All Forum Posts by: Eric Greenberg

You may get more responses with a TLDR summary of the big bullet points. Are you ready to let all of your tenants go as it sounds like they will terminate all leases if you choose not to sign up for splitting the cost?

I would start looking for another PM asap. I think you should take this unfortunate situation as a way to learn and not make the same mistakes again, even if they were not your fault. 

Id first verify that you are legally allowed to raise rents at that rate. Id also think theres a high probability that your current tenants wont want to absorb a 70% rent increase. Id make sure you are ready for all your tenants to leave.

Ive found tenants from previous landlords dont always play as nicely with the ‘new landlord’ who raises rents abruptly. Just a word of caution that if they stay they could be sour towards you and if they are friendly with their neighbors make other tenants feel the same way. 

Agreed with Stephen, I dont know your market but we have many illegal multifamilies. Id do your due diligence on zoning to make sure you understand what you are getting into. In my experience its best to call the local authorities and verify in a call then on paper/email that it is in fact a triplex. 

Quote from @Patrick Mencel:

Investment Info:

How did you finance this deal?

Started out with PHFA

Awesome! Would love to hear more about this deal if you dont mind! 

I think there are some great suggestions above. I would also add if you have almost no money for reserves you may put yourself in a bad financial position when issues pop up as they usually do when first setting up your property. 

Quote from @Bishoy Gaid:

Quote from @Eric Greenberg:

Im not in the STR space but there are a number of new laws/regulations on STRs in Philadelphia. I would read up on them to see if actually a space thats worth pursuing.

https://www.phila.gov/services...

 Yes that is exactly what I'm trying to understand. What kind of properties do you have in the Philly area? 

Im in SFH, small multis, with a garage and vacant lot mixed in.

If you are on Facebook join our local group ‘Philadelphia Landlords Connect’ and youll get some great input via searching or asking on SRTs. 

Happy to provide input via DM on agents/lenders/etc Ive used in the past if you are still looking. 

Quote from @Tanim J B.:

I just started marketing. 

But as i am getting paid in advance and he will be there with other roommates, From your experience what can go wrong?

From what Ive encountered, sometimes folks who have large amounts of cash may be sourcing that cash from professions you may not want in your property, especially if you are house hacking with them. 

Ive had amazing tenants with low credit score but it really matter why there scores are so low. A great reason to always do background checks where it also shows credit history. 

Thanks for the info. We are starting to see similar laws being proposed and Im assuming most cities in the north east will start trending even more tenant friendly in the future. For me its helpful to see what other municipalities are proposing to get a sense of potentially whats to come. 

Congrats! Sounds like a nice pay day and more importantly alot of lessons learned for the next flip!