All Forum Posts by: Jarrod Kohl

 I believe he wsa saying that the owner of the other property is friends with the tenants, not that his PM is friends with them.  

I will agree about the fence and the security cams.  Check your local laws and clear them with the police department, since this seems like the type of neighbor that would harass you over that as well.  Then as suggested talk to the police Sargent and see what he or she suggests.  You may want to start with talking with the police department in person.  They would probably love not having to come out to fake calls all the time and may have suggestions.  

The bottom line is it is a HUGE safety concern.  If the neighbors are constantly calling the police for non-calls, when there is an actual emergency, the cops may assume it is another waste of time and take a long time to respond, that is what you want to avoid.

 Thats what I thought he may be talking about. 

Amazon is coming to the area? Thats news to me, though I know that they put in a bid for HQ2.  

I would be happy to talk to you about Ohio and Cleveland, though most of my expertise is in the Cleveland area, but more specific to other parts of NE Ohio.  

That being said, if you are in MA I would be happy to meet up with you before you go to give you some background.

If you are closing on the deal, talk to the current owner.  It is a common ask to have the landlord not renew any leases.  If they usually do the leases now (which would make sense for Jan 1) just make sure that any renewals are TAW ot month to month leases. Ideally you tell the landlord that you do not want any of the leases renewed (assuming you want them empty) and expect all leases to end 12/31.  Since this would be a risk for the current owner, they may prefer the TAW option. 

TLDR:, talk to the seller and make sure that any new lease renewals would be TAWs.

As for your second question.  You should certainly get building insurance for the main building and require all of your new tenants (Addendum to the lease) to get renters insurance to cover their belongings.  Make sure that you also have a decent amount of liability on that insurance, talk to an agent who works in the area for the best deals (happy to recommend if needed). 

For paperwork, much of the paperwork will be the same that the bank would require to close if you are financing. But you would want to get copies of all the leases, a list of any recent or major building updates/fixes, and if possible work order records for the last few months.  A vendor list would also be nice to have so that things like fire-systems and snowplowing are easy to change or take over. 

If you are looking for any other advice or property management, I would also be happy to discuss.

i agree with @Account Closed use this opportunity to get them both off the lease.  "Sure he can be removed, but then we need a new lease and it will either be month to month or a much shorter lease.  That way if the problems continue you have a better chance of getting by unscathed.

You May be able to use him as a "broker of record" but I doubt it.  Between the state requirements and the KW franchise I am sure it would be simpler to either get your own Broker License or find an unaffiliated broker who can act as broker of record (if allowed in NJ).

That makes more sense. The BRRR was referring to a second undecided property and not the current target. In that case, it is possible that this deal is just fine. I really don't know any of the details or anything about that market. As others have said, make sure you do your research and build in some vacancy expense. I would first make sure it is a solid investment before thinking of it as a vehicle to invest more cash into something else, otherwise you might as well get a loan and get a more valuable property.

 I was going mostly off of the first post, but the fridge seems fine and one burner was out.  I would consider replacing the stove if it is about the same cost (or close enough) to replacement costs.  I will also second not having any good experiences with Sears. And would look at both Home Depot/Lowes as well as appliance stores in the area.  A good appliance company can be very useful to a landlord or property manager. 

@Sam Josh

There were many crashes before 1930 (even in the US there were a bunch in the mid to late 1800s) and there were a few between 1930 and 2007. 

 But that is all beside the point, people like to throw out predictions for many different reasons. And certainly there are some indicators that say there could be another recession on the horizon soon.  Make no mistake, there will be a recession or depression at some point, but that does not mean it is in the next year or even the next decade.  

So for your deal, take a good hard look at it.  Are you hoping for appreciation?  Are you trying to do a quick flip and hoping for a buyer in 4 months to pay 80K more than what you paid, what repairs/upgrades would get you there? 

Some investors (including many successful ones) are selling off some of their properties.  I think this is a great strategy especially if you own a large portfolio.  I know someone who has over 1500 units who has sold 3-4 buildings in the last year.  He sold them because he is getting a great deal and though he still has plenty of other properties, there is no reason not to cash into a "sellers market" keep in mind he as also bought a property or two when the deal is a good one.  Who knows the market may continue to rise for years and then he will have "missed out" on all that appreciation, but that is not the point.  

Think of it like trading stocks.  If you buy at $5/share and the price goes up to $10, there is a popular strategy that says you should sell about half (aka pull your initial investment out) that way if the stock continues to rise you still have money in the stock, but if it drops, you are no worse off than you were when you started. 

It all gets back to the same questions.  What is your risk threshold, what are your goals and how will different outcomes change or effect those goals.  If you have 2 single family rentals your strategy will be different than if you own 50 Multifamily buildings.  

@Gayle Eisner

I think the advice is missing the point.

The tenant asked for a cosmetic upgrade? So there is no problem with the current fridge? Just they don't like how it looks?  This would be a simple no for me.  I may consider changing it at the end of the lease if you think it would help keep them. At which point it would allow you to raise rent on the premise of new appliances. 

It also sets a bad precedent to the tenant.  You should be a good landlord, but just because an item is not to their liking, it does not need to be replaced.