All Forum Posts by: Patricia Luna

My tenant notified me that there was a leaking in a room, that they use as play room. It had been fixed twice and the last time the roofer told me that a new roof was needed because the roof in that area has too many holes already. The roof is dropping currently at the same place it was fixed, when it rains hard. The roof in that area covers the room, and the back balcony/porch, and it is approximately 400 sq. feet.

I got two estimates: 

1) $4843.09 by Home Depot, the Sales Consultant stated that they need to repair my roof and the neighbor's together, they do not install new roofs on situations like mine, where the roof is "shared by two properties, due to potential liability issues being claimed by my neighbor. I know that my neighbor does not have the money to cover for her share of the new roof, she told me when I met her a while ago that she does not have any money to pay for any repair "that is why her property is falling in pieces". I do not feel too comfortable with having to pay for her side of the roof, but I could consider it if there is not other option, however, I am afraid of future liability issues if what the consultant stated is right.

2) $ 5620.00 by Bachman's Roofing, the Sales consultant, stated that there is not need to do my neighbors roof together. My concern here is that on his estimate he mentioned that a piece of the will be attached to my neighbors. 

So, I need your some feedback to help me to decide what to do, which estimate makes more sense to you, r they do not make sense at all?

My husband is telling me that I should sell this property on "as is" condition but I think that is not a good idea.

Here are some facts that could help:

I bought this townhouse property in 12/2015. I paid $22,500 cash, It is rented for $850.00 tenant pays all utilities. The current tenant started lease in March of this year.

I had installed new carpet: $1200, new furnace, $2,221, and new water heater: $950 all this year.

I plan to have the property for 3 to 5 more years.

Thank you in advance for your help, I really appreciate it.

Thank you all for your feedback, I really appreciate it. I will give you an update once I make a decision.

I see the need to clarify on the following:

I have experience buying rentals (I Have 3 rentals in Harrisburg with more than great cash flow), and I am an avid reader of this page and others related to real estate investment, including one of the books Andrew ware mentioned, so I believe I know more than the basics, that is why I am asking the question in the subject, because I know  negative cash flow is in general, a "no no" when you are calculating your profit in a property. So, I wanted to ask the experts here in case somebody have a different perspective on the matter.

The property is located in Leola, PA. ( We live in New east Earl) there is not a lot of inventory in this area and surroundings, and since we are going to manage the property ourselves, we will prefer to do not have to drive more than 30 minutes. ( I am hiring a manager for the ones in Harrisburg next year because driving 1:15 minutes every way have been a pain since I moved here). 

Our budget is $200,000 We had been looking for a while now, at that price there are townhouses or single family homes from the 1920's-1950's, the latest have oil for heating and do not have central AC. I had been looking at their price history and they have not appreciated much in the last 10 years.

I will continue buying properties on my own in Harrisburg, but for this investment I am partnering with my husband and he prefers to avoid Harrisburg.

During all this year, I had seen only one  "deal" in this area, it was for a single family home that was sold for $140,000, it need it a lot of work, the comps in the area were around $190,000. We could have competed with other people that presented offers on the house but that house needed more than just paint and cleaning, so properties that need significantly amount of work are not an option for us, we will have to hire somebody to do the work.

Would you buy a property with negative cash flow?

My husband and I want to invest in a townhouse that we plan on selling once the mortgage is paid in full. We could have the mortgage for 30 years, but we are choosing on having a 15 year fixed mortgage instead, to save on interest and to be able to re sale it once we retire. The price is $175,000. We have the down payment and closing costs covered. Our interest rate would be 4.5% (investment property) 

Our  plan is to pay the mortgage with the rental income which is estimated in $1200 currently, I do not doubt this could be increased with time. 

After adding all expenses we will be short $250 each month, that includes interest, taxes, insurance, HOA, and vacancy/repairs expenses. The property was built in 2006 and is in good shape. We will be able to rent it as soon as we get the keys.

The property is located in a nice area with constant rentals demand, so we count on having it rented with no problems most of the time. Also we believe it will appreciate over time.

This will not affect our finances since we have other income sources, we are looking at it as a long term investment.

TIA for your kindness.

