All Forum Posts by: Meg K.

@Thomas Guertin  Wow.  Sorry for that headache and thousands of dollars lost.  My gut tells me I shouldn't raise the rent even at the six months mark.  I'll just wait it out and not renew their MTM lease next summer.  Well, the tenants just caused a fire in the kitchen the other day...

Hi,

The tenant caused a fire in the kitchen.  Thankfully no one was hurt and the house is still standing.  After all, i live downstairs.  My question is, who is responsible for the damage?  My insurance deductible is $2,500 and i've tried lowering it but you know insurance companies: 1) you can't lower it for at least 3 yrs after filing a claim 2) you can't lower it if you are about to file a claim.  This is the same high maintenance tenant i discussed in my previous forum.  Karma is a B....right?  Seriously, this was a scary experience considering i was out of town.  I just returned today and have yet to go upstairs and assess the damage.

Thanks, Meg

@Larry Turowski thanks for chiming in...yeah I was hood winked by the full renovation the city did on the property.  I did pay over the market value but I am glad i didn't have to undertake the reno. myself.

@Joe Fairless Agreed.  I just cannot increase within 6 months of tenants filing a complaint with the City inspector's office.  I will do so after the 6 month period expires.  They filed in June.  And the wife is the litigious type since she also contacted the Legal Aid regarding keeping her small dogs when the lease clearly states no dogs.  She stated they are service dogs since she is deaf (like myself).  Nothing i can do about that and it is not worth it financially to fight it in court.  Luckily they are smaller than my cat!!!  I found information stating that since this is an owner-occupied 2 units, it is exempt from that law.  I responded to her attorney and cited that law but never heard back. So, I'm walking on egg shells...i just need to be patient...i was ready to do some stupid childish things but thanks to Bigger Pockets lol

@Barbara G. Thank you.  They have been paying cash and i write receipts but that does not really prove the date they paid.  I also don't make deposits the same day.

Last year i wanted to purchase another investment property and the bank wanted 25% down.  I found out that unless the property was at least 50 miles from my current home, it is considered an investment hence the 25% down.

Since i don't yet have a good grasp of REI, it takes me longer to figure something out so it would require my full attention. I haven't been able to do this due to graduate school and working full time. I should be able to do it next year. The degree would help me to get a better paying job with the state on NY not a promotion at my current job...I live in Rochester, NY...most investors focus on the inner city and in my opinion take advantage of inner city dwellers. I know a colleague whose property caused knots in my stomach due to the poor condition yet he has tenants willing to pay upwards of $700/mo. while my property makes people's jaws drop due to it's nice condition yet i was not smart enough to command higher rent. there is a not so great property directly across the street from me asking for $800/mo for a 3BD...my unit a 3/4 BD, i threw in 2 garages for free, huge basement with w/d hook ups and the wife is high maintenance. I now know better so i will definitely be asking them to leave next year.

Thank you...i will definitely focus more on REI in the up coming years. :)

@Daniel Chang  Thank you very much for your advice...I do tend to get emotional instead of businesslike especially if i was friendly with the tenants.  We were friendly and I believe i would have acted differently with tenants with whom i wasn't friends with.  Also, they moved in after 2 rounds of tenants from home.  So I guess they  have been my comfort zone.  I  have been working on psychologically preparing myself to move up stairs :).  I agree need more financial security before investing in another property.

Meg

@Scott Weaver....there is no way they will agree to automatic withdrawals.  I just requested that they pay using money orders moving forward so that i have proof of late payment in case they go to court once i refuse to renew their lease next May.  You may wonder why i am waiting until May: 1) I need to wait at least 6 most after a complaint is filed with housing inspector 2) I live in upstate NY where the winters are terrible. I don't want to be looking for tenants in the dead of winter 3) I read somewhere that the best months to find tenants is after school is out ;)

@Barbara G. My ideal outcome is having good tenants paying market rate rent...and a better ideal is being able to afford to purchase more properties.  I think spend too much on up keep of this place...so recently started mowing the lawn LOL...i'll save at least $100/month.  I have been thinking about buying another duplex or four-pled but i am scared because i don't have a lot of cash for emergencies (such as repairs in the beginning). I actually returned to school with a goal of obtaining a higher paying job.  I will graduate in Dec.  Hopefully next year will bring positive financial outcomes compared to this year.  My insurance deductible is $2,500 (i regret it) so I have to pay for the ceiling repair and water damage out of pocket.

Thanks for your in put guys.

Meg

Hi Jassem,

Yeah, the paint job wasn't too large and i was shocked that city inspectors would be that picky considering there are rental properties in worse shape...but the fact that i had to be required to do it, whereas if it was just my own house i could wait a few years is what ticked me off.

Last month for the first time i asked for and received the late fee of $25 dollars...i think it should be $35!

Meg

Hi Jay,

There is not much equity in the house 1) I over-paid at the time of purchase 2) the area has low market value.  I had thought of selling and it was appraised for a couple thousands over what i owed about 2 years ago.  I also do want to eventually just pay off the house and own it in case of emergencies when im older :) I have 14 yrs left (i refinanced last year).

Meg

I know most people on the forums are well established financially and have real estate acumen, so please bear with me and be gentle ;)

I have lived in an owner-occupied duplex (top/bottom) for 12 years now occupying the first floor and renting out the upper unit.  For some reason i prefer the downstairs.  I do not like living on the 2nd floor.  It appears this was a bad plan because most people interested in renting the up stairs have children.  The floors are wood and i hear noise and everything going on upstairs if there are kids.

I've had the current tenants for 6 years now.  They have always paid late..after the 15th sometimes and since i am soft at heart i have let it slide for several years now.  Recently the wife and i had a falling out.  She reported me to the city inspection for 2 tiles on her kitchen floor that were worn out.  The city ended up inspecting the whole house and insisted that i paint some walls (a bit of cracking paint) and paint the exterior (a bit of cracking paint).  This is a 1921 Stucco/brick house.  So you can imagine it is not cheap to maintain.  Anyway, I am taking this personally and since I never charged late fees for the late rent, i want them out so that i can start over.  ALso the property is not in a highly desirable area even though the properties are well maintained old houses.  I am worried i will not be able to find good tenants in terms of understanding that i, as the landlord, lives downstairs.  The current tenants kids have since grown up so the running feet is no longer an issue.  Most people who inquired about the place in the past (3 BD) are single mothers with kids.  Yes, I know about discrimination but I live downstairs...

Current tenants have a month to month...i know i cannot ask them to leave within 6 months because they filed a complaint with the city.  Should I let them stay, continue to collect below market rent, and put up with the high maintenance wife?  Let me say that the husband is the total opposite and has occasionally helped me out with no charges with the property.

I ve thought of moving (out of my own house) and renting both units out.  But, as a social services employee, i make about $40k a year.  Not enough to purchase a second home.

Current mortgage is $956/mo...rental income is $740/mo

Thank you for listening to my emotional dilemma.

Meg