All Forum Posts by: David Collier Jr

@Melvin List - My lender stated that a notice to vacate will suffice. Thank you for that. Hopefully the current property manager can assist with getting me that notice from the tenant for closing. 

@Jeff Copeland - I agree I need to communicate my intentions to the seller considering the lease states the tenant must submit an intent to renew 90 days prior to renewal date (08/31). That 90 day deadline to renew is 15 days prior to my 06/15 closing date. If I communicate my intentions to move into the 3/2 unit, I am hoping the property manager (also the listing agent) will work with me on informing the tenant the possibility of non renewal should we close, and also help me obtain the notice to vacate which I would need at closing. Tenant wishes to stay so we'll see how easy that is to navigate. 

@Megan Phillips - The current lease does not state that the contract is terminated in the event there is a change in ownership. I am assuming that means that I am required to to assume the lease and it's terms i.e. lease runs with the land? If so, the tenants lease is up 08/31 which means it would not be vacant at closing. 

Thank you Melvin, Jeff and Megan for taking the time to provide your insight. 

So after using my BP gained knowledge, analyzing and offering on too many properties to count I got a great deal under contract. Now to figure out the next steps.. Any and all advice is very much appreciated. Everything I learned on BP and put to practice is the reason I have this opportunity. 

I know it makes most financial sense to move into the property to keep my living costs down. Units are a 3/2 ($1,300) and 2/1 ($1,100). I prefer to move into the 3/2 (need the size) to keep my down payment requirement low to free up capital for another purchase . Also it needs slight updating to bring rents to market (+$300).

The tenant in the 2/1 is very ideal, working at sea and only home 10 days a month. I prefer to keep him in place as there is low wear and tear. His rent is also below market by about $300 w/ updating.

The current tenant in the 3/2 is long term (3+ yrs) and has expressed she wishes to stay. She seems like a good tenant with the exception of two pets and seems to have a friend living in the property who is not on the lease. Her lease is up August 31st. Closing is scheduled for mid June. 

My plan is to wait until after the closing to notify the tenant of non renewal. However, I just read the leases and it states she must notify landlord of renewal 90 days prior to the leases termination date. This means she will be submitting a renewal notice prior to my closing. 

Do I have to honor that renewal? 

Should I inform the listing agent (current property manager) of my intent prior to closing?  I don't want it to affect the deal. 

I also want to make the transition as easy as possible for her and provide as much notice as I can. I just don't know how long I am required to move into the property after closing if I state to my lender it will be my primary res (FHA or Conventional). Does the unit have to be vacant at time of closing?

Thank you again for any advice! 

Been aggressively analyzing multi-families on and off market in Broward for a few months now. Finally got one under contract in a great up and coming location for a price that makes sense but made a full price offer site unseen within the first 30 mins of it coming to market to get it under contract. 

Using what I've learned and applied here on BP allowed me to recognize immediately that the deal made sense. I find nothing can be accomplished with hesitation down here in S FL. Act fast and figure out later but only at a price that makes sense. 

For what it's worth I have a client (insurance) that has bought 4 SFR's in Riviera Beach this past year for buy and hold. All properties needed minor work but are now rented and cash flow nicely. Further north is where I'll be looking for the next one. Hope that helps.

Awesome to read this! Putting my first offer in on a Triplex today. "Take action" and "analysis paralysis" are two phrases I've kept repeating to myself over the past couple months after finding BP and making the decision to get involved in RE investing. All of my professional ventures have started with zero knowledge. Just gotta make moves! Thanks for sharing. @Guillaume D.

FHA only issue or not, definitely something to keep in mind when considering a property. Thanks for sharing.