All Forum Posts by: Cheryl C.

Did you keep a calendar? I got audited on this in 1994 or so, just after the designation came out. They had us come in and bring every piece of paper for 6 of our places. I had/have no job other than handling our RE. The auditor questioned whether 9 rentals (what we had at the time) would require the 12 or whatever hours per week.

This was a pretty major audit as they were looking to disallow about 140K in losses (we had some hefty legal fee's on some land we were subdividing).

The designation was new and there weren't rulings and case law to refer to. We passed muster. They ultimately decided we owed $120. I do remember showing her my full calendars of meetings, etc. relating to the properties. It may be a tough road to show 40+ hours per week when you work 40 at a regular job. Fortunately, I only had to show the minimum.

Like another poster, I read Robert Allen's "Nothing Down" in the mid 80's. I thought is was terrific. I think Millionaire Next Door is a must read for many. But by the time that book came out, I no longer needed it (I'd been living it!) so I gave it to a relative who really needed it.

Based on the comments here, I might go get Rich Dad (and a copy of Millionaire for my 22 yr old).

Things in Northern Virginia look good. Joel is correct that there are markets within markets within markets. I really only follow certain target areas/neighborhoods. And then only the low end (under 250K). Many lower end properties are well off their lows of 2009-2010 (in many cases 30-40% or more). We have the good luck combination of low unemployment and net population increases. The rental market is very tight and should remain so for the next few years.

Hi Christine,

I have had pretty good experiences with having tenants show properties and take applications when they want to terminate early, but these tenants were not asking for this ability at lease onset. As a matter of law, the tenants under my leases are responsible for lost rent, etc. when they break a lease. So the tenants have every incentive to keep the place clean and be available to show it.

It will still be your decision who to accept or reject. Use all your normal criteria.

I don't know how your lease reads in terms of early termination. It may already be properly addresssed. A simple paragraph in the "additional terms" section at the end of the lease should be sufficient. "Should tenants desire to terminate the lease before the end of the lease term, tenant has the option to obtain replacement tenant applications for Landlord review. Tenant is not released from liability for lost rent and other costs to Landlord, if any. Landlord shall make all decisions regarding acceptance or rejection of any said application."

I've never had to do such a writing from the outset. When the question of early termination comes up PRIOR to application approval, I will generally reject the applicant. If they are asking prior to even moving in they do not fit my criteria of long-term tenants. Your situation is different as this is a renewal and they have proved themselves to be good tenants.

I am not familar with DC LL/tenant law, but understand that jurisdiction is very tenant friendly. I may be hestitant to add any addendum that isn't included in the standard DC lease When this issue has come up with my tenants, it's just been a verbal thing.

I'm on the lower end in nicer areas. Cash investor's are all over stuff-multiple offers (I've seen up to 12). Properties are up 20%+ since 2009.

I'm trying to find a decent flip (up to 300-400K) and it's nowhere like a year or two ago. I'll wait for winter if necessary but these are other investor's and they don't take a break over the Holidays.

In my area- northern Va. - it seems that the best deals have come and gone. I know that you can find a good deal in any market. But it seems like the easy money is gone. Anyone else seeing the same?

It's my understanding that the law was changed effective 1/1/11 due to the Paris Hilton et al situations. I would like to know more about this. Any info would be appreciated.

Get rid of him NOW. Take the loss and consider it a lesson learned.

Will, I didn't mean to doubt what you relayed. I just believe that there must be more to the story. The Bank can't just Deed the property back to themselves. From a practical standpoint, they need the new owner to execute a Deed or they need a Court Order.

As to paying them off, I may just do that. At this point it's all going to principal so I'd rather not. My original loan was only 80K. How they can force me to insure for 250K is beyond me. I got nowhere when I called. I'll have to read the trust and note. For me to incur legal fee's would be as costly as the added insurance. Catch 22.

That really doesn't "add up". What jurisdiction? It must be that a lawsuit was filed (perhaps alleging fraud of some sort?). A lis pendens tying up the place in the meantime? Did someone violate the 90 day holding period? Did the agents have an interest in the profit?

On another note, that stupid B of A is trying to force me to overinsure a property. It's in Florida so the ins. is very expensive. I owe 13K on a first that used to be Countrywide. B of A is making me insure the property for the assessed value of 250K. No allowance for the lot value and their interest is only 13K. They threatened to place their own insurance if I don't comply - which I have for now because "their" forced policy was $2,500. The lot is worth 150K+. Any suggestions?