All Forum Posts by: Bryan Devitt

@Jases Brown it is good in theory that you don't have to pay the costs for improving to the point of getting market rate but what is missing is that they'll probably hack the crap out of whatever work they do themselves, costing more to fix in the future. They also might not report major issues that will get exponentially worse because they'll be afraid they'll be responsible for fixing it. Lastly, the kind of people willing to live in a place that needs a makeover to only save $150/month are normally not the best/cleanest/financially stable tenants

I was once at a spa at a major casino talking with a guy who had previously been locked up for a while. He cleaned up while he was in there, read a lot about business and came out to start a small construction company. He started bidding on state work and getting contracts. He was a multi-millionaire doing road construction and site work (grading, dirt pushing and seeding). Where you've been only means that you know where not to go in life, where you want to be sets a loose road map of how to get there. Once you pay your debt there is zero reason you can't do what you want with your life. One thing I have found helpful is to make sure that you always have a plan and road map of how to get to where you want to go. Anyone can look in the distance, point to a mountain peak and say they're going to get there some day. The people who actually get there break out a map, research how to get there, set a route and follow it. There is no Waze to bring you through life, so always have a map and a list of directions and you will get to where you're going. You're already here, reading the right things and asking the right questions, just keep going down this path and good luck with your future. 

You didn't say how much equity you have, that is a major factor in making this decision. Personally, I would sell everything that isn't making money right now because any dip in the market could bring rents down and even slightly and you'll be coming out of pocket. If that happens the value will drop at the same time and if you don't have equity or cash to cover the spread you'll be stuck every month covering the gap, maintenance, etc. 

Russell hit the nail on the head, what is legal in one place isn't legal in another. There are also certain ways to phrase things to make them legal or certain ways to run the paperwork and closings to make it legal. One of the biggest lessons in learning here is that if you want the right answers, you need to ask the right questions as specific as possible (and if you might be doing something not so legal, being specific and vague with hypotheticals and asking for a friend) 

Pretty demanding to expect answers to all your questions in caps. The fact you don't know one of these answers scares the crap out of me, but I'll leave that for a second. You can ask him to do anything you want, doesn't mean he has to do it. If he wants every penny out of the property and you don't want to put a penny into it then you're SOL because he probably won't find a bank giving 100% LTV. As to the part about will you pay more interest, that is a scary question. Probably but no one knows because we have zero clue what the rate is now or what it will be after a refi. He would have to have a really high rate to pull equity and keep the same interest. Either way, will the numbers still work with a new payment? There are simple loan calculators you can use online instead of demanding the rest of us guess on questions you should know if you're trying to close a deal like this

When this ends up in court can you keep us posted, because there is a 100% chance this ends in court. Your friends probably let the delivery people take the old fridge (because where will they store a fridge) and now the landlord will demand they leave the old fridge there. Your friends are going to refuse (rightfully) and take the fridge with them, the landlord is going to take it from their security deposit. He will keep far more than he should (Claims $1k but bought a used fridge for $200 in cash with zero legal proof of anything) and then your friends are going to sue in small claims and win and I believe CA is 3x damages. The landlord will be an old guy on Judge Judy all shocked and pissed off and saying how this isn't right and it is all the tenant's fault. Your friends will win in the end and it won't be worth it. BTW, they should have called the city and complained when he refused to fix the fridge. The washer and drier is one thing that can be explained away to the town, the fridge is a necessity and they would have made him fix it. They also would have made him turn over all of the post dated checks because that probably isn't allowed. 

If they owned the condo and "had no knowledge" of how it happened, who would pay for it? They're not renting an apt, they're renting a condo and signed a lease stating they'll pay for all damages. Guess what this is? Maybe their insurance will cover it, maybe it won't but that isn't your issue. What about broken windows at the condo? If their car got hit in the driveway instead are you responsible for paying their deductible or fixing it because they have no clue who did it?

This isn't a magic question and answer, it is math. With rents at market rate, adding the cost of work needed to get them to market rate and with the % of ROI you want to make on the deal, how much should you spend. No one can tell you what you should spend if they don't know anything about the math of the property

What ever happened to this? The window and fire code are easy fixes, get a bigger custom made vinyl window to fit the rough opening exactly and it will give you your extra inch and the fire code will just be adding firerock to the room, maybe 2 layers. All total it would be a few grand, it sucks but it isn't the end of the world. 

He more than likely won't follow through with it. It would take effort to file the lien and if he isn't even willing to put in effort to save money and buy a place when he is living rent free, it will be too much effort for him. Ask the seller to evict him before you close. If that isn't possible, ask the seller for a credit for the cost of legally evicting him along with how much will be lost in rent if it is a state that eviction takes a while. If neither of those is an option, make sure the deal is still worth it with the eviction calculated in and move forward.