Reno NV Land Lording Woes (by Wheiling [NV]) Nov 18, 2008 10:11 AM|
Reno NV Land Lording Woes (by Bill [TX]) Nov 18, 2008 10:45 AM
Reno NV Land Lording Woes (by kkezir [KS]) Nov 18, 2008 10:55 AM
Reno NV Land Lording Woes (by Wheiling [NV]) Nov 18, 2008 11:14 AM
Reno NV Land Lording Woes (by Natalie [CA]) Nov 18, 2008 11:34 AM
Reno NV Land Lording Woes (by sid [MO]) Nov 18, 2008 11:43 AM
Reno NV Land Lording Woes (by Wheiling [NV]) Nov 18, 2008 2:07 PM
Reno NV Land Lording Woes (by Lynda [TX]) Nov 19, 2008 7:44 AM
Reno NV Land Lording Woes (by Liz [NV]) Nov 19, 2008 1:00 PM
Reno NV Land Lording Woes (by Wheiling [NV]) Nov 19, 2008 1:00 PM
Reno NV Land Lording Woes (by Lynda [TX]) Nov 20, 2008 4:06 PM
Reno NV Land Lording Woes (by Wheiling [NV]) Posted on: Nov 18, 2008 10:11 AM
State Specific Question About: NEVADA (NV)
Any landlords in Reno, NV? We bought a new house back in 2004 when it was the thing to do. Unfortunately, it seemed like everyone else did the same and now there is a glut of rental housing. My mom and dad lived in it until this March when they decided to move to CA. At the time, we didn't want to sell because we figured the rent would cover the mortgage, but now the rents have gone where we will have negative cash flow. The housing values are also down quite a bit.
Now we're trying to decide if we should sell. I know, probably a year too late. Is anyone having the same issues? How are you dealing with it? Selling? Lowering your rent? We feel like we're stuck...
Thanks for the feedback. --71.202.xx.xxx
Reno NV Land Lording Woes (by Bill [TX]) Posted on: Nov 18, 2008 10:45 AM
Keep feeding the alligator, or the alligator might eat you.
Try to arrange a short sale and get your credit trashed.
Sell the alligator for what you can get, and pay the difference between sale proceeds and mortgage amount. Get a loan to do this if you don't have the cash.
Other options are worse.
Reno NV Land Lording Woes (by kkezir [KS]) Posted on: Nov 18, 2008 10:55 AM
how much negative cash flow? Is it something you can work through? Was this investment property in your long range plan or was it something that you did for you parents while earning equaity in property? Do you live in the area or are you long-distance landlords? Finally the real question, do you want to be a landlord? If not, then I would sell and get out.. --165.201.xxx.xxx
Reno NV Land Lording Woes (by Wheiling [NV]) Posted on: Nov 18, 2008 11:14 AM
The negative cash flow is only about $150 - $200/ month. We've had the house about 4 years and bought it for $280K. I saw a house (same floor plan) listed at $309K recently, but it hadn't sold yet. We live in SF, CA so it's about 4 hours away. We are already landlords. We have 4 other rentals in the area, but we've had them a long time so the cash flow is good and they're rented out.
We may be able to rent it out for $1450 ($200 less than our expenses), but we're wondering if it's just going to get worse. I think the fact that there were a lot of investors buying these new homes at the time will make it so much more competitive when it comes to rentals AND if we wanted to sell. --71.202.xx.xxx
Reno NV Land Lording Woes (by Natalie [CA]) Posted on: Nov 18, 2008 11:34 AM
I don't think you are in that bad of a situation at this point especially since you have other cash flowing properties. I definitely wouldn't ruin your credit with short sale given your situation. If you're worried that things can get worse, why not put it on the market and try to sell it for what you can get.
