All Forum Posts by: Filipe Pereira

@James Z. if the repair work was done according to how it should be done and the price was reasonable, pay the contractor. Perhaps it was just a misunderstanding? 

If the price was outrageous and you feel like he was just trying to get one by you (by now requesting payment without approval) I would push back and state that "I never gave you approval because I was still shopping around. Someone else quoted it for X dollars less". See if he will match the price of the other bid. 

The only way to know if it was reasonable is to get more bids. 

This is great read @Gregory J Guiltner! In a few generations no one will be the wiser and you (or your kids) will still be collecting a rent check every month! 

@Damian Jensen this isn't common at all, fortunately. They do make for interesting reads when they pop up, however!

My only concern about buying something like this is the difficulty in finding tenants when you disclose about the history. 

@Jonathan Craig

1. Cap rates don’t really apply to SFRs, or at least people don’t refer to them often. I’ve househacked a 4 bedroom house going on 3 years now. It’s not usually a headache, but over time some things will get under your skin.

2. Facebook and craigslist only at this point. Has worked well.

3. We put in a landlord thermostat that tops off at 71*. Common areas go by what I (the owner) want.

4. Rent is all inclusive. Including wifi. Just price accordingly.

5. Rent is all inclusive. Including use of machines. Just price accordingly.

@Daniel J Welsh 

I don't think it makes sense for you to become an agent if you don't want to do agent like things. You can develop skills to be an investor without getting a license - many people have.

Follow someone in your local market that has been doing what you want to do for a long time and that will be way more beneficial to you.

@Steve K. do you have an update as to where the tenants stand on this? You've gotten some awesome replies here and from the outside looking in, one of them should work unless your tenant is being completely unreasonable, at which point it probably makes more sense to just elect to not renew their lease, or post a notice to vacate.  

Usually when it's this bad, it's only going to get worse. 

If you think this is retaliation from them towards their previous landlord, do all that you can to square up any loose ends, but otherwise you have to keep things moving forward. 

I agree @Joe Edwards there's some huge players in the game just salivating at what is to come. Lots of things won't even hit the market, it will be all about who you know and who you know knows. 

Heck, even if there was a reduction in prices, it would be slow and dragged on. There is so much money sitting on the sidelines waiting to jump in that that alone will prop up the market for a long time before things start to noticeably go south. 

People love to buy the dip, and that alone will keep things steady longer than they should be in my opinion. 

@Mike Wall I like to start off with the tax benefits of it. If they have no mortgage, they have probably held onto the property for a long time, and if that is the case, they have likely seen some appreciation as well. If they sell that property in one calendar year they will be responsible for a lot of capital gains tax.

In a Master Lease situation for lease option, they will not experience that hit right away in your one. Further, you can structure the mortgage with the seller so that the seller never receives that financial hit all in one year.

As to your question about the interest, that totally depends on what you guys structure as your deal.

@Chad S. there's probably a few things going on here:
1. Your rental doesn't command tenants of 700+ credit scores right now. 

2. The photos are lacking, and not capturing people's attention.

3. It's overpriced for the area, or you're not showing the value well enough for people to see it. 

It's winter. It's cold. Do you have gas heat?? If so, advertise the he** out of it. 

Lastly, with interest rates so low people with a 700+ are having a hard time justifying renting if they can avoid it. 

Ask your agents what they would like to do. Be up front with them. Sounds like both are fine with working without exclusivity agreements (completely crazy if you ask me), but everyone does things differently. 

CT requires agents to disclose who they are representing, and as agents we are required to have clients sign forms acknowledging whether or not we are representing them. 

You can ask for an itemized quote, but it's really going to be totally up to the contractor. Some of them are super detailed, and some of them are not. If you come off as micromanaging them however, you will quickly learn they won't want to work with you. 

Everybody has to make money for everybody to be happy.

The best way to find if someone's cost is reasonable is to have multiple people bid the job.