All Forum Posts by: Natalie Schanne

@Sarah McCluskey - If the homeowner will not negotiate down $20k, I think you are likely to get a better deal on another property, ideally one that has been homeowner occupied so some of this work has been already done. 100% of the homes where the inspector said I had 5 years on the roof, I replaced it for $7-10k within the first 12 months. Also Sounds like the landlord has been doing the minimum band aid stuff. Also, consider your total rents. Are you more likely to get higher rents if you got a similar price 3-4 unit instead with more 1/1 or 2/1 units than 3/1 units? If you’re house hacking and need more space, I sold a duplex where the first floor unit had two beds and one bath on the first floor and a non legal bedroom in the basement with a half bath. If you’re owner occupying, maybe get something like that where you’ve got the space but the other units rent for more. In my market, 1 bed is like $900, 2 beds are like $1000-1100 and 3 beds are like $1300. So if the same price house fits 4 1/1 you get much more rent than 2 3/1’s. In my market I’m paying $400/window for a professional install, $5000-6500 for an AC ($7000-8500 for both), $6-10k for a roof, in addition to 3-6k for a full bathroom refresh. Repainting everything 4-5k plus paint. Everything adds up quickly. Make sure you have the cash reserves to handle it. Did you already ask if the seller would do a carry back like his price but lower $$ down and $$$ over time?

@Sean Grady - I suggest re-reading your buyer agency contract. In my state, I get one before I submit any offer. It says if you buy any property with anyone within xxx time (default is ongoing) then I get paid the commission in the contract directly from you. It doesn’t matter if your offer was not accepted if this contract is signed and in play. Each is a separate contract. In my area there’s also a termination clause that says this agency agreement terminates on xyz date or within 3 days of you notifying me in writing. Any properties we saw together you owe me on for six months. (This helps prevent someone from dropping their agent and buying directly from the seller after seeing a property).

Most agents are worth their value such that they can negotiate you a better deal, negotiate for repairs, smooth the process while guiding you through it, and get township inspections passed with minimal repairs, etc.

You can buy a property directly from someone with a two page purchase contract and a title company. No agents or attorneys needed. If you’ve bought at least one house you know the process and you should be reasonably good to go.

@Samuel Sorinwa - if you don’t get a discount for a cash buy, then line up some investment financing since you have time. However maybe don’t rate lock or anything else that causes you to have extra fees based on a timeline until the tenant is moved out.

Unless it's a big discount, don't close until the bad tenant is out. You should be able to determine ARV assuming everything is empty. If you've seen the unit you know what it should be and your sale price is determined based on that. If the property is substantially damaged after your offer then you don't have to buy it at the offer price and hopefully the seller would adjust down.

@Eric Malone - Instagram influencers have w2’s? Is she working for a marketing company? I’m used to getting a 1099 for income paid from sponsors or ad agencies. Unless the w2 is her own company’s s Corp issuance.

1. What’s her earnings history? (Tax returns or w2 over time?)

2. What’s her rental history? (Landlord references?)

3. Can you go tour to see the inside of where she currently lives?

4. Are you satisfied with her credit score and payment history? Can you add a co-signer?

5. No undisclosed animals, right?

I’d think having a marketing professional as my tenant would be a big benefit if I could tap their resources for cheap or free to get my other properties rented faster (they know how to stage / put filters on photos to make everything more attractive)

@Scot Levonaitis - if you're in South or Central Jersey (around Princeton area, Cherry Hill), SJREIA is worth every penny. They're the largest non profit REIA in Jersey with about 1000 members. They are currently doing mostly Zoom calls but normally they meet up to 10-12x in person every month. If you're up north near NYC, then I recommend looking up other organizations and meetups like Jonathan hosts.

@Web Annacius - I’m not a lawyer and I don’t pretend to be one, but in almost all circumstances you’re allowed to preserve your property. So especially an emergency leak needs to be handled immediately. I would enter after giving the 24 hours written notice and do the required maintenance. If you can disturb minimal stuff, that would be better. Then leave a written, dated, note on door you wore a mask and replaced the air filter and need to come back within a few hours with parts to repair the leak on the sink (or whatever). If you repair the leak before she’s back, edit your note to say you repaired the leak and next maintenance visit will be (1 month from now) at x time and during x 4-6 hour window. You establish who has control.

My leases have $100+ per instance fines for denying maintenance access or showing activities in the house. I’m doubting yours does. Think about adding it to the next one. Shoot a coming in video or have a witness or something to take some pictures so she doesn’t act like you robbed her when something is “missing”

@Tiffany Roberts - buy and install a $99 ring doorbell and give the tenant the login so it will buzz her phone. They have these on all the new construction in the iffy parts of philadelphia. Ask if that will make her happy. (It works best if you have a powered doorbell because it will auto charge the battery).

Also immediately buy and set a lease addendum that you need working leak detectors in every leak able spot (under bathroom and kitchen sink vanities, by dishwasher, by washing machine, by hot water heater, by ac condensate line, anywhere basement might flood ( near sump pump). They’re cheap and they scream alarm when they touch water so you never have a bad flood anywhere (unless you’re not home).

@Daven W Blanchard - you said you’re in a college town. Can you rent to students by the bedroom and make more money? I took a single family house a block from campus that was renting to a family for $1650 and rented it for $2150 by pricing it at $550/bedroom (4). You can provide basic furniture for cheap.

@Web Annacius - Sorry this is happening to you. send notice of intent to inspect the unit for maintenance purposes within 24-48 hours and go check on things including current unit status. (Make sure to check air furnace filter, smoke detectors and for leaks too) Maybe it will elicit a response. Many tenants try to not pay last month so they can have enough cash to pay for the next apartment. Mostly it harms small landlords who decide not to sue and have to eat $1500 loss or whatever. Almost nobody leaves their unit in great shape such that it doesn’t need ANY work. (Not all work you can charge for, such as normal wear and tear on paint and flooring). Good luck. Let us know how it goes.

@Olivia Evans - check out Sunny episode 210. He now runs a website called famvestor that details the good and bad of his multiple property purchases (he got 4 unit for like $400k) and his financial freedom through house hacking within 5 or so years. He’s in the Jersey City area. Their family is super frugal and did a lot of rehab work themselves. They bought used solid wood oak kitchen cabinets from people for dirt cheap ($200-500) to redo a crappy rental kitchen for cheap and bump the price $$$. Very smart and helpful guy.