02/20/2023
When your plan gets reckt, here is the coaches playbook (I mispelled wrecked on purpose) 👇
1) Short-Term Rent (STR) - As long as your legal and profitable (Leagal and Lucrative or LL).
2) Medium-Term Rent (MTR) - If Short-Term is no longer working out, or the government shuts you down.
3) Long-Term Furnished Rental (LTFR) - Typically month to month leases with furniture drive a higher rent. Utilities should be on your tenant now.
4) Long-Term Rental (LTR) - Now you take out the furniture or pay someone to do it. Sell or store what you have. Tenants are moving in with their own furniture.
5) Lease with Option (LO) - For higher rent, give your tenant an option to purchase at a later date. You just gave up your right to sell and they now have a right to buy, but not an obligation. They are in control of your property’s future and all the benefits that go with ownership, should they decide to exercise their option that is (most don’t).
6) Wrap your existing mortgage or Finance a new buyer - Never sell your house SubTo. Always wrap a new loan around yours to make cashflow or else it’s not really worth the risk.
7) Sell it on market - Pay capital gains or roll in a 1031 tax exchange in the window to defer taxes until a later date.
😎 Go back through the list and see if the top ones are back in the table given the economy, local market conditions etc.
9) Never give up! Change the use of the property. Move in. Start a business there. Make a photo studio. Residential assisted living facility. Event venue. Or something even better!
Not so scary anymore is it?
