All Forum Posts by: Michael Moy

A reduced rate would mean reduced service.  That would lead to people who always go with the cheap getting the bare minimum home inspection, title work, etc.  These are all bad ideas.  The argument was that the buyer will pay their agent directly instead if the seller paying both.  Trying to haggle the buyers agent down to less than 2.5% is ridiculous.  By the time the agent is done working between showings, writing contracts, negotiations and inspections irs weeks of work.  They ain't working for minimum wage and never will.  You get what you pay for not sometimes but all the time.  If you nickel and dime the agent what you really want is to be swindled somewhere in the transaction whether it be the inspection negotiations or title work being done wrong.  There are plenty if things I see lately where I get poor service because done corporation has some free extra service with purchase of something but it would have been better if I just paid for the so called free thing and got what I actually wanted.  That's where this is headed if you think the answer is let's undercut peoples pay more and more.

Thank you for your input. 

I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.

@Michael Moy Has your downleg closed? If not, just make sure it closes here after the shutdown has passed. It won't last longer than 34 days (longest ever was 34 days and was a complete disaster - I doubt they want to do this again). 

I am looking to become a new first time investor and am working with a great Realtor out in the Cleveland area. He just sent me a deal that checks a lot of boxes (Newly renovated, cash flows according to the 2% rule and the rental calculator, etc). However, the "Crime", "Housing" and "Employment" ratings for this area (Fairfax) all have "F" ratings according to a few sites (areavibes.com, being one).

Anyone have any thoughts on investing in areas like this (especially with an F in employment), despite cash flowing on paper and being newly renovated?

Thanks!

I've got these two young kids that moved in and signed a 4 year lease. We had just completely remodeled the unit, new bathrooms, new kitchen cabinets, granite countertop, new microwave and fridge, sinks, faucets, plumbing (left the oven, washer and dryer from previous), new flooring throughout, fresh paint.

It's one thing after another. The disposal kept falling under the sink..I repaired immediately. 

Supposedly the washer went out and the maintenance man came out and said the dryer was on its last leg as well. I replaced them with brand new units. 

There was a smell from the return air that we went round and round about. Finally after 2 service calls and $300 later, it was a stopped up kitchen sink that they didn't tell the A/C guy about the gurgling in the kitchen when the dishwasher ran. 

The ceiling in the garage started sagging and they were afraid it would fall on their car, so I immediately replaced the entire double car garage ceiling.

The knob on the oven popped off and the whole top of the stove shifted somehow and it wouldn't go back on in order to turn off the burner. We had contemplated replacing the oven when we remodeled the house, so I purchased a brand new oven that I let HER pick out!

Then I find out she's running a bakery out of the house. Texas law is a little fuzzy about cottage industries, and the lease isn't specific about running a business from the home. I'm not happy about clients coming to my rent house and increasing my opportunities of liability. 

They never pay their rent on time. One month they were extremely late, past the late payment fee before she told me she had twins and one of them died. I wanted so bad to be compassionate about it saying don't worry, pay when you can, but I knew if I let her get behind, she'd never catch up. 

Then she had ants which she panicked about and called out an exterminator without my knowledge. They turned out to be Carpenter Ants which is my responsibility, but she wanted me to reimburse her for the $200 emergency call, however he did not do a full treatment so I had to have my exterminator come back out for another $300.  

September's rent is still not paid. Last night I got a text that the AC wasn't working. They replaced the filter, but still nothing. I called and made an appointment for today for the maintenance man. She texts 2 hours later and wants to know if they have an emergency number she can call because heat increases the likelihood of SIDS in babies!?!

I told her no, he'll he there in the morning!  AC repair just left and told me the tenants are running a humidifier in the house due to sick baby and the AC unit, which is a complete brand new system right before they moved in 3 years ago, is not made to have a humidifier run and it's freezing up the unit as it is basically working against the AC and clogging the filter.  Cost me $100 service call on a rental unit that runs a very very slim margin of profit to begin with.  I've not turned a profit in the 3 years they've been there. 

What do you do with these types of tenants who pay late and cost you money?  We have 7 rental units on the same street as we live, so they are basically our neighbors, but we strictly don't socialize with any of our tenants. We try to be very good landlords and fix anything that arrises immediately and usually go above and beyond. 

I'm really irritated with them this morning!  Can I legally add this bill to their past due September rent? Ideas or suggestions?