Extra pinch for landlords

Robby wrote:

Another government program gone bad. Wait till they start foreclosing on the properties, then we'll (the tax payers) have to pay again.

Robby, your comments don't make any kind of logical sense.

How is the tax credit a "government program gone bad" when people are BUYING homes? That increases the amount of homeowners which adds to the tax base (helping to lower taxes across the board). And the credit helps new home owners to afford construction projects for their houses if they like--which means JOBS.

If the recession wasn't holding back job growth we'd be PRAISING new home ownership even more.

TruBlu wrote:

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Robby, your comments don't make any kind of logical sense.
How is the tax credit a "government program gone bad" when people are BUYING homes? That increases the amount of homeowners which adds to the tax base (helping to lower taxes across the board). And the credit helps new home owners to afford construction projects for their houses if they like--which means JOBS.
If the recession wasn't holding back job growth we'd be PRAISING new home ownership even more.

You obviously are a DFL hack who knows nothing about economics or, the housing market. Stay away from this discussion, sit back and listen to your NPR.

landlord or slumlord wrote:

The owners of these apartment bldgs have finally gotten what they deserve. The rent on a one bedroom apt can be anywhere from $680.00--$800.00

First: your wrong. An elementary search of the internet (or this fine paper) and you'll find THOUSANDS of 1 br apartments for under $600 right here in St. Paul. Second: if us landlords are making so much money, then buy a few places yourself! I would love to see how much money you make after paying debt service, insurance, taxes, maintenance, utilities, legal fees, capital improvements and abusive government regulators on that "outrageous" $550/month one bedroom apt. After you've made your quick fortune, come on down to a SPARL (St. Paul Association of Responsible Landlords) meeting and tell us all about it. I'll watch for ya.

DoesntApply wrote:

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That's completely irrelevant. The prospect of an $8,000 tax credit doesn't do anything to help one obtain a mortgage. The $8,000 tax credit can't be used toward a down payment or closing costs. You don't receive it until AFTER you've already purchased the house. If you don't qualify for a mortgage because of no down payment/income/credit/etc ... you won't get a mortgage.

Yeah, sure, if you find someone to lend you money, you pay it back with a quick tax credit refund (less than 4 weeks).

9to5r wrote:

Fact of the matter is that most folks don't have money in the bank for a down payment on a house.(I have coworkers with <$50 in their bank accounts)Most people also have bad credit. There are over 500+ homes that are empty in the twin cities due to foreclosures. These people have to be living somewhere, right?

Yea, some of them under a bridge.

experienced landlord wrote:

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First: your wrong. An elementary search of the internet (or this fine paper) and you'll find THOUSANDS of 1 br apartments for under $600 right here in St. Paul. Second: if us landlords are making so much money, then buy a few places yourself! I would love to see how much money you make after paying debt service, insurance, taxes, maintenance, utilities, legal fees, capital improvements and abusive government regulators on that "outrageous" $550/month one bedroom apt. After you've made your quick fortune, come on down to a SPARL (St. Paul Association of Responsible Landlords) meeting and tell us all about it. I'll watch for ya.

Maybe you picked the wrong way to try and get rich.

experienced landlord wrote:

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First: your wrong. An elementary search of the internet (or this fine paper) and you'll find THOUSANDS of 1 br apartments for under $600 right here in St. Paul. Second: if us landlords are making so much money, then buy a few places yourself! I would love to see how much money you make after paying debt service, insurance, taxes, maintenance, utilities, legal fees, capital improvements and abusive government regulators on that "outrageous" $550/month one bedroom apt. After you've made your quick fortune, come on down to a SPARL (St. Paul Association of Responsible Landlords) meeting and tell us all about it. I'll watch for ya.

On some points, I do agree with you. There definitely are one bedroom apartments under $600 in St. Paul. However, you will be the only one with the ability to speak English or actually working a job if you do live there. And make sure not to mess with Big Bubba's girls, too, that work there as well.

Just offer up Section 8 housing...you won't have a vacancy (except for the people who go to jail).

fukalid wrote:

<quoted text>Yeah, sure, if you find someone to lend you money, you pay it back with a quick tax credit refund (less than 4 weeks).

Have you ever gotten a mortgage? All down payment money must be aged (in you account for some amount of time, 60 - 90 days before applying) or documented as gift money from a qualifying family member. You aren't going to be able to go down to quick-e-loans or the local loan shark and borrow the $8000 to use as your down payment. Doesn't work. Banks aren't allowing it.

Fed up with bailing out wrote:

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Maybe you picked the wrong way to try and get rich.

Or the right way.$100,000 invested at a very good bond rate is 4% taxable. Rents on that same $100,000 home will bring you $800 plus (8%+). Taxes, repairs, and more are deductable from your personal income. I own 10 homes all clean and rented with responsible long term rentals. Approximate net worth of these homes are over one million dollars. Not to shabby for an ambitous entrepeneur.

You can't always have it your way except at McDonald's.

Marine from Marine wrote:

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Or the right way.$100,000 invested at a very good bond rate is 4% taxable. Rents on that same $100,000 home will bring you $800 plus (8%+). Taxes, repairs, and more are deductable from your personal income. I own 10 homes all clean and rented with responsible long term rentals. Approximate net worth of these homes are over one million dollars. Not to shabby for an ambitous entrepeneur.

