All Forum Posts by: James Mc Ree

What feedback is your PM getting from tenant prospects? That is what you should focus on.

Slow walk your DD for this applicant while you address the feedback to get more and better applicants.

There are good feedback and questions above about the applicant's situation. The applicant was unable to pay their bills. Are they paying them now? The full credit report shows that. If not, decline. I would be concerned the applicant might file for bankruptcy if delinqencies continue.

Answering your question requires some knowledge of your financial plan and what you would do next with the money. My rentals are part of a financial plan that supports future goals. I wouldn't sell unless there was a driver to improve my position. Appreciation alone isn't a reason to sell for me since I would likely end up buying another similarly appreciated property.

One selling driver me be to suppose one of my rentals was approaching 27 years owned by me. My depreciation is about to run out, but I want to keep the cash flow going. I would look to 1031 exchange it for another versus just selling it to keep the cash flow and the depreciation. I am about 14 years away from this scenario.

Alternatively, maybe I need the property equity as cash to do something (new house, kids' college, travel, etc). I could sell a property to support that goal, ideally if that was the plan.

Landlords might sell if they are tired landlords and just want to get out of the business. In that case, selling to cash and putting it all into an index fund might make sense if the financial plan goals are still covered.

Yes, I hate it.

Cold calling may work with desperate and uninformed homeowners. Investors are rarely both. Investors generally know (or should know) their property value and aren't going to give it away, which is the only way wholesaling works. I would think it stands a better chance with owner occupants and estates versus investors.

I get at least 2-3 per week "I'll buy your house for cash and you don't have to do anything." type postal mails, emails, texts and phone calls. What would make yours stand out? The whole strategy is based on blasting out high volume offers and catching the small percentage of responses that comes back as potential leads without being concerned about who you annoy in the process.

@Tony Christian I specifically wrote in my post to follow the NY number of days. This is an expired lease, so payment is not a concern unless OP seeks financial damages. Seeking financial damages complicates the case, increases OP's costs, will probably result in a judgement, but that judgement will likely never be paid.

It's really just a math problem. You consider your principle, rate and years in different scenarios to see what is best.

In terms of risks:

- HELOC rates fluctuate. Consider a scenario if rates are +1 or +2%.

- Plans can change. Could you actually be moving in just a few years or 10+?

HELOC interest is only tax deductible in this situation if you use the HELOC funds to buy, build or substantially improve the rental. Paying off a loan with the funds may not qualify. In that case, you lose your interest deduction completely. However, this rule expires in 2025 and who knows what the government will come up with in 2026 and beyond.

https://www.stessa.com/blog/heloc-interest-tax-deductible-re...

Another thought....

Why won't they leave? You may be in a better position with a cash for keys approach.

https://legaltemplates.net/resources/cost-to-evict-someone/

Lose your CfK funds and feel ethically violated as you never should have to pay someone to leave your property or pay a lot more in other ways to go through the full legal process to get the same end result. Emotional stress not included.

Give them a 10-day pay or quit notice if you haven't already (follow NY number of days).

Go to the courthouse and file an eviction lawsuit if they aren't out by the end of the notice period. Alternatively, hire an attorney to do this for you.

You should have a very strong case with an expired lease since the tenants have no right to be there. For that reason, you shouldn't need an attorney to evict and the tenants might not even show up. You may want an attorney if you want to add in holdover rent, late fees and other monetary damages (attorney fees), but don't expect much in return.

The court will have its own timeline for how long this takes. You can Google for the process and estimated timeframes.

It doesn't seem like it would be a detraction. Mine have smooth and popcorn ceilings and I've never heard a complaint about the style of either.

The only problem I've had with the popcorn ceilings is repairs can be more visible.

Why do you think you need SSN and birth date?

@Chris Seveney How would you reasonably have caught this situation before purchasing the note?

The refinance title didn't catch it. Maybe that transaction's title insurance should have covered it instead of yours, assuming they had it. Doing the "dig deep" thing makes sense, but this is a situation where 2 title companies and an industry expert missed it.