All Forum Posts by: David Stone

I worked as a Paramedic in Tacoma for 6 years before taking on investing full time, I wouldn't live in the war-zone areas based off what I have seen, LOL.  Sounds like a great idea to help turn around an area and make it a more profitable investment but I'm not sure they would take you up on your offer.  

Hey, I wrote this as I was doing my last tenant screening process on 2 of my vacant properties... https://www.biggerpockets.com/blogs/7983/52274-wha....  Hope it helps!  There's probably tons of useful info out there but this is what has worked for me.  Good luck!  Educate yourself with multiple resources and put into practice what works for you.

If you can refinance to become positive cashflow it would definitely be worth it.  Otherwise I would sell it, consider it a learning experience, and move on with a better investment.  You can make up for this, just keep moving forward

We still own our brand new expensive house... we lived in it, decided we hated the payment and rented it, we pay $100 a month to rent it out but it was better than losing it and it got us in the game.  The rentals we have been able to acquire over the past couple years more than make up for its negative cashflow, and the market is finally letting us sell it to pretty much get out of it.  As soon as the lease is up, we are selling it.  (Haven't been able to refinance, bank wanted us to bring $10k to the table, not worth it for us)

Hope all works out with your situation!

In my market houses will get listed $90k by the bank and get lowered $10k a month, usually down to $30-40k range until they sell... I learned you just have to wait and play the game but a 50% offer is only a low ball offer if someone else is willing to pay significantly more for it. I personally prefer to put in my highest and best first and lower it if necessary during inspection but sometimes it's worth it to take a stab at an obviously overpriced unit

Are you the highest and best offer they have at the time and they are throwing it out with no counter offer?  We get no responses all the time but that's because they had multiple offers and chose a better one.  Our lowest offer of nearly 50% of asking (on a rehab property) still got a response... counter of original asking price and double the earnest money... pretty much still a slap in our face for even asking :)  But at least is was a response.  I could't imagine getting nothing in return.  

My wife and I live in the area and have a few rentals between McCleary and Monte but theyre all full. What brings you to the area? Feel free to PM me on this site and I could answer some of your questions.  Brandon is also a great resource! Welcome!!

If they gave legal notice and you consider it legal/acceptable then no. If they did not gave legal / acceptable notice and your contract specifies how you may deduct/withhold security deposit money then yes. If you are unsure and not willing to risk them taking you to court over withholding deposit money you might not be entitled to, then consult an attorney

This is how my extension from a 1 year to month to month is written, I usually don't start mo-2-mo.

"This shall serve as written permission from the landlord that the said agreement shall become a month-to-month agreement, beginning at the expiration of the current lease and continuing indefinitely, until tenant provides 20 (Twenty) day written notice to vacate to the landlord."

I interpret this as: they have to pay me rent up to day 20 past the day they officially issued me a notice to vacate.  After that, if I don't have the place rented, it's my loss.  I start people on leases mid-month all throughout the year all the time, I just make it a 1 year and X day contract to end them at the end of the month when their term ends.  I guess it all comes down to tenant landlord laws and how your lease is written.

If a tenant told me "I'm only here 2 more weeks (14 days) so that's all I'm paying" I wouldn't consider that legal notice.  

I also have information related to how I will withhold deposits clearly written into my contract

"Deposits: Tenants agree to deposit with the owner/landlord the sum of _________ payable before they occupy the premises. The sum shall be deposited by the landlord into a bank account with _______________________________. Landlord may withhold from these deposits only what is reasonable necessary to cover the following tenant defaults:

1. Damages to the dwelling
2. Extraordinary cleaning costs following tenant's departure
3. Unpaid rent, unpaid utilities, and various other accrued and unpaid charges

4. Legal and service charges

5. Mandatory and non-refundable ______ professional cleaning fee"

In this case, I can legally withhold security deposit from uncollected rent up to the day they legally gave notice to vacate.

Not sure if you can raise the deposits with a rent increase, the initial deposit collected should have been sufficient regardless of rent increases.

Awesome they accepted!  My strategy for raising rents is to determine market rent.  If I'm currently renting the unit at $660 and market rent in the area should be $720 I might ask for an increase in rent somewhere around the middle... ~$695.  If they accept, great, I just earned +$420 a year and kept a great tenant.  If they vacate, that's OK also.  I list the property for $720 (market rent) and earn +$720 a year with a new tenant.

As far as my letters, I usually explain vaguely that due to rising expenses we have to raise rents to ensure we are providing the most quality conditions and service.  I also let them know that the rent increase is (in the example above) $25/month less than current market rent in the area.  I think this helps steer them away from immediately looking for a new place.  If they know they are still getting a deal, they likely won't even begin looking elsewhere.  

Good luck with your future rent increases :)

Also consider being trapped with a tenant on a long term lease.  

I think with proper tenant screening and digging in to see how motivated people are in staying long term might go further to helping you land the right tenant regardless of terms.  I think people would feel more comfortable with options (ability to leave if they are signing with a nightmare landlord or unexpected life change).  

We actually had some really good tenants in a 1 year lease and offered to sign them into a longer term lease with no rent increase so they could lock in the rate for a longer term after they proved to us that they paid on time and kept the place clean.

Good luck!