Recession?
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Recession? (by Johnny B. [MA]) May 13, 2022 10:18 AM
       Recession? (by Richard [MI]) May 13, 2022 11:12 AM
       Recession? (by MessManager [IN]) May 13, 2022 11:44 AM
       Recession? (by Ray-N-Pa [PA]) May 13, 2022 12:07 PM
       Recession? (by S i d [MO]) May 13, 2022 1:04 PM
       Recession? (by pmh [TX]) May 13, 2022 4:11 PM
       Recession? (by myob [GA]) May 13, 2022 4:17 PM
       Recession? (by Still Learning [NH]) May 13, 2022 5:51 PM
       Recession? (by MikeA [TX]) May 13, 2022 10:52 PM
       Recession? (by Robert,OntarioCanada [ON]) May 13, 2022 11:12 PM
       Recession? (by Sandy [CO]) May 14, 2022 12:51 AM
       Recession? (by myob [GA]) May 14, 2022 7:21 AM
       Recession? (by Dee Ann [WI]) May 14, 2022 9:09 AM
       Recession? (by Dee Ann [WI]) May 14, 2022 9:09 AM
       Recession? (by Jim in O C [CA]) May 14, 2022 9:39 AM
       Recession? (by myob [GA]) May 14, 2022 11:33 AM
       Recession? (by Ray-N-Pa [PA]) May 16, 2022 5:35 PM
       Recession? (by Lynn [MA]) May 17, 2022 10:14 PM

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Recession? (by Johnny B. [MA]) Posted on: May 13, 2022 10:18 AM
Message:

What is the best approach for riding out the likelihood of an impending recession? I had been working on aggressively paying off my personal house. Is that still a good approach or better to hold the cash? With inflation though does it make any sense to hold onto large amounts of cash? What else are you doing to prepare? I have oil heat so Iím ramping up my firewood production because the current $6+ per gallon for home heating oil is crazy. Iíve also been sending out a lot of rent increase letters this spring. --73.186.xxx.xxx




Recession? (by Richard [MI]) Posted on: May 13, 2022 11:12 AM
Message:

One man's opinion (2 cents):

If you plan to hold onto your home LONG TERM, pay it off if it's in a good area and you're determined to stay there. The value may go up and down, but you'll have it (unless the govt takes it away or disaster hits- (see recent pics of Ukraine).

Any rentals- if you plan to keep them long term, the same. If they are "just rentals to make cash", consider long term fixed rate loans and let the tenants pay it off. You'll have the cash to invest in other things that might soon become cheaper (remember 2007-2010) and more valueable to you and your family. You'll pay back the mortgages with inflation adjusted dollars.

Maybe use some of the cash to hoard(oops, wrong word- wokespeak), I meant build reserves (yea, that might be better) of things you'll likely/probably need - the firewood, spare parts, a retreat in the country,??? --24.180.xx.xx




Recession? (by MessManager [IN]) Posted on: May 13, 2022 11:44 AM
Message:

1. Know your numbers in every situations

2. Dump low cash flow properties

3. If you have any ARMs look your rate or know your numbers at the cap interest rate which is typically 15 to 18%. Both of my ARM are very low balances, they cash flow at cap interest rate.

4. What does your numbers look like at different vacancies (include non payors)?

5. How many Residents have jobs that recession proof such as healthcare, transportation, work for the school, debt collections, and such.

6.Have your personal finances in order; so you are not changing habits in business and at home;

7. Economic Downturn ALWAYS means DISCOUNTS/OPPORTUNITY in the market.

My kid's business teacher said our business will fail in 5 years related to interest rates and economy; It is a bad idea to bet against anyone who is brave, who doesn't panic when change is coming, take calculated risk (not analysis paralysis), can take a hit/mistake, get back up and learn from it, try again; That is simply how life works; I did not say it was fun; it is just the way life works sometimes --208.72.xxx.xx




Recession? (by Ray-N-Pa [PA]) Posted on: May 13, 2022 12:07 PM
Message:

There are lots of wild cards creating special impact variation so it will be difficult to time them = by anyone......that means we may be lined up for a double dipper ahead.

How do you prepare?

1) Don't fear it.

2) As both Richard and Mess said, focus on cash flow now

3) Look for the opportunities as they begin to shape up. --24.101.xxx.xxx




Recession? (by S i d [MO]) Posted on: May 13, 2022 1:04 PM
Message:

I've been preparing for the "impending recession" since people started saying it was coming in 2013. *Grins

In all seriousness, one of the best ways to prepare is to limit your exposure to liabilities that can crush you. Land lords with little to no debt will be fine most likely, because they can lower prices and not get buried with payments they cannot afford. Ditto consumer debt.

I've never heard of a debt free person going bankrupt. I guess you could still run out of money, but you'd never have bills you cannot pay, other than basic daily needs which if you get to that point you could always sign up for Food stamps and free Govt phones.

But if you want to know what I'm doing.... I'm concentrating on getting my last few remining adjustable loans refinanced into fixed rate so I don't have to worry about interest rate spikes or balloons. Actually, I've stayed away from balloons, but given the uncertainty and rate increases, I'm not wanting to see my rates go from 4% to 11%.

Keep flush cash reserves.

Keep properties in good condition.

Screen for the best tenants.

Once you've done all that, sit back, relax, and drink a cold beverage. We mortals can only control so much. And my crystal ball is, as usual, murky.

