Okay, so my husband and I have put about 15+ official offers in over the past 3 months and have lost EVERY SINGLE ONE - despite waiving inspections and going well over ask. We're fairly new to the investment world. We have 3 doors and though my husband has been a "landlord" for 10+ years, I've been doing this for only 2 years. He has a duplex and I have a single family.
Anyway, we've been working hard these past couple months to add to our portfolio.... and this week we went under contract with TWO PROPERTIES (one being a duplex). Needless to say, if things all go through, we'll be doubling our doors. I know I should be extremely happy and grateful for this opportunity. However, we both work full time jobs and I AM THE NUMBERS PERSON! I am the one looking for houses, analyzing the calculations, scheduling the showings, re analyzing the numbers.... I DO IT ALL!
Yesterday, my tenant calls me with a leaky toilet - fixed today. This morning I talked to two mortgage brokers and when the one found out I was "shopping around" he was highly offended bc of all the "work" he's done over the past couple months with getting me updated pre-approval letters. To top it off, the owners of the duplex didn't apparently didn't have their finances together and put together some crappy excel document as "proof the renters have made payments." In reality, it shows that he transferred money out of Venmo to his bank account. Anyway, I'm super weary of acquiring someone elses tenants. The place looked clean and taken care of - but if they don't pay, I don't really care how good they take care of it - they need to go. Needless to say, one is on a month to month and the other ones lease expires in September 2021. If they're not willing to sign a yearly contract under my terms (the current lease is one page!), can I immediately give notice to vacate to the month to month renter.... and what can I do with the one thats lease expires in September. Honestly, the rents are under FMR and I can def value add both units to justify the increase....
Also, my estimations of closing costs were wayyyyyy off! I was using 4% considering both properties are under 150k. However, the one property is selling at 125 and closing costs are nearly 10k?!?!?
Please help, I'm feeling extremely overwhelmed and don't know what to do from here.... my husbands ready to just give up.
Hi @Erica L. , take a breath, that's step one! If you're not enjoying this at least a little bit, then it's not worth doing!
So yes, you can give notice to tenants who are MTM (month to month) - just follow your state laws. As to the tenant with a lease, the lease will likely come with the property, so you will have to wait for that to be up to give notice, or you can buy the tenant out through a cash for keys scenario.
Check how much of those closing costs are actual expenses (atty / title fees, inspections, etc) that you can shop around, vs closing costs that are associated with the property specifically (escrow items like taxes and insurance). Your lender may be requiring 1 year of each vs 6 mos.
As to your lender getting his / her feelings hurt....eh, business is business. Sounds like a toxic person if they're genuinely getting upset over it. You don't need those kind of people in your life :)
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