All Forum Posts by: Aidan Mulligan

Hello everyone,

I see something pop up all the time when talking about allowing pets on your property. Someone always says "Except if it's a pitbull, keep those away"

Now I understand that "dangerous breeds" can bring higher insurance payments and some insurance companies might not give coverage at all. I have an insurance company that doesn't have such a clause so I know that the company exists. Another reasoning I get is that the dog is a good indicator of the type of person. Generally speaking, you see a pitbull and the owner stereotype that follows is some lowlife that won't pay rent.

If a tenant sits down in front of me, has a 760 credit score, a full time job, no marks against him/her, and happens to have a pit, I don't see what people get up in arms about. The stigma against pitbulls is cruel and unjust. Judge the person applying in front of you and the animal should be a reflection of that person. If anything make it a requirement that you meet the dog first before making a decision.

My 2 cents, let me know what you think.

And to be honest, I had to read that legal paragraph three times before I could pull out the actual meaning.

I wouldn't say obviously, many contracts have a conversion to month to month after lease term ends written in the contract. In that case the original contract would still hold true.

Google:

B. N.J.S.A. 2A:42-5. Holding over by tenant after giving notice of quitting; double rent recoverable. If a tenant of real estate shall give notice of his intention to quit the premises by him held at a time specified in such notice, and shall not deliver up the possession of such real estate at the time specified in the notice, such tenant, his executors or administrators, shall, from such time, pay to his landlord or lessor, his heirs or assigns, double the rent which he should otherwise have paid, to be levied, sued for and recovered at the same times and in the same manner as the single rent before the giving of such notice could be levied, sued for and recovered. Such double rent shall continue to be paid during all the time such tenant shall continue in possession after the giving of such notice.

Laymans: You can charge double the rent for the month total. If you wanted to do daily, then divide it by the number of days. ($500 Rent * 2) / 31 Days = 32.26/day 

Disclosure: I'm not a lawyer,

Here is in my personal lease where I live 

"6.1.4 You shall pay Landlord an amount equal to the then existing Monthly Base Rent (without concession), prorated by the day for each day in Hold Over and beyond the termination, non-renewal or expiration of this Lease, in addition to any other damages.

6.2 If Your Hold Over prevents a new resident from occupying the Apartment, You may also be liable to Landlord for all rent for the new resident’s full lease term, subject to Landlord’s obligation, if any, to mitigate damages."

In NC my landlord will charge me a months rate prorated to the day + any rents prorated to the day that I stop them from collecting from someone else who could live there. So essentially double a months rent.

I use Cozy for listing, applications, and rental collection.

I use Stessa to track expenses.

1) Depends on where you are, every state is different

2) If it is legal in your state it must be in the leasing contract, you can't amend a contract after the fact

@Michael Wilson you leased out a place a month and a half before actually owning it?

Ignore the "100% obviously!" crowd. When running numbers I look for a minimum of 15% CoC.

With an ARV of 110k I would run this calculation

( ARV * 0.7 ) - Rehab = Offer

110,000 * 0.7 = 77,000 - 10,000 = 67,000 offer

Idea behind the calculation. You want your purchase and rehab to be 70% of the ARV. This will allow you room for expenses and fees in the buying and selling process while still retaining a profit that's worth your time.

Go to cozy.co 

They have a standard rental application and receive and store them for you to review.

Based on some really rough estimates I would say adding a 650 SF living space above the garage is going to run you around $30,000 but that is a very unscientific guess. I'm making some assumptions so take that number with a grain of salt.

I would advise against converting the car space into a unit because when it comes time to sell this home it won't be very marketable. Generally speaking, people in nicer neighborhoods like garages for storage, work space, or for their cars. If you convert it into essentially a big bedroom/apartment, it's going to be hard to sell.

As far as your potential cashflow I ran the numbers through my pro forma and I'm coming up with $275.30/month in cashflow. That's with the two bedrooms, the AirBnB, and the garage space included in the rent.

Financially, in general lenders don't like DTIs above 45% unless there are major cash reserves and a high credit score (760+).

If you'd like I can send you a screenshot in the DMs of how I came to the rehab guess and the Pro forma cashflow so you know what my assumptions are.