All Forum Posts by: Jonathan R McLaughlin

First, take a deep breath. This is a slow leak that needs to be attended to but not an emergency. If it helps think of the $1440 you would be down this year as just another repair item :) it’s about the price of an appliance or 2 anyway.

I’d give it a while and see if you might get a little interest rate relief. If you can get a nice premium for the sale you can time it for when the lease is up. Take the win and use the money to cash flow better somewhere else.

What kind of debt do you have now? You might be able to adjust the cash flow a bit. 

If you bought well and have equity, you haven’t lost you have just switched your gain from cash to equity, with the interest rate-the cash drain being the rate of your return.

@Andrew Syrios agrees especially with b-b+ and up properties, or owner occupant quality/locations I think..  They can function as both a kind of savings account from the pay down with a reasonable exit to a retail buyer, and with small multiracial very well set up for condo conversion.

A shout out to spouses who make this work! Our combined income was a baseline that allowed for us to invest. I had the higher earning w2s for the most part, but was able to go full time and still have reportable income from her which made everything work. Able to concentrate on building anssets and equity with occasional cash outs when she changed jobs. And she never blinked when I went full time real estate investing and being the Dad with a 2 year runway in the bank 6 years ago at 48. It’s fun to make it work with someone. Still building amd would have been quicker if I’d stayed longer, but wouldn’t trade it.

So that puts you at 100% financing—if the property you found can support that it’s impressive—but not common

"gator" lending. Appropriately named after an ambush predator

@Cristin Andrews curious if you can share any updates on this? Fingers crossed its ok

Small town? I might go, sign the book express your condolences and leave. You will get some props for showing respect. You will show you can operate your business without making it personal.

As simple as it sounds first thing to do is realize this will not get better, and faces a good chance of getting worse. As above, keep a record, alert the police and keep them informed. They can’t fix it, but they can be a resource. Educating yourself on the various types of social service interventions that may be possible would be a good idea. Make sure your place is secure and secured regularly. Use a sympathetic and passive voice when setting boundaries (“the car can’t be on the lawn” can you please move it?” You and your wife should discuss your schedules about coming and going.

As a kid, we were attacked by a neighbor who had exhibited increasingly erratic behavior over time after his wife died and happened to fixate on us after a random interaction. It happens.

So obviously you want him out, but this is a mental health and  self defense issue with a tenant component. Prepare and act accordingly. 

Assuming you are in the market range on the slightly lower end I’d go with #1

Don’t price yourself out of your best tenant market…you said yourself the other units are higher end, different animals. The closer you get to those the more people will say “f it, I’ll just pay the extra X$ and get a pool, excercise room, etc” while at the same time putting financial stress on your best tenant pool.

Clean, nice and a 20%-25% discount from higher end rentals sounds perfect for a peaceful and profitable landlording existence. I don’t think the renovations get you anything right now.

He is suing or threatening to sue? Huge difference. Suspect the second as it would be a small claims issue and lawyers would go broke taking in cases for that amount.

Depending on the state security deposits can be tricky. Some don’t allow you to deduct for repairs you do yourself. But if you have any documentation at all just deduct it, itemize the expense on the checklist and tell him go ahead.