell all of the properties for a quick buck.
Owen Evans
>NO YOU CAN'T RESPOND >IF YOU RESPOND THEY WIN Leaf?
Nah, I am an EU fag. But here is my essay. My parents owned 1 apartment house with 5 renters and 2 single houses with 1-2 apartments each in a mid-size city in okay-area (Western Europe, first world). Not pretty but they are all rented out. The return is decent but they are doing the management and by themselves. They sold one of the houses for a decent price and I persuaded them to buy a nice apartment in the best area in the capital. By selling the house they could pay down 50% of the costs of the apartment and took a credit for the other half. Now I am still in Uni and don't want to move there yet. BUT this single apartment does more in rent than the apartment house with 5 renters. Plus the renter is an MD and just has paid his rent every first of the month without any discussion at all. Moreover, since buying the apartment 5 years ago the price has risen about 30%.
What I would do in your case is to sell them slowly off and buy in high-quality areas and solid buildings that can stand the test of time. Take your time, I reloaded listings like a maniac for 4-5 months until I found that apartment and knew the city really well to that point that with 1-2 pictures from the outside I could approximate the street. You might make more holding 3 properties in great locations with quality renters than 12 properties where your management company leeches, your renters might have a high chance of missing rent, and so on. Once you have this set up you can go on with your life with minimum interference. Keep in mind that finding one good undervalued real estate deal can mean 3-4 years of regular your salary.
But you probably should go first to the bank check out the mortgage situation, find out how much there is still to pay, tell them your situation and figure out if you can even get out of these contracts if you sell something off. In Europe, there are some good property owner associations that when you become a member you get free legal advice. Find them too
Hunter Watson
Cheers laddie. I actually really appreciate that thought and I think you're 100 percent right when I really think about it. Of course, I need to be able to support my mom and that's gonna be my largest goal, but it may be a good idea to sell a few and then buy a house in a nicer area for that exact reason, especially if the market is gonna crash. Hell, my dad even talked about how his biggest regret was buying a bunch of properties vs a few higher quality ones. Max he owned was 18, but he's been selling them off since its a sellers market. So I'll probably look to sell maybe half, especially the shitty vacant ones, keep the nicer ones, then maybe look to purchasing a nicer one.
Kayden Green
There is an attraction to these shit tier properties. They always get a higher return on investment. But most people overlook the amount of work they have to put in administrating these problem-ridden objects or the cut they have to pay the administration firms. If you don't want to take over a substantial part of your life you have to size it down. Real estate is a lot muddier than clean-cut stock and crypto pricing. You can win by micro knowledge and out-of-market deals. But its also a lot less liquid, meaning you might have to hold out for half a year or more for the right opportunity. If you still have a sellers market use it. Europe seems to be slowing down already. Might take until Autumn to fully see the effect.
Hudson Reed
So here's a question that I'm curious about -- a few of these are in foreclosure. Only reason they aren't going to auction is because the courts aren't dealing with this shit, and so that's good news for ME because it means they aren't going anywhere.
Now, I'm sure that the banks, especially in this time, would be willing to work with me and I could catch up the mortgage on them. But the question is for these where they are vacant and behind on rent...is it worth keeping them? Particularly the ones where I'll owe taxes on them. I think I can isolate them to LLCs so I don't get gang banged if I take all of them into my name, but I'm wondering if it's a matter of "yeah spend everything you can to hold onto em" vs "let them go if they're a shitpile and will require a large investment." If it was a year ago, it might be different but the current political climate is worrying.
Honestly I’d much rather have a bunch of random dudes like user owning land than massive corporations. My reasoning is that people are 50-50 if you get fucked, but a megacorp will fuck you 100% of the time then come back for seconds.
William Robinson
OP I was in a similar position don't sell unless you have to or if you can sell and reinvest it into shitty student accommodation for ez gains
property only loses value when people fuck the economy up
Jose Diaz
I guess you can only get that answered by talking directly to the banks. Over here foreclosure means lots of trouble. Juggeling around with LLCs owning real estate is here super tax-sensitive that only makes sense when you have great legal and tax advice. Don't you have some sort of property owners association in your city? Their advice should be the most neutral and valuable you could get at the moment for very little money.
Christopher Morales
Sell the shitty ones, keep the nice ones. Kick out the niggers and minorities. Live in one for free.
Samuel Nelson
Yeah that's the hope. Will have to part with a few no matter what I think... Just don't have the capital to kick into them all to get them going, but hoping I can sell them quickly and get the ball rolling.
Good idea. I can talk to the realtors of my dad's company, but I'm hesitant because I know they will want to sell them for commish, and may just be too out of touch to care about the impending doom the economy is going through.
Austin Lee
Sell 2-3 properties. off the bat. put the money from 1 of the properties all into gold...give the rest to your mom. Tbh you should actually sell them all except maybe 2 or 3. Housing is going to get fucking rocked. Deflationary collapse of all asset prices coming.
Jeremiah Thompson
dont listen to this idiot. The economy is fucked. Its all inflated prices. Sell most properties. At least sell half.
