All Forum Posts by: Michael Plante

@Michael Plante That does seem to provide good security in terms of turnover and short turnaround, pending any repairs that need to be done in between I suppose.  With the current state of the Fayetteville market, I should also have a quick turnaround, so I suppose it's more about whatever work I might have to put in prior to renting to new tenants.

@Nathan Gesner I certainly appreciate you sticking to your guns and providing the input.  It definitely gives me something to think about and, if I do end up allowing them to renew, if they fail compliance in another area, I'll hear you saying "told you so". Ha  I will at least dig deeper into the financials of not allowing them to renew and instead making whatever repairs are needed which will allow me to rent for top dollar market rent to a new tenant.  My PM informed me that said market rent is about $175 higher than it was roughly a year ago.  Thanks!

It makes no sense...worse, it makes no dollars. This is where percentages lie to you. This isn't about 3% going one way, and 6% going the other. This is about dollars, and sense. It's about the source of the funds and the net result in dollars to the REI when you subtract the dollars the REI spends (source of funds) from the dollars that comes to these same REI...and the source of the funds to pay the interest doesn't come from the REI...it comes from the tenant...it's called rent.

Also, the REI isn't gaining anything when they pay for the equity. They're just transfering funds from their bank account to the property. The funds are the exact same funds...just relocated.  The gained equity comes from the tenant paying down the property, and the appreciation, which is based on the property value, and has NOTHING to do with the equity in place...or bought.

Any money that comes from the tenant's pocket is a cost, not a gain, to the REI.