I agree with Cheryl, I am still cleaning after a tenant who cooked with curry and used a lot of oil, it is all over the townhouse, walls, carpets, ceiling, cabinets, floor, appliances, I had used different products to get rid of the horrible color and clorox disinfecting wipes is the only think that have worked so far. Now, I am battling the smell, I had tried ban odors and vinegar but after 2 weeks, I still get bombarded with the smell every time I enter the property. 

Mine was September, one tenant stop paying rent, and I am in the middle of an eviction procedure, she appealed the MDJ judgement.  Then another tenant move out without giving enough notice and left behind, a lot of his trash and things to be repair, and last but no least, I have a 3rd tenant that just move out on 9/30, 1 month and days before his lease ends.

Does any of you have experience with Lehman property Management in Harrisburg PA.? I am considering to hire them to manage my rentals. Since I moved one hour and a half away from Harrisburg, I am having trouble to manage them myself.

Thank you to all for your input on this case.

I am glad to announce that I was able to have all repairs done on time for the re inspection and the case was closed.

Also, I had the hearing yesterday and got a favorable ruling. I also got her evicted. So I am just waiting fr the 21 days given to her to have my property back.

I have a rental in Harrisburg, PA. And was given a notice of code violation by a city inspector, due to a complained filed by my tenant.

This is what I am being adviced to repair:

1) Door not lacking completely.

2) Leacking on second floor ceiling(is mot a roof issue, it is a 3 story property)

3) A collapsing fence ( not really collapsing)

4) Peeling throught the dueling (wall paper in one bedroom is separating) 

5) A kitchen countertop needs to be tighten,( a corner needs to be re screwed) 

6) Roaches and mouse infestation,

This issues were not communicated  to me by tenant, except the one about the fence,  in April, a contractor was hired to repair it but tenant cancelled the  appointment the night before and  when I tried again, in June, she disagreed due to her recent baby's delivery.  She is very difficult to schedule appointments with, needs to be  always  present. so since the fence was holding up and the "collapsing" she complained about was really a need of reinforcement, I did not insisted.

About the infestation, as is stated in the lease, pest control is her responsibility. 

There is no trail of a formal repair requests from her, since she never wanted to use the form I instructer her to use, all communication had been throught text messages or phone calls. Most text messages are mine, trying to schedule appointments that work for her.

After the city's notice, I was at the house with a contractor, there I found out she replaced the refrigidaire with one she bought and I saw mine in pieces in the back yard. She also asked me what to do with it "because she was told that cannot get rid of it" I replied that she can trow it away since is trash now but the replacement needs to stay at the property when she moves out because it became mine. She disagreed. 

The contractor was ready to start the work on Thursday 8/31 st. but she was not available due to an appointment at her daughters school. and insisted that the work needed to be done on Saturday because she had family over on Sunday.

Althought The contractor was available, but the 2 other people were not (knowing how difficult is to work with her, he wanted to complete the work in one day with 2 other men). He also offered Friday, I am still waiting on her response.

In the meantime she is holding my August rent, which she did not formally notified me, or if she is keeping it in an scrow account, I am assuming she is not, but  since our lease contract contemplates a waiver for any pre judicial notice I proceed to file an eviction case at the MDJ court. The hearing will be held on 9/12.

The lease expired on 12/14/16 and we are on a month to month lease.

Here Is my questions

Was she legally entitled to hold the rent ?

At first I filed the complained at the court because I wanted my rent but now I want her evicted on the grounds of: unpaid rent, replacing an appliance without the landlord's consent and pest infestation. 

Do you think I will be successful? 

Althought pest control is her responsability, should I hire an exterminator and claim the reimbursment at court? Or I should make prevail the lease stipulations with the inspector? 

About the inspection:

Is the city legally allowed to intervine in landlord-tenant issues with no documented proof of the landlord being communicated of needed repairs? 

Thank you in advance for all your responses, I really appreciate them. 

Hello,

I am considering investing in a property in Denver, PA. that is $160,900. It is under construction, and will be done at the end of September.

The rent, which is expected to be $1,100, will leave me with $170 monthly cash flow. $2,970 annual.

I wrote down all the pertinent numbers and calculated a 8.5% ROI. I read a decent ROI goes from 8 to 12%, but I will like to know what is your opinion, is that ROI enough?

TIA. for all your input.