Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Garen T.

Garen T. has started 30 posts and replied 64 times.

I took a buy-out offer after 31 years at my high-tech company. That was on Dec 31 of 2019. Of course I expected 2020 to be VERY different than what it has turned out to be. I have on SFR which is paid off, a duplex with a note at 5.125%, and I own the home I live in. I received a generous buy out offer, have a nice nest egg in the market, have 3 great renters, and have an interest in a company that pays investment income as well. I'm mid 50's so have not started doing any sort of distribution of funds in any tax differed accounts.
With the money I received from the buy out, rental income, small company income, and Covid-19, my income/expenses have been very easy to meet this year. 

However, I don't think I have enough validated income to qualify for a re-fi on the one note I have. And if I wanted to leverage out to acquire other rentals, I'm not sure I'd have the income history to qualify for new money. 

Questions. 
1. How do retirees qualify for mortgages prior to starting a regular distribution. 
2. How can I get this one mortgage re-fi qualified to a lower rate. I hate the fact that I'm paying a good portion higher rate than is available to me right now. 

Thanks

Post: Feedback on a Covid-19 tenant letter please!

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

I have a duplex and a SFR. All rents (from 5 different payers) gave me 100% rent payment this past week. I'm thinking of sending the following letter to my tenants. I have not been in communication with any of them for at least 3 months. Would you please provide feedback on the following note I'd like to send them.

Note: I intentionally did NOT include a note to thank them for their recent payment. I would like to, but not sure how to phrase it such as that there was an option for not paying and thanking them for something I expected them to do. 

**********Letter follows**************

Dear Resident,

We hope this letter finds you and your loved ones safe and healthy. The past few weeks have, undoubtedly, been some of the most life-changing weeks we’ve seen in modern times. The looming threat of the COVID-19 virus has taken our world, this country, and our state, by storm. We are hoping that the extreme social distancing will prove effective to slow the spread of this illness and that we’ll all soon be back to normal.

I wanted to reach out and address a few important issues regarding the pandemic as well as your tenancy. While discouraged by the news coming out of the New York area, I do see positive signs in our state that we may see some resolution within a couple more weeks. Hunkering down at home or traveling only for essential jobs is making a huge difference. If you are in a job such as healthcare, banking, groceries, transportation, or any of the other essential businesses, I want to express my sincere thanks for what you are doing. If you are putting yourself at risk, please be careful with your interactions as I’m sure you are.

Social Distancing: The purpose of this world-wide action is not simply to stop you from getting sick; the larger purpose is to slow down the progression of this virus so hospitals will not be overwhelmed with those who are most likely to be affected. Without social distancing, hospitals will quickly be overrun with far too many patients and not enough equipment to handle it. As such, we just encourage you to stay home and follow the guidelines set forth by the CDC, which you can read more about online.

Masks: Yes, we’ve come to this. I’m not very good at them, but I am making DIY cloth masks. If you would like any, please let me know and I can drop them by.

Small repair issues: One of the best things about living a home built in the last few years is there are usually no repair issues to deal with. Now, more than ever, I ask you to be careful in the home. Getting a repair crew over to fix anything right now would be very difficult to do.

Priorities: I think in terms of what is most important to us right now, taking care of your health is number one, followed by food, a place to live, and transportation.

Rent Payments: Rents will continue to be due as to the normal schedule. There are options for making payments including the use of a credit card (via an account on Cozy) which is available. If you have lost all ability to pay rent, including losing your job or other sources of income such as unemployment or this stimulus check (when that happens), then please call or e-mail as soon as possible so we can help you go over your options. Communication is key and urgent.

Personal Note: My daughter has developed Covid-19. In order to save money, and have insurance, she moved to Scotland last year to attend school. When things started happening, she made the decision to stay there since she has insurance while there as a student. She was diagnosed a week ago and has been at home with a cough for 9 days. It is said that by the end of this, most everyone would know someone who contracted this disease. I hope I don’t have to know anyone else, including you.

Best Regards,

Post: Stock Market what do you think

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

Great thread to come over and read. Literally, the website before coming to BP tonight was my brand new trading account through my bank. I just purchased Sysco which is a huge value right now. Sysco is the company that provides all the restaurants, bars, university campuses all their food. They have plummeted. They also have $2B in free cash sitting around and have already said they will not be accepting bail-out money. In doing my research, I was pretty impressed.

