All Forum Posts by: Dan Miles

Quote from @Troy P.:

It sounds like she wants to hold onto her funds to get herself into her new place while screwing you over in the process.  In my state, we have to produce an itemized list of all expenses that came out of the deposit within 30 days of tenant moving out.  If  you don't have a list showing you've used all of the deposit, then the remaining must be returned.  I would never agree to keep a deposit before I know whether I'm using the funds or not.  Rent is rent, deposit is deposit, and I suggest keeping it that way.

So you would process the eviction even though she will be gone by the end of the month?  I can’t file until the 21st according to state law.  Then they have to mail her the notice to pay…which she may be gone by then.  

Quote from @Tom Thomson:

Sounds like you might be better off to cut your ties to this one sooner than later.  One approach could be to let her know you will let her use the last month's rent as her deposit if she makes sure the house is in good condition and clean when she moves out. Get this in writing 1st.   Yes it's possible she may not have it in great shape when she moves out but at least you get the property back earlier and can hopefully move on with a better tenant vs. the potential have having her hold over and having to go through eviction and her for sure not leaving it in good condition.    Risk management.

 Yeah…I guess it is just taking the path where I get screwed less. 😂

Quote from @John Underwood:

This is why my deposit is always higher than the rent.

This encourages the tenant to pay the last months rent and clean the house so they their higher deposit back.

This tenant has lived in the home 4 years and has gone through multiple increases.  Do you increase rents and ask for more deposit money on a yearly basis as well?  I’m thinking I’m going to need to receive last months rent and deposit from now on. 🙄

Hi Everyone!  I have a dilemma with a tenant.  I am not signing a new lease with her.  Nothing was done because she’s a horrible tenant, it’s just a personal issue that requires me possessing the property.  I have given 3 months notice ahead of her lease ending that we would not be signing again.  She is stating she can be out one month earlier than lease ending (which I’m fine with) but is now half month late on rent.  She is asking if she is out by the 1st of September if I can accept the deposit as the current months(last month) rent payment.  Supposedly has been approved for another rental. Thoughts?  I feel like I’m opening the possibility of problems with a stay over, or the place is left with damage and cleanliness problems without recourse.  But, if I don’t accept and she doesn’t pay then I’m possibly in the eviction process after she’s left which means I’m still not paid and I’m out time and money for court.  Any ideas?

I have been having issues with funding for my next property and have been researching business credit. I currently hold my properties in an LLC but as a sole proprietorship. It appears that if I completely separate taxes by incorporating as a different type of entity I can get funding without the lender taking into account personal income. Have I been missing this the whole time? Is this the key to unlimited funding or am I not seeing the down side?

Hello BPers!

I was looking at a small apartment complex of 10 units and started researching the area around the complex.  Turns out that there are larger complexes in the area that have amenities such as gyms and pools.  Rent would need to be around the same on the smaller complex’s units as they are on the larger one to turn a decent profit.  Is this even worth pursuing or will I just be stuck with 10 units that I can’t rent due to lack of amenities?  Are there other things that the little guys can do to compete?  How do you all do it?

I like that, Andrew.  I never really heard anyone explain it like that.  Makes sense!

Hi BPers! I'm just trying to figure out what is better to shoot for. Cashflow or ROI. I can't seem to find anything that gets better than 10% ROI. This is cash on cash. I do have to finance. I hear a bunch of people saying they won't purchase unless they get 15%. Should I be shooting for higher or is 10% ok? Or should I just be happy if I feel the cashflow is worth it?

@Account Closed My first thought was to remodel over a period of time.  Thoughts?

@Brad O'Neill These numbers come from a P&L that the management company gave me.

Our little town hasn't been a bad place to start a portfolio either!