What an amazing and volatile last year. The worst thing that could happen to the majority of the population, happened. When it comes to real estate we saw the rent moratorium in many cities as well as tenants refusing to pay.
At the same time we’ve seen demand for housing surge! And with the low rates people are rushing to buy. This along with the unfettered money printing has also made housing prices soar. (Remember inflation causes assets to rise as well)
Quad: Metro-Detroit $800 x 3/$1000 X 1 unit. $3,800 Total.
Duplex 1: Metro-Detroit $1400/1000 each unit $2,400 Total.
Duplex 2: Metro-Detroit $1000 each unit $2,000 Total.
Duplex 3: Metro-Detroit $1000 each unit $2,000 Total.
SFH 1: Metro-Detroit $1200
SFH 2: Metro-Detroit $1200
Condo 1: Chicago 1 Bed $1200
Condo 2: Chicago 1 Bed $1850
Condo 3: Chicago Studio $1100
TOTAL GROSS RENTS $16,750
I had some minor expenses this month. A few new blinds, water bills, and a patch job on the celling.
All of 2020 up to present day I did not lose any rent due to the pandemic. I have been extremely fortunate but also I bought in the right areas. I have kept it small and manageable and hardly have any debt. As of now only a 125K mortgage.
I’m probably going to start selling some units and trim it down a bit. I have too much exposure to real estate and my values have skyrocketed. So I think it would be smart to slowly start taking some profit. Also property taxes are increasing all over the country and will be cutting into profits.
When thinking about being a small landlord in 2021 the business seems antiquated. Even though I’m doing well and it is running smoothly. I don’t think Im going to pursue growth through purchasing more units. I will be making more updates to my units that I end up keeping and slowly moving the rents up.
Renting 100 year old buildings, in areas where it’s cold for six months a year, with a tax and spend government, that pushes heavy regulations, and has a declining population doesn’t really sound like the future. Now this is somewhat over exaggerated, but not by much. Look at the regulations on the coasts for landlords. They limit the amount you can raise rents and in some of my areas where I invest the local government actually walks into your building and does a bi-yearly inspection. If they don’t deem your property up to their standard they will give you x months to make the repairs and if not completed they will sue and evict your tenants. Now I never had that server of an issue and I understand they want to eliminate slumlords which is fine. But the over regulation is never good for landlords. So I want to think 10-20 years down the line and look at all possibilities for real estate and think should I own this type of asset going forward.