All Forum Posts by: Eric Sebast

Thank you both.

Are there sample copies of letters that are available that you would recommend?

Under contract on our first property a duplex (traditional financing, past attorney approval, just did inspections today). It has some small items that need repairing, but it is otherwise ready to go.

We decided to keep the existing tenants after meeting one of them when we walked through it before offering on it, and met the second tenant today doing the inspection. The rents are a little bellow market value, but not crazy, and it cashflows well at about $200 per unit (including an expected managment fee). One of the tenants is on a month to month (has been there 4 years), the second tenant is just about 2 years and is on a annual lease that is up in August.

We are going to managing the property ourselves for the next 6 months or so just so we get a feel for how that goes, before flipping it over to a management company (haven't started looking for one or vetting any yet). Planning on using RentRedi for all payments and interactions (not 100% yet, still looking at them all).

So my questions are:

When should we introduce ourselves to the tenants?

For the month to month tenant, can we just move her to our lease, either MTM or an annual, and how would we present wanting her to move to a annual lease instead of a MTM?

The MTM tenant is far below market value, she's at $700 per month, in what should be at least $800 or $850. Do we leave it because it already has good cashflow, or how do we approach changing the rent with her? Would you just keep it cause she's always paid on time, go up gradually, or jump it to market or?

 Could you share what some of those options are? and I don't understand the good luck getting anyone excited, you think its to much, to little, or the sweet spot?

I'm sure theres an answer in the forums somewhere, but I got tired of looking.

We are currently under contract for our first investment property, a duplex for a just over $100k doing it with traditional financing in our personal name, and then going to flip into the LLC in a few months. 25% down, and then it cashflows around $400 per month.

We were also looking for a fix and flip to hold long term, but a 4 unit just came on the market that is basically ready to go, and fully rented. The rents are definitely below market, but even with that being the case it still cashflows about $550 per month, but its about $170k, and it would be stretching us to thin to do another 25% down, but would love to jump on it as well.

Any input would be greatly appreciated.

PS: We have equity in our home, but not willing to pull it out because we plan to move in a year or two and use the equity from our sale to cover the downpayment on the new house.