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Phil's solution to his condo.


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As Phil has said for quite a while, he has a condominium in Connecticut that unfortunately he can't currently get rid off. However, I have a solution that I hope Phil reads. 

The solution is simple: A property management company. What a property management company or PMC does is that they rent out the condo for you. First they find tenants, then they select a rent by the owners (Phil's) choice. 

The rent Phil receives goes to pay the mortgage, and any money left over can be used to pay other bills or build equity. For example, if Phil rents out the condo for 1500-1750 a month, he will use the money to pay the mortgage on the condo. The PMC takes a small percentage of the rent, but Phil should be able to at least break even.

Phil, I hope you read this post and think about the possibility of this solution.

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I believe Phil has said that people are leaving Stanford in droves because the cost of living in there is too high, so there's no people to rent the condo to, PMC or not. He said he would try a fast sale, but i have no idea how that is working out.

Edited by onorub
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I've already talked about this publicly, here's the situation I'm in.

First, average rental income for the units in that facility is $800-1200 a month. I don't have the higher-end unit, so I'd probably be pulling in $800-1k a month from a renter.

I pay around $1000-1100 a month on the mortgage and then $300 for the condo fees monthly, so I roughly pay $1300-1400 now as it is. As you can see, the rent I'd make wouldn't cover what I pay. In addition, I'd be paying a cut of that rental income (typically 10-30% depending on what the PMC would charge) lowering it to around $500-800 a month, tops.

Two problems:

-First, Taking on a renter means you take on responsibility for that renter. If the renter is an asshole, makes noise, causes problems with other tenants, etc., I'm the one who will get the calls. And I have zero ability to do anything about it, because I'm on another coast and not there. Now you may say "well that's what the PMC is for!" so that leads me to the next point.

-Second, I already looked into PMCs earlier this year. I cannot find a single reliable one in the area where my condo is. In other, nicer parts of Connecticut? There's tons, and they all have great reputations/online rankings. But for where I lived, which is considered low- to middle-income, apparently no company wants to touch it with a ten foot pole. Probably because it's a high risk area for renters to be irresponsible and cause problems, I'd assume (it's also a very high crime area). It seems everyone who rents property in that area actually lives nearby and manages the properties themselves. In fact, the only company I can even find is the same company under which the condo association is held, and they are AWFUL. They don't respond to anything quickly, it can take repeated voicemails to get anything done, and they only send someone out to check on something or do maintenance if you complain a ton. There is no on-site help at all. I hated it, so I'm not now going to put my unit into the hands of a company that I already know does a bad job.

If this were 10+ years ago, my parents would have gladly helped me with this, but they're too old now and have their own problems. 

 

So in summary: to rent out the condo in CT would only amount to around $500-800/month TOPS in additional income for me, but put me into considerable risk when it comes to liability for the person who rents out the unit. There aren't any reliable PMCs in that area of the state, AND, on top of all of this, there are tax ramifications: if I were to rent, that would be additional income in the state of CT that MAY be taxable. I might have to start filing state income tax again there, resulting in even LESS income than the $500-800/mo. we're talking about.

As you can see, this magic solution isn't a solution at all. It's taking on considerably more risk for possibly not even half what I'm paying monthly on the condo.

The only way out of that condo, is to simply stop paying for it and have the bank foreclose on the mortgage. Not a great prospect considering it'd ruin my already bad credit to the tune of at least a decade, so that's not going to happen if I can at all help it.

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1 hour ago, Phil said:

I've already talked about this publicly, here's the situation I'm in.

First, average rental income for the units in that facility is $800-1200 a month. I don't have the higher-end unit, so I'd probably be pulling in $800-1k a month from a renter.

I pay around $1000-1100 a month on the mortgage and then $300 for the condo fees monthly, so I roughly pay $1300-1400 now as it is. As you can see, the rent I'd make wouldn't cover what I pay. In addition, I'd be paying a cut of that rental income (typically 10-30% depending on what the PMC would charge) lowering it to around $500-800 a month, tops.

Two problems:

-First, Taking on a renter means you take on responsibility for that renter. If the renter is an asshole, makes noise, causes problems with other tenants, etc., I'm the one who will get the calls. And I have zero ability to do anything about it, because I'm on another coast and not there. Now you may say "well that's what the PMC is for!" so that leads me to the next point.

