All Forum Posts by: Jules Aton

It is odd to me also when people post then ghost but overall I think the vibe here is friendly and gracious. If you feel someone deserves some slack it would be nice to support them regardless of if they don't continue to respond.

2 Votes

Quote from @Russell Brazil:

Quote from @Jules Aton:

Quote from @Russell Brazil:

Quote from @Alexa S.:

Quote from @Russell Brazil:

Quote from @Alexa S.:

@Russell Brazil I appreciate your response. Unfortunately, I received information from this forum to the contrary, from a longstanding landlord working with DCHA so of course it wasn't my intention to break the law. I can resolve the back pay but would the best solution then to just change the utilities to the tenant's name moving forward?

I've never had a voucher tenant that I've moved from rent plus utilities to just rent, so I'm not sure if it's possible. And if it is possible, what the process is for that. Your tenant very well probably would reject this anyways. If utilities cost more than section 8 will pay, and they're already in the unit on a valid lease (DC leases automaticly extend month to month at expiration, with no ability to non-renew) then why would the tenant agree to change the terms of the lease in favor of the landlord?

Can you explain what you mean that there is "no ability to non-renew"?

DC you can not choose to simply non-renew a tenant and get rid of them. The only way to get rid of a paying tenant is if the owner is going to re-occupy the property themselves. There is no other option to remove a paying tenant.

I'm in the area and know it is big business but this would be a hard no for me. Does selling the property allow for removal of the tenant?

Nope

Ugh. Yeah I'd lawyer up and consider moving into the place for a few nights then change my mind.

0 Votes

Washington, DC

Hi and welcome!

0 Votes

San Antonio, Texas

Quote from @Marcus Auerbach:

This is going to sound harsh. When you picked this financial framework you have made the classic noob mistake of looking at everything through a cash-flow lense. The good news is that this deal is a great learning opportunity and you start asking the right questions. Let me back up.

The four basic sources of wealth with RE are:

1.) Equity: forced appreciation and natural appreciation

2.) Leverage and amortization: principal pay down

3.) Cash flow

4.) Tax benefits

Cash-flow is one of the smaller benefits and should not be the primary reason you buy a property. To gain an intuitive understanding of this use the BP rental calculator, punch in 1 million property value, 10k monthly rent, 3% appreciation, 3% annual rent increase. Look at the results after 10 years and after 30. Cash flow get's dwarfed by the other components. If you increase appreciation to 5% the results get even more extreme.

Once you realize this, you start asking the right questions: how can I manipulate the input-numbers to optimize the outcome.

As far as this property: keep it and let time do it's thing. It's called buy&hold not buy&sell for a reason. Cost of selling is too high. Cash flow and property value will improve with the years.

Excellent points for those considering RE. I know many here don't feel it is valuable but I always did local deals in areas I was familiar with so I could monitor the property and neighborhood. My guess is there is an up and coming, fringe area that would provide a conservative first attempt at RE within 90 minutes of most cities, towns. You generally get what you pay for in RE and in life.

My personal strategy early on when I had limited funds was: Ugly house in the best neighborhood/school district. This covers likely appreciation both naturally and from renovations. The preferred school districts can be a significant draw for ensuring full occupancy. I also always wanted an out and reasonably priced properties in good neighborhoods will generally sell easily even in down markets. Cash flow was necessary initially but I didn't aim too high and over time as rents increased cash flow also increased.

1 Vote

Quote from @Russell Brazil:

Quote from @Alexa S.:

Quote from @Russell Brazil:

Quote from @Alexa S.:

Can you explain what you mean that there is "no ability to non-renew"?

I'm in the area and know it is big business but this would be a hard no for me. Does selling the property allow for removal of the tenant?

0 Votes

Washington, DC

Quote from @Dayana García:

@Jules Aton no sure how to do that? Could you please explain? What is it about ?

Look up the appeal process through your State Department of Assessments and Taxation. I haven't done it since prior to the pandemic so maybe virtual or online options now but I used to bring interior pics of my rentals which were in excellent neighborhoods but clearly modest, builder's grade as well information on recent sales I felt were true comps. In one case I had just had it appraised due to refi which was lower than the new proposed value so that was helpful.

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Doh an actual floor, like another level.

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No wise words. I'm sorry you are going through this and yup this is what the whole country has become now.

0 Votes

All Forum Posts by: Jules Aton

Jules Aton has started 9 posts and replied 247 times.

Post: first rental property

Post: What should I do with this 100k sitting in my savings?

Post: Don’t disappear after making your commotion.

Post: Tenant won't pay utilities- housing choice voucher DC

Post: Regional Sales and Operations Director

Post: Should I sell?

Post: Tenant won't pay utilities- housing choice voucher DC

Post: Should I sell?

Post: When to add a new floor?

Post: Tenant reported fungus/mold on a small section of the bedroom ceiling