All Forum Posts by: Karen F.

We too are only in New Britain.  Class C multis.  Highest return on investment, less dangerous than Hartford.

Serve them both, and if they don't go, evict them both.  And don't re-sign with her.  People who get involved with partners like this tend to get back together with them, and let them back in.  Or they find another problem partner just like the first one, and have further problems.

Highest return on investment, but highest aggravation, is class C multifamily, in not great areas, but not in horribly dangerous inner city areas.  Tenants that pay on time without any problem?  The older man with a good steady job, and an old narcotics conviction from 20 yrs ago, a number of Hispanic families with steady jobs, and who understand that you're supposed to pay your rent every month, an older Hispanic gentleman who is paying about 80% of market rent (we inherited him when we bought the building) and is so grateful that he pays BEFORE the first of the month, a very well organized AA woman with kids and a job and Section 8.  Biggest problems have been young adults renting for the first time in groups who don't understand that they have to pay the rent, and worst of all have been ANYONE who came with an agency (other than straight Section 8) or coming out of a homeless shelter.  Every single person who has previously been in a homeless shelter, or comes with the help of a social service agency, has been a nightmare whom we've had to evict within a few months.  Every single one.  Basically, if they ever wound up in a homeless shelter, or needed a social service agency to help them find an apartment, there was a reason, and that reason makes them impossible to house.

You're lucky she's on a month to month.  Tell her you were very clear that it was on street parking, that it didn't include her plugging in a block heater, and that if she is unhappy about it, she is free to give you notice.  And if she gives you any crap, give her notice.

Bad idea.  If the house is in great condition, ready to put on the market, then putting a short-term tenant in it is a lot of risk (of damage) for a little money.  Plus, June is not peak selling season - June is late.  Peak selling season would mean putting it on in March - the closings happen in June.  However, if you have a truly excellent single older adult, non-smoker, no pets, coming with little to no furniture, and he will be the only occupant, giving you a honking big damage deposit, plus he doesn't mind that you're gonna have it on the market while he's there, with showings, you might consider it.  My rule of thumb for six month rentals is 150% of the going monthly rent on one year term leases.

It depends on what you are looking for.  There's a wide range in CT, from very high end to inner city slum.  If you're looking for the best rent return on investment, we're very happy with central CT.  What are you talking about, no recreational activities in CT?  We've got beautiful hiking throughout the state, access to beaches all along the eastern coast, Boston and NYC are in easy striking distance, a great airport with no traffic (Bradley), mostly wonderful schools, relatively low priced housing in much of the state, decent climate, a mostly liberal and tolerant social climate, and still plenty of corporate employers.  Oh, BTW, real estate investment is pouring out of NYC/NYS into CT as a result of the new law NYS passed allowing rent control everywhere, and tipping the scales even more heavily in favor of tenants.

We're pretty lenient on wear and tear and damages.  We get a two month security deposit, and in my area, it takes at least two months to get someone out for non-payment of rent.  So if they're being evicted, and we actually have to wind up in court, usually they'd get nothing back.  I can say that any time we've wound up in small claims court, the judge/magistrate won't allow anything for damage to the unit!

I doubt you could get a bank to do a cash out refi on it, since the mortgage is already at 80 percent of the value.  Don't think about cash flow.  Think about return on investment.  Right now, you're getting very little return on investment on about 220k of your money/debt.  That's a bad deal, unless the area is rapidly skyrocketing in value.

You have a good tenant in place.  Don't raise the rent until the next lease renewal, and maybe not even then.

Honestly, this is why, in my opinion, condos are a terrible investment for your average investor (unless of course you're investing in an area where there is sure to be rapid, immediate increase in value - sort of like buying individual stocks is not a great idea, unless you have a surefire way of knowing that they're about to skyrocket in price).

If I were you, I'd think about selling the condo and get as much as you can out of the deal.  Research the market where you are.  Go to open houses of every condo comparable to yours, or ask the listing agent to show you them.  Look at recent sales.  Honestly assess yours, including its blemishes.  Then offer it to your tenants for sale, at just slightly under market.  They wouldn't have to move, and they'd get it at a good price.  If they don't want it, try putting it on zillow or redfin yourself first.  Then plan on selling it with an agent, if it doesn't go.

Plan on how you can put that money to work for you, to bring in more.  If you cannot figure out any way to bring in more with the money, maybe you SHOULD just leave things as they are, at least for now while you search for a better opportunity.

You're lucky that the only thing stolen so far has been water!  The appliances and the copper could be being removed even as we speak.  Not to mention all the vandalism that could be done to it.  

If you live nearby, get someone in it immediately.  We have often had workers well-known to us, or others whom we trust, just stay in a property while it's being repaired, just to keep the vandals/thieves away.

I don't understand how a good property manager could let this happen, but then again, our model is nothing more than 20 minutes away, and we manage it ourselves, for just that reason!

Because it's a good deal for him.  Because we've known him for ten years.  Because we have confidence in him.  Because he's bringing over his young family, and needs his own place.  Because this is the first rung on the ladder to financial security for him.  Because we have money sitting around, uninvested, and it's a good rate of return for us, while doing him a potentially life-changing favor.

I admit, I am nervous.  If he stops paying on it, it will be a nightmare.  If it works, and he's able to refi out of it into a regular loan, he'll be living in it for free with his family, while netting over a thousand a month after all expenses on a multi with a 150k mortgage.