-Second, I already looked into PMCs earlier this year. I cannot find a single reliable one in the area where my condo is. In other, nicer parts of Connecticut? There's tons, and they all have great reputations/online rankings. But for where I lived, which is considered low- to middle-income, apparently no company wants to touch it with a ten foot pole. Probably because it's a high risk area for renters to be irresponsible and cause problems, I'd assume (it's also a very high crime area). It seems everyone who rents property in that area actually lives nearby and manages the properties themselves. In fact, the only company I can even find is the same company under which the condo association is held, and they are AWFUL. They don't respond to anything quickly, it can take repeated voicemails to get anything done, and they only send someone out to check on something or do maintenance if you complain a ton. There is no on-site help at all. I hated it, so I'm not now going to put my unit into the hands of a company that I already know does a bad job.

If this were 10+ years ago, my parents would have gladly helped me with this, but they're too old now and have their own problems. 

 

So in summary: to rent out the condo in CT would only amount to around $500-800/month TOPS in additional income for me, but put me into considerable risk when it comes to liability for the person who rents out the unit. There aren't any reliable PMCs in that area of the state, AND, on top of all of this, there are tax ramifications: if I were to rent, that would be additional income in the state of CT that MAY be taxable. I might have to start filing state income tax again there, resulting in even LESS income than the $500-800/mo. we're talking about.

As you can see, this magic solution isn't a solution at all. It's taking on considerably more risk for possibly not even half what I'm paying monthly on the condo.

The only way out of that condo, is to simply stop paying for it and have the bank foreclose on the mortgage. Not a great prospect considering it'd ruin my already bad credit to the tune of at least a decade, so that's not going to happen if I can at all help it.

No offense DSP but these are lame excuses. I currently rent 2 homes in Texas and use a property management company for both homes which are miles apart from each other. The most I have to do is pay when something needs fixing like AC or plumbing but for the most part they pay for themselves. Even if you only make $800 from renters at least you are cutting your expenses in half for the condo. If anything you should take a flight there and talk to these management companies in person until you find a decent one who will search for renters. Start with a one year contract for them and if they are no good kick them out and try again. What else are you going to do? Keep paying for an empty condo until the loan is paid off? That will take forever. I suggest trying harder to get rid of it or rent it.

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1 hour ago, Phil said:

So in summary: to rent out the condo in CT would only amount to around $500-800/month TOPS in additional income for me

The word "only" jumps out so fierce when I read this I had to respond. Only $500 - $800? For someone that is in debt and currently in dire financial straits, that is a lot of money. That statement, along with you just realizing certain things you've been paying for for years and not needing means that you're lifestyle needs severe adjusting. You need to sit down with a financial advisor quick. Honestly DSP, I have no clue how you're "broke" and been claiming you've been broke for years now dude. I won't put your numbers out there just out of respect of you and your finances being private, but I can calculate the total you've received from Patreon, Twitch, and to a wide estimate, YouTube as well. DSP there is no way 35 year old male, single, no kids, no big vices that we can tell, no friends, you don't go out ever, never take trips, you go out to eat but it aint like you're going to steakhouses everyday... like unless you're literally throwing your money into the fireplace, I can't see how you can honestly be really broke by that standards that you're advertising on video and social media. Unless you're just saying your broke for more sympathy money, but I don't picture you like that kind of dude.

I think you're just living a lifestyle that you can no longer afford and haven't adjusted to your recent income decrease. And when you won't budge to make an effort to free up half a grand or more, that says everything. Please don't insult me or scold me if you think I'm being naïve, I'm just stating my opinion, and if I don't know the full facts then I apologize, but I just know soooo many people who can survive comfortably off of half of what you make with way more issues and bills than you have.

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13 hours ago, Krillin said:

You need to sit down with a financial advisor quick.

Honestly he only needs to talk to someone who knows how to properly budget. The fact that he's spent months talking about how broke he is, worried that he's not going to be able to keep his house, etc., but only recently cancelled cable, justifies paying for a 2nd internet line and was trying to argue that he NEEDS an expensive surround-sound headset is mind blowing.  What gets me is that it's so insanely obvious to anyone looking at the situation that these are incredibly poor financial decisions but yet he'll jump through all these hoops as to why he's special and NEEDS to spend all this extra money.

I'm no expert and Flying Spaghetti Monster knows I've made more than my fair share of financial mistakes and been in economic dire straits in the past.  That helped to teach me how to live on a very low budget when I need to. I'd be more than happy to help @Phil (or anyone really) get their personal finances in better order. I mean that sincerely. There was a time where I couldn't even afford Ramen noodles and wouldn't wish that on anyone... well, almost anyone. 

