All Forum Posts by: Brandon Eleazer

Damian, welcome back to BP. Anytime im off this site for a while it always pulls me back too (and has even more information on it). Plenty of inventory and activity in the rental market in Philly. Good luck exploring.

In favor of the signed addendum, though a free months rent is generous.  I would negotiate for putting lock boxes and conducting showings earlier but agree not to post for sale signs on the property.  Not only is it an annoyance to the tenant to have people knock on the door and ask questions, but if they are interested in purchasing they will appreciate this.

Some suggested language for the addendum:

"It is understood and agreed that if landlord sells property during the lease or any renewal term, landlord has the right to terminate lease if landlord gives at least ____days written notice to tenant. Tenant is not entitled to any payment of damages.

For those reluctant to hand out expensive cards to "cold leads", why not have two different cards? The cheaper ones in your pocket go to the weaker leads, the better quality ones in your wallet go to stronger leads...just a thought

The rental has a small finished room (dropped ceiling, Sheetrock) in the basement. There was water damage and the carpet was removed and mildew on the walls so the bottom portion of two walls was also removed.

Since there is no closet and window it can only be utilized as storage. Is it necessary to reinstall the carpets and repair the drywall? Im concerned that once the repairs are done the tenants will use it as a bedroom, which is unsafe.

Should this space be left as-is? what are some options? Thanks

What forms of rent payment do you accept? What is the most common method used by your tenants? (cash, personal check, e-check, autopay, credit card, cashiers check, etc.)

Chris, its actually unclear to me but it seems our statements are not too different.  If you have an efficient system  that works then you can effectively manage your portfolio yourself.  However consider this real life comparison that highlights the potential degree of difficulty and extra effort needed with greater inventory.

Owner of 25 units:
- 25 individual single-family buildings(scattered sites)
- All 25 units are section 8
- Purchased 10 years ago
- Located in low-income neighborhoods
-monthly mortgage payments, real estate taxes, insurance and water/sewer bills

Vs.

Owner of 5 Units:
-All 5 units in one apartment building
-Purchased 3 years ago
-Located near local college
-Paid cash, owned free and clear

Im interested to gain an investors perspective on which scenario is more feasible with minimal time, resources, etc.(e.g. all things being equal)

"who cares about your property more than you do as the owner?"

Well, we trust our barbers with cutting our hair, financial advisors with our money, and daycare providers with our children....and not because we believe these professionals care more than we do.

Usually you hire someone else to take care of these tasks when you dont have the time, skills, knowledge, resources, patience or desire to do them yourself.

The same principle is true here. Those who prefer to handle property management themselves possess almost all of the above.  

I believe that as the number of units you own increases, the more you need to evaluate yourself as an owner.  Be honest with yourself.  It requires much more to manage 25 units than 5 units.

Consider that Investor A with few resources and knowledge who owns one property could have as much reason to hire a property manager as Investor B with a full time job and little patience who owns 10 properties.

On the other hand, Investor A with lots of skills who owns one property could have just as little need to hire a property manager as Investor B with lots of time and motivation who owns 10 properties.

Bottom line is that yes, most owners do care more about their investment properties, but they shouldn't let that cloud their judgement if having someone else manage them is a more beneficial option. 

Molly,You must be making good decisions, that's terric; keep up the good work...& welcome to the forum.
I know several people who are interested in real estate investing and have been looking to buy their first rental property for a while now. For some reason they haven't pulled the trigger. On multiple occasions I've let them know about great deals; only to see them under contract within days.
Guess you can lead a horse to water but can't make it drink!

She isn't "upside-down" so why would this be a short sale? What am I missing here? If the property is worth more than what she owes than she can just sell, correct?

Based on what you described these are two scenarios on rent collection:
1.). Your uncle continues to drive to pick up rent in person. (although I suspect he is looking to limit his activities/involvement since he has given you the property.)
2.). Give her a dozen stamped envelopes with your return address preprinted on them.  This way she can just put the rent in her mailbox each month in one of the envelopes and it will be mailed out to you.  Buying 12 stamps is cheaper than spending money and time driving to pick it up every month.  Please note that if she pays in cash than this will not be a good option.
3.). Her bank can draw a check and mail it to you each month.
If there isn't a maintenance guy than you're all set, because you dont have to worry that she'll call anyone else other than you with any concerns.
I'm a firm believer of "get it in writing". Besides that, it cant hurt to put some basic things on paper.  You're taking on enough liability as it is, and without any documentation you have nothing to refer back to. Not saying this would happen, but for instance if she was ever to move relatives in the property that cause damage or disturb the peace of neighbors, or decide to keep 3 birds, 5 cats, and 4 dogs as pets, or have someone do unauthorized modifications to your property, a lease may provide protection in these situations.  You can emphasize that a lease would benefit her by spelling out her rights and your obligations and responsibilities as a landlord.  It will show her that she is in good hands, and how professional, organized and qualified you are to handle your landlord duties.

If this is an older home and the major systems (I.e. Heating, plumbing, and electrical) have not been recently checked, I would recommend having those items inspected for preventative maintenance.