Re: Advise needed - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 01, 2002 at 21:12:41:
To bad you leased the property. Your renter can stay for the full year of the lease. In CA, it is always better for the property owner to rent out on a month-to-month basis. I learned that in a course I took before I bought rental properties. Sounds to me as though you jumped in without knowing much and made some mistakes.
It may be very hard to sell this property until about one or two months before the lease is up. Owner-occupants, the people who pay the highest prices for houses, probably will not want to buy and wait many months before they can move in. At least not very many will.
Thus the demand will be low. Low demand means a low price to be able to sell. This is not good for you, since you are the seller.
If you could get the renter to agree to move soon, that would be best for you. It might even pay you to “bribe” the renter with some cash to move out. Or your extra car, or what would the renter like . . . ?
You do not tell us your situation. If you have a regular job and thus pay taxes on your salary, you may be able to adjust your stated deductions so that less money is withheld from your paycheck. That would give you more money with which to pay the expenses on the property, allowing you to carry it more easily until the year lease is up.
Do you suppose you could cut down on your expenditures? I have eliminated all magazines that I used to read, that saves a little bit. Don’t dine out as much, prepare your own lunch. Eliminate the cable TV–after all that is probably why you’re in this trouble in the first place, isn’t it? You believed the cable tv real estate huckersters. Isn’t that what happened to you?
You might try to find a second job, even if it is only parttime. Can you boost your overtime hours on your job? Sell off personal possessions you don’t need–the surfboard–you’re getting to old for that anyway. The vegimatics in the cupboards.
Marry somebody who is hardworking and has a good job with $500 a month left over after personal living expenses.
You are learning lessons, aren’t you? Some the hard way. I recommend reading lots of books, to help you cut down on the errors in the future.
Good Investing**Ron Starr