All Forum Posts by: Alex Waugh

Quote from @Ellen Feiss:

Thanks to this community

I inherited 1 unit with bad tenants who had 6 months left on their lease. Thankfully they're out now and I'm in the process of moving new people in. I could have evicted them for lease violations earlier, but I don't have the new lead certification required in providence and therefore, did not want to take them to court for lease violation, potentially lose, and have these bad tenants learn about the new lead law - they would be aware I did not have it and they would have stopped paying. the new lead law allows tenants to pay into escrow if you don't have the lead cert. I couldn't risk this.

I have about $3500 in repairs that are well beyond wear and tear -- smashed out windows, dog chewing of window and door trim, destroyed wood floors. Total in repairs is creeping up toward $4500/5000 -- their deposit is $1500 (old lease) = around $3000 in damages. I have a few pictures of the apt prior to their move in but not extensive documentation, because the old owner didn't have good processes. They've been in the apartment for 7 years. 

I'm wondering if other landlords in Providence think taking them to small claims is worth it. I wouldn't hire a lawyer, I will just go with all my documentation. I plan to send them a bill and let me them know I'll also mail the bill to their current landlord for his information should they choose not to make it right. I don't think they'll pay but I know they have money. Any thoughts appreciated! 

The short answer is no, it's not worth it. Even if you win in court, you still lose because of the time, fees and headaches involved. Landlords that know this just let it go and save that time and money focusing on getting a better tenant in the property instead. The only people that choose to go to court knowing there is no real benefit to winning are just trying to make a point. Time is too valuable to waist. If at the end of winning you still lose financially, it's not worth your time in the first place. 

@Cali Skier

I had a tenant do this to me once as well. I chose to not work with them. Of course, you still act kind and professional, but they are defaulting on their lease (you can't "break" a lease). The punishment for defaulting on their lease was losing 100% of their security deposit and they also owed 2 months of future rent to cover expenses while I found a new tenant, which I did. Was it more work since they defaulted and was it more expensive for them? Yes, and yes. I see it like this; we have a contract for a reason. If they choose to not hold up their end of the bargain, this was a solid way to navigate it for my portfolio. I hope this helps. 

Hi Trent,

I house hack a duplex in Oklahoma City, so I know the challenges involved. It was my first time doing it too, so I found a newer property (built in 2016) to stabilize the investment early on. Of course, an older property will have more challenges, but if that's the direction you want, I would just make sure you have more available cash than you anticipate needing and a contractor you can trust to walk you through it. 

Hi Douglas,

I own and manage a multifamily property in Oklahoma City (a duplex) and it has been an amazing investment! I'm using the house hack model that BiggerPockets discusses as well, and I can't begin to explain the number of financial benefits that come along with it. Overall, there isn't many multifamily units in the Oklahoma City market. The inventory you'll see are either really old (1940's or older) or brand new. Single family homes took over as the leading building type for several decades and there weren't many multifamily properties built in-between. However, if you can find one, I'd jump on it because in my case, one side alone can cover the whole mortgage. I highly recommend this model! I hope this helps. 

Quote from @Dennis Rocha:

Hi Alex,

Thank you for your response, I'm looking at a SF 3/2 1900 plus sqft home 2 car garage in the Copperfield Subdivision and wondering if rents of $1800-$2000/mo. would be pushing it. comps in the area list the median as $1545/mo. There are a couple of 3/2s with rents for $1800-$2000/mo. that were among the comps. Of course, it matters what the house has to offer that could affect the price. But thanks again, it's good to get information from people like yourself living there and doing business as such. You folks are of great help.

Dennis,

I'm glad I can help fellow investors! Also, the UCO college in town is a plus since during good times and rough times, college towns are always a big magnet for tenants in the area. UCO is the third largest university in the state behind OU & OSU. Edmond is also a highly sought-after area regarding public schools for younger kids too. Edmond arguably has the best reputation for the best public schools K-12 in the state! So, families will make significant sacrifices to be included in that school district. I believe that there is $1,800-$2,000/mo. comps in the area. The market can demand that amount here. After one day of showings, a nice family signed a lease 3 days later and have been great tenants ever since. I would suggest getting utility/tax averages though, as they can be more than Oklahoma City's costs which would affect your NOI. Uniquely enough, our property sits on Oklahoma City land (so we pay Oklahoma City utilities/taxes), but we have an Edmond address because we live closer to their post office. You may have a similar situation, not sure. This is just something to note for your due diligence. Hope this helps!

Hello Dennis,

I own a Class A two-story townhome duplex in Hampton Park on the west side of Edmond, OK built in 2016. It's a 1600 SF 3 bed 2.5 bath with a 2 car garage that I charge $1695/mo. in rent plus $30/mo. in pet rent. One side covers the mortgage for the whole property. I plan to raise the rent another $100/mo. when it's time to renew the lease in June. My wife and love the area and are happy with everything about it. I hope this helps!

During Covid-19 I've received my rent on time for a duplex I own that is a class A-type property. In fact, our tenant paid 6 months in advance a month before she had to. Very thankful! 

Originally posted by @Christopher Olsen:

@Alyssa Dyer you are correct. After looking more into it and putting all the numbers together taxes ate up a lot of the profits. 

Here is a tool you can use to find the cheapest county taxes in the state and shop for properties there first. Taxes can be a huge expense, so focusing in certain areas that are cheaper from the start will only help your overall bottom line. 

Here is a link that will show you what the average annual property taxes are for each county. It can help narrow down your search for the best deal! 

http://www.tax-rates.org/oklahoma/property-tax

I use State Farm to insure my property and additional landlord insurance. They have been my rock. I've been very happy with their service. Affordable too. 

My lender's requirements for 5+ units is only 15% down if you buy it as a commercial property (bought with an LLC). I've got my license so if I bought the property representing myself and paid myself the commission of ~3% I could apply that to my down payment too. Realistically, I only have to bring 12% to closing to purchase it.

My lender is based out of northern Oklahoma and their lending district includes the Oklahoma City Metro too. PM if you would like their contact info!