All Forum Posts by: Anna Watkins

Thanks for taking the time to update, Chris.  My first student rental is a co-purchase/house hack for my own son, so his roomies brought their own furniture, but I've got an eye to adding more in the area someday.   

I've no idea whether it's legal or not, but I do make a habit of taking screenshots of text conversations where either I or the tenant agree to do something, or when I'm texting a utility bill for reimbursement or something like that.  I also have captured texts where a handyperson is telling me how much I owe for some small job.  The images either get printed out, or I send them to evernote for the records.

If it's a long-term or planning thing (like a tenant giving notice that they're not renewing lease) I might capture the  text, but also let them know it's not official until I get it by email.

So @Jon Li -- is this your first RE investment?  It sounds a bit like you're all of a sudden (since BP) comparing your situation to the "right" way to do RE, and feeling like you're doing it "wrong" and "should" be making more money. No problem with that, but unless the property is absolutely losing real money every month (instead of losing potential money in a potential different investment), you don't need to be in such a big rush.  Not to say any of your possible options aren't reasonable ones, but slow down!

So you're getting market average in an average house that needs some repairs?  No way do you justify hiking the rent to meet the "cash-on-cash" target you have identified, and you probably wouldn't get it anyway.  The other option is to just sell the house, and buy better the next time.   Win or learn, right?  

I'd suggest (again) finding a RE attorney in the Atlanta area familiar with lease-purchase arrangements, figuring out what kind of deal you could live with, and present that to the current tenants.  If they can't or don't want to buy on those terms, just go ahead (with the advice of a solid RE agent who works in this neighborhood in Norcross) and put the money into the repairs and sell that puppy.  Get it off your hands and stop stressing it.  Your tenants are month to month -- give them 3-4 months notice to find another place -- so you've got planning time but aren't hog-tied to long term.   So you walk away with $80k instead of the whole $100k?  If you 1031 exchange, $80k is a decent chunk of change to put down on one or more other properties, but you'll have to look hard to find ones that "make your money at purchase."  

And then when you do, go for it, confident as an experienced RE investor who's been around the block at least this one time already.

Where in Atlanta?  Do the tenants qualify for any of the "downpayment assistance" programs offered for first-time homebuyers?  Unless you figure out a way to sell to the current tenants, I don't think you can help them (and if you can, awesome. Maybe not your responsibility, but it can be your privilege).   If you raise the rent $300, even if they can pay that, there goes money they might be saving for a traditional downpayment, unless you roll the rent increase into a qualifying purchase-option arrangement of some sort.

I would look for for advice from someone who specifically does "rent to own" type real estate (there was a BP podcast like that recently, wasn't there?) and also consult with a RE lawyer experienced with these kind of deals.  Good luck.

Hey @Michaela G. -- you either win or you learn, right?  Sounds like this adventure has been a learn.  It seems airbnb is like a get-rich-quick plan that really does work for lots of people, but I guess not yet in Pittsburgh.  My son & I stayed in a very basic place in Columbus that was about $25/night, and it was fine for me.  An awesome historic Victorian in a run down neighborhood, a shelter around the corner, Pittsburgh-esque a couple of streets over (swept dirt yards, a 'gathering of old men' around a bbq").  I thought it was cool, but I'm the mom who took my middle-school kids to stay in a travellers' hostel in Mexico and ate from the food trucks . . .  I gave the Columbus guy a 5* review -- it was as I expected -- except for the location, which nothing could make any different and prospective guests need to know. 

I'm glad you've got more stable folks lined up for all the places, and I bet you'll enjoy them more anyway (as will the firethrowers, guitar players and other folks in the community).  It's not always all about the money.  FYI - I'm still up for that drink sometime. Sounds like you're in ATL for a long while. :-)

This is only off the top of my head, but I do think there's a slowdown in summer.  I'm in uber-trendy Decatur, there are something like 8 houses for sale on my street alone (it's a long street) and right now they are just sitting.

Ditto getting more info from each and every showing.  Could be there's just lots and lots of inventory out there now, and everything (people, sales, dogs ) are sluggish in the heat.  Or maybe it's the houses next door?  Good luck!

So I have this older house, bought as a student rental for my own son and his buddy/roommates, all of whom have lots of electronic devices (computers, laptops, xBoxes, projectors, phone chargers, etc etc).  Hardly any of the outlets are grounded, and there's no "whole house" surge protection.  I have renter's insurance awareness in my lease, and am thinking of putting in an additional clause that each roommate should bring his own surge protection power strip as additional insurance for the electronics.  Have you included any kind of "awareness" clause in your leases for this kind of situation?

@Matthew Brill -- There is a sliding door lock you can install that's much stronger than the original built into the door assembly.  If getting that door to lock securely will do the trick, check out the Armor Latch Sliding Door Deadbolt  -- https://smile.amazon.com/gp/product/B00PM8DV24/ref...

I had one installed on a sliding door by a home security guy, then researched and found it on Amazon.com.  Installed another one on a different door myself, very simple. 

I also use the Armor Concepts "door armor" reinforcing units on regular doors with deadbolts.

Impressive, and the landscaping is wonderful. Congrats!

@Nick Brubaker -- I've been wondering how things were going for you. Hope you're enjoying the landlord business!

I'll chime in on the filter question.  I change the filters every 2 months, and I do it myself so it actually gets done.  All the HVAC units came with my houses when I bought them, and I want to keep them alive as long as absolutely possible.  My own system at home is still chugging along after 20 years, so I know it can happen.  I also pay the $200-ish/year service contract, and have them checked out twice a year.  It's just worth it, and with mine I get VIP service calls even on weekends.

Recently I discovered that I can buy boxes of 6 "3 month" filters on Amazon.com, and changing them every 2 months gives me a year per box.  I remind myself with a task in my Google calendar.