All Forum Posts by: Michael Jones

Sounds like a fight to the death. Sell tickets.

Hello. My name is Mike and I am a buy and hold investor that currently has 20 units. I have read on here about meetups here locally and I know that KREIA has a large meetup. But are there any meet ups in the Louisville area that are specifically for by and hold investors with multifamily properties? 

Or, are there members here locally that would be interested in starting a meetup specifically geared toward rental management and buy and hold investing? 

It would be nice to find or have a small group of a dozen or less to network with and share knowledge and resources with.

Install a second meter and change terms to tenant pays utilities. If this is not cost effective raise the rent enough to cover the cost of utilities. Do not get paralysis because you do not want to be the bad guy. If you raise the rent to the fair market value you are not being a bad guy but a fair guy. Fair market is fair. You bought an investment property and not a social club. You are not responsible for how the tenant feels when comparing your fair market rent versus the ridiculously low rent the former owner gave them. By the way, there is a reason they sold to you and it could be that they were not making money. And don't hold the rent down for fear of tenants leaving. You are in this for the long haul so fix the issue now.

You are asking us to see your side of the story completely and take your side. Fair enough. Your landlord also has a side. They are fielding complaints from other tenants. Can we look at her side as well? Will you try to look at her side as well and make any adjustments or compromises? Or will you dig a fix hole and go to war with a landlord? All it takes are a couple of calls from neighbors to the police complaining or drug use (true or not true) and your landlord will have a record of police runs to your address with complaints of drugs. You will lose in court if she tries to evict you for unlawful activity.

Check you state and local laws first.

It sounds like this may be the kind of tenant that is going to push the landlord until the landlord pushes back. It is best to push back now. Write up a new lease with your terms and ask them to sign your lease. It will contain all the specifics such as when the rent is due, what the late fee is etc...

The tenant would either sign this lease with an understanding that the terms will be enforced or the tenant would receive/sign their 30 day move notice.

offer to buy the material only. Anything more than that is unacceptable.

And when I say buy material, means you pay the store for the material, not give the contractor money.

I just received terms from US Bank yesterday for a commercial loan. 25 year amortized over 25 years with a 5 year fix at 4.65. 25% down.

I would look at the credit score requirement. Why 650? That is higher than the minimum standard to purchase a home. 

Personally, some of my best renters have been people that have messed up their credit but have good paying jobs. I know they have the money and with a credit rating of 500 they definitely are not going to be buying a house any time soon.

Originally posted by @Gerardo Garza:

Yes owner occupied!

You can achieve the down payment of 3.5 with an FHA loan but you will not be able to avoid PMI unless you are a veteran.

I think you are looking for Bigfoot here. He may not exist.

PMI kicks in when you owe more than 80% of the value of the property. Therefore, if you borrow 95% you will owe more than 80% and PMI will kick in.

Also, I am not aware of any loans from a bank that will loan 95% on an investment property. Most always want 20-25% down.

You can avoid the 20-25% down by buying as an owner occupant through a first time home buyers loan or a FHA loan. However, that pesky PMI will show back up.

The only situation that I am aware of would be a VA loan on an owner occupied property. You can then finance 100% of the property and there is no PMI with a VA loan. However, two things are required:

1. You must be a veteran.

2. You must reside at the property.