All Forum Posts by: Michael R.

Where are the deposits (i.e. in the sellers bank account?) and do you have a real estate attorney?

If they are still with the seller, have you contacted the seller to try and get them back?

You had 3 people ask and this seems like the 4th. What is in your market? Will this give you an advantage? Sounds like it won't hurt.

One way we do upgrades is that, if the tenant wants them, we try to work the cost of labor for the upgrade into their lease through a mutual agreement. The cost of the stove I would say you would eat because you have a use for your electric, but have them pay for the line install.

One example of this was when I visited a long distance tenant on a multi year lease to inspect the house and make sure they were happy and that the house was in decent shape. I found that they had run a coax cable across the stairs to provide cable into an unwired room. I immediately removed it and told them they could not do this, but that I would set up my electrician to come out to wire the room if they paid for it. 

They agreed and they are happy and I am happy too.

The cost in your case are a bit more significant, but I would still try and make them happy by having it installed where they pay for the gas line and you pay for the stove.

I hope that helps.

@Holden SmithI'm a fan of eliminating debt as soon as possible.  Your student loan is going to cost you quite a bit over time.  With that said, you said Cash is King and that is the truth.  

So between the cash and your debt -- you will want to consider how you intend on financing the property.  Debt to income ratios can be a challenge.  Consider talking to a banker to run some hypothetical calculations without running a hard inquiry against your credit.  

You asked what I would do. Start with what your financial and REI goals are. Does paying off the debt now fit or does saving cash make sense? Will your returns on your investment out earn the interest you pay on your debt?

I would put a plan in place to pay the debt off - and then evaluate if violating that plan to make an investment makes financial / business sense.  White board that plan 3 or 4 different ways to include worst case scenarios, job losses etc etc.  Run the numbers to ensure that if your worst case scenario were to come to life that your marriage will stay strong and your financial plans will remain in tact.  Whatever your goals are should dictate your strategy in my opinion.

I hope that helps.

@Ryan VanPatten - I agree with @Jimmy - any public transportation will increase rental values.  

Thank you. This is a fantastic thread!

There was quite a bit that I couldn't read. What I took from it was a long list of problems and your tenant gave you the opportunity to break the lease. Take the opportunity.

She has been pushing your limits and once you allow this it will only get worse. Not only that, of she is harassing the neighnors, then your reputation as a landlord is on the line.

I hope that helps.

Why was there no written agreement?

When you notify him that he is in violation of the lease cite what you need to either from the lease or city code and do so in writing. Follow that up with whatever other actions you need to. 

Or present these things to him on writing and let him know what his options are. Either way he sounds like he is in violation and some processes should be started sooner than later.

Did you shop around before ordering from them? 

@Rod Fisher, I am not saying that at some point that loans don't go against an LLCs credit. I also have an LLC and understand the mechanics. How many years did it take you to where the debt that your LLC took on was not reflected against your credit?