All Forum Posts by: Mike M.

He'll have to prove it. If it's a manageable dollar amount you may see if you can help chip in. Hopefully he can't prove a big spike in water us usage during your rehab.

Texas law will treat those tenants as "tenants at will" if rent is up to date. If you have no written lease, consider them at-will. I think you will need to give 30 days notice for tenants at will. Read chapters 91, 92, and 24 of Texas Property Code. You need a better plan next time around. Remember that you have folks living in property you likely put a hefty sum of cash int- they can cost you way more than you'll ever get in a rent increase. I'm not saying you can't raise rent, but do so with sufficient notice and in a way more constructive than your initial approach. Advance notice is always your friend as many tenants live paycheck to paycheck. Mike

It does sound like a wholesale attempt. Can you just shorten the inspection contingency period? In my neck of the woods, you can get an inspection and results easily within 5 business days. I agree you don't want to have it tied up for a month with someone trying to assign it.

I think your best bet would be to start with your existing bank since that relationship has history. You need an EIN to get a business checking account. I had no problems getting a loan to my LLC but have had to personally guarantee both. I also have a LOC with HD but again, personally guaranteed.

We need to know it's ARV to really offer any meaningful advice. The property appears to have a newer HvAC and water heater, which is good. Flags for me are the electrical box in the living room and the lack of primary heat. That screams "too cheap to do it right" and makes me wonder what else you'll find that has to be fixed. The foundation and roof sags are also flags to be mindful of. I don't know what the comparables that rent for $1375 look like, but I think you're not going to get above 1% rent-to-purchase ratio with what's required. There are likely many good reasons it's a short sale and still in the market.

Happy wife, happy life.

Down here the law says the landlord must mitigate damages from loss of rent if a tenant jumps ship. Since they've been good folks and are discussing the issue ahead of time with you, I would let them out with 30 day notice but hold them responsible for prorated rent until the next tenant comes on board. If they're smart, they'll cooperate as you show the unit and attempt to mitigate their losses. If the property needs some updates, you can let it go vacant after they leave, or perhaps even get to work (or have a solid plan) while they are still in there. Is A worth holding on to and removing B?

If your lease has language in it to support charging the tenants (assuming it is an SFR), I would charge them. Multi-dwelling properties would be harder to prove it's the tenant's fault. I've about got a rehab finished up and I think I'm going to provide quarterly pest control via a local top-rated company and raise the rent $30/month to cover it. I will give the future tenants the ability to opt out but no discount will be given. I figure that I need to take control of items critical to the asset's continued ability to produce and I think pest control will fall into that category. We shall see if the market will support it.

Without knowing the umbrella details, it'll help protect one property from an event on the other, your properties from an auto issue, and vice-versa. How much equity do you have at risk?

50-60 in renovation costs. And that's just the stuff we can see. I have no idea of ARV but if you play it safe at 1200/mo rent you'll be in 1% rent-to-purchase price. It's not the worst spot to be in but the 3/1 setup wouldn't be near as desirable as a 3/2. I don't mean to sound flippant but if your guesses are from 10-30K definitely walk it with a GC. I'm no construction cost god but everything costs twice as much as you and I think. Like Walt said, a lot of work in that one.