--184.4.xx.xx




Recession? (by pmh [TX]) Posted on: May 13, 2022 4:11 PM
Message:

Johnny: not sure why anyone would pay off all their properties now and use up cash you will need to weather the recession when you have notes at such low rates over the last 10 years (?) --71.84.xxx.x




Recession? (by myob [GA]) Posted on: May 13, 2022 4:17 PM
Message:

stock up on items you need all the time. few water heaters - spare Elec or gas stove-- big ticket items. Next SID's mention of keep your property's in great condition. VERY important. Make your property's the ones who call code enforcement on others.

Finally: know how much less you can rent a place for. What type of rental program can I use to keep my people paying? We used a rent discount program. rent is 850.00 but if post marked by the first it was 800. Be prepared to have a bottom line on your rental-- what can I go to that makes me the best deal out there?

You will never have a problem renting if your the best deal in town. --99.103.xxx.xxx




Recession? (by Still Learning [NH]) Posted on: May 13, 2022 5:51 PM
Message:

Help me out here, why stock up on water heaters, etc? High prices, supply chain worsening? --24.61.xxx.xxx




Recession? (by MikeA [TX]) Posted on: May 13, 2022 10:52 PM
Message:

Cash will be king. Loans will be hard to get and expensive. When it bottoms those with cash will be able to buy at substantial discounts. --24.153.xxx.xxx




Recession? (by Robert,OntarioCanada [ON]) Posted on: May 13, 2022 11:12 PM
Message:

Consider upgrading insulation and windows in house where here triple low E windows are becoming available. Spray foaming ceiling ceiling will reduce heat loss in winter and heat gain in summer. If a building was super insulated then a hvac system would not required as a net zero building. The price of oil or natural gas is not going to go down where a well insulated building reduces consumption. Still with rentals people have to live somewhere. Found by shopping at a few different Habitat for Humanity restores for building materials, appliances, tools, plumbing, electrical, locks there are considerable savings compared to big box stores. So can stock up with paint, materials. It does not be new or latest but functional. A lot of stock is open box but still works or discontinued items. What is not available in one store will be available in another store. One improve conditions of house and rentals while at the same time cutting costs. Why pay a lot for a light fixture. --68.69.xxx.xxx




Recession? (by Sandy [CO]) Posted on: May 14, 2022 12:51 AM
Message:

I would pay off or refinance any adjustable loans. Including mortgages, car loans and credit card debt.

All adjustable loans as of January 2023, will be moving from based on LIBOR to be based on SOFR. This may well shake up the rates on these loans.

Other then that I'd pick up extra food that you'll eat either way. And with inflation, you may as well buy now. --138.199.xx.xx




Recession? (by myob [GA]) Posted on: May 14, 2022 7:21 AM
Message:

When recession or any down turn hits major items come in short supply.

Recent experience: needed a gas stove. Just plan Jane the lowest priced one was 800.00. The EL Cheapo was back ordered for 3 months!!!!!!!!! Or how about water heaters? h-depot had no 58 inch gas water heaters. When you need things like this-- you gotta have them. I use to have 5 dishwashers 2 gas stove and 3 elec stove in my wearhouse. all the dishwashers are used and gas stoves - well i'm not paying 800 for them. So I ran a 240V circuit for a elec stove and used one elec.

Still Learning when I brought those dishwashers I paid 189.00 each from HHGREG (who's now out of business here) Stoves were 259.00. I brought the last 5 waterheaters from H-depot in my area-- just prior to the new security and safety models were put on the floor. --99.103.xxx.xxx




Recession? (by Dee Ann [WI]) Posted on: May 14, 2022 9:09 AM
Message:

We stocked up on water heaters; if you hire out to install w/o one the plumbers double the price they pay for them plus labor and they are in stock at each property for quick replacement.

My husband has been learning how to repair washer/dryers and likes the challenge, so no heavy moving. We've got acommercial account at the appliance supply store a mile away, for super low part prices. --75.11.xx.xx




Recession? (by Dee Ann [WI]) Posted on: May 14, 2022 9:09 AM
Message:

We stocked up on water heaters; if you hire out to install w/o one the plumbers double the price they pay for them plus labor and they are in stock at each property for quick replacement.

My husband has been learning how to repair washer/dryers and likes the challenge, so no heavy moving. We've got acommercial account at the appliance supply store a mile away, for super low part prices. --75.11.xx.xx




Recession? (by Jim in O C [CA]) Posted on: May 14, 2022 9:39 AM
Message:

I donít see an over inventory of properties because supply is so limited this cycle. One vacancy draws a minimum 50 Inquiries when in 2008 I used to have 6 to 10 applicants. A lot of landlords sold off because the prices were inflated. --99.23.xxx.x




Recession? (by myob [GA]) Posted on: May 14, 2022 11:33 AM
Message:

JIM OC I was responding to the original post of "PLANNING AHEAD".

Very true about current rental market here in GA also. --99.103.xxx.xxx




Recession? (by Ray-N-Pa [PA]) Posted on: May 16, 2022 5:35 PM
Message:

Johnny

How do you know you are not in a recession now?

Do these words scare you?

They should not.

With so many wild cards pulling at the economy, it would be tough to run heard on them all and have them all align so the market goes sky high.

There are various strains on the economy where a double dipper is a bigger concern. A minor recession will not do much for real estate in my area as it is still unbalanced. But a double dipper, that would catch many off guard --24.101.xxx.xxx




Recession? (by Lynn [MA]) Posted on: May 17, 2022 10:14 PM
Message:

I wouldnít go overboard paying down mortgages. Cash is king. You never know when youíll have a big repair or find a deal that canít be financed. I have a mortgage with aamortization for 20 years that needs to be refinanced in 5 years. Be prepared for several vacancies and longer times to fill them and maybe for some time lower rents. --96.237.xx.xxx



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