All Forum Posts by: Jake Recz

You can look into Manville in Somerset county. some deals that pop up there every now and then are almost too good to be true BUT real!

Hey BP I'm about to get a HELOC on my property that is located in a flood zone. There is no mortgage on the property but there is an active flood insurance policy just in case. So when I get the HELOC, use 50% of it, and let's say the property floods (I hope not!!)- who gets the check from the insurance company? The bank that is holding the HELOC or me as the homeowner?

I apologize for the misunderstanding. Their lease clearly states that they have access to the basement only to use the laundry room. It also states that there is no property to be stored in the basement at any time and the owner reserves the right to remove and dispose of any property found there that should not be there in the first place. 

I will talk to them soon and try to get the issue resolved. From what I'm understanding they like where they live and do not plan on moving any time soon. I just feel that if I don't react things are only going to get worse. They are literally acting as if they owned half the property and can do as they please. You know how it goes- you give them one finger and next thing you know they swallow your whole arm...

Funny story here. So I got those tenants. Small family squeezed into a one bedroom apartment. they pay on time, always. after I moved out of the first apartment I allowed them access to the driveway and the washer in the basement (extra $40). It's six months later and... the space next to the garage which was EMPTY when I moved out is now full and looks like the county dump. they were allowed to park on the driveway NOT make it into a storage. plus what is there, is what otbers in town threw out. The tenant goes around and picks this stuff up (mostly used toys). The basement is no better. they got access to the washer, and now the wall in the basement is lined with their stuff. I gotta say they pay on time, are quiet, have kids and there is no storage in the apartment. they knew about the lack of storage when they rented the apartment. Plus I gotta say that the vibe I get from them is that they're entitled to "everything" because they pay rent. So have you ever delt with people like that? I'm gonna tell them to clean all this up. if they don't, it will be thrown out. I plan to give them a week. They act like they own the place. I have to say it is quite amusing yet annoying at the same time.

Don't walk away. RUN!! I had prospective tenants like that before. I'm very glad I didn't take them. I had tenants who couldn't come up with deposit money in a week, too.

Hello everybody! It sure has been a while since I have visited the BP forum. 

I went to look at a duplex today. Well... A triplex actually. It's a triplex converted into a duplex, for some odd reason. The intention would be to turn it back into a triplex. The property is in a flood zone. Flood Insurance would run about $2500/ year. After running all the numbers(worst case scenario), this property could NET $1,400/ month fully rented! It does need some work. I can do all of the work myself for a grand total of $5,000 in materials. With a $125,000 price tag, its a steal. Now the issue is, how do I finance this thing? The bank only wants to do 203k or cash deal. Now I sure don't have $125,000 sitting around burning a hole in my pocket... I applied for a HELOC on my primary property thats fully paid off. I'm keeping my fingers crossed. Still, I need a back up plan if that HELOC does't go through. Any suggestions? A long term private money loan would be a God send but I don't even know if thats possible. What would you recommend? Please point me in the right direction. Cash is short at the moment. This deal is so good though that I can't just give up on it.

I'm putting in an offer today. I already know they will ask for a POF letter. I'll get one, somehow. That will lock me in and give me time to figure out how to actually get the cash. It's bank owned so I already know that it's gonna take a little while before the wheels start turning and the bank gets into the mood to close this thing. SO, what would you do?

Thank you for all your feedback guys! It was very interesting to read your varying viewpoints on this issue. 

I ended up offering the apartment to another tenant that was even better qualified. 

You may wonder why... Here's what happened. After reading your responses I told the prospective tenant that he can give me the deposit on lease signing and the first months rent in certified funds when I give him the keys. He was thrilled. That was on Thursday. We were supposed to meet up this weekend. He sends me a text message on Saturday, ASKING if we can meet up next weekend. Turns out he doesn't have the deposit money. Three people working, three people moving in, and between the three of them they CAN'T come up with the deposit! I told him no way! I'm not getting into this game! He would not give up and was basically pleading with me to reconsider... I told him business is business. No exceptions. We just met, I don't know him, and he sure as hell is not making a good first impression. He even "promised" me that rent would never be late. His promise definitely made me feel better... right... I sure hope it wouldn't be late! There is a 3 day window to pay, and if not, the late charge is $100! Maybe a little excessive? It's a great deterrent to make sure that rent is paid before all the other bills are paid. 

So lesson learned. If something doesn't seem right? Don't just walk away. RUN! I'm more than sure that I would have a huge headache with this guy. 

P.S. I feel kind of bad if I have to skip over him and tell him I'm backing out of my offer, but common sense is telling me: "this is business, run it like a business". 

Hey guys it's been a while... I'm renting out an apartment. I listed it on craigslist and got "the usual". Some good applicants, some bad applicants. Some dreamers with no income, unable to verify income, past evictions etc Like I said, pretty much "the usual". 

Long story short, out of all the people, I picked out a tenant. Good credit (~730 range). Income is double the rent amount. The other person on the lease is also employed, and the third person on the lease is also employed. Financials look good overall. I call him, offer him the apartment, he's happy, I'm happy and we talk about signing the lease. So far so good, right? Everything is going smooth. We talk a few hours later after he consults with his significant other and BAM, now the prospective tenant asks me IF he can pay the deposit on lease signing, and pay me the first months rent on the day of the move in (2 week window between the two dates). Red flag! At least to me. His reasoning for the question is that he's renting another place that he's paying for and I assume that he doesn't have enough to cover the deposit and the first month, as he didn't receive the deposit from the other place back yet. I tell him I will get back to him, and here I am asking you for your opinion. What would you do? 

My reasoning? Red flag. I'm ready to back out and go to my next pick. The rent is $1,600 a month. The deposit is $1,600 a month. $3,200 total to move in. I feel like I'm being tested here. If i budge now, a few months down the road I'm gonna be asked to accept partial rent, then its gonna be late, then he won't pay, after that I'm gonna be going through a costly eviction. What if the tenant loses his job? He won't have the money to pay. I expect people to have a little savings and be ready to job loss. Emergency fund, you know? Oh, and he asked me if he's approved already. I told him he is... but I'll get back to him. No paperwork has been signed yet.

So from your experience, what would you do? Am I going crazy here over nothing, or what? 

Thank you in advance! 

If this is a solid brick building you're gonna have problems... Actually either way you're gonna have problems. The damage is visible on the outside already. What is it like on the inside? A structural engineer is your best bet. I would heavily rely on his professional opinion.