All Forum Posts by: George Paiva

At first I was going to say #1 till I read there was another additional adult "cousin". Did you also do credit and background on the sister and cousin?

I feel you will get a longer tenancy from #1 but may come with drama.

#2 will most likely be short term since its just a roommate situation.

What does your gut say???

LOL, I do the same thing. Basically look like a contractor with jeans and t-shirt when I go to prospective sellers or even tenants for that matter. I keep my 10+ yr pickup that isn't special. I don't want to portray I have money. Even with banks its at most a polo and khakis.

With my 9to5 working a corporate job its dress shirts, tie and slacks looking the managerial part ;)... I would never go to a property with my 9to5 attire. I stop at home to change.

I had an issue of loitering and people using my property to short cut to another property. With very little money I stopped it in its tracks with these:

http://www.amazon.com/Outdoor-Security-Camera-Blinking-Silver/dp/B004D8NZ52/ref=sr_1_1?ie=UTF8&qid=1391440056&sr=8-1&keywords=dummy+camera+security

Only downside is having to replace the batteries every 3 weeks. I may look into a longer term solution.

Same as what the others said except it will be mix of cycles at the local level. I actually think there will be shorter up and down cycles in local areas where job and population increase. But today Jobs and Population are much more flexible as they were in the past. Companies will build like gang busters for 5yrs then all of sudden pick up and leave, so will the population.

As Ned stated buy right with enough cushion to sustain long term. For instance if your $800 rents overnight had to go down to $500 can you still cashflow??? Do you have enough reserves met in the good times to offset the bad???

I still see ourselves in a buyers market. Sellers think they pendulum is swinging their way but its just not going to happen. This is my experience in the past year or so with properties on the market and what they ultimately sell for. Stick to your number and walk away as time is on your side.

Enjoy 2014!

I know this may already be too late for you but I would suggest small yearly increases going forward instead of waiting 2-3yrs, even if its $25 a year vs $100 in year 3 or 4.

Here is what I use:

LEASE RENEWAL OPTION

Tenant Name
Address

Please be advised that the lease on your home is due to expire on September 1, 2013.

Because of your excellent record as a tenant with us, you will be granted the option to renew your lease for an additional one year period. Due to increasing taxes and other carrying charges, we must advise you of a $25 annual rent increase. Accordingly, please be advised that your new rent amount as of September 1, 2013 will be $__825__ per month.

Please check off one of the following options and sign below.

[ ] Yes, I/We want to exercise our option to renew our lease for an additional year.

[ ] I/We wish to vacate the premises before September 1, 2013. I/We agree to follow the terms in our lease concerning vacating and re-rental

Tenant: ___________________________

Date: ___________________________

Please return this letter with August’s rental payment so that we may process your request.

Yes same here in CT. Read all the landloard/tenant laws and just follow the rules. Its a little pain but making sure security are escrowed listed you as the agent.

I would never ever never ever did I say that enough? Not collect a security deposit. You will quickly see the type of prospective tenant that will knocking on your door. I already get a lot of responses about working on a payment or some other story on not paying a security. Hell no! These are the paycheck to paycheck type who are already being forced out via eviction or some other reason.

Protect yourself by at the very least getting a security. I believe MA is like CT where a typical eviction is 2-3 months if there are no games being played. I've had one that went to 6months. Thank god that was only a 1 bedroom. At least security will help pay down lost rent, damage and turnover costs.

Oh and make sure you have some clause in your lease that you are not mister repair man and that appliances are the responsibility of the tenant. They are only there for their enjoyment. This cuts down on the minor headaches and if the unit totally fails I first determine if this tenant is even worth having it replaced.

I do the same that @Jerry W. does by scouring craigslists, friends, yard sales. I am always looking for used but good appliances. I try not to buy them older then 5/6 yrs but if they are in really good shape I would still use them in the low end units. I keep a garage designated just for appliances so if a good deal comes I just put them in there and when one goes bad I already have one to replace.

I don't even like buying new/retail for myself. I scour Sears scratch and dent :)

Try small or portfolio banks in the area you are flipping.

You may be able to do this per house basis but that means each and every house will involve the bank doing a appraisal and vetting each of the LLC members every time. Not to mention personal guarantees since there is no track record yet.

Of course your experience may vary.

Welcome to my world in the Northeast. Yes its very hard to make it in an area where the population is going away. That's why its very imperative that you buy for cash flow and make your money when you buy.

Even with people leaving you still have to look at the opportunity of people still have to live some where. Can you add an amenity that will make a renter pick your unit vs the one down the street? Or what is the minimum cash flow you can tolerate before its not worth keeping the property? These are the type of questions you have to ask yourself.

You will also have to step up your marketing big time BUT do not lower your criteria for renters ie 3x income, >550 credit, no felonies, no evictions, etc...