So, after having not purchased stocks on my own in almost 3 decades, I bought some tonight, and will continue to buy more Sysco or the other companies I'm tracking in deliberate amounts over the next month. Dollar Cost Averaging used to my benefit. I'll lose some money (I'm almost 100% sure) over the next few weeks, but it will average out and will be back up pretty nice over the next 3-6 months. 

Great topic, and perfect timing. 

Post: Coronavirus: email to send to your tenants

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

We got a letter from the WA State Landlords Association last week. A portion of the e-mail is below. 



Some municipalities are beginning to attempt moratoriums on evictions and now there may be some action on federal level regarding HUD. First, I do not believe the cities have the right to do this but until they are challenged then I would offer this advice. Any appropriate unlawful detainer should still go forward. It is the case that not all evictions are based on non-payment of rent to begin with. If the landlord wished to work out a payment plan to accommodate the issues brought on by this emergency than I strongly recommend it be done in a stipulated agreement that comes after the service of an unfiled unlawful detainer. The reasons are as follows. If you just signed some agreement on your own then it will be considered a promissory note. If that agreement is violated then you will have to sue in a standard civil action. That can take many months and even years and can NOT ever result in an eviction or you getting your property back. On the other hand, if you start the unlawful detainer without filing the case then settle it in a stipulated agreement you can put a payment plan that can be enforced by the court immediately with no hearing or argument. It can result in a judgment and a writ ordering the eviction. It's a far better and safer way to accommodate your tenants.
Getting the court order and judgment may also help the landlord because that is the key piece that opens up resources such as the landlord mitigation fund and a number of grants that can result in the landlord getting paid back rents and costs. Even if the eviction is not allowed the lawsuit may result in getting the landlord paid. Clearly in my opinion a far better approach.

The full text is here: https://files.constantcontact....

Post: Expense tracking google sheets with CPA output?

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

Got some great ideas from that spreadsheet. Thanks for sending it over!

Post: Expense tracking google sheets with CPA output?

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

I own 3 rentals (1 SFR and 1 duplex) with another duplex coming on this year. I've been tracking income and expenses on a very simple Google sheet which separates things into the different properties. This week I sent that over to my CPA and he asked me to fill out a paper form which separated all my expenses out into categories that needs needs for taxes.

Property 1
Income
    5. Rent Received
    6. Other Income

Property Expense
    7. Advertising
    8. Cleaning and Maint
    9. Commissions. 
    10. Insurance
    11. Legal
    12. etc, etc, etc, 

Does anyone have a nice google or excel doc that auto outputs to this level of detail? I'm not looking for anything super complex (unless I'm at the point where I need to do that) and I'm fairly good at excel formulas and forms, so I may end up doing this on my own. 

Thoughts?

Post: Zillow Values for a duplex

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

Thanks everyone!

Post: Zillow Values for a duplex

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

I own a duplex that I purchased new. I have a pretty good idea of what it is worth, but I'm trying to reconcile that with what Zillow is reporting. It is a duplex with just one address in zillow but is for both units. However, Zillow shows the details as just one unit. It shows the address as a 3 bedroom and 2.5 bath at 1650 square feet. If Zillow show the value of the unit as $400K, would the actual "Zillow" value of the duplex be 2X that amount? That seems REALLY high. 

I've had tenants in a SFR for almost a year. It is 3 adults and they all are signers on the docs and had credit history pulled on each one of them. It is a father, his adult daughter, and a family friend. They have paid on time, or prior to the date and appear to be decent tenants. Nothing great, but nothing done so far that I would not renew the lease. I have not visited the place in about 5 months, so I am due for a walk-thru.

They approached me this week wanting to renew the lease and add an adult to the documentation. It sounds like the daughter's boyfriend has moved in, and the dad wants to put him on the responsibility for the lease to make it more official, which seems very reasonable. 

All three of the existing tenants had good credit and nothing that would keep them out. 

My questions for help:

1. Should have have the new tenant sign on the lease, and reasons why/why not. 

2. Should I have a credit check run against the new tenant? Why/Why not. 

3. What if the credit check for him comes back bad? If he is going to be responsible for 1/4 of the payment, what does really getting his credit run add to this deal for me? 

I do like getting him onto the lease since if anything goes wrong, it gives me one more person to go after, but I'm wondering what other advantages there are.

Thanks

Post: 1030 from empty lot to SFR possible?

Garen T.Posted
  • Vendor
  • Vancouver, WA
  • Posts 65
  • Votes 31

Thanks. Just the confirmation I was looking for!