All Forum Posts by: Thomas S.

@Alf Holst

"their pay checks will not show their true take home because of their tips."

Only their pay check counts, tips are not a guaranteed income and should not be considered, same goes for anyone working on commission or paid in cash.

The pay stub must be 3X rent.

Too many landlords place far too much importance on the cost of a tenant turn over.  

The possibility of a vacancy is far less important than having good tenants.

I would be renewing your tenants lease on M2M, there is no point or advantage of a term lease for a existing tenant, and give notice that rent will be at full market. You need to figure out if it is $875 or $900. You want to hit full market. If he leaves you dodged a bullet, if he stays it is a unknown until time passes. With M2M you can terminate when/if necessary.

Make sure you get esstopal letters, copies of their leases and transfer their deposits. 

Obviously NO to the rent reduction, At end of lease raise rent 3-5%.

As for the dog if you have a no pet policy why would you consider allowing a pet. Was the no pet policy in the lease just a joke. If you allow the dog you will need to rewrite the lease. You can not allow a tenant to do something in violation of their lease.

No point in having a lease if you do not intend to enforce it or change it every time a tenant asks. You need to rethink what it is you really want for your business.

The answer to both questons should have been a immediate no.

Eventually everything will be fixed or he will move out, be patient.

A primary factor that will impact future real estate growth in most of CA is the fact that wage increases are not keeping up with appreciation or rental rates. The questions is whether there will be a tipping point or will business growth at some point in time move away from or out of state causing a stagnation in growth. Some large companies are showing a slight move to relocate outside of CA already. The question is will this continue and will it effect appreciation 5, 10, 15 years into the future. Will property tax laws be changed at some point in time. With the passing of the present generation of home owners will the taxes cause a downward pressure on values.

Is the present upward motion sustainable indefinitely or are income/wages, business investment and taxes at some point in time going to take effect.

Get your lawyer to ask for it, assuming the seller is honest you should get it, but legally if it is not in the purchase agreement you are SOL.

Truth be told many of the comments from naysayers do ring true to some degree. It is what we accept as part of the job of investing and/or being a landlord.

Bad tenats, maintiance issues, calls at bad times etc.

I have a lawyer, accountant, mortgage broker and insurance broker. I have no worries. All my bases are covered.

When we have moved parents and friends to retirement homes we liquidate all their assets. Homes, cottages, vehicles etc. Sell them all. The time is quickly approaching where you want to simplify their financial lives as much as possible. Once they are in a retirement home they are down to a single bill/expense. Have their money managed by a bank or investment company. They have plans that will manage their accounts, pay bills and take care of estates at time of death. 

Take the cash and add it to their investments  to supliment their incomes.

If you have had some for awhile why not sell and benifit from appreciation. Move your money into multi units and try maxamising your returnes through leverage. You should have enough experience to take the next step in investing.