Comments on: A lesson on what not to do http://www.landlordshmandlord.com/2006/11/27/a-lesson-on-what-not-to-do/ A blog about being a landlord and investing in real-estate. Fri, 12 Mar 2010 11:19:46 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: landlordshmandlord http://www.landlordshmandlord.com/2006/11/27/a-lesson-on-what-not-to-do/comment-page-1/#comment-42 landlordshmandlord Fri, 01 Dec 2006 03:52:14 +0000 http://landlordshmandlord.com/?p=5#comment-42 Casey, I do have a positive cashflow. I have not yet worked out all of the losses due to the eviction, but I certainly will not be making much this year because of the expenses incurred. However, I am going to have _a lot_ of things to write off. Regarding your situation: I've mentioned this on your blog and in an email, but I will mention it again here: <blockquote>I assume you're working under the premise that you don't want to, and hope to never, declare bankruptcy. If you were to declare BK, the sooner the better so that you can get on with your life. However, assuming that you plan not to, it seems to me that you should start renting out your places as soon as possible. This would give you an immediate and substantial income stream which you could then put toward the late mortgage payments. Once the banks see that you're trying to make payments, they may be willing to halt the foreclosure processes, which would give you time to find another way to pay the difference. I know it may be a long shot, but I do think it is feasible.</blockquote> Of course, you'll have to make sure all tenants are aware of your situation, know that it is possible that you'll be foreclosed upon, and that you will be working to prevent it. However, if the rental income coming in goes right to the banks, they may be willing to negotiate foreclosure. What do you think? <!-- ckey="78226ED3" --> Casey, I do have a positive cashflow. I have not yet worked out all of the losses due to the eviction, but I certainly will not be making much this year because of the expenses incurred. However, I am going to have _a lot_ of things to write off.

Regarding your situation: I’ve mentioned this on your blog and in an email, but I will mention it again here:

I assume you’re working under the premise that you don’t want to, and hope to never, declare bankruptcy. If you were to declare BK, the sooner the better so that you can get on with your life.

However, assuming that you plan not to, it seems to me that you should start renting out your places as soon as possible. This would give you an immediate and substantial income stream which you could then put toward the late mortgage payments. Once the banks see that you’re trying to make payments, they may be willing to halt the foreclosure processes, which would give you time to find another way to pay the difference.

I know it may be a long shot, but I do think it is feasible.

Of course, you’ll have to make sure all tenants are aware of your situation, know that it is possible that you’ll be foreclosed upon, and that you will be working to prevent it. However, if the rental income coming in goes right to the banks, they may be willing to negotiate foreclosure.

What do you think?

]]> By: Casey Serin http://www.landlordshmandlord.com/2006/11/27/a-lesson-on-what-not-to-do/comment-page-1/#comment-41 Casey Serin Thu, 30 Nov 2006 22:40:13 +0000 http://landlordshmandlord.com/?p=5#comment-41 Yeah, there is just something "wrong" about renting out a house, collecting the cash for the rent and not paying the mortgage. That's just how it feels. Maybe its not that big of a deal if you properly screen the renters and tell them YOU WILL PROBABLY HAVE TO MOVE IN 1 MONTH! Make sure they know this. I'm curious Mr/Ms Shmandlord, are you getting positive cashflow? Yeah, there is just something “wrong” about renting out a house, collecting the cash for the rent and not paying the mortgage. That’s just how it feels. Maybe its not that big of a deal if you properly screen the renters and tell them YOU WILL PROBABLY HAVE TO MOVE IN 1 MONTH! Make sure they know this.

I’m curious Mr/Ms Shmandlord, are you getting positive cashflow?

]]> By: Jack http://www.landlordshmandlord.com/2006/11/27/a-lesson-on-what-not-to-do/comment-page-1/#comment-37 Jack Thu, 30 Nov 2006 06:38:52 +0000 http://landlordshmandlord.com/?p=5#comment-37 The first thought when reading this was that it wasn't ethical to rent to people when he knew that foreclosure was down the road - then I read the whole post. And was happy to read that at least he was planning on being honest with the prospective tenants. I find that most tenants will follow through on their end of a bargain (i.e. pay the rent). But yes, there are some who would take advantage. Renting in this situation probably isn't worth it. -Jack, www.askjackaboutdebt.com The first thought when reading this was that it wasn’t ethical to rent to people when he knew that foreclosure was down the road - then I read the whole post. And was happy to read that at least he was planning on being honest with the prospective tenants.

I find that most tenants will follow through on their end of a bargain (i.e. pay the rent). But yes, there are some who would take advantage. Renting in this situation probably isn’t worth it.

-Jack,
http://www.askjackaboutdebt.com

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