1 hour ago, Luckyfall said:

I think he actually adressed the subject at some point and said this is somewhat the reason. Not this exactly, but rather that he used to live a lifestyle of splurging and spending money when he used to make loads on YT. When his revenue dropped the loans started stacking up and he was stuck with a lot of useless shit he bought back then. That coupled with the fact that the revenue drop happened right after he moved and boom. You can see the outcome right now.

I get this but he continues doing things which hurt him financially. Keeping cable TV, buying a new car instead of used, buying expensive headphones that he thinks he "needs," renting movies, etc. The problem seems to be that he thinks "I want this thing" then works to come up with rationale as to how he can justify transforming it from a "want" to a "need." To be fair a lot of people do this (in America at least) and is one reason why we have such a debt problem, but that's a whole other discussion.

Edited by VertigoTeaparty
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Its just when you're in financial straits and need to budget better, you take a sheet of paper or open a new file in spreadsheet, take your bank statements and type in everything you are spending your money on. Calculate precisely how much you're bringing in and how much is leaving the door. Thoroughly separate whats "needed" and whats "wanted". For example, headphones are needed for what he does for his career, but surround sound headphones is a want, buy some regular headphones for the time being to save some money. And you keep going through all your finances and see whats going on, you don't stumble apon cheaper TV/Streaming services one day when you could of been paying a fraction of what you've been paying (and saying you're broke) for years. Nor you don't just one day discover you've been paying for a landline that you never use and been paying for just because your parents told you too. I know what Budgeting and Broke are and how they look like in someone's life and it doesn't remind me of anything that Phil does outside of him just saying the words. Especially when you're saying things like only $500 to $800 gain in income isn't worth his time or the effort.

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1 hour ago, Luckyfall said:

Living beyond your means is very common over here too, especially for the middle/upper class now that you can get basically anything for credit.

Going to try to avoid ranting, and I don't know where you live, but it is absolutely ridiculous that we don't hammer personal finance into kids in school in the US. There should be no less than 4 years spent in high school in which people are taught the power of compound interest, about the stock/bond/etc markets, balancing a checkbook, the importance of an emergency fund, what your credit score is for and how to make sure it's good, what to do if you get into debt, etc. Speaking to credit cards specifically, they aren't inherently bad but handled poorly they can screw you. There's so much critical information like this that should be taught in schools but isn't. It's infuriating... and a tangent. :p

1 hour ago, Luckyfall said:

To me brand new cars are a huge waste of money that serve no purpose, not even as an investment.

As someone who's current car was bought new I agree. I was going to purchase used but I was in a financial situation where I could pay the extra "premium" of a new car. I knew I could buy a good used Honda for cheaper and still have had as good of luck with it. I got a really good deal and still paid a few $k more than if  I had bought used.

 

1 hour ago, Krillin said:

Its just when you're in financial straits and need to budget better, you take a sheet of paper or open a new file in spreadsheet, take your bank statements and type in everything you are spending your money on.

Or just use Mint. Takes a lot less time and makes perty graphs!

Regarding renting out the condo, to be fair I get where he's coming from RE: the liability issue. It's not as simple as talking to a property manager, signing some paperwork and having that free money roll in. Of course the Project Management Company will deal with a good bit of that but there will still be a time and possibly monetary price to be paid, especially up front. Not saying he shouldn't do it (in fact I think he should do that or sell it) but it's not quite so simple as "Push Button, Receive Bacon." Even if he only made $100/month that's still $100 more than he's making now.  Could be He dOesn't wAnt to lock out the condo due to this house/business issue which would make sense.

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  • 2 months later...
1 hour ago, bad_australia said:

UPDATE: Phil has stated that his condo in CT is worth around 60k, and he needs almost 100k to pay it off. Considering Phil's comment on this thread, it seems unlikely that renting the condo is a good option at this point.

Sell the house and move back into the condo, unless he wants to do these little fundraisers on Twitch for the rest of his life. Something tells me 2018 is going to be a pivotal year for DSP. He either makes the wrong move and dies, or makes the right move and coast for another year. But either way, downsizing is his most viable option, get rid of some of the useless crap he buys.

Edited by BodyThirst
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if you can cut the cost monthly by even 40-50 percent your already winning. At this point you’re just throwing away money by not renting. I went through a very similar condo situation...high crime area...value plunged. I rented it out for 3 years before I was able to sell...but that extra 60 percent I cut off monthly was VITAL. Renting/PMC’s are always a gamble...I had to replace some plumbing and some other minor stuff...even had to switch my rep at my PMC at one point. But it was way worth. Make some calls bro...

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