All Forum Posts by: Jeyo Punnakottil

@Nathan G. Thanks Nathan.Thats the route i am planing to go.One more question..This tenant started off in 2020 saying he wanted the buy the homeafter lease ends and asked for an extension in 2021 saying he will be definitely buying the home in 2022.Here we are at squre one.A few months back when i proposed an owner finance option with 20%down .He said he only have 8k for down and didnot want 8% intrest.His credit score is only in 630 .What if he says he wants to extent the lease for one more yr and he wants to buy it after that .If he was your tenant in this scenerio ,will u give him an option like Rent is going up to by 12% and you need to put 10k down as non refundable earnest money showing he is intrested in buying this house by writing a contract to purchase the house at the end of lease in 2023 .Will you go that route ..Or stictly no options Just leave @ end of lease coming in June 30.

I have a human factor in me .He is a family man with a little girl .

I am in a very weird situation. Here is the scenerio.I was on a flip project back in Dec 2019,Placed the ppty on market for sale in Feb 2020 and Covid hit .Because of the panic in market i wasnot able to sell the ppty and i had a 12% hard money interest only loan on it.So i decided to rent it to a potential tenant. It was a 1 yr lease and the tenants were very responsible .Towards the middle of the lease the indicated they want to buy the ppty but when the lease ended in 2021 june they asked for an extension for 1 more yr .They mentioned they are saving up for down payment and want to purchase at the end of current lease.They were a perfect couple ,No missed rents till now ,occasionally been late but paid the late fee. Current lease expires June 30 2022 ,i send them a no intention to renew lease contract in April 2022 to which they didnot respond.I asked them to secure financing and get into a written contract to which they say they are working with couple of lenders .They have not got into any written contract with me yet on purchasing the ppty .I put a lockbox on the ppty to schedule some showings .Tried reaching out to the tenant but tenant is not cooperative .He doesnt pick up the calls nor respond to my text.I am stuck ,i cannot show the ppty ,also he hasnot deposited this months rent.I went to the pptt other day and they had all their cars @ the drive way but didnot open the door or pick up my calls .I also noticed they have additonal dogs not mentioned in lease which is a lease violation.This ppty was a money pit ,has not cashflowed a penny as it was a flip project.I donot want to get into the eviction which will cost me anothe 6-10k.I am from Texas.I know most of you will say try Cash 4 keys but how can i do it if the tenant is playing a Cat and mouse game. How should i proceed?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,000
Cash invested: $15,000

Primary home .Purchased Right at the Pandemic explosion. Lived in it for 1 yr and 9 months and converted it to rental

What made you interested in investing in this type of deal?

Increasing my Networth and building Generational weath

How did you find this deal and how did you negotiate it?

On market deal. Seller was asking 220k.Got it under contract for 215k and after inspection negotiated to 205k.Appraisal came in low at 198k so renegotiated at the appraisal price

How did you finance this deal?

Conventional financing

Lessons learned? Challenges?

Should have negotiated appraisal first and then negotiated repairs after that

@Chad Hale Thanks Chad. I was of the same impression.I might use one on my primary home but not on a rental.

@Nathan G. Thanks for the input

Do anyone have Residential warranty( Appliance) for rental properties .I converted my Primary home into a rental .I had residential warranty for appliances such as heater,ac,water heater, microwave etc.It is not a replacement warranty but will cover for parts n labor after a deductible. Cost me 500/yr.I had it because it was my primary home .Now it is a rental i am thinking if i should still continue with the service once the policy expires.Do you have a residential warranty on your rentals?

@Daniel Hyman Thank you

I am a small landlord and want to do it right.I currently have 2 rentals . I have a quickbooks self employed account to keep track of my expenses ,miles etc . I heard from a cpa/accountant that you need to have multiple quickbook accounts for multiple rental properties.To be precise,have one quickbook account for each property that you buy.Is that how you all do business in realestate??

Ny one have experience with residential companies asking for short term LEASE ??Currently have a third party company working with insurence company trying to find a place for a tenant with house fire.The Third party company lets name them "ABC" role is to find a place for a tenant with a ppty damaged with house fire.Here is some things i cannot digest

1. They offering me double the rent .

2. Contract will be for 2 months with option to become month to month after that.

3. The lease agreement will be between landlord and the tenant and the third party company will not have their name in the lease but it will be the 3rd party ABC company paying the landlord everymonth.

4. ABC will give 1st month rent 3k + prorated rent + cleaning fee upfront

5.I ran the credit and employment for the tenants came out clean and meets my criteria..All i have with 3rd party company as of now is email chain of communication for terms and conditions

Which i am attaching below

""Please review and reply with “I AGREE”

Initial Lease Terms: 2 Months

Start Date:02/24/2022

End Date:04/23/2022

Rent Amount: $3000

Pro-rated Amount: $700

Rent amount after the initial lease term: $3000

Refundable Security Deposit: $2000

Renters Insurance Required: yes

Application fee paid by the insured: $45

Cleaning Fee $200

ABC Company Check being made payable to: Jeyo Punnakottil

Payable parties address: XXXXXXXX St.

Notice to vacate: 30 days

Extension Terms: month to month with 30 notice to vacate

Notice to vacate will be submitted via email to: XXXXXXXXXXXX

We will need a copy of your W9 for reporting purposes, as well as the executed lease once signed.

Occupants to include XXXXXXXXXXXXX & XXXXXXXXXXX

This property is unfurnished

Utilities:  not included

Appliances Included: (stove fridge micro washer dryer)

Upon insurance company approval the initial check will be sent via FedEx overnight and include the pro-rate for February, rent for March,all fees, and the refundable security deposit. All future rent payments will be sent via regular mail and received by the 1st of the month.

Payment will be released upon approval of the insurance company, a copy of the signed lease agreement and a W9 for the landlord.

Thank you for working with ABC to place XXXXXXXX family. Once the insurance carrier has agreed to all costs and terms, ABC will advise you when the lease can be signed. The lease agreement is strictly between you and the tenant and ABC is not a party to the lease. You hereby expressly acknowledge and agree that ABC is not responsible for any debts or obligations owed by the tenant to you and that ABC is not undertaking any such obligations. Modifications to this agreement must be made in writing.

Please review and reply with “I AGREE”

WHAT AM I MISSING?WHAT SHOULD I BE CHECKING? WILL YOU RENTING YPUR PROPERTY FOR SHORT TERM TO THESE ABC COMPANIES??

@Chad McMahan Thanks for the advice.I had a face to face conversation with the guy .Told him all my concerns about the second applicant ,especially trashing up her last apartment and owning 850$ cleaning fee.I offered him the home @2X security deposit and lease will be in his name only and 1month rent upfront .He agreed .Today got a call from him saying they are dropping the application as she says she donot want to take all the blame .