re: Thinking of buying an apartment complex

First off, every piece of advice in that post is spot on. But maybe I was a bit harsh on timber, as while there is some profitability, you're getting absolutely railroaded by the mill/company when they harvest, no matter what

Secondly, I never propagated single families as sound investments. I was simply saying it was a far safer/more accessible product to an aspiring landlord to get their feet wet. Because nobody just jumps into owning an apartment complex.

I currently own a rental property outright and would sell tomorrow if it weren't fricking lakefront on my ranch. And tbh it’s so shite long, I'm actually considering re-locating it SOLELY with the intention of dumping and I have an A+ tenant

But here's your breakdown @ 3.5% FIXED(assumes holder knew what they were doing, imagine trying this @ anything near current prime)

MONTHLY LIABILITIES OVER AMORTIZATION SCHED/FT2 @ $150.00/

$0.4164 PRINCIPAL

$0.2568 INTEREST

$0.2677 TAX BURDEN(1.5% EFFECTIVE RATE, APPRECIATION @ 1/2 FMV(2.5%YOY), REASSESSMENT IN 3 YEAR INTERVALS)

$0.2213 HOMEOWNERS INSURANCE(POLICY LIMIT @ 80% REPLACEMENT, 125:1 COVERAGE:ANNUAL PREMIUM, REASSESSMENT EVERY 5 YEARS, 5% APPRECIATION)

$0.0938 PMI(ASSUME 0.75%)

$0.1738 LOST POTENTIAL UNEARNED INCOME OVER LIFE VIA IDLE CAPITAL TIED UP IN ASSET(ASSUME 3% DOWN, 2.5% INFLATION-ADJUSTED RFR LESS FEES)

TOTAL: $1.4298 in monthly rents/ft2 to break even

And that's assuming absolutely 0 other out of pocket expenses with 100% occupancy, which is preposterous. But similar to what I aluded to in the investment advice thread, the potential profits for landlords aren't in rents, they're in capital gains. Which is why any rental property, ever, is for sale in the first place

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Even if that stupid bill DOES pass, it will have almost literally zero effect.

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You have no idea what you're talking about. I'd suggest you read language

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“(3) HEDGE FUND TAXPAYER.—For purposes of this subsection, the term ‘hedge fund taxpayer’ means, with respect to any taxable year, any applicable taxpayer which has $50,000,000 or more in net value or assets under management on any day during the taxable year.

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quote:

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“SEC. 5000G. Definitions and other special rules.

“(a) Applicable taxpayer.—For purposes of this chapter—

“(1) IN GENERAL.—The term ‘applicable taxpayer’ means any applicable entity which—

“(A) manages funds pooled from investors, and

“(B) is a fiduciary with respect to such investors.

“(2) APPLICABLE ENTITY.— “(A) IN GENERAL.—The term ‘applicable entity’ means—

“(i) any partnership,

“(ii) any corporation, or

“(iii) any real estate investment trust.

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It's about to be an absolute bloodbath, because given that penalty structure, fire-selling those with the highest basis:CMV to avoid penalties and using the losses to offset other capital gains will be the only cost-effective method for closing their position