All Forum Posts by: Erica L.

@Mev D. Other than the answers posted here, I haven’t gained much insight in the difference. I do believe the supply of rentals in 34472 may be smaller. However, I’m not sure the demand is as high either. 

If you find anything else, please share. :)

@Clay Lehman thanks! What’s the average days listed before a contract is signed/deposit is made for rentals in Ocala? Also is the Ocklawaha market comparable? Can you compare/contrast the 32179 and 34472 zip codes for me?

I appreciate your time and guidance. 

Thanks again,

Erica

I'd love to hear from anyone who's invested with Rent to Retirement, specifically in Ocala, FL. Hoping you guys can give me more insight from the investor/buyer side of things.

Thanks in advance,

Erica Latorre

@Patrick Bavaro I too, am looking into using the 2nd home loan option for a possible RTR property. What are the rules you’re talking about and how will they affect your deal?

Thanks in advance and congrats on acquiring your second property. 😃

@Patrick M. 

Thanks for your reply. Yes, I decided to make both tenants sign new rental agreements, under my terms and conditions. I didn't raise their rent, didn't ask for more money for the security deposit, and the new lease agreement will start the day of closing. I kept the one unit, that's lease is ending in September, the same - ending in September. If they're good paying tenants until then, I have no problem extending their lease but will definitely increase the rent (as it's below FMR). If they're not good paying tenants, I fulfilled my extent of the lease and will just give them advance notice, their lease is expiring in September and we will not be renewing with them (as we truly wanted to add value for increased returns anyway). However, like I said earlier, if their good paying tenants, I have no problem extending their lease and not renovating the property. Maybe little things here and there to justify the small increase I would be tagging on.

With the month to month, they’ve been there for five years and truly took great care of the place. I will have them sign a 6 month lease. All my lease agreements give the tenants the ability to terminate the agreement early, as long as they give me at least 60 days written notice. With this unit, I will do the same. If I like them and their payments are on time, I’ll renew with them and increase only a small amount (after also doing minor cosmetic repairs). If their not good standing tenants, when their lease expires, I’ll do the same - give them 60 days advance notice in writing that we will not be renewing the lease with them. We will then also renovate that unit and increase rent for future applicants.

They all agreed to sign my new lease after sending them a generic copy I use... this will start the day of closing, when I take over possession. 

Wish me luck! I’ll be sure to keep everyone updated. :)

@Natalie Schanne Hi and thanks for such a thorough reply, I really appreciate it. Sounds like you should’ve been my realtor all along! Haha.

I will definitely take everything you’ve said into consideration. However, my husband and I were talking about it last night and if we continue to nit-pick (because I was about the low security deposits, the inability of the current owners to prove the tenants are paying on time, and the need for the tenants to sign a new lease with us), we may just loose the deal. Today is the end of attorney review and our first deposit it due. We’re just going for it and take our chances. One is one a month to month and the others lease is up in September. Worse case scenario, I have to start the eviction process and pay their rent for a couple months. I know in Jersey it can take up to 6 months to go through the eviction process but we’re willing to take the risk. The tenants did have “pride of ownership” and both let us in the day after it was put on the market. Some listings we’ve been waiting for the tenant to allow showing for months! I will also have them sign new leases with me, under my terms, before closing. I’m also doing a shorter than normal lease because if I don’t like them as tenants, I don’t have to renew with them once our lease agreement is complete. 

This being said, I know I may be taking a risk. However, as I’ve read and heard plenty of times, at least I’ll gain the experience and thus, learn from it. 

Thanks again for your reply. I wish you served south Jersey. I’d love to connect and have someone like you on my team! 😃

@Jonathan Greene I'm sorry. I'm just getting used to the bigger pocket forum and how to properly post. Can you be any chance send me the link to the calls. I invest in South Jersey, Philadelphia and suburbs, and Wilmington area in DE. I'd love to join in. Please direct me accordingly - I apologize for my ignorance in this matter. I just don't understand what you mean when you say "the links are always in the location."

Thanks in advance fro your time and consideration.

Erica

@Tom S. I mean, does this look like consistent proof of payment to you?? IDK if its just the owner that wasn't organized with their finances, their lack of knowledge on how to use technology, or the fact that these tenants might be late once in a while. The dates are so inconsistent. 

Am I the only one who asks for proof of on time payments when acquiring tenants?

I finally made 2 deals... in one week!!!! WOOOHOO!!!  :)

However, the one is a duplex and I'm super weary of acquiring someone elses tenants. The place looked clean and taken care of - but if they don't pay, I don't really care how good they take care of it - they need to go. I asked for proof of payment and the current owner gave me Venmo transfers into their bank account (NOT VENMO TRANSFERS TO THEM FROM OTHERS). It sounds like there hasn't been default payments but as of now, thats word of mouth... and their lease is only one page -  I asked for better proof but they haven't gotten back with it yet.

Needless to say, one is on a month to month and the other ones lease expires in September 2021. The property is in NJ where I believe there are eviction holds in place. If they're not willing to sign a yearly contract under my terms (the current lease is one page!), can I immediately give notice to vacate to the 'month to month' renter.... and what can I do with the one thats lease expires in September? Honestly, the rents are under FMR and I can def value add to both units to justify the increase in rents - would probably need to find new renters though.

Never acquired renters, please advise... :)