All Forum Posts by: Karl B.

Another factor that's important to note is how strong or soft is the market? It's easier for a landlord to be strict and enforce late fees in a strong market without having vacancy ramifications. 

I've offered the one free pass to tenants - of course - I tell them this is their one free pass. For me, it has worked. I'm also both fair and nice to my tenants and fix things on time and make upgrades to the property and I'm convinced tenants who are happy with a property will make every effort to pay on time (I'm also picky when it comes to accepting tenants and consider myself a good judge of character and I have a strong shady person-meter).

One tenant was late because she was in the hospital with birth complications - I was understanding of that. Things do happen. She even offered to give me her debit card and have me ATM the cash out as she wasn't allowed to leave the hospital. 

My tenants call me and ask if I have openings on the regular - I take that as a compliment. 

I am fair and always get the rent money - I wouldn't stand for not receiving it, of course.

Recently, another tenant was out of town with on the job training - he actually paid the late fee without me asking for it which was nice. 

I only ever made one tenant pay the late fee (an inherited tenant) because he gave me excuse after excuse. They no longer live there (I didn't have to evict them, which is good). 

I wouldn't blame the tenant but what I would do is paint the mailbox (and the post holding it up) a random color so if somebody hits it and the paint rubs off it will be easier to figure out who is at fault (as the paint will likely rub on the car that ran into it). 

I would also consider moving the post/mailbox if it's near a driveway where a car turning around might back into it.  

And complain to the post office as well - they might have some useful tips they can share also. 

I went to a free 'real estate guru' event in Los Angeles (where they get people to sign up for courses that cost thousands) and I left without buying anything and Googled the gurus name and the word scam and found a BP article. The rest is history.  :-)

Hi, I post in the real estate wanted section. Having a link to a legitimate-looking house buying website helps as does stating what you're looking for (SFH, multis, etc), price range, areas, etc.

Hi, I'd be P.O.'d too. If you have a proper agreement in writing then speak with a real estate attorney or perhaps a commercial litigator. It sounds like the seller performed breach of contract and non-performance and you can sue him for that. 

Heck, if the seller is smart he'll sell to you when your attorney tells him what's going to happen. 

Keep us updated.

See if you have an Apartment Association in your area. When I joined mine they shared a slew of useful documents/forms with me including their rental lease which all members of my Apartment Association can use. 

I pay around $75 a year to be a member and it's worth every penny. 

Aside from the lease, the lead disclosure and the lead disclosure booklet you can use the checklist, as mentioned. 

But I recommend joining an apartment association and having access to their forms/leases/documents/educational tools. 

Shot in the dark, but I'd check their social media - one can learn a lot about a person on Facebook. 

Hi. If it makes sense to sell I'd hold it for a year and then sell it and use the money for a 1031 exchange. That way it's tax-free (after one year - that keeps the IRS happy). 

Though it also depends on one's tax bracket and how much tax they'd likely pay for a flip. 

Though I'm biased as I am a total buy-and-hold-type investor. 

There are a lot of people on BP who would totally flip that property ASAP, sell, have to pay CG taxes and use the profit as a down-payment for another property. 

Though if the cash flow is strong you could have the best of both worlds and use the rental funds of this property toward a down payment for other properties (sure, it takes time to save but again, I am a buy-and-hold investor). 

In short, depending on the cash flow:

-Flip ASAP

-Sell after a year and 1031 exchange it to avoid CG taxes

-Hold onto it and enjoy that monthly check for the decades to come

It's OK to be scared. Run the numbers. Find an AMAZING deal where the numbers blow your socks off. If you negotiate and agree on a price with the seller your inspection will ease your mind of potential pitfalls. And if the report has issues you can see if your seller with A) Repair or B) give credits/agree on an even lower price for the property.

Realtors don't typically find me deals - I find the deals, run the numbers, etc. Realtors are simply there to move the process along. 

You're right to be careful but trust the numbers and do due-diligence. And only buy really good deals. Lots of investors don't, but when you know your numbers it's not hard in the right market. 

Things to consider: know the area (it sounds like you have an idea as to the area as you had gone to college there but it's good to reacclimate yourself with it in the event areas have changed for better or worse).

Also, know local laws, taxes, inspection procedures. 

You don't need to have a PM company. It's personal preference. I manage a handful of multi-family properties from across the country. It's not hard to do and I like that extra 10% rental income. 

Definitely have 3+ months saved to cover your mortgage payment/capex - some banks will require this - mine did - for my first multi-family mortgage on a 4-unit anyways.