All Forum Posts by: Jacob Tudor

https://www.biggerpockets.com/buy_and_hold_results...

https://www.biggerpockets.com/buy_and_hold_results...

3 well kept rentals. Looking to sell as a group.  3 excellent tenants.  If interested please email interest to tudorrealtyllc.yahoo.com.  Will send pictures if interested.

Tenants currently pay all utilities except $10 a month garbage fee.

Large yard on all 3 properties - 2 of 3 fenced yards - 2 of 3 have garages.  

Current rents: (rental Estimates are much higher)

3/1 823 Butler - 1128 sq ft - $725

2/1 702 Leland  - 728 sq ft - $800

2/1 148 Maple - 1120 sq ft - $775

Mostly new appliances

Thank you all for great information. It is a tough situation and the advice is well received.  

Hello BP!

Recently, the city inspector’s office where we own a rental in Michigan contacted me and informed me that “a concerned citizen” complained about the condition of the front porch of the rental.It is easy to assume that it is the tenant that made the complaint. As a result, the tenant was told not to use the exit for anything other than an emergency.The residence only two exits.There is no logical reason why the tenant HAS to use the porch for any reason other than an emergency. I cannot afford the repair cost but the tenant still uses the porch but then complains about the condition of it.

I have been getting quotes to repair the porch but the cost has been exorbitant.The quote is less than 10K.

MY QUESTION TO BP: Does anyone know if I can remove the tenant for any reason in this situation. I’m concerned because he isn’t following safety instructions.It is preferred to remove the tenant and not rent the home again until the repair can be done or sell the home as is.The strongest argument for removing the tenant would seem to be that he cannot stay because of the home only having one entrance/exit.He has also violated contract term agreements by not paying rent the way the contract specifies and continues to do so.Would this be a better route?The lease agreement doesn’t end until August.Initially, I was just not going to renew the lease but with this tenant, I don’t want to wait that long. Please let me know your thoughts!

Thank for the great advice everyone.  I trust that if the majority say to chalk it up, it is the correct course of action.  I think I'm just going to go back to cash which will slow down business growth and in our situation, thats okay.

Chris - point taken.

Steven - Completly understand about the 45 day period.  The realestate agent has been good up to this point but lets us down on this one.

Didn't pay cash because we didn't have enough to cover this house.  We are still buiding our way up.

Jay - a appreciate the advice concerning the large lenders and won't chalk my experince  up as an anomoly.  The old conundrioum of paying cash or getting a loan....

Thanks for the replies!  I will certainly try to pick a better lender next time.  Any advice on the topic is aappreciated also.  Chris, we chose the large bank lender based on our experince with them on our business account.  We expected them to be able to perform.  As I mentioned we gave them the best paint to work with but no dice.  

What stops us from filing a small claims case at a minimum?  Their actions  alone or lack there of were the sole reason for us losing the house.

Hey!

Up until now, we have bought our homes in cash. I wish we could continue to do so, because bank mortgages aren’t fun!I would really like to see if I could get some guidance from the BP community and figure out if we have any recourse.I will keep this as brief as possible.

We put in an offer on a house in Michigan.Our realestate agent suggested we put the offer in with a thirty business day close period.We didn’t like the idea and preferred a 45 but, we agreed and our lender related that they would be able to close in that time frame.All of our task to get the loan completed and closed were done in a timely manner.The lender did not schedule the appraisal in a timely manner, then on the day of the appraisal the guy got sick so it was resceduled for a later date  .Once the appraisal was completed, the lender kicked it back for discretionary corrections.At this point we were very much on schedule to miss our close date.Now, we were told several times by our agent who heard it from the seller’s agent that they had a backup cash offer in place and that that offeror had already done an inspection.So we knew they would most likely back out if we busted the close date.However we did get the seller to agree to a week extension, so long as our lender could provide a clear to close based on the date of the extension date.The lender would not provide any firm date, seller was not happy with the banks position and backed out the at the earliest opprtunity.

We spent about 1k for inspection, appraisal, and credit checks.Although we were not allowed to look at the appraisal because it was not finalized, we estimate that the home would appraise for about 10k more than our offer.

What recourse do we have?Do you have any suggestions/advice that might be helpful for our current situation and the future.

Thank you so much for your time,

Jacob

Wow you all are awesome! So I didn’t mention that we planned on buying and holding. Buy and hold is our normal criteria.James, we paid 22.5K and the zestimate for what is worth is 57K and $850 rent but $775-$825 PM seems more realistic.The cash on cash is 12.5 considering the price we paid and 20K in repairs.

I mentioned the siding because from what we were told by one of the contractors, they will strip off the lead and repaint but because the house is old and the insulation is inconsistent, the paint job will only last three years, so we considered siding the home for long term stability.Dawn, we are getting more quotes before deciding anything.

Robert, thanks for the advice, we are not opposed at all to some sweat equity!

I also thought the siding was really high.For a long term rental, I would like to get siding done at a reasonable cost and not have to worry about painting every so often.

Do any of you think turning around and selling it would be a good idea, just to get out from the home issues?

Hello all.Since first getting involved and educated in real estate investing, I have consistently heard that mistakes will be made, well we made our first one and I wanted to put it out to BP and get suggestions of how best to dig out of this mess.We have been investing in Southeast, MI.I know, I know, insert jokes here.Recently, we cash purchased a 2/1.5 home with a garage for 22.5K, about half of what the seller was asking.The seller was an estate of a family member that lived in the home and recently passed away.We were aware the front concreate porch, was pulling away the home and the design of the roof connected to the front porch.We knew we would need to repair/replace the front porch and we set about 20K for repairs.We were also aware that the home had lead based paint.

We got quotes for the porch (15K) for the porch and getting the lead paint removed and repainting the home (4.2K).We also got a quote for siding which was 19K.This was obviously over our anticipated budget.

We realize now that we made a mistake buying the house because the area we bought the home in is flat or slightly above flat growth.If you were in this position what would you do?We don't have the money to conduct all the repairs and honestly don't think it would be worth doing. I look forward to your advice. Feel free to send a priviate email.

Jacob