All Forum Posts by: Kyle R.

That she was. She ended up running out the door before officers arrived, but they found her at her office a week later and took her into custody.

Had the sheriff recently escort one of my tenants out. Next day, they drilled through the locks and took it upon themselves to move back in. Some people are insane.

Thank you @Michael Henry and @James C. for the replies. The P&L for 2016 shows maintenance expenditure was 11% and NOI was about $45K. The property has been on the market for over a year, and there's a reason for it. I'm also concerned about implementing RUBS. I'd imagine it would have to be rolled out over 2-3 years. I was thinking of passing water on this year, then electric in 2018, gas in 2019. As of now, I'm planning on submitting a firm offer in the high $300s. Hopefully the seller is motivated. If not, on to the next one.

Potentially purchasing a 28 unit complex and would like to get the forums insight. It was built in 1941, sits on half an acre. Seller owned for 10 years, selling due to cross country move. Asking price is $420,000. Property is located in the Carolina's. Please let me know if I'm missing anything.

• Collected rent was $137,000 in 2016.
• Maintenance expense was 11% of rent last year.
• Cash flow is $1,800/month.
• 10 tenants have lived on property for over 20 years. One has been there over 30 years.
• 90% average occupancy. Current occupancy is 97%.
• All utilities are billed to landlord (water/sewer, trash, electric, gas). Average yearly utility expense is $50K. Planning on implementing RUBS or raising rent over 1-3 years to begin billing tenants back for utilities.
• Rent is priced 10% above market. Not enough to cover utilities.
• All brick/masonry construction.
• One tenant lives on property rent free, but is responsible for cutting grass, cleaning breezeways, painting/cleaning units at turnover (landlord buys paint), and minor maintenance. Rent for this unit would be $500.
• Boiler was replaced in 2007. Roof was replaced in 2005.
• Water heaters are gas and tankless. Three instantaneous heaters are on the property, two of which run at all times. The third is a backup.
• City water/sewer, no septic tanks to worry about.
• Window AC units.

Concerns:

• While current manager has kept occupancy high over the last five years, he admits to not collecting security deposits. He claims tenants can't afford it at move in, so he bills them $25 monthly until the deposit is paid. However, most tenants don't pay the extra $25 and he doesn't evict for it. Only 20% of current tenants have a deposit.
• It's becoming difficult to find technicians to service the boiler room. May become costly to replace/fix. I have mixed feelings on the tankless water heaters as well. 
• Lead paint/asbestos. Neither of which have been discovered on property, but due to age, it's expected. Tenants required to sign disclosures.
• Minor cosmetic issues. Building could use a repaint, a few awnings need repair, and landscaping could use some help. Structurally it appears solid (contractor to verify).
• Expenses are 70% of income due to utilities.

I recently received a judgment against a tenant who fell nearly $10K in debt to me. When my lawyer executed the judgment, he found no physical assets to take. However, we were able to locate a checking account at a local credit union. We were able to levy the account. Moral of the story, if a judgment is executed against you, assets can be taken regardless of their location.

I recently rented to a very similar renter. Single mother, one older kid, credit score was 550. I rented a condo to her for $1,250/month. Only reason I looked past the credit is due to the fact her income was $90K and had stable employment. Also, she had no current accounts in collections, active judgments, or eviction history. If her income was $50K, I would've turned her down.

The police considered it a felony breaking/entering. In NC, once the sheriff executes the writ, the legal status of the property shifts from the tenants possession to the landlords. Officers said it was no different from a home invasion.

Who's to say the tenant will honor your cash for keys agreement? Obviously they're not concerned with honoring legal agreements as they've disregarded the lease.

I formally evicted a tenant two months ago. Even after the sheriff physically removed them from the property and changed locks, the tenant returned the next day, drilled the locks out, and moved themselves back in. Never underestimate how much of a deadbeat certain tenants can be.

Lastly, by not evicting, you're simply passing your problem child off to a new landlord, who is unaware of the situation at hand. You may be saving yourself a few thousand dollars, but you're enabling the tenant to move onto the next landlord and cost them thousands.

My lease is seven pages long, 12pt font. Attached to the lease is an eight page list of clauses in 10pt font. I've never had a tenant question the restrictiveness of my lease, not surprisingly they just speed through the pages, initial, and sign. These clauses include everything from a confession of judgment to hazardous material storage on the property.

Typically I'm against cash for keys but this is one scenario I'd use it. Sure, evicting him will solve the problem, but it sounds like they have every intent on damaging the property on the way out. I'd offer to forgive their debts if they leave, or even pay for their voluntary forfeiture of the property.