All Forum Posts by: Arthur McCormack

My first tenant ever moved in November, 2020. I set up the lease electronically and rent on autopay.

Error#1: on the first draft for rent and deposit it didn’t go through, came back as NSF three times. Finally the tenant called and asked if he could pay me directly in cash this time and moving forward, I agreed, and he paid deposit and rent in cash. I did not charge a late fee.

Error #2: in December he called and said he couldn’t pay rent in full on 1st because car payments auto deducted and he didn’t have enough on hand to pay rent, so could he pay next week. I asked if he could make a partial payment at least - he paid $200 - and I didn’t charge late fee. The following week he paid but was $5 (?) short of the total amount owed; he asked if he could add it to the January rent and I agreed.

Error #3: when he moved in I used a screening tool (he paid the fee for the background checks) but I failed to get the move-in checklist.

Note: late fee policy is spelled out in lease (my property is located in Indiana)

Question #1: since I have failed to enforce the late fee in the first two months has that set a precedent? Can I remind him that the lease stipulates late fee if rent is paid after the 5th and as of January it will be enforced?

Question #2: since he has been in the unit 2 months now is it too late to go back and get the move in checklist done still?

Hello to all, not sure if this thread is still notifying previous posters since its 4yo, but I recently finished rehabbing and renting a property in Clarksville. I am looking to connect with other investors in the area, but am also looking for recommendations on a bookkeeper/accountant that understands rental properties. Since all of you are local I thought I'd reach out and see if you have any recommendations either virtual or local?

Thank you @Leopoldo Vazquez,  positive feedback like yours is greatly appreciated and encouraging. I decided to go ahead and get my RE license to have a better understanding of the business and realize I also need to spend some serious time here on BP learning how to utilize the tools and wealth of knowledge from this great resource rich network. All the best to you too brother. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Clarksville.

Purchase price: $69,000

This was a rundown property with some serious basement foundation issues and expired roof. The seller was listing at $80K. I saw potential in the property and location so offered cash and waived inspection contingency in offer. Big risk to take, and the amount of money I have had to put in is about $10K more than I expected to upfront. This was my first deal ever, but now its rented with the 1bd/1bth at $750/mo and the 2bd/1bth at $800/mo. Not fantastic, but for a first deal... I'm happy.

What made you interested in investing in this type of deal?

I favor multi family because I cringe at the idea of having a vacancy and making no income, as would be if the case with SFR.

How did you find this deal and how did you negotiate it?

Found it on Zillow and negotiated through a real estate agent.

How did you finance this deal?

Self financed. I was newly self employed and just moved tonthe area at the time, so couldn't qualify for traditional financing and, at that time, was not really aware of any private money options.

Lessons learned? Challenges?

I took a big gamble and could have gotten my bouté handed to me, but I got relatively lucky. I didn't do nearly enough due diligence and relied too much on gut feeling and hope. Then again, I might not have done it otherwise. Next time I.will definitely do better property eval, and seek feedback here on the BP forums.