All Forum Posts by: Bob Romano

@JD Martin Great bullet points JD. As they say " you live and learn" so true

My fear is that this pro tenant subleased the house out to someone else and he doesn't even live there. How do I get the other people out who are not even on a lease? I am going by there today to see who answers the door, if anybody 

James, i just called my attorney to get the process started. I will keep all of you posted how it goes. Thank you all for your input 

It only gets better, I just called his work and his supervisor just told me " he doesn't work here anymore" 

Great 

 He emailed me last night saying" I and very sorry for the late response I am not used to checking this email as I only receive junk here and phone still not in due to weather backing up shipment etc. I can just leave the rent in the mailbox when I leave for work in the morning so you can pick up first thing in the am and if you can leave receipt in mailbox I’ll pick up when I return from work. Please confirm if that works for you." 

Should i accept the payment  or tell him he broke the lease and I want him gone and let the lawyers handle it?  My gut tells me to get rid of him, its only going to keep happening.

Thought I had the perfect tenant. Did a background check, got copies of his pay stub, call HR and checked on his employment, I even called his HR Dept and verified all his info before he even gave my the persons name to contact just in case he set someone up to answer for him. Everything checked out fine. He is a VP of Operations and makes $2600 week. ( rent is $1900 mth) Well he moved in Nov 2018 , he paid Nov & Dec  no problem. He signed a 5 year lease to boot. Thought I was all set for 5 years with the perfect tenant, now im thinking I got scammed.    My bank tried to auto debit ( Cozy) his account on Jan 5th, 5 days past the rent due date and it was insufficient. I called him, he said there was a  mixup with his bank and that he will pay me cash for Jan and correct the auto debit for Feb. ( excuses) Well here it is 21 days later and still no cash.

Now  he is 21 days late for Jan. I sent him a 5 day demand for payment letter and got no response.

He wont return my calls, emails or text. I went to the house, see both cars in the driveway, no one answers the door.  I do not know what to do next at this point but turn over to the lawyers. Now the only thing that seemed fishy was  when I told him I was running his credit report early on, he said" I just ran it last week for something else and I do not want another " ding" on my report so could he just send me a copy of that one he has, so I agreed. now im thinking the report must of been forged somehow. Because why would someone with an 805 credit score risk having an eviction ? He had 0 cc debt, no evictions anywhere, etc   Moral of the story is : do not take any shortcuts on the screening process. Even if they have copies or whatever, due your complete due diligence on every tenant. I should of went with my gut feeling about this guy. I had a feeling something wasn't right but I took a chance and now im paying for it. Should I send this to the lawyers and get rid of him? I don't want to start the process, pay my lawyer then he comes up with money and now im back to square one.  AnyThoughts?

@Eric Gross the $1156 includes the mortgage. it is at 5.375% . P&i is $772.76, Insur is $125., Taxes are $258.33 . Should all equal $1156. Water/sewer is actually paid by tenant.

purchase $172,500

Closing cost $2300

Repair cost = zero ( i will pwash) 

down payment $34,500.00

P&i, insur, water/sewer, vac, capex, taxes  $1156

mortgage= $138

Rent $1500 

Hi Shane, 

I think the Cash on Cash  of 5% is a bit low. I always target to get a min of 10-15% .

The IRR is achievable if you buy it right. There are deals out there but you have to dig deep to find them. You may have to look at 50 homes before you find the right one in this current market. I love your goals too, nothing wrong with baby steps.

The only true way to find out is to have the land surveyed. This would tell you for sure who's side it is on.