All Forum Posts by: Patricia Steiner

Buckets or replacement!  The tenants will opt for the replacement every time.  Buckets, mold, ruined stuff - all sucks.  Rock on with the replacement.

You need a strong realtor/broker to guide you through the process.  As a buyer, you don't pay any commissions so why not add the bench strength and go in stronger.  Also, consider if you're in the right market for your price point.  Over-paying is not the solution nor is waiving essentials like an inspection (although I recommend having it done in 3 days or less if you can schedule it).  You should also consider if another property type would be a better get at this point.  There are a lot of options available for getting deals but if you do the same thing over and over again, don't expect the results to be different.  There is still a lot of cash out there and even more so remember this:  some deals we lose are actually -  wins.  I have a feeling there's another way to play that you haven't explored...

This isn't enough to make a decision. Buying an opportunity is always a great win than buying a property type. A lot has to depend on what the market demand is at the time as well as other valuation factors such as price appreciation history, rent over year rent price increase, cost to acquire and hold. In my market, vacation rentals have the greatest return but are more like running a hotel than a rental property business. One bad review can substantially limit income so having everything in place including the cost of fully furnishing it has to be considered as well. I recommend that you take the time to do some market research on rental/pricing demand and actually crunch the numbers. It's all about valuation (buying it right) and ROI (managing it even better). And, congrats on working towards your second investment. It's a big deal...

Let's cut to the chase...curb appeal is great - love it- want it BUT it's not my main driver when going on vacation.  I'm not planning on spending my days in the front yard looking at the elevation.  Nor do I need to sit inside the whole time and take in the views.  So big question:  what brings people to the city/area? They are flocking there to ski.  So how far is it to the lift?  To restaurants, bars, shopping?  It's updated and charming inside so let that be your driver ("a charming and updated condo awaits your return from a fun-filled day of skiing, shopping, playing").  To me (and my clients are in this sector on a large/successful scale), the property sounds like it has a lot to offer.  You've got this.

Why wouldn't you invest in a market that is appreciating year-over-year, has high renter demand, and year-over-year rental price increases? Yes, you can buy in an affordable market but it doesn't mean that an affordable entry price will make for a good investment. Maybe start with this question: What is your overall goal? The big "why bother?" If you're all in it for building and preserving wealth then you will want to explore markets that will provide you the best ROI. If it's to acquire doors, lots of doors - West Virginia, Mississippi, and Arkansas are the cheapest dates.

Bottom line: timing the market - including economic cycles - is not what provides for the greatest return and it is ill advised by investment gurus in all sectors. Investing in real estate is by no means passive - it's the building of a business. Build your business where the ROI is the greatest - rather than entry price. Hope this helps...

One BIG question for you:  What's your overall goal?  Building and preserving wealth, increasing disposal income, or just acquiring doors for doors sake, more?  This answer should be your driver on all financial decisions.  

For example, if it's to build and preserve wealth, you have one property (the converted apartment) that isn't being utilized...if you're not using it personally, why not rent it as an apartment, office (a lot of remote workers are a little tired of working around kids and dogs), artist studio.  This is the immediate opportunity.  Bottom line here:  what are you waiting for?  

The co-owned duplex - if you were to sell it, what would you do with the proceeds?  Again, what is your overall goal? If you sold it, you would more than likely need a cash buyer as A-rated insurers (which lenders require for financing) are not insuring properties with knob & tube.  And, offers are only offers if submitted in writing and vetted.  If you decide to part with it, make sure you have a real deal that won't fall apart due to insurance, financing, more.

Are you getting market rent for the co-owned duplex?  If it's in an appreciating market with year-over-year property appreciation and rent price increases, that defines an excellent investment - if managed as a business.  

My recommendations:  get the vacant unit rented at market price with Renter's insurance and a Security Deposit.  Do it right.  Then get with your brother and decide why selling is the best option...it comes down to what is your overall financial goal.  

And, congratulations on having these issues...they all result from having done what you did so well from the start.

What does your lease state?  You can't impose a "new and improved, wish I had thought of this earlier and got it in the lease" fee now that it seems like a good idea.  If your state requires the security deposit to be used only for damages, don't play word/term games and rename a fee to meet your needs.  Manage to your lease.  My leases state that the early termination fine is 2 months of rent (the max allowed by Florida law).  Again, what does your lease state; the lease protects you from yourself and the tenant so if it states nothing on this topic, then I would recommend enforcing the lease term or simply letting the tenant out with some notice (30 days) while you show it during that time.  And, really, why have a lease at all if it's only being used as a move-in tool...run your business to the lease. Have a lease that has it all in there.  It's the difference between running a business and not.  

I'm with Nathan who posted before me...return the security deposits and move on with your property and your lease.  If you offset the security deposits without documentation of move-in condition, you would lose and most likely be stuck with fines, damages, legal fees.  Long story short:  Game over.  Return the deposits and move on. 

In most states, it depends on the property type. Apartment owners are required to provide pest management of all units. If a SFH/Duplex, the Landlord does not have to provide those services BUT you need to incorporate that into your lease. Generally in my state, the tenants provide all pest control after acknowledging receipt of the property that is "bug/rat free" at the time of move-in. If pest infestation is evidenced during a routine inspection, it would be deemed a lease violation. Termites, however, are on the Landlord (as bats and other stuff I would rather not know about that other states encounter). I believe that pest control - whenever possible - should be the responsibility of the tenant as the tenant is the one who is disposing of food/trash, maintaining the cleanliness of the property, and securing doors and windows to prevent intrusion. Bottom line: What a glamours business we're in!

In my business - as well as my clients' - rent is due on the 1st.  The 1st.  There is no acceptable grace period.  None.  This is made clear before the lease is signed, in the lease, and in a "Welcome Letter" - all that require it and payment via electronic delivery only.  When you allow a tenant to pay late, a precedent has been set.  If you moved to evict her, she would have a valid claim that she ALWAYS paid her rent before the 5th but not on the 1st and you accepted it every time until now.  The problem in the eyes of the court, and many others, is that you as the Landlord changed the covenant as evidenced by your behavior.  My recommendation is to not prize late fees and late payments are indicative of an inability or unwillingness to pay as agreed.  If she doesn't pay on the 1st, post a Notice To Quit on the 2nd.  Be specific in it that the lease states payment is due on the 1st and that she has violated the agreement repeatedly and it will not be tolerated further.  Manage to the lease.  The American Apartment Association's research that the majority of landlords who fail do so because they failed to enforce their own leases.  Pretty telling...