The beginning of the end - Landlord Forum thread

The beginning of the end by No Name, No state on January 21, 2012 @09:20

I met for over 2 hours yesterday with my accountant and it seems that I am so behind the eight ball that my only option is to default. I do not have enough cash to make the next payments. The accountant believes I have waited too long to pull the plug and have harmed myself beyond repair.
It is the dead of the winter. I have several nonpaying tenants who if they get evicted immediately will cost me even more by having to heat their units to keep the buildings from freezing. In reviewing everything, there is no hope. the properties are so under water and unsaleable that I have no ability to unload them. I have owned them for 10-15 years. The amount of money I have lost on them is frightening.

They were in a decent area when I bought them. Now they are in a blighted area that has become drug central. To anyone considering buying income property in rough areas, my word of caution is don't. The only type of tenants you will attract are problems. You will lose money. You will pour good money after bad. I know, I have.

I can not continue to lose the amount of money that I am each month. It is simple as that.

Another frightening fact, even without mortgages, these buildings would still be money pits with repairs, taxes, insurance and utilities. The game plan is to shut them down. As each tenant leaves, do not replace them and spend more money trying to rerent them. 2 of the most recent have stopped paying after paying the move in. The state only allows first month and security deposit. Tenants stop paying a month before they go so that you lose that month's rent and eat up the security. It is a major problem in this state with lls losing constantly. This state is so pro tenant. It can take months to evict if a tenant appeals and they do often. You get no rent and they get to stay.

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Re: The beginning of the end by Bunny MAGIC on January 21, 2012 @11:04	[ Reply ]

Will the bank "come after" you and your assets??? If you declared bankruptcy, I believe they cannot. I'm sorry you are going through this.

Re: The beginning of the end

Re: The beginning of the end by Micah on January 21, 2012 @11:50	[ Reply ]

Go and talk to the mortgage holder. Ask about surrendering the properties or other options.

Re: The beginning of the end by Patse (IL) on January 21, 2012 @12:15	[ Reply ]

it's one reason to do your research

Re: The beginning of the end by Anonymous on January 21, 2012 @12:37	[ Reply ]

In the 10 to 15 years that you had these properties, it would seem that you would have repaired and renovated the properties. You should not have any major issues and at least had some money put a side for any emergency's that pop up. To blame this on the type of tenant that you attract is false. If your properties were updated and maintained over the years,and good tenant selection, you might be in a better position then you are. This would be because you would have help maintain a decent area as you said it was, but instead you brought in low income tenants who in turn attracted the riff raft you have now. In the 10 to 15 years of owner ship, these properties should have been rented to a better class of tenant each turnover. If this was done, you would be in a better position then you are now. Quit blaming everyone else, you had the biggest hand in this as you were the one in control!

Re: The beginning of the end