All Forum Posts by: Matthew B.

My other concern is that the bugs and vermin attracted to their filth will spread to the other units. Then I've got a much bigger problem.

Sounds like it's best to just wait it out. I really have an awesome bunch of tenants. The majority of the units I inspected were super clean and tidy. I attribute this to our strict screening process. I guess one slips through the cracks every once in a while.

Recently did a routine inspection on one of our apartment units. This was the first inspection for these tenants since they moved in. Found the place filthy. Trash everywhere, food stains throughout, toilet bowl almost black, and shower looking like something out of a horror film. This unit was just renovated prior to these tenants moving in, and was like new. I've just finished the routine inspections for all of our units, and I can honestly say this one is by far the worst.

I sent the tenant an email after the inspection letting him know the apartment was not up to our standards and according to the lease they are required to keep the unit clean and free of garbage. He responded saying cleanliness is subjective and the apartment is clean by his standards.

I've got 6 more months on this lease and they always pay rent on time. I'm wondering whether it would be better to stick it out and do a non-renewal or handle it now. Slobs are not going to change their ways no matter how many notices I give or inspections I do. But at the same time, the unit is slowly getting destroyed. Any advice?

Sorry, I thought you said you were dealing with a city. Normally if you talk with the person in charge of code violations they will give you an idea of how much they will settle for. I've never had a municipality enforce the entire amount on the new owner. They usually settle for their costs with a stipulation that the violations will be corrected within a certain period of time.

Which city?

I have a good tenant who asked me if he could have a security system installed. How should I handle this? I'm assuming I'll need to get the alarm code and the monitoring company must be aware I'm the owner.

 All of my rentals are located within a 30 minute drive of my home. I don't like to be far away in case of an emergency. I'll keep it that way until I get established enough to hire someone to be on call for me.

 It depends on the area. Prices in my area have risen quite a bit. In fact, it's hard to find deals of any kind right now. Everything seems to be overpriced. I don't think it will necessarily be a bubble bursting where prices fall, but I do expect the appreciation to slow and plateau at some point. Multifamily is also ridiculously expensive right now. 

All units rented out for $725 per month. $108,000 purchase price, $74,000 repairs, now producing 9.3% Cash on Cash ROI.

The list was fine. It was just that no one was motivated. I would get a huge response (around 10%) from each mailing, but no one who was interested in selling for less than retail. 

I've come to realize that direct mail doesn't work as well in my market as it does in the markets of the people I hear on the podcast and on this site. It turned into a waste of time for me, as I was spending as much money on the direct mail as I was making on the deals I got. I was basically breaking even.

Mailing to probates was a little more successful, but still not worth the time and money I had to put into it. 

I'm not the only one in my area who feels this way. I've mentioned this to several "big-time" successful investors in my area and the consensus is that direct mail is not as effective in this area as it is in other markets.

I should also say that this applies to absentee owners and probates. I have not mailed to other types of sellers, so I can't speak to the effectiveness of those mailings.