It has been some time here again. Let's see, I still hate being a landlord. The economy has grown nicely for the properties. I am working alot at Stanford.
Issues: I have several people moving out. Upstairs 720 are finally moving! I am in the middle of a rental price explosion. I have many 3 bedrooms that were barely getting $1400 on the open market, and $1236 with Section-8, but now 3 beds are as high as $2500! So when a person moves out I can ask for the market rent. So if two or three move out I will be getting huge increases. Possibly as much as $1000 in the next month. So that's the good news.
The apartment they are leaving is destroyed. They have damaged walls, floors, carpet, bathroom water damage, cabs, etc. really sucks. So it will cost me some money to get that all back together.
the section-8 downstairs is trying to move. She needs to go, section-8 pays $1236/mo when I could easily get $1850 for that unit. She gave 30 days notice, but she has done this 4 times in the last 3 years, and still doesn't move.
The front unit is renewing their lease, I am asking for an increase.
I have a section-8 tenant that constantly tries to con me. Tries to lie to me about so many things, tries to manipulate me as to why all is my fault or my responsibility. He never pays the right amount of his rent portion. He breaks the property up all the time then section-8 abates my rent til I fix it, and the tenant just says, "it's on you". So in march I stopped fixing shit and the contract terminated. I fully expected him to move as I told him 2 months before that I was going to let it expire. But he actually paid for 2 1/2 months. But then he didn't pay and tries to tell me that I didn't fix things in time so he doesn't have to pay, that it was my fault that I am not getting the rent. he says I didn't fix a light, but I told him he could fix it at anytime. the light got fixed in May. but a light cannot be a cause to withhold rent, I have been to court on other occasions about the same type of thing. He also has told me that if I re-sign a contract with section-8 for him he will move. He said in Feb that he has a place to move to but it will take 2 months so he needs to be on section-8 until he moves. Well I went through and did all the paperwork etc to get it back, but section-8 is a bunch of fuckin assholes, and they took forever to respond and help. they don't care about the tenants at all, they have no protection for tenants at all. If I decide to end a contract, where does that leave the tenant? he can't do anything, he has no assistance from section-8, what happens is he gets evicted and loses his voucher for life! At no cause of his own. So anyways, he lies to me and says that he has a place to go, so after two months of this bullshit I say, why aren't you doing this paperwork with the other guy??? It is the exact same timeline. He tells me the guy needs more time. It's all bullshit, all manipulation to try and get back in and stay forever. So I did fill out the paperwork and told them I wanted $1600/mo because the market is so high now and $1200 ain't gonna cut it. So they came back and said $1500/mo. OK. But then i was in Mexico and nothing got done, no inspection nothing. So it's been 3 months now without rent. So now I can evict him. he is just so irresponsible I can't believe it, he is so busy trying to prove how everything is my fault that he is not taking responsibility for himself and his many kids, (they live with their mothers). So I need to call and get all this going, maybe I need to evict. this is the kind of shit that happens and I can't stand it.
What else? I want to exchange MLK house into a place for myself, either in Mountain View or East palo Alto or maybe a 4/5/6/7 unit in Oakland to increase monthly income. BUT before I do any of that I need to separate from the ex financially. If I go and get a new place and throw a bunch of money in it, She will try and come after that because she thinks it's part of her money. I don't need that bullshit. So I need to separate and then move on and make the necessary real estate moves I need to make.
Another move I want to make is to take advantage of HARP for a 4 unit I have. But HARP only refinances loans $625k and less. My loan is $763,000. So I would need to put in $140,000 in to get it to qualify for HARP. But this would drop my monthly payment down possibly $2500/mo. this would increase my yearly cashflow by nearly $30,000/yr. Even if I buy a house for $200k and rent it, I would only make maybe $18,000/yr. Same if I pay down a house I have to $0, it would only gain me about $8,000/yr. Even if I paid off the Mountain House I would still only make $15,000/yr. So the refinance is the best option. yes it's possible if I buy a new place it may grow equity which could make more money in the long run, but it could also collapse like it did in 2008, which would leave me with nothing. Equity is on paper and that's it. But I can't make any moves with Her in the picture.
I could just go off and start flipping houses. using money I've earned from Stanford. I got the job AFTER we were Separated, which means all of it is mine and she has no claim to it at all.
Divorce is a FINANCIAL decision, NOT just an emotional one. When she asked for a divorce she really didn't think it through. Her life is not any better, and now she struggles more as I don't pay for her car, or the kids cars, or the gas, or the electric, water, prop taxes, upkeep, nothing. But I do take care of the mortgage, which I am told by lawyers that I don't have to. But they are my kids and I want them to be good. But she is shocked that I don't take care of her more, what the hell did she think was going to happen? My youngest is 11, 6th grade. When he Graduates High School in 7 years, I will stop paying for anything anymore. Maybe sooner.
anyway, life is crazy, do stuff you love as much as possible.
I love basketball, this is still one of my greatest joys. I love going to the gym and playing great ball, making drives, making jumpers, breaking ankles of guys 20 years younger than me. I still have a 30" vertical at 52. My highest was 42" when I was on the track team in college. High jump, long jump, triple jump, and decathlon were my things. I am at 209 now, which is 44 lbs more than when I played at my best. So need to lose 40 lbs to be the high wire act on the court again.
So I need to play more basketball and keep trying to minimize injuries. When you get older injuries are a part of the game.
it's all good, better than being locked up in solitary confinement for 27 years like Nelson Mandela!
