All Forum Posts by: Mike Dymski

No and no discount, its not mine until you live there a year so I have to just keep it in the bank and I am not earning much in interest anyway.  No multiyear leases either for the same reason, they can get out of it but it is tough for me to do so. Tell him put it in the bank and you will give him a small autopay discount if you receive before the 1st  every month. Not to mention income wise you declare income in the year you are paid that income.

Hmm...

Option 1 - Discount by the amount they could've made if deposited in bank.

Option 2 - Think about if you prepaid your mortgage, reduce your principle. How much interest would you save. Even if you prepaid your mortgage by one month - you could measure the benefit.

If you can manage that then give tenant a percentage of the savings.

Nope, we don't accept prepaid rent unless a current tenant knows they'll be traveling or some such reason.  

What if they violate your lease and you want them gone but they've prepaid for a year?  

It seems like every story I hear where someone accepted prepaid rent for a year, the tenant turns out to be involved in drugs or criminal activity.

@Mike Dymski Did you do a background check on them and verify their income? I know the money is enticing but make sure everything checks out before you take their money and give them keys. 

Thanks Everyone,

My thoughts were leaning towards the BRRRR technique for the following reasons. Given the hypothetical situation that I posed, If the buy and hold property yielded $50,000 in equity after renovation or adding value VS the flip which yields $50,000 in profit (pretax of course just to keep it apples to apples), wouldn't it be more beneficial to me to go with the buy and hold as a long term investment where I can still pull the equity (which is equal to the flip's profit) to invest in another property. I see it as killing two birds with one stone, or am I missing something??

@Mike Dymski thank you for your input Mike! That looks rock solid and I should probably include an eviction filing clause within my lease as well just so they are aware. Good tips!

@Victor N. thanks for your input Victor! yeah that fly's in MN per MN landlord laws on late fees per NOLO.com "Rent is legally due on the date specified in your lease or rental agreement (usually the first of the month). If you don’t pay rent when it is due, the landlord may begin charging you a late fee. Under Minnesota law, a late fee policy must be agreed to in writing, and may not exceed 8% of the overdue rent payment. Late fee policy must be agreed to in writing, and may not exceed 8% of the overdue rent payment. The "due date" for late fee purposes does not include a date earlier than the usual rent due date, by which date a tenant earns a discount" (http://www.nolo.com/legal-encyclopedia/minnesota-t...) I suppose a grace period is per state and possibly per landlord. I have never had a good experience with allowing it, as then the due date is then the end of the grace date.

@Filipe Pereira Thanks for your insight Filipe! 

@Account Closed