Rising rents are frustrating!! (negotiation, financial, profit, rich)

[ddrhazy]

Seems Phoenix Landlords are being pretty greedy. I can buy a $110k property and make 10% ROI without too much effort. Here in Vegas, you'd be lucky to get 6% right now.

Take these two properties for example that to me seem to be the same 2/1 in the same neighborhood. One is for sale for 120k. One is renting for 1100/month. I usually have to take 2x the rent for insurance/taxes/maintenance, so in this case I'm making about 9.1%/year if I did a full cash purchase for the redfin property and rented it for 1100/month. Mortgage on the same property with an FHA is 679/month, you're paying 40% more just for the ability to not be chained down to a mortgage. Renters should ask themselves if it's worth it, and if not, should consider buying.

https://www.redfin.com/AZ/Phoenix/42.../home/27390111

https://www.trulia.com/p/az/phoenix/...09--2112709027

[oregonwoodsmoke]

Just a hypothetical situation:


You have a tenant who has run their own credit into the ground, bought a much nicer car than they can afford so making a huge car payment but refuses to downgrade the car, refuses to get a better job or to learn new job skills, refuses to move to a cheaper area, refuses to live with roommates.....


I just don't see where it is the landlord's responsibility to provide them with an apartment for well under market rate just because that is all the tenant has left after making the huge car payment with their low paycheck.

[ddrhazy]

Originally Posted by oregonwoodsmoke

Just a hypothetical situation:


You have a tenant who has run their own credit into the ground, bought a much nicer car than they can afford so making a huge car payment but refuses to downgrade the car, refuses to get a better job or to learn new job skills, refuses to move to a cheaper area, refuses to live with roommates.....


I just don't see where it is the landlord's responsibility to provide them with an apartment for well under market rate just because that is all the tenant has left after making the huge car payment with their low paycheck.

I had plenty of applicants that lowballed me during vacancies and tenants that threatened to leave if i didn't reduce the rent to close or under market during the 2007 housing bubble burst.

Everyone is looking out for their own self interest.

[LifeIsGood01]

Originally Posted by MissMouse111

Rents are up all over the US. When is the bubble going to burst? My salary isn't going up that much at all.

Rent doesn't have a bubble it won't burst.

[LifeIsGood01]

Originally Posted by MissMouse111

Okay. Wow! So much to absorb! Thank you everyone for remembering me after all this time. Sharp memories!! I thought you forgot about me!

1. I did some temping in Albuquerque to check it out to get a better feel for it (because my brother's family lived there) over a couple of months. Not for me! Great church scene for Christians on a positive note. In January of 2018 my arthritis kicked in at 9 degrees (painful joints and muscles) and that was not good at all and the altitude was adversely affecting my health too. ABQ is beautiful with deep blue skies, fresh air, if you can hack the isolation part, but I got the impression it's great for retired couples and families mainly. There is little if any single scene for mature adults or much night life for that matter. I felt like I was going back in time to the 1980s. Not a bad thing, but it wasn't what I was looking for. Jobs that pay well there are few and far between so it has an extremely competitive market. I think the cold was the last straw! Way too cold and the warmth of Phoenix is better for my health (just seven hours away and it had a better job market and night life (way better vibe!)) as long as I stayed away from renting places in Phoenix that smelled like MUSTY mold. Breathing in bad mold gave me horrific chronic back pain. After living in a musty apartment for four months, I realized my living place was the cause after much research. I got out of that moldy apartment and the pain slowly went away over three months and NEVER CAME BACK!! Thank God! I always give living spaces the breathing test. If it smells musty or funky, stay away!!!!

2. I will never give up my car. I actually tried to sell it in 2016. My payment is $542 a month due to bad credit. I was told that the value was next to nothing from CarMax. They said that because of the hail damage and someone smashing into the back of my vehicle after having it for less than a month (it was a side dent that was fully repaired), it's value is not much. Just like that!! They told me they wouldn't be able to auction it off due to the accident record and since I was upside down on my loan from my prior vehicle they weren't going to work with me unless I came up with $17,000 something to make up for the difference. Like I have that kind of money sitting around. Right? It was absurd! That day told me I'm stuck with this baby forever!! I love that vehicle so I'm not complaining. It's a Toyota silver 2015 Rav4 XLE. It's got new tires, new break pads, etc. in the past year. I even got a new windshield due to a rock hitting it on Easter. It's my baby and I only owe around $14,000 on it now. (If I win the lottery I would pay that off immediately.) It drives real nice and I want to drive it for the rest of my life. I'll have it paid off in a couple of years, which will make quite a bit of wiggle room in my budget.

3. Lastly, I'm building my own online store (I have a dream!) and I have someone mentoring me on how to succeed so I'm working hard on that in my spare time, but it is not an overnight get rich scheme. It takes time if not years to build a business and I get that, but I'm willing to try doing something that I love.

4. My family is pushing me to get a government job because I have a college degree, but I don't want to work for the government. I currently work for a law firm in a hybrid position, half legal secretary and half receptionist. I love my job! I've been here for over a year and it's a stable great firm!!

You should never buy a new car that costs half of you rent. If you can't afford $1000 a month rent you should buy a $3000 car.

[DougStark]

Originally Posted by bunding761031

I share your frustration. I moved to Arizona in 2005 (Tempe) and have witnessed the rapid rising costs for housing every year. I rented a Junior One Bedroom at McClintock and Southern for $465 from 2005-2007. Then started to see a solid uptick in rents. Today, that same unit is at least $780. And that's the cheap side! Rents in the East Valley in general have risen so much! Even Mesa isn't cheap anymore. It's way up everywhere! I moved to Central Phoenix, Glendale, North Phoenix and Gilbert and it was the same thing! I have noticed a lot of construction of condos in Tempe and Central Phoenix and wonder if rents will increase anymore, even though supply is rising. I've moved every year since 2007 because I got sick of the rising rents. But I don't care about Arizona anymore. Frustrated with the rising rents, I am having my job transfer me back to the Midwest next week. Rents are too high for a hot, backwards, hellish desert.

Wow, OK. How polite of you to slam our area on your way out. I'm sure you'll find utopia in the "mid-west".

[LifeIsGood01]

Originally Posted by FirebirdCamaro1220

Maintnence costs can exceed any savings you would have from not having to pay rent. It cost my aunt $20k to replace her roof last year. That alone is $3k more than I pay in rent for a year

and that roof is going to last her 30 years and she could have had part of it patched if she didn't want to replace the whole thing. You pay $17K a year in rent and own nothing. You pay $20,400 a year in rent. in 30 years if rent didn't go up, and it will, you will have paid $612K with nothing to show for it.

[LifeIsGood01]

Originally Posted by FirebirdCamaro1220

She was 89 years old last year, there was no way she was doing it herself

There are options. I know a person in their 80s who found a guy who works in roofing and made a deal to pay him $1K to do the roof on his weekend off and bought the shingles for about $1K so the roofing job cost him $2K.

[LifeIsGood01]

Originally Posted by new2colo

My coworker lives in Goodyear and rents a 15 year old, 3 bedroom/2 bathroom home for $1150/month. I don't think anything like that was possible in San Diego even during the downturn.

She lives in a blimp?

[LifeIsGood01]

Originally Posted by Potential_Landlord

I remember rent control in Vienna, Austria. Landlords had to offer rent at way below market rates and therefore at any new rental agreement the tenant had to bring a wad of cash, in the thousands of $. That told me right there that rent control is bogus. What a pretense.

That doesn't happen in America and there are cities with rent control and it's not bogus.