Another thing to consider is a loan modification. There is a big push right now for lenders to modify loans and yours might be eligible. --71.202.xxx.xx
Reno NV Land Lording Woes (by sid [MO]) Posted on: Nov 18, 2008 11:43 AM
I too believe you could make this work given your experience in land lording, you income from other properties, and the fact that NV real estate is going to come back at some point. If you are willing to take the cash flow hit for now, keep the alligator and work on it in every possible way to increase the rents. You're not that far from breaking even. $2400 a year negative cash flow isn't worth trashing your credit score. Five years from now you're still only a little over $12K in the hole. One or two years of rising prices should take care of that, so long as your cash flow doesn't get worse.
What can you do to curb expenses? Do you pay any utilites? Is there room for upgrading appliances / fixtures to save utility costs? Can you reduce the security deposit and squeeze out another $25 per month rent? Can you increase appeal via new paint, window treatments, upgraded flooring at a nominal cost and get another $50? Anything to help lessen the alligator's bite as long as it doesn't end up costing you more to add than will reasonably incrase to your rent!
One idea someone thought of here once: would zoning allow you to add a small storage unit/shed on site? If yes, you can build one for $1 - $2K but it will pay for itself in 2 - 3 years and then you have got a really awesome feature on your property that should boost cash flow for years! --204.80.xxx.xx
Reno NV Land Lording Woes (by Wheiling [NV]) Posted on: Nov 18, 2008 2:07 PM
Thanks for the feedback. I think I'm just panicking at this point.
You're right. The negative cash flow isn't unmanageable (if we can get it rented soon) Thanks for all the ideas on how to boost cash flow. The only problem is that the economy is so bad in Reno that people can't afford much and the competition seems to be lowering their rents (even to $1150/mo). I hope we won't have to go that low. --71.202.xx.xxx
Reno NV Land Lording Woes (by Lynda [TX]) Posted on: Nov 19, 2008 7:44 AM
Hello Weiling! I lived in Reno for 2 years (on So Virginia), and I loved it. I would have loved to buy a house there, but at the time we were so young and so poor. Sigh!
Anyway, I agree with the above in the same 2-yr timeframe that you could sell your house for less than the present mortgage, you could hold on and let time do its thing. Casino business in Reno is at its lowest now till March--but then by April or so everything will begin picking up. People will be moving into town for the jobs and everyone needs a place to live. Hang in there.
I presently do exactly what Natalie(CA) suggested. I have 6 places but have my daughters in 2 of them while in college(and they are NOT paying rent). I let the income from the other 4 cover the 6. It means I don't have any cash flow left in hand--but it means my tenants are not only paying the mortages on houses they are living in--but all the mortgages! It is only for the short term, as in a few years as the girls graduate on get jobs elsewhere or marry, I willget those properties back as real rentals. Till then the negatives on those 2 are covered by the other 4 and it all zeros out. Slow;ly you will be able to raise the rent, slowly you market will turn around, and eventually you will be able to either rent or sell for profit! Good luck.
Say hello to the "biggest little city" for me. --140.140.xx.x
Reno NV Land Lording Woes (by Liz [NV]) Posted on: Nov 19, 2008 1:00 PM
Reno Nevada landlord here. The market as you know is bad. I am upside down on all my properties and barely making it. Losing $400 on each one each month. Mortgage and rent don't even come close. If it was only $200 per property I would be in heaven. What area of Reno is your house in? Liz --207.200.xxx.xx
Reno NV Land Lording Woes (by Wheiling [NV]) Posted on: Nov 19, 2008 1:00 PM
Thanks for the encouragement. Are your rentals in TX or NV? --71.202.xx.xxx
Reno NV Land Lording Woes (by Lynda [TX]) Posted on: Nov 20, 2008 4:06 PM
I have 6 rentals in TX and 1 in FL, none in NV. When we were there we were the RENTERS--owner wanna-bees, working in the casinos. Lord, we were so young back then, in BC--before children! We were there in 1977-78. Gas was 39 cents in town and 33cents at a station out on Wells Ave. I used to drive there to save 6 cent/gal. We loved going to Little Washoe Lake and Virginia City. We were so poor we did things that were free. --140.140.xx.x