All Forum Posts by: John Clark

As I am sure others have said: Make sure you add the negative cash flow to your basis for the property and then use that resulting number to determine how much your appreciation was and the rate of your appreciation.

Quote from @Jennifer Sowers:

Hello,

I am looking at a commercial property that has septic issues. The septic is located on the neighboring property which is also for sale. The county is in the process of bringing a sewer line to both properties in the next two years. 

My question is, can the county keep a buyer for both properties from moving forward with a sale prior to the new sewer lines being installed?

Thanks!

You tell us. What do the county (unknown) laws and regulations say?

Also, keep in mind that sometimes local governments charge the affected properties connection and construction fees. You might be on the hook for scumpty-ump thousands of dollars in fees if you buy and the local government(s) imposes some sort of improvement tax/charge on you.

Quote from @Michael K.:

Southwest corner of West Elsdon is right in the flight path from midway.

 Part of the southwest corner certainly is, but you can get fairly close to Midway without being under the flight path. Remember, the runways are at diagonals: one from 63rd and Cicero to 55th and Central and the other diagonal is 55th and Cicero to 63rd and Central. You can be due East of Midway from 55th to 63rd (West Elsdon ends at 59th, South of that is Westlawn) and until you get pretty close to Midway (a block or so West of Kostner) the airplane noise is tolerable -- meaning it is rarely loud enough to stop a conversation at normal volume.

The $300,000 price resistance level is holding. There were a few outliers that beat it this past year, but most everything fell well short of $300k.Given that interest rates are up, I doubt that the basic bungalow will go above $300,000 until 2024.

What will happen is that people will buy comfortably under $300k, and then put $50k into the houses. The resistance level crumbles, and people will start selling for $350k - $400k in a few years. Improvement, but not gentrification.

Quote from @Thomas Harris:

Sorry, how does it not add up where? We have other rental properties besides our fourplex. But the fourplex is the only one with rents very below market. 

---------------------------------------------

Ah. Your post did not mention owning/discussing other properties, so I reckoned you were talking about the one property in question (I gave up mind reading years ago). You change the facts, I change the answer.

Are your other property(ies) below market, too?

Quote from @Thomas Harris:

My wife and I own a fourplex. It is fully rented and 3 of the 4 tenants have been there for several years. The other tenant has been there for 3.5 years. 

. . .

We’ve had 3 vacancies in the last 3 months and we do all the cleaning, painting, and minor repairs ourselves. She says she is exhausted and doesn’t want to deal with another vacancy.
-----------------------------------------------------

Your story doesn't add up. Beyond that, landlords should raise rents by some amount (inflation, anyway) every year to get tenants used to increases.

Why are you letting him set the pace? Give him written notice that his lease is not being renewed due to his failure to respond in a timely manner and that if he is not out, you will evict.

You need to let your tenants know that if they don't respond in X days (30?) to the lease extension you will assume it terminates on the date stated and that they will leave.

Then evict.

Quote from @Henry Lazerow:

🤣🤣 

 Being a penny-in-the-fuse-box kind of guy, I'm down with that.

Quote from @JD Martin:

One approach you could take: have both of them reapply individually and requalify. Chances are one won't requalify.

On what grounds would you have them re-apply? There is a lease and it is being adhered to, except maybe quiet enjoyment covenants. On what grounds does a landlord pick sides? On what grounds does a landlord have them "re-apply" with a lease in place?

The landlord especially doesn't want to be accused of an improper eviction. They settle it between themselves (and if he goes he still pays rent, you're not modifying the lease) or they are both out.

A good reason to put your property in a land trust with a good bank. Not only are thieves less likely to try to steal the property to begin with, but you'll have a trustee asking if you've signed a deed to someone else.

Quote from @Jim Pellerin:

Quote from @Tausen Richmond:

With no previous real estate experience. I am wanting to start out with a 4 plex. I have 100k for down payment. Just stated working again only making 25k a year. Is that even possible? What kind of financing can I get?

There are private equity investments out there with returns of 25% or more.
---------------------------------------------------

The poster is making $25K a year, and all he's got in the world (if I understand him correctly) is $100k. Investments returning 25 percent are incredibly risky. I can only imagine that for someone in the original poster's position that such an investment (private equity with a 25 percent return) would be wildly inappropriate.