[quote=FlyerInHi][quote=Coronita]
But, so far so good (knock on wood). I got all my rent from all my tenants. Most are H1-B’s that work for tech or pharma, one nurse, and a few other that had sold a house and according to bank statement cash reserves. That was one of the main reasons I wanted this kind of tenant pool (hedge #1). All my tenants have credit scores above 790, and as someone once said one don’t get high credit scores by luck and being a shithead shyster, so we’ll test that theory (hedge#2). Lastly, no outstanding loans from paying off all mortgages from equity gains over previous years despite low interest rated, so monthly debt to income ratio is slightly less than 1% (hedge#3).
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Good for you, flu. You may collect your rents….. But our property values will be affected by other tenants who don’t pay rent, or other landlords who get foreclosed upon. That’s how it works during recessions.[/quote]
Who gives a shit about property value in the short term.
1. Were you planning to sell before or in a hurry to sell? No? Go to step 2.
2. Are leveraged up the ying-yang in one specific geographical location that is dependent on one specific industry that is now affected? No? Go to step 3.
3. Are you well capitalized with sufficient cash reserves as you should have been with any sort of leveraged investment just in case? Yes go to step 4.
4. Is the geographical location of where your property is materially going to change due to a permanent job loses of a major industry that employs a majority of the population such that it could pose as a longer term issue of employment and rentability of properties in the future? San Diego, probably no…go to step 5.
5. Can you think of anything else that your cash/cashflow could be invested in that would do better right now versus staying the course…Like investing in a small retail shop, lol
.. God no …not right now. In fact, relative to those folks that invested in small service biz, you probably dodged a huge bullet. Go to step 6.
6. Do you have alternative sources of income so that you aren’t desperate to sell ? Yes?
Land on free parking , collect the money in the pot…stay safe, don’t get sick and die( or try not to) , occupy your time with a hobby, be thankful you are a lot more lucky than many other people, be sympathetic to those that aren’t , help where you can (or don’t if you don’t care) and wait for the storm to clear.
Also, tourism and retail isn’t going to collapse completely into obvilion. After the stay at home is lifted , people are going to be itching to do something. San Diego venues are outdoors, the stigma of possibly being infected won’t be nearly as an issue as other tourism businesses like a cruise ship (which imho won’t recover for awhile) or a close indoor venue like a concert, movie theater, or casino, which people could be risk adverse for some time . Theme Parks will need to be changed to practice some social distancing, but that can be done with technology and a little marketing and sales because generally those are outdoor too so you could start charging for admission based on linited groups and priority viewing similar to the old model that once Disneyland used with different ticket levels instead of a one entry ticket for all rides. People won’t mind pay a lot more for a lot less because they don’t want to get sick, so a theme park could totally exploit that. Cruise ships, concerts, movie theaters, and casinos have a lot more work to do to solve to “stranger too close” phobia problem, and there’s limited options to change that without changing the venue as we know it
