All Forum Posts by: JR T.

Why isn't your Realtor preparing the documents for you? He is not a lawyer I don't know that you're getting much value from him "checking over" what you filled out.

I am a patient investor who waits to buy until I'm sure I'm at the bottom of a market. My commercial realtor typically sends a signed letter of intent (which is nonbinding but also just two pages) instead of a complete offer package to see if the seller is interested in our price and in closing fast. If they respond affirmatively we complete an offer package with the form contracts, disclosures, etc. via docusign. 

If even one unit goes vacant bye bye cash flow and hello monthly contribution into the property. Running 25% vacancy happens all the time in rental portfolios. That's just one factor (of many) you're missing in your calculation. 

Unless you are going to live in one unit and rent out the other 3 I disagree with your statement that this is a good investment. 

Hello BP,

About two months ago I posted a discussion about operating subprime rentals sans insurance which generated some 100 replies:

https://www.biggerpockets.com/forums/95/topics/235...

My main objection to insuring the properties is that the insurance I was being quoted ran ~$1,000/yr/door and was inappropriate to the type of risk I wanted to hedge against. A BP Pro member @Jason Bott contacted me believing he could find a solution. 

I'm happy to say he produced and for Christmas I paid my insurance premium. A million in liability and casualty insurance on the properties with a $10k deductible at around $275/door/year. At this price it made the policy a no brainer and I sleep better at night for it. Thanks Jason.

@Jerry W. Thank you for proving my point. There is absolutely no law or statute entitling that tenant to a ceiling fan that doesn't squeak. The landlord does not have to repair something that is not broken.

It's clear you've never spent a day in landlord/tenant court. A judge would not be at all interested in listening to you spit out arcane legal theories in that forum.

Try reading for comprehension next time. 

@K. 

@Account Closed In Maryland you can have any sum the tenant comes to owe you during the course of their tenancy become "additional rent" under the lease. A properly crafted lease gives you great standing in the courts here.

@k. 

@Account Closed The amounts of the deductible are considered additional rent in my lease. And I've won them many times as inclusions in the rent balance due. I'm in landlord tenant court to evict tenants because my tenants are low income and hit bumps in the road where they can't pay. In Maryland they have a right of redemption (and we're always happy to let them redeem). An eviction costs $25 including having the Sheriff serve it and no lawyer is necessary. Anybody that hasn't paid by the 5th gets an eviction filing on the 6th.

Welcome to aggressive financial management.

@Jerry W. So I guess the point of all that was to acknowledge that it's perfectly legal to charge a repair deductible, you just choose not to do so. When you give a tenant something in good and working order they should maintain it in that condition or bear at least the first $100 of the expense to repair it. I don't apologize for treating landlording as a business.

What does the BP community think about assessing tenants a $25 fee for any contact they leave on your management hotline. A "response" fee. Any time they call you bill them $25 UNLESS it is to report water or fire damage in which case they will receive $100 for their assistance.

In my properties I would come out ahead on the call fee, reduce the calls and get faster reports about the more serious stuff. These type of tactics work great in financial services just wonder how it will translate to landlording.

They call me "The Tenant Whisperer" haha

@Steven Kopstein I believe you speak of Anthony Owens. The work and service he provides are superb, he did a big renovation on my primary downtown, but I don't think he's doing much work outside of Frederick. He was helping me out in Hagerstown for awhile when I first got into the market and eventually told me I needed to find a handyman out there and leave him alone.

Still looking for a reliable Hagerstown handyman..

This sounds like a very slow way to make a small amount of money. Good luck.