Figure out how to live in the worst-case. 
Or play Rambo in the woods, and max out your privilege. 

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I just hate people

Started by 18hammers, Jun 30, 2023, 07:21 PM

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K-Dog

#15
Quote from: RE on Jan 16, 2024, 06:03 AM
Quote from: K-Dog on Jan 16, 2024, 04:02 AM
Quote from: RE on Jan 14, 2024, 12:42 PM
Quote from: 18hammers on Jan 14, 2024, 11:53 AMAll the above is true but consider this, who would want to own and rent out a home, the idea of doing that is for those without experience in how the system works.

I never said anybody wanted to rent out private homes, only that they can't afford mortgages.  The people renting them out are banks trying to get some revenue while they look for a qualified buyer, or Hedge Funds who bought delinquent mortgages from the banks.  In any case, those private home rentals don't address the affordable housing problem, they rent out at too high a price.

RE

Court costs, time, 3 month rent, and a property that you need to spend thousands getting it into rent-able condition.  Yes only a big player can afford to do that.  A cost of business big players want reduced.  Expect the ability of an owner to evict to become easier with time.  Big players have the money to sponsor a Republican or Democrat and change the law to suit their needs.  Ma and Pa could not do that.

Not entirely true.  Brian is a small time, non-corporate slumlord with a dozen McHovels in Seattle and 1 here in Alaska that he rents out.  That's his retirement income.

RE

And Brian can't afford the headache of a bad renter.  You make my point.  Brian has zero political influence. 

Brian's rentals are the result of him investing his own money and getting a reasonable rate of return for it.  If he is careful and gets good renters, and he keeps the properties up, it is a good system.  Brian's is the only form of rental arrangement we should allow.  Brian's rentals are on the edge of what is considered personal vs. private property.  If there is a problem with a rental, Brian responds quickly to make things right.

A cap on rental income (before it gets a 100% tax) would currently be about 100K, it would be tied to average income.
100K being on the high end of average income.  The system would be heavily regulated to make sure it provides retirement income and nothing else, and housing meets standards.  Regulated to make it fair for all.

A dozen units is pushing it.  Money begins to make all decisions and money goes for short term profit.  By itself money will not keep properties up.  That requires humanity intelligence and work.  Can Brian respond well to a dozen?

Quotewho would want to own and rent out a home
describes my situation.  My part time job, replaces the actual work (fixing shit) of being a landlord, and the income it gives is on par with what a well regulated rental market would provide.


RE

Quote from: K-Dog on Jan 16, 2024, 10:34 AMBrian's rentals are the result of him investing his own money and getting a reasonable rate of return for it.  If he is careful and gets good renters, and he keeps the properties up, it is a good system.  Brian's is the only form of rental arrangement we should allow.  Brian's rentals are on the edge of what is considered personal vs. private property.  If there is a problem with a rental, Brian responds quickly to make things right.

A cap on rental income (before it gets a 100% tax) would currently be about 100K, it would be tied to average income.
100K being on the high end of average income.  The system would be heavily regulated to make sure it provides retirement income and nothing else, and housing meets standards.  Regulated to make it fair for all.

A dozen units is pushing it.  Money begins to make all decisions and money goes for short term profit.  By itself money will not keep properties up.  That requires humanity intelligence and work.  Can Brian respond well to a dozen?

Quotewho would want to own and rent out a home
describes my situation.  My part time job, replaces the actual work (fixing shit) of being a landlord, and the income it gives is on par with what a well regulated rental market would provide.


My educated guess is Brian's gross income from the properties is well in excess of $100K, but figuring what his net income is quite a bit more difficult.  I don't know  how much his insurance policy costs him, for instance.  I don't know his total annual tax assessment either.  He also doesn't do any big repairs himself, he contracts out the work.  For the AK property, this year he hired a property management company to handle everything.  He had to invest a lot to fix it up because prior tenants messed it up so bad, but now after new tenants and rent raises, he makes more net than before.

Some of this came from his own investment, but he inherited some of the properties from his dad.  He's not a 100% self-made man.

As slumlords go, he's one of the better ones, he does fix stuff in a timely fashion and so forth.  He's had to do some evictions, but mostly has had good luck with his tenants overall.  His vacancy rate most of the time we talk about it is no more than 1 unit.

Basically, he's done just a little better than you, another Boomer who got the Amerikan Dream.

RE

K-Dog

#17
QuoteBasically, he's done just a little better than you, another Boomer who got the Amerikan Dream.

A piece of it.  As in a rising tide lifts all boats.  I absolutely claim credit for my accomplishment because it was my good sense to cultivate my skills and take advantage of opportunities.

How many did I have?  When I had an average wage I saved next to nothing, but I did not go into debt.  When I had an above average job I saved the excess.  All of it.  The 'good' jobs only accounted for eight years in my working career.

Mrs. Dog has a shopping Jones as most women do.  Packages arrive all the time and I have had friends who have asked, is this ok with you.  I then explain that most of what she orders is returned.  So much so that the Home Shopping network banned her years ago.

Above average frugality and making the choice of a career that paid above average made my success.  I don't claim it was 'hard work' and I earned it.  I worked as much as an average American drone and capitalism gave me my share of unemployed days too.  When I was unemployed getting paid by the state was a HUGE help.  Unemployment comp got me through until I got back on my feet.

The 2008 crisis almost did me in but I got lucky and Mrs. Dog was working.  Again we stayed out of debt, and the money we have saved we pretend we do not have.  I was one of the lucky few who were not forced into retirement and found a 'good' job that paid a little better than what Bill Gates paid his minions.  That job is where I was able to save up.

An unskilled person (In America) who only made an average wage could easily have what I saved if they never had to be unemployed and ALLWAYS lived within their means, stayed out of debt and were frugal.

Many who made a more average wage who participated in the right investments have done far better than I.  If you worked for Fed Ex for 25 years, and put all you could into their investment program you would have a low seven figure net worth in retirement.  My investments are always made so the possibility of losing money is zero.  This means they don't pay as well. 

To be clear,  I am not rich.  I earn enough from my savings to augment my part-time McJob by about one third.  I am however 'solid' and from a Stoic point of view I am as rich as a king.

Contentment comes not so much from great wealth as from few wants.  If I don't do it every day I can eat expensive food.  Good food is often expensive.  Mrs. Dog likes to put good clothes on me.  Our home is paid off so we only have to worry about tax.  This makes our 'rent' reasonable. 

I am in a situation where my wants are satisfied enough to be on the top.  Or if not the top, close to it.  Where everyone should be.



It is about time Maslow's Pyramid showed up.

And as to achieving the American dream, I realize that saying I got only part of it would make no sense to someone living on a runway in a tent, in freezing weather, bussed up from the Texas Border.

To them I am the dream.