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avoid paying california state income tax Soon, this became the norm, not the exception. There were constant problems at my houses. Unhappy tenants led to poor upkeep of the property and even more maintenance problems. About one year, after I had amassed 26 houses, I was having problems with roughly 10-15 houses and/or tenants each week. I was evicting at least two tenants each month, and approximately four to seven tenants were either behind on rent or not paying at all. Promises were made, payment plans arranged and few, if any, ever followed through.
avoid paying california income tax Then there was the email vendor I had stopped using in January. Long story short: I let them know that I was not going to be able to pay them for the duration of the 12 month contract I had signed the previous May (one of several infrastructure building mistakes I made in 2010). I suggested we work out a compromise. They declined. So I ignored their calls and emails until I received an overnight letter in May from their in-house counsel. I waited a few days before calling them back - wanting to preserve at least a shred of dignity. I dragged it out until June, and started making payments the end of July. Just 10 more to go. Again, the detailed cash planning strengthened my resolve, and gave me confidence.
It didn't take long for me to realize that this was no way to make money in real estate. Consequently, I got rid of these houses as fast as I possibly could. There were plenty of buyers, willing to take over my headaches, because they had the ability to make it work, they believed.
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