All Forum Posts by: Patricia Steiner

You're running a business...the tenant does not 'inform' you when they will be paying their rent...they are contractually liable for paying at specific amount on a specific day.  The very first day that a tenant is late, a Notice of Default needs to be delivered to the tenant (you need a receipt of delivery; if you hand deliver it, place it in a sealed envelope with their name on it marked 'urgent/confidential' and take a photo of it placed on their door).  In my state, the notice gives the tenant 3-days to cure the default before eviction begins.  I recommend that you only communicate with the tenant in written form (email/text) which can be used in an eviction proceeding.  You may find that once you serve this written notice of default, that the payment may suddenly appear. Bet they're making their car payments (walking sucks!  So does being evicted but they don't think you'll do it).  

And, know this:  The #1 reason that Landlords fail is their failure to manage to the lease (source: American Apartment Owner's Assn).   Enforce your lease. Follow your State Laws. Actively manage your business.

There's a BIG win in all of this for you...the tenant is gone. The bleeding is now over and you can move on with a quality tenant that will provide you the cash flow and property respect that you deserve.  Nothing else is worth your attention or time.

Best...

The highest appreciating markets and those with the greatest rental demand/price- like those in Florida and Texas - also cost more to acquire and insure. I invest in properties that provide both cash flow and appreciation. I recommend determining your set price point plus closing cost expense and then calculating what minimum rent would be required to cash flow the property. From there, you can start to analyze markets that meet/exceed your required ROI.

Hope this helps...  

Covenants are enforceable. And, they generally bring forth action when a neighbor files a complaint and the fines/remedies can be painful. If forced to cure - and it will be a condition of remedy - the tenant can take action against you for damages from leasing an illegal property. If it were me, I would find a property that I can use how I want to use it - rather than risk my ROI.

You need bench strength. Engage an investor-focused realtor/broker in your preferred market (this is not a residential realtor) and start 'tire kicking' the market and properties that fit your criteria. This does not mean actively acquiring but rather considering valuation, market demand and rents, and potential ROI. There are no upfront costs so why not establish a relationship with someone who actively represents real estate investors and move forward with vetting your ideas.

Best.

Noooooooo.  It's a cost of vetting a property.  An inspection contingency allows you to walk away with escrow but not recoup expenses.

Best...

I don't think it's expected nor do I think it will get you extra business or higher rated reviews. There's not a ROI on it.

Just one opinion...hope this helps.

Geez...let's start with the easy part:  you need a real estate attorney.  You're not the first person to encounter something like this (hard to believe, huh?) and I think there are several remedies to resolve this - and the developer and the city's business/permitting services both have liability here.  And, you need to cure your liability (you cannot use a city easement without obtaining a Grant of Easement from the city - a legal document to be filed with the Clerk of Court).

You've done everything you can to mitigate the damage to your home and I applaud you for it. But it's past time to add some bench strength to force the city to act.  

May the force be with you...

It sounds like you've done a great job in investing in yourself and taking personal risks. I've lived and worked in China and at one time had quite a few Chinese nationals as investor clients in my Florida based firm. What I can share is that the risk-reward will not be worth it as a 'newbie' due to your limited capital and inability to actively manage your properties. I recommend a few things: define what you want to achieve and why investing in the US is the vehicle to achieving that ROI. Save...it takes a lot more money than most new investors believe (don't drink the Kool-aid that you can get in cheap) and residing outside the US will be seen as a substantial risk to most lenders which will limit your financing options. Learn...what you don't know WILL hurt you. And, know this: it's not investing in real estate. It's a business - acquiring/building, managing, and growing a business. There are other ways to be part of the real estate industry besides being an investor and those may be more financially advantageous for you. Best...

I personally own/live in a historic home and I can promise you this: it will cost you more - a lot more - to renovate and maintain the property.  The Seller is required to disclose any material defects and a fire would definitely fall into that category.  Houses that sustained fire events have long term consequences including structural damage and mold that results from water intrusion required to extinguish the fire. Unless you're financially prepared to deal with these issues and accept that 'once you know, you must always disclose' defects, I would move on to finding what is truly a good deal - as a good deal is only as good as its bones.  

Hope this helps.