Your break-even cash flow will turn negative real fast when those renters quit paying, stay as long as possible (until you can finally force them out) and trash the place to boot. I ran 40+ units for 12 years before I finally had enough and cashed out. I have friends in LV and they tell me it's a pretty common thing there especially considering the local lifestyle.
Good luck.
My real estate agent told me I can get the non-paying tenant out in less than 30 days in LV. I would not want to rent out anything in Los Angeles because renter has more right than the landlord!!!
I have done my due diligent and check the tenant with online credit check, interview with the tenant, verify previous renting history, and security deposit...etc. Whatever happen happens. Knock on wood. So far so good.
There is always going to have some risk in every business. Trading has risk of total lost!!!
There got to be landlords. Some one will have to take the other side of your trade!!!
Andre Agassi and Steffie Graf sell their San Francisco area home, finally. They lose 3 MILLION on the sale. The house in Tiburon was bought in 2001 for 23 mil and sold for 20 mil. (WSJ)
When you figure in opportunity cost, commissions etc the lose probably well north of 4 million.
surely when the couple bought the place they had to much change in the purses......
Andre Agassi and Steffie Graf sell their San Francisco area home, finally. They lose 3 MILLION on the sale. The house in Tiburon was bought in 2001 for 23 mil and sold for 20 mil. (WSJ)
When you figure in opportunity cost, commissions etc the lose probably well north of 4 million.
surely when the couple bought the place they had to much change in the purses......
But look at the fun they had in those houses during that period of time. Look at all the business deals they probably made entertaining friends, business contacts, and the doors that open to relational opportunities. When you play at a certain dollar level expectations and the price to ante up are not the penny ante that Joe Sixpack is accustomed to. Sometimes you MUST take a risk at a 10% business loss to make a 30-50% gain somewhere else. Besides, the government underwrites most all losses in investments and personal losses with tax credits.
I'd say they did just fine and were living well within their means.
I wasn't alive when the gold standard was still in place and I realize that it is not perfect either, however it is perfectly clear why it existed. The current experiment has been tried over and over again and it ALWAYS fails. It seems like we are getting closer to that moment.
America had zero inflation until the creation of the Federal Reserve, 1913. Since then, the $USD has lost between 94-99% of its buying power, depending upon source reference.
The primary function of the Fed is to create inflation... hard to do if the value of currency is tied to gold.
When I was a kid, I could go to the Saturday movies for $.25, popcorn was $.05. Has going to the movies become "more valuable", or has the money become so much less valuable that a ticket is now $7-$11?
America had zero inflation until the creation of the Federal Reserve, 1913. Since then, the $USD has lost between 94-99% of its buying power, depending upon source reference.
The primary function of the Fed is to create inflation... hard to do if the value of currency is tied to gold.
When I was a kid, I could go to the Saturday movies for $.25, popcorn was $.05. Has going to the movies become "more valuable", or has the money become so much less valuable that a ticket is now $7-$11?
Well, on the other hand we now have color movies, digital surround sound, flicker free movies that do not jump off the projector cam and tear in the middle of a showing, air conditioning, plush comfortable seating, health standards for those people who are stuffing those popcorn bags, much better special effects and realism and most importantly getting to see a trim and fit athletic movie star's beautiful legs in an attractive bikini rather than some dancing 220 lb farm girl heifer movie star with a ham hock sized leg squeezed into lace up army boots. Yeah - let's bring back the good ol days lol.
And what's just so wrong with paying back our debts to the commie Chinese with deflated currency or being able to cancel a specific US T-bond series at the very first hint of military or economic aggression or non-cooperation? Seems to me that the currency & debt weapon is much less gory and just as lethal as dropping a ton of gold on an enemy who demands payment so he can ramp up military production?
