All Forum Posts by: Alex U.

I had a question for some of our experts. My tennant sent me an email stating he is leaving in 28 days, our lease says he must give 60 days notice.  I told him fine, I would make every effort to market the property and find a new tenant quickly.  

I sent him a form from the bigger pockets landlording book"Notice to vacate" I want him to sign the form stating when he leaving and a forwarding address.

He is not responding, so my question is does an email constitute a notice to leave? 

Thanks everyone for your feedback.  At the time I purchased the unit, I did do a home inspection. It is 20 pages long.  My understanding is that the since a condition report is from the tenant, they lay out everything that is lacking, and thus it is assumed that everything is perfect minus what the tenant may have stated.  This vs, an inspection report which is not from the tenant.

Though during the 4 years he was there:

He broke, and I paid for all the following out of my pocket.

washer dryer, new garbage disposal, broke 2 drawers, broke front door security gate lock, broke front door lock, broke kitchen faucet, I re caulked bathroom, changed light switch, installed iron chair railing(because he complained after living there 3 years ), ceiling fan, toilet seat.  This does not include the holes in the walls, scratches on paint, and carpet that is ruined.  All in all I think I lost money over for years, as cap rates in california are 2%.

I am a fairly new property manager.  I bought my first rental 4 years ago, and inherited a tenant from hell.  Luckily, he just gave me 28 days notice that he is leaving, even though our lease says he has to give 60 days.

When the previous owner rented it to him, no condition report was made.  I did get an email from the old owner, that the tenant sent 4 things that was wrong with the property when he got possesion. This was in a free form email, not on a form or anything.  Then tenant, 2 kids and dog, have been hard on the 2/1 900 ft condo.

Any idea, what I should do in inspecting the property when he exists?  What condition can I compare it too? Ive never lived in the unit, nor did I get a good chance to inspect it even when purchasing it.

thanks

Just got done listening to podcast 197, amazing stuff. I'm pumped Chris started in 2013 and now at 50+ properties, using brrr strategy. Will retire in 2017. I would be happy with 1/10 of his success. Granted he is buying $30k houses fixing them and renting at $700 in Milwaukee using direct mail. So my question to my San Diego friends, how does one replicate this in San Diego. Is this even possible.? Does direct mail work? Can a small investor afford to do this in San Diego? The spreads in Milwaukee are amazing, 2% rule and better. I'm looking to partner with someone with more experience.

All good points, I think good advice if you live there n places where the 1% 2% rule work. Investor loans at 4% work ok. If you live on n places were the 1% or 2% rule don't work like so cal, because they are equity plays, then sometimes very low finance rates are the only way to get some cashflow so that you are not losing money monthly. Let me give you an example, I have a property under contract that is in the money by 50k, it has been a long short sale and during this time comps in the area have taken off. With that said if I got a investment loan for 30 yrs best rates are in the 4's. Even with 30% down cashflow would be $50 month in a $270k property here in so cal. ($1800 rent , $270 HOA)However, cash out refi and I'm in the 2.65%. Now I have $400 cashflow a month plus my principle reduction is better than at 4% investor loan. Additionally, I can treat my 2.65% loan like a 4% loan and use the money I'm saving to prepay , by 7 years I will have paid down a lot more. If you live in socal, and want to buy properties in B areas to have good renters 1% rule does not work at all. But property appreciating at 6% year. Point is RE advice is local what works in one part of the county does not in another.

Interesting, i am in the process of doing the exact same thing, cash out refi 7/1 arm at 2.625 to buy a rental. Heloc rates are in the 4's, if this is a buy and hold property in my mind heloc would make no sense as it would lower cashflow. Unless I'm missing something here. The only downside I see here, is that you are taking personal risk on your primary. If the rental lost value for whatever reason, you could walk away and not have impact on primary residence. Btw, which bank is giving you that rate?

Great feedback everyone thanks for sharing your perspectives! A big part if a deal can work is the financing. Can you please share what type of finance ng you are using for buy and hold. 1. Which loan product and rate 2. Which bank For the deals that I see..I'm trying to cash out and refi on my primary with a 7/1 arm that is the only way I see to get cashflow as the rates are 1% lower than a non owner occupied loan.

I was wondering if someone could give me the pros and cons from an asset managment and tax perspective regarding doing a cash out refi to purchase a rental condo ( for cash)

Rates on owner occupied properties are about 2.625% 7/1 arm, whereas on a rental they are 3.5%, so by taking cash out of primary I get a much better rate.

My understanding from a tax perspective is that, I can still take the mortgage interest right it off on my primary, which is similar to interest on rented property as it all goes to a persona 1040.

Thanks for the post do you have a link to the meet up?

Appreciate all the feedback and personal experiences.  Having lived in San Diego my whole life, I can relate to the strong demand and rental rates, and strong appreciation(bubble-like).  The only deals that I find that kind of have worked for me are distressed sales(short sales), but those are really drying/dried up.

Do any of the folks on this thread, do bandit signs, mailers, driving for dollars, or absentee owner lists? Or are most of your purchases MLS?

I have been attending a few Meetups in San diego, most of them turn out to be sales pitches from RE agents, Title companies, Mortgage brokers....any recommendations on some real investor meetups where experienced investors are willing to mentor?