And I have a feeling you do a good job with it too. I have no problem with a landlord making an honest living that way. The ones that get me are the slum lords who try and get the same amount of rent as you would collect on your nice clean rental properties, except they don't do anything with the properties except let them decay and become overrun with rodents, etc. I haven't had to rent in almost 30 years thank goodness. I somewhat doubt if we'll ever sell our home and will be passing it on to the son instead. If things are kept in good repair, not too much can jump up and surprise you.

Fed up with bailing out wrote:

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And I have a feeling you do a good job with it too. I have no problem with a landlord making an honest living that way. The ones that get me are the slum lords who try and get the same amount of rent as you would collect on your nice clean rental properties, except they don't do anything with the properties except let them decay and become overrun with rodents, etc. I haven't had to rent in almost 30 years thank goodness. I somewhat doubt if we'll ever sell our home and will be passing it on to the son instead. If things are kept in good repair, not too much can jump up and surprise you.

Thank You. The slumlords unfortunately taint the image of all landlords. Any laws or rules imposed by the city or county to bring bad buildings into compliance ultimately effect the good landlords also. I have had to hire one more individual just to handle the paper work. This in return drives up rents. The problem is sometimes blamed on the manager/landlord wronfully. Crappy places only bring crappy tennants. Dressing up or repairing some places are an exercise in futility. New carpet in a slum will be junk within 6 months. HUD has the right idea, sell these places for a song but only to owner occupants.

Marine from Marine wrote:

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Thank You. The slumlords unfortunately taint the image of all landlords. Any laws or rules imposed by the city or county to bring bad buildings into compliance ultimately effect the good landlords also. I have had to hire one more individual just to handle the paper work. This in return drives up rents. The problem is sometimes blamed on the manager/landlord wronfully. Crappy places only bring crappy tennants. Dressing up or repairing some places are an exercise in futility. New carpet in a slum will be junk within 6 months. HUD has the right idea, sell these places for a song but only to owner occupants.

Don't ask me why, but I've watched a program about flipping houses (I think on the A&E cable channel). I'm sure more then one individual has thought of purchasing property and renting it out, but they might think twice after watching that program. It's horrible what tenants do to a property - and even some home owners have done the same damage. Neglecting property can result in devastating repairs needing to be done, costing tons of money. I worked with a young lady who decided that instead of renting the house she owned, she wanted to live in it herself. She was a single parent who didn't have much money. The tenants of this home, out of spite and on purpose, caused structural damage to the home before moving out. The last I heard, because she didn't have the money to hire someone to repair that structural damage - she had her father helping her with putting some 4x4's in place so the home wouldn't collapse. I would bet she never considered renting to anyone ever again. I really felt for her because a single parent doesn't have ANY extra money to allow for something like that to happen.

The Big Bopper wrote:

Lower the rent....

I own a few duplexes; and when I ask for $725 for a two bedroom I end up with ghetto girls having a screaming match with baby-daddies on their cellphones WHILE filling out my rental app; or guys straight out of the halfway house. When I ask for $775 on up I get folks who work at the local bank or nurses. Totally different class of people and I need to make sure other renters are safe. Also,the mortgage for a $180k house is $1750, so you do the math for me to get the bills paid.

the practices and principles of a totalitarian regime.
2. absolute control by the state or a governing branch of a highly centralized institution.
3. the character or quality of an autocratic or authoritarian individual, group, or government: the totalitarianism of the father.

9to5r wrote:

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I own a few duplexes; and when I ask for $725 for a two bedroom I end up with ghetto girls having a screaming match with baby-daddies on their cellphones WHILE filling out my rental app; or guys straight out of the halfway house. When I ask for $775 on up I get folks who work at the local bank or nurses. Totally different class of people and I need to make sure other renters are safe. Also,the mortgage for a $180k house is $1750, so you do the math for me to get the bills paid.

I'm with you. I only own properties in decent locations so you can get decent renters. Nurses and bankers are great. Teachers and social workers are good too.

Totalitarianism wrote:

the practices and principles of a totalitarian regime.
2. absolute control by the state or a governing branch of a highly centralized institution.
3. the character or quality of an autocratic or authoritarian individual, group, or government: the totalitarianism of the father.

I don't mean to sound like a totalitarian but if you're going to number your points most people start with #1.

9to5r wrote:

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I own a few duplexes; and when I ask for $725 for a two bedroom I end up with ghetto girls having a screaming match with baby-daddies on their cellphones WHILE filling out my rental app;

You forgot to mention the fact that most of the "ghetto girls" pay less than a 100 bucks a month on their $725 a month apartments while the unsuspecting taxpayers are forced to make up the difference.

Telmark wrote:

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You forgot to mention the fact that most of the "ghetto girls" pay less than a 100 bucks a month on their $725 a month apartments while the unsuspecting taxpayers are forced to make up the difference.

I think the landlord has to agree and be active with Housing & Redevelopment don't they? Not every landlord wants anything to do with that.