My first eviction has come and gone. I currently own 15 units, and have owned real estate for 1.5 years now and I had my first eviction today, June 13th 2018. The tenants were professional tenants. During my background check they actually gave me the # of one of their family members as their "landlord", bad due diligence on my part. So 3 months delinquent on rent, how did I survive?
OWNING MULTIPLE PROPERTIES. If this single family house were my only investment I would have struggled to cover the basic PITI, yes @Grant Cardone, you are right...... But since I owned multiple units that were collecting income I could go through the eviction process without any repercussions of my personal bank account. My other tenants payed for their rent.
So my best advice, acquire more units.
I love the power of real estate and can't wait to gain more and more experience.
It is rough to go through, glad you had all your bases covered!
How much capital were you working with in order to acquire 15 units in 1.5 years?
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So sorry you had to go through that. Evictions are easily the worst part of landlording. I agree that proper reserves/cash flow are what it takes to get you through pretty much any challenge. I've done 4 and the only thing that gets easier is working your way through the paperwork. Everything else is a strain. I've never lost as much sleep as I do when I'm in the middle of an eviction.
Hang in there. BP should give badges for First Eviction Completed. (@Mindy Jensen - We need badges!!!!)
Hey @Max T. , great question. Well first off my market average purchase price is around $30,000-$45,000. So i'm acquiring my units at a large discount. I purchased 4 then used the BRRR method to pull my cash out after the renovations and rolled that into others.
I also had around $100,000 from investors, paying them 10%.
@Linda Weygant Thank you for the encouragement! Yes, agreed 100%, but I guess they always say the "first is always the hardest". So hopefully it is better from here!
@Cassidy Burns glad you got through it. What was the unit located in ? Is it a tenant friendly area ?
@Joseph M. the unit is located in south western VA. The laws are actually very favorable to the landlord which helped significantly !
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