All Forum Posts by: Jose Clavijo

I have bought several properties that are tenant occupied. Most with extremely low rents due to the condition of the property. You should request a copy of the lease as part of your due diligence. If the rent is low most likely it is because the unit needs to be upgraded. If rents have been increasing (which they have in many markets) I would discuss with the current tenant an increase close to the end of their lease and if the tenant is on a month to month with a low lease you might be better off with a notice of non renewal.

When is the problem tenant's lease up for renewal? You might have the same issue with any new tenant moving in next door. It might be best to give the problem tenant a notice of non-renewal.

From my experience with non-QM loans it is actually an average rate. Without a W2 unfortunately this is were we stand. 

The selling agent might know. I would not take his word for it anyway. It is best to confirm the rules and regulations with the HOA directly. If you are buying as a buy and hold investor it is important to know if they are close to the rental limit. I had a unit that became vacant as they were close to the rental limit. By the time i found a new tenant i was not allowed to rent the unit anymore. I then sold the unit to an owner occupant.

I would try to increase the cash for keys move out incentive, but then again if they have been living there rent free for several months they will continue to push their luck until an actual eviction can be done. Good luck!

I am a buy and hold investor. My area has very high property taxes and low rents. The ROI in this area never made sense for buy and hold. I started looking for other states to invest in. I narrowed my search to a specific area and i did visit before i started submitting offers. I also did plenty of research online and connected with investors in that area that i found on bigger pockets. This was the way for me to get past that "mental block".

We have a couple of tenants with the same issue, no bank account, no car. They mail the money order. I always tell them they need to hold on to the stub and the receipt in case it gets lost in the mail. It's 2 tenants to be exact, they have mailed the money orders for the past 18 months and no issue so far. I've tried to ask them to get rechargeable debit cards and use venmo but they always have an excuse. These tenant's came with the property, previous owner was local so he would just drive by and pick up. 

Hi. It depends on the location of the properties. I had this issue in South Florida, Palm Beach county. It was a money pit. City Inspectors decided to go home by home, looking for additions and checking on permit history, writing violations on every house.  I have two single family homes, both tenant occupied.  One of the additions i just knocked down, the other i couldn't because it was a bedroom. For me personally if it was not permitted i would walk away specially in south Florida. I would reach out to local investors in the area, on bigger pockets or Facebook groups to get an idea of what you would expect in the area. 

South Florida around 2010 best deals so far, all with water damage, all REOs. Single family home closed for $40K, $45K in repairs sold for $190K. 1/1 Condo bought for $10K, $35K in repairs sold for $85K. I did hold the properties for 6 years both with long term tenants. I wish i saw those numbers today. 

I allow them to paint as long as they bring back to the same color they had at move in. Some will change back others won’t, at that point i would use the security deposit to bring back to move in condition.