All Forum Posts by: Michael Breedlove

@Bjorn Ahlblad thanks for the encouragement! Any advice in regards to commercial financing? Is it more difficult to be approved for commercial financing? Is owner financing common with commercial real estate?

@Hadar Orkibi thanks for your recommendation! I will definitely check out those books. Getting more creative with finding deals is probably going to be a next step in the future for sure. Appreciate the input!

@Brandon Abbott thanks for the encouragement! 

I did research, read books, listened to podcasts, and met with people who had real estate experience for about 2 years. Then my wife and I purchased our first investment property in May of 2017 in Old Jefferson, La (just outside of New Orleans). We bought a 4plex that was only about 12 years old and each unit was 3/2 and renting below market value. 3 of the units were also section 8 and I‘ve learned a lot about that as well. We renovated 1 unit just to give some cosmetic updates (ended up doing a lot more then originally planned) and we moved into that unit. We’ve increased rents on 2 of the other units and will be increasing rents on the third unit soon. We have had some unexpected A/C issues in 2 of the units over the past year. But, thanks to learning about budgeting for emergencies and CapEx we have survived and overall have had a challenging, but positive experience. Our plan has been to do the BRRR strategy and purchase another multi-family property. I am considering moving up to 5-8 unit commercial multi-family. I guess I’m looking for advice on commercial investing. Commercial financing. And honestly....am I’m biting off more than I can chew? My main reason for considering commercial is because 1) the duplex and triplex and even 4plex market in my area is very competitive and it drives purchasing prices too high. 2) I guess I’m kind of a pretty ambitious guy and my wife has followed my lead and trusted my guidance and I want to help our growing family (2 kids and 1 on the way) meet our financial goals as fast as I can! Thanks for any advice! Without BP I wouldn‘t be where I am today!

Welcome to BP Alex!!!!!!!! It's a whole other world with a ton of resources! Very helpful.

Just FYI, HUD requirements are 30 day written notice to the tenant as well as a written notice delivered to their office notifying them of the nonrenewal.

Hey BP!  I'm purchasing a 4 plex in Jefferson, La (just outside of new orleans) and all 4 units are currently occupied. Two of the units are on month to month leases. I will need to occupy one of these units once we close because of our owner occupancy loan agreement. The tenants in the unit that my family and I will need to occupy is also currently on the Section 8 program. Their lease was originally a year long lease that was from July 1, 2015 to June 30, 2016 and has been automatically renewed to a month to month lease since.  Louisiana State Law only requires 10 day notice for a month to month Lease Non Renewal. Their lease does state that landlord will provide 30 day written notice. So I have been trying to do some research and have a couple questions. 

Does Section 8 require a longer than 30 day notice of Lease Non Renewal on a month to month lease? Also, can we provide a written non lease renewal letter in the middle of this current month of May with notice to vacate in the middle of the month of June or does written notice have to be given on June 1? And if we can provide written notice in the middle of the month, I'm assuming the month of June just be prorated rents correct? We'd like to provide the written notice as soon as possible because there will be some repairs that need to be made before we occupy the property and we will have 60 days from closing to occupy the property. 

Thanks for the help BP!

Stephen Leonard thanks for the input. My question regarding the 60 day notice was just generally speaking. Sorry I should've been more specific. But all helpful info!

Matt M. Great advice. They are separately metered. And I have also heard that about leases needing to be filed. Great info. I certainly will look into getting in writing that info about deposits etc. Seller has already lied about what rents they were receiving and when we finally got the leases discovered what they really were. Almost ended up losing the deal bc of it. Thanks for the input!

Thank you all for your advice and input. Any suggests on receiving rent payments?(online, checks only, no cash?, etc.) What about setting up boundaries since we will be Owner Occupancy? My wife is a stay at home mom as well. Obviously, I can set up specific time frames of when it's acceptable to knock on our door. I was also considering having requests for nonemergency maintenance be texted to me and rent payments placed in the mailbox (which has to be opened with a key). Thoughts/Suggestions? Stephen Leonard in your experience when you provide 60 days notice of non-renewal...have you found that tenants want to quickly find a new place and will skip out on the last months rent (even if it means forfeiting their deposit)? Marcia Maynard the primary reason for not wanting to renew the leases for the current section 8 tenants once they expire is because the 3 bedroom 2 bath units are currently receiving well below market rents.