All Forum Posts by: Linda S.

@James Conaway,

I feel for you, we had a fully renovated duplex, never even saw an ant in that place.. and then 1 month after a tenant moved in, they complain of cockroaches.    Clean, young guy, wasn't OCD, but was relatively clean.  ...  Apparently ( I didn't know this until we had the issue)   cockroaches move with people, literately laying eggs in their appliances/furniture/etc.    Sounds like what happened with yours, you can easily tell by the size of the roach. 

With a multifamily house, IMO your best option is to get an exterminator out there ASAP.   Bite the problem in the butt ASAP so it doesn't spread to other units.  ..  You can say it's the tenant issue, and maybe your lease says it is.. but do you think a tenant will pay for an exterminator? -- nope!   

Here's your question...Do you want a little bug problem, or a big one?   Just call and get it done ASAP.

@Michael Ash,

Are the tenants reporting it good quality tenants?   Do they have any motives to get them out?  I will say, when there's smoke, there's fire... I doubt your other tenants are making up stories, or racially discriminating, they're telling you they feel uncomfortable.   I agree, your best solution is to tell them to call the cops and get extra surveillance.   

I will also say, tenants aren't stupid-- if they know you are coming (required 24-hr notice), and they are doing shady stuff, you better believe they can clean up!     Of course they'll say it's just friends, friends are allowed... Shady people in my opinion are the worst because they are often very smart and sneaky.  The threats you mention, are likely just that they may have seen some guns, or very obvious drug dealing.. drug dealing and violence go together like 2 peas in a pod. 

The question you have to ask yourself, is unfortunately how much do you care about the quality of the neighborhood?   It may not even be your tenants, probably someone's BF/GF using your house as the drop off/pick up so they don't get caught and aren't tied to your place.. .. but at the end of the day, it's that tenant who's causing the disruption. ..  you aren't the moral police, or the regular police.. you're a landlord.      If it's causing a headache, a lot of stress, since it's M2M, just notify them you aren't renewing, and offer to give them a great rental reference.    If they aren't, and you just enjoy the rent, and as long as "you don't see it, it doesn't happen"  type of deal... don't stress and just tell the neighboring tenants to call the cops.   I say this because in our neighborhood, there's 1 obvious drug dealer.. I've called the cops on him numerous times... everyone else is quiet and keeps to themselves.. but we see the same thing your other tenants describe to you .. it's sucks.. i just wish i was the landlord to kick him out.   Hope this helps!

You'll have to put 20-25% down on your next investment home.     Unless your house is a fixer upper, you'll need to have the 20-20% in cash for your next home.   Some lenders may require you also have  6 months of payments available, in addition to the % down.  

Hi @Nick Noon,

1)  If you really want the house, yes I'd go a few hundred over asking price.   Just be aware, they will give preference to owner occupied offers, even if yours is higher.

2) No, no, no-- the bank just wants your #-- not your personal story.   

3) I don't see why not, they might not bend any, but it never hurts to ask.

4)   If it's a house you really want, and it's in a competitive market, i wouldn't nickel and dime them, chances are there will be other investors like you wanting a piece of the pie.

The way i look at it, is what's a few hundred extra over the course of a 30-year loan, if it's a house you really want?   Again, just realize they will give preference to owner occupied first, and then if no owner occupied offers come, then it goes to investors.   Good luck! 

From someone who buys "as-is" and cash only real estate, let me just say, you aren't getting a good deal.. you're getting a house discounted because they know it needs at least $20-$40K work immediately.     This obviously needs work... possibly a new roof... likely some structural issues, those are expensive and companies can gouge.   Think from his perspective-- why would anyone sell a property that makes $2400/month.. for $80K... because they know giant bills are coming.. or maybe the city is demanding things get done, and don't want to pay them-- that's why.

For your first investment property, unless you have access to around $40K to put into it, I wouldn't suggest it.      Duplexes sound  awesome, because its' 2x  (or 4x) the rental income, wow!.... but it also comes with 2x (or 4x) the headaches.   If it's actually a fourplex, it's likely not permitted... so right off the bat you may be dealing with kicking someone out.. maybe they won't agree and you'll have to evict, that's going to be $5-10K/unit... are you able to deal with that?  

  As I mentioned, we buy as-is, and just a real life example.. we had to fix the roof.. original quote $5K.. great.. except they have to fully re-do the boards, and remove 4 layers of shingles, final price was $11K.. that's the stuff you deal with..   I personally call it a "Sh*t sandwich," and if you aren't ready for a bite, lol don't order an as-is property.  ....Especially with you being 3 hrs away, this isn't something I'd suggest doing in your situation.    

Find a fixer upper close by, get your feet wet with the renovations, and also getting use to the cost.. my personal rule is always go 3-5x what you think it will be.

@Mark Nolan,

Yes, I took it from my current 401k

I use my 401K to buy my second investment property, it's pretty simple ... you can take 50%, and if it's an investment property, it has to be paid back within 5-years.    If it's a primary residence,  I  believe it's 10 years.    They mailed me the check within a week, very simple and easy! 

Thanks @Steven Hamilton II,  I appreciate the help!

@Hugo Parra,

Sounds super shady.. trust your gut and don't do it.    How the heck is he going to do a flip, if he can't fund $35K.. sounds like a giant headache already.   I agree with the others, a detailed contract.. that you can sue him, but if he is already needing money, he probably won't have anything worth suing over.   

 I wouldn't do it.

I'm looking for recommendations for local CPAs that don't charge an arm and a leg, and focus on real estate rentals.      Thanks!