All Forum Posts by: Michelle B.

Shea Spinelli We manage our properties ourselves. Managing lower end properties is definitely not in my wheelhouse! My passion is on the flip side, not the rental side. I don't even like "dealing" with good tenants. My partner handles all the tenant "crap"! At one point, my partner wanted to get into student housing. I knew there was no way I could handle that...To me - it feels too similar to low end housing. I'm sure there are vast differences - but to me it sounds way to similar. All of our rentals are in a nice area for a reason - it's what I am comfortable with. Having said that - there are some people that specialize in lower end and make a ton of money doing it. It takes a special type of person to excel in this property class. You just have to ask yourself if it's right for you. Good luck! Michelle

Angela Houchens Listed as in listed on the MLS? Are you an agent yourself? If on the MLS you will need an agent to write and submit the offer. Good luck! Michelle

Ann Horlacher Why buy based on what could be versus what is?

To me, this isn't a black and white answer. For example, all of my rentals are in a B+ area. So, I'm dealing with a higher quality of tenant to begin with. What type of area is this property in? I have rented to a few section 8 tenants with our duplex and a lower priced $125k) SFR. One of them has been fantastic (pays her portion of rent on time, takes great care of the property and has been with us for 5+ years). The other two were not so great. One moved out in the middle of the night and lost their voucher. The other was fairly dirty (although didn't cause any real damage to the unit). This is no different than my non S8 tenants. Some are great and others are not. There are plenty of non S8 tenants that are filthy slobs who will damage your unit (if not managed correctly). In terms of liking the inspections to ensure property standards are kept up? That couldn't be farther from the truth in my area. Inspections around here just simply ensure bare minimum safety of the unit. Lastly, in terms of adding a layer of complexity - this really isn't the case either. At least not in my area. It's pretty darn simple. Good luck! Michelle

Isaak Brown I have had this happen twice at the same property. The first time, the entire house was full of condensation. After a long (stressful) search we found that the neighbor's house (while on vacation) burst multiple pipes. The water was all running out their sliding door and onto our property. There was so much water under the slab foundation that the floor ducts were full of water. The next time the cause was not so apparent. It was only occurring in a couple rooms. We did the same thing you did - got some dehumidifiers and tried to figure it out. We eventually happened to be there one day (working on something else) and noticed the door to their unfinished garage was open (to the house). They informed us that they use that area as an extension of their house and the kids play out there. They leave the door open to try and heat/cool the garage. We told them to knock it off that they were going to create issues with mold. We never had another issue. I know how frustrating this situation can be. Good luck - I hope you find the culprit! Michelle

Sounds like the seller was in process of renting the unit and wasn't comfortable leaving it vacant for the buyer. So he said sure - I'll leave it vacant if you pay me 1 months rent and security deposit. Buyer agreed and thought he would get this money back if he backed out of the purchase. But that wasn't the case. Is that right?

John Anderson I think he is saying he is tapped out at 10 in his personal name. The LLC comment was regarding the financing not the liability concerns. Steve Foley You need to pursue local banks that offer portfolio loans. I have also heard of people that refinance all properties under one larger loan. That would free up another 9 conventional loans. Good luck! Michelle

Anthony Arnt You ARE losing the 20%. You are paying penalty taxes on the withdrawal. If you were executing a loan on your retirement money then you wouldn't be paying penalty taxes. Unless I am misunderstanding something (and I don't think I am) Uncle Sam isn't going to give you the penalty fees back and that 20% is gone. The point was (and still is) if your intent is to get a loan on it anyway - why not just get a loan from the start? Is the seller requiring cash only buyers? Typically, this is only the case on properties that need substantially more than "cosmetic"'repairs.

Jenny Gremillion I don't have any rent by room properties. However, I have a few questions about the set up (that hopefully helps those more experienced in this area give solid advice). Is this a college rental? Or are we talking about adults (non-students)? This "mother hen" tenant - does she pick and choose as she sees fit? Or does she have guidelines and tools to adhere to those guidelines? Lastly, are there any local laws that would prevent 4 non related adults from living in the same home? 4 doesn't seem like a high number so you are probably ok there - but I would at least want to confirm that. Certainly sounds profitable - if you can make it work and keep vacancies down. Do you know what the vacancy rate looks like historically? Good luck! Michelle

Greg H. Ouch! Glad I don't live in a state that doesn't allow garnishment. I at least feel better knowing that I rent to people with good, stable employment history. Given the low cost of filing and the (hopefully) higher quality of tenant there is still the chance that they will resolve and pay on their own. If not now, somewhere down the line...if for no other reason than to clear it up to finance something (ex: buy their own home). Thanks for sharing Greg! Michelle