All Forum Posts by: Madison Balter

Hi BP family,

I recently started land lording on my own and had to kick my tenant out who lied about her income and didn't pay rent. I made her give me a 30 day notice to leave and she left but obviously left her smelly, insect filled mattresses and couches along with broken windows, walls, and screens. She gave me a forwarding address so I can send her deposition of deposit but it got rejected because her PO box does not belong to her. Now I want to take her to small claims because she owes me about $7k in damages and missed rent. I was told I can do a skip trace, does anybody have any expertise in this field? Or can help me perform one?

My tenant has been applying for section 8 starting in June, got accepted but for a unit that doesn't qualify for mine. She told me that if the voucher qualified then section 8 would pay the rent for June, July and now August. However my tenant needs to move and stated in writing she will be out by the 1st of September. She verbally agreed to creating a payment plan to pay me back the rent for June, July and August. Is this legal? Can I go about creating a legal document that can hold her responsible for that lost rent? I know I could keep her security deposit for the lost rent which covers 1 months rent. I'm feeling lost. Does anybody have other ideas for other options. My tenant is willing to work with me but I also realize I may never see that rent money and have to call it a loss. Thanks!

Hello BP, 

I have owned a duplex since April 2019 in Long Beach, and I wanted to refinance now to get out of my PMI. I bought the house for 445 and it appraised to 520. I was shocked because I completely flipped the place. It had not been remodeled since the 1980's, and I even repainted the exterior of the house. I didn't follow through with the new loan due to the low LTV. What do you recommend I do? Wait, find another lender to do another appraisal? #help

I have 3 college student tenants who have great credit (with sucky jobs because they are college students) who want to move into my unit with 1 cosigner. Collectively the students and the one co-signer's monthly income comes to about double the rent. I am considering getting an additional co-signer to make 3x the rent, or am I good with just one? Also does anybody have any general experience with college students as tenants? Thanks!

Hi @Ryan Chinnici

I am not a lender however my lender was very quick to answer my questions regarding FHA. I know for certain it doesn't have to be SFH. I believe you can use FHA on up to a 4-plex. FHA is an owner-occupied loan so you would have to "live-in" the property for just 1 year, however not every investor does that legally (not saying you should or shouldn't). You also have to meet a self-sufficiency test, which are strict regulations regarding what the property looks like and how you will pay for the property if not all units are occupied. Talking to a lender is totally free, and I would ask about their debt-coverage ratio on the self-sufficiency test. On 2 units I believe you don't have to meet a debt-coverage ratio.

If you plan on rehabbing the place and it is run-down you may not even qualify for FHA. You will have to pay mortgage insurance (PMI) until you can get up to 20% equity on the property. It's a great way to get started, but it's not as easy as a conventional loan. I used a program called home-possible and you put 5% down, with a lower PMI than FHA. You can message me if you want my lender's information, I hope this helps.

Hi BP World,.

I just purchased a duplex. First unit has a legal 1 bed, 2 bath and second unit is a legal 1 bed, 1 bath. However both units have 2 bonus rooms I plan on renting out. They do have closets in all the rooms. However do you know who I would need to talk to about making them permitted bedrooms, as well as if it is worth it in terms of increased taxes on the property?  

Thanks

Hi BP World, 

I just purchased by first BRRR duplex, now I'm trying to get inside to rehab the property. It's definitely a fixer upper. My tenants don't want to leave, and they are willing to pay higher rent. I already increased their rents by $1000 (considering their rents were almost $1200 below market value) however I was told by my property manager that my rents could be increased by $1400 per unit if we can get inside and renovate the units. Should my strategy be to increase rent to reach market rents or should I just wait it out until they leave? Another alternative I thought of was renovating while they are still living in the units, considering thus far these tenants are good and, always paid their rents on time. What do you guys think? Thanks, @investornursemadi

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@Michael Quarles

Thanks Michael, 

So let me clarify here, if I speak to the seller myself and try to understand the situation as to why they are selling, this strategy will help them choose my deal over the cash buyer? Is this what you mean by the power of personal conversation.

If this is yes, is it not professional to speak with the seller without my agent involved? How would I go about speaking to the seller? 

newbie question, 

Thanks!

Thanks for the advice! I am going to start direct mail marketing soon, see if that lands me a deal!