All Forum Posts by: Andy Webb

Keep it simple and keep it to one account.  Think out a few years to when you have 20 duplexes...do you want 20 checking and 20 savings accounts?  Probably not.

And I think you are fine with umbrella coverage and no LLC at this point.

Andy

I can see the reviews on Airbnb now:  "The house was great, nice amenities, super location....but there was this dude sleeping in his car in the driveway! That was really weird and uncomfortable for us. Especially when he came into the house in the middle of the night..."

Not to mention the neighbors...and if it a a long-term rental, forget about that approach (sleeping in the car).

I would save some more cash for now...

2 points of interest:

1) I would not start negotiating away bits and pieces of the security deposit (RE 1st tenant you mentioned).  What if there are damages you need to cover out of that deposit?  Whatever your pet fees are or pet deposit, have them pay that and add your pet rent to the monthly rent.  

2) Does your lease not have a penalty for pets that have not been allowed by some type of pet agreement?  I often see something like the following written into leases (and do similar for my properties) - $500 to 1000 for the violation and then $X amount ($10, $15, usually smaller) per day thereafter until the pet is removed.  If your lease has this, issue an invoice to the 2nd tenant and let them know they are in default and what the next steps will be (e.g. you can file for eviction).

I have had residents who pet sit their kids dogs - they pay the non-refundable pet fee and we build the pet rent into the monthly rent.   

Andy

I am a long-time rental owner in Texas (DFW area primarily).  Sure, property taxes are high, as is insurance - don't forget that one.  We protest the tax appraisals every year, win some ground on most, but not all; so there are steps you can take to push back.  And we use an insurance broker to keep shopping rates.  That helps alleviate some of the pressure.

Positives about the market:  landlord friendly - gotta get 'em out?, eviction goes pretty quick here;  business friendly - fundamentals are strong here with so many companies and people moving to the state; no personal income tax; low cost of living, though yes it is creeping upwards; with everything else growing, rents are as well.  I have fixed-rate, cheap FNMA mortgages for the most part and my net cash flow just keeps growing (till I cash out via sale or refi of course).

@Joshua Shipley - why the sad face - great job!  I was just curious.  95% of what we have bought from wholesalers have been via assignment of contract.  I prefer it - there are certain advantages to me when it comes to the property tax protest season when it is an assignment.  I would be happy to take some off your hands some time in fact!

Andy

Did you do the lease up yourself or work with a leasing agent/realtor?  I ask because from a documentation perspective, at least here in Texas, there is an Association of Realtors amendment available that all parties have to sign, which among other things releases the outgoing tenant from responsibility, and assigns the security deposit to the remaining tenants (e.g. I do not have to consider the exiting tenant later when I issue the security deposit refund).  You might see what your leasing agent has available in your state.

In our case, with the amendment, at a minimum everyone in the property has to agree with the early exit of one tenant, and all parties have to sign....so to your question and in this scenario, they would all have to agree to this change.  And until everyone is willing to sign said amendment or similar, I would not remove that other tenant.  

The language concerning the security deposit is helpful: the outgoing tenant releases those funds to the remaining ones...so in essence they are paying a portion of that deposit to them for the early exit, if that makes sense.  Enough in your case to offset 6 months...probably not, but you might look at that as a potential carrot for the 2 that are remaining in place.  Of course, that assumes they will even receive any of the deposit back...

I do not have an answer to that question, though as a landlord those VA's annoy the you know what out of me constantly...That said, I am an end buyer once you get those houses under contract! Seeking more rentals around DFW and East Texas.

Did you do a double-close or assign the contract?

Househack assumes you want to deal with a roommate.  That is a whole other experience and one that I personally have no desire to return to!  But to each his own.

@Tanveer Ahmed - I am in Carrollton and know this area extremely well.  In fact I have a rental in 75006 just south of the Bush.  Where is yours?  

Your assessment is correct - rents are WAAAY up here.  Though that is true of most places.  I just placed a tenant/client in a rental here in Carrollton and it was tough to stay within her budget.  Depending on your house finish out and location, you may be able to hit higher than $2k.  A lot of what I showed her was north of $2200, both in 75007 and 75006.

Let me know if you want to chat.

Andy

Network and share your track record.