All Forum Posts by: Ericka G.

I agree with the others who recommend letting him pay on the 10th. I have a very similar situation in that I also purchased a triplex and inherited 3 tenants. One was a long-term tenant who let me know he had an agreement with the previous landlord to pay on the 7th. I agreed to honor that and he pays on the 7th. He has been late a few times, but then pays the late fee without complaint. This may be foolish but I don’t mind because he ALWAYS pays and that just means more $ if he is a bit late. He has turned out to be a very helpful with things around the property as well. I think each case is different and have found being a little flexible with a GOOD tenant can strengthen the relationship overall.

Cody Harris I have four units in suburban Detroit that my husband and I self-manage from out of state. It is harder to find deals these days, but they are still out there with some digging. We’ve had a couple of bumps but have been very pleased with the suburban Detroit market overall - have seen both cash flow and appreciation (60% in ~3 years). Happy to recommend our realtor Shane - he is great with out of state investors and can guide you to the areas/returns you’re looking for. PM me if you’d like his contact info.

Joe Splitrock good to know. I specifically added the 90 day early lease termination fee to this one because of a gut feeling about this guy and his work situation that looked to move him regularly...it isn’t a standard part of my lease and I will do more research on the state laws before including it in the next one. That said, he walked away from his first month’s rent and one month’s deposit with zero argument, I think he knew he was wrong and also having signed the 90 day lease-break penalty agreement he is thinking he got off “easy” by just paying for 2 months. He returned the keys and went on about his business. So while it may not be enforceable in court, it definitely seemed to help persuade the tenant to walk away without demanding a refund. I doubt that he will take me to court to get his first month’s rent returned, but we’ll see...never had anyone break a lease before moving in before - so odd.

Marc Winter this is a very good idea. I may ask our tenant in unit B to do this as he works from home and would likely be willing to let people in as needed. Also, other posters’ suggestion to do open houses on Saturday and Sunday is a good one. I’ve tried this in the past along with a few personal appointments but will try open houses ONLY this time but make folks think they are personal appts. I found that folks are more likely to show up when they think they have a 1 on 1 mtg than when they think it is a cattle call. Another thing I have started doing is making videos of the unit’s interior and exterior - which has saved me a few drives. This place gets a lot of interest and generally rents quickly - the tricky part is finding someone good. I’ve had some bad eggs recently btwn this unit and another one where I had a guy who also looked great on paper just stop paying. He thankfully moved out peacefully after a month of me threatening to evict him. These situations have made me less confident in my tenant picking abilities...the bulk of our units focus on a niche market of pilots and flight attendants only and so far my recent attempts to diversify that to include a few “traditional” rentals have been one headache after another.

Thanks for all of the advice. I’m letting him go, will still push for the 3 months as per the lease but since I already have 2 months and he didn’t ever move in, I’m going to re-list it and try to find someone else ASAP. He returned the key. I’m guessing he found another spot. Some days landlording makes me question humanity - people don’t seem to honor their word anymore. On to the next, fingers crossed that I will have better luck this time.

Hi there, I just had a tenant move in this weekend and he wants to break his lease because he can hear the neighbor’s TV in his bedroom and because he felt the fridge wasn’t adequately clean when he moved in (it was fine). He hasn’t moved any furniture in yet, just took possession of the keys. I feel he’s full of bs. I explained to him that he signed a one year lease and that we’ve never had noise issues/complaints before but that I will ask the other tenant (who has lived in his unit for years with zero complaints from anyone about noise) to keep his TV lowered after a certain hour. There is a clause in my lease that says he will have to pay 3 months rent if he needs to terminate the lease early. He is balking at that. I do have his first month’s rent and one month’s security deposit. So I told him if he paid one month more I would let him out of the lease, but he doesn’t want to pay anything more. He has a very good job and great credit but is young and immature so I kind of just want him to go away BUT hate the hassle of having to show the place again (40+ min drive from my house each way), run background checks, etc. What would you do in a situation like this? Ugh.

Is there any privacy screening of bushes/trees or is the view in the back literally freeway? We have one property that is near a freeway but most people have no idea because there are so many trees and bushes that you don’t see anything but a wall of green. We haven’t seen any issues with renting the place out and have folks offering to buy that house almost weekly. So, even if the property backs up to a freeway, see if there is a way to “disguise” that fact...if there is, that could be a nice value add. Also, consider the neighborhood/tenant class and overall quality of the property’s other features. In some areas being near a freeway less of a problem than others.

It really depends on the market. My first rental was a 2/1 and I had an awesome tenant in there for 5+ years, but that was in. NYC. I haven’t bought anything smaller than a 3/1 since, though...for me the goal is always to get as much space as I can for the best price. In most markets I feel like a 2/1 will attract a single person, roommates, or a couple whereas a 3/1 is more likely to attract a family. Really just depends on who you would prefer to rent to. You can definitely charge more for a 3/1 and it will likely be easier to sell anywhere other than a very large congested city like NYC, Chicago, SF, etc...

Dan Mahoney that is a great list of things to consider when selecting an external financial advisor. I screenshot it and will keep in mind for future. Steve Vaughan really interesting to hear your perspective as both a real estate investor and finance person. It’s amazing how much better your real estate did vs funds 20:1! You all have given me a lot to think about.

Wow. So much great advice - thanks again to everyone who chimed in. My 5 key takeaways: 1. Say NO to Edward Jones 2. Research and DIY instead Read: -Little Book of Common Sense Investing, John Bogle -The Simple Path to Wealth, JL Collins -Money, Tony Robbins 3. Consult with attorney and tax expert for proper estate, insurance, and tax planning 4. Clarify goals - be a millionaire by 2020 ;) 5. Execute DIY with lowest cost possible - aim for mix of real estate, no load index funds, and 401k (up to match) -wealthfront, Scottrade,Charles Schwab, and Vanguard are some of the more popular DIY sites Did I miss anything?