All Forum Posts by: Randy E.

 If you can't see the difference between how taking a pill and smoking in a property when there is a non-smoking clause in the lease, I can't help you.

More pressing than a potential toppling is your sewer line.  If any of the trees are in the front yard, you might have a problem.  I just bought a home with a 10'-15' diameter tree in the front yard right between the house and the meter at the curb.  The plumber just did a lot of work and said he thinks I'll need to replace the sewer line out to the street soon because of root damage.

I figured that was a possibility before I bought the house, but it wasn't a deal breaker.  Even a $2K-$4K repair wouldn't keep this from being a great deal.  Maybe in some cases, but I can't imagine $3K making too much difference in most deals.

EDIT: I'm having a tree removal service come out and give me an estimate on cutting it down next week.

@Tyress Wilson  How much cash you need depends on how good is your credit.  If you have good credit, I'd say you need enough cash to repair a rundown property -- maybe $5K-$20K depending on how bad the house is.  

If you have bad credit, you'll need substantially more money because you'll have to save enough to pay for a property with cash AND have enough left over to repair it.

I just did a quick search on Realtor.com for properties under $50K in Baton Rouge.  Here it is:

http://www.realtor.com/realestateandhomes-detail/1...

There are two apartments ($3500 and $5000) in the same complex.  There are about 10 houses under $15K.  And there are quite a few more between $15K-$25K.  I know nothing about the city, so it's up to you to determine if the locations suit your needs.

Some of the homes are duplexes. That's ideal for a new investor because it allows you to live on one side and rent the other. You can get a FHA loan with 3.5% down, which makes this very affordable.

For instance, I see a house that was a duplex for $18K.  Your down payment would be $630, and your monthly payment on a 15 year loan would be $163 a month.  If you have $10K saved, you should be able to do a lot for the property to get it in decent condition -- barring any major problems with foundation etc.  You could live in one side and rent the other side out for $250 a month (or more.)  If you added $250/month to the tenant's $250/month, you could pay $500/month toward the mortgage and get it down considerably in 12 months.  Then, after that first year was over, you could locate a similar property and do the same thing again.

Then you'd own 3 units paying a little money to you every month, and you'd be living rent free.  Not bad for a young guy starting with nothing.  At this point, you wouldn't have much money tied up and you could probably pay off both properties in two more years.  At that point, you could decide if being in RE is really for you (so you go for more,) or maybe you don't like being a landlord all that much (so you stop where you are and just keep the two properties you own outright.

If you're looking for a property in a more upscale neighborhood, plan on saving more money.  It all depends on your budget and personal preferences.

I think your biggest problem was not addressing some of the repairs before renting it in the first place. 

When buying an older home, I feel it is imperative to fully inspect the plumbing, electrical, roof, water heater, tile and subfloors in bathrooms/kitchens, HVAC/furnace, gutters, and such.  If any problems are found, it is in your best interest to repair/replace them prior to renting the property.  If any of the mechanicals look long in the tooth, replace with new.  It will save you a lot of headache later.

I plan on that every time out.  Now, I understand that finances may prohibit the immediate repair/replacement of every almost-problem.  Oh, how I understand that.  But it's the smart thing to do.  If at all possible, find a way to pay for these right out the gate.  If you let them linger, you'll regret it later.

You're finding that out now.  You knew there was an issue with the roof, but you didn't replace it right away.  You knew there was an issue with the subfloor in the bathroom, but you didn't repair it right away.  If the HVAC is running out of life now, now is the time to look into replacing it.

If you're proactive about problem items in the beginning, you won't feel blindsided and overwhelmed by things breaking down "out of the blue" every few months.

Good luck.

Post a message on her door stating she should contact you.  If she doesn't contact you in 24 hours, I would post another message on the door stating I would be inspecting the unit in a day or two and that she should contact you to coordinate a time -- say if she does not contact you that day, you will inspect the property on (name day.)

She should contact you after that.

If you have "No Smoking" in your lease, that should include marijuana as well.  Just because marijuana may soon be legal across the country does not mean landlords have to accept its use in their properties.  Cigarettes are legal, and it is legal for landlords to bar the use of cigarettes in their properties.

I would assume that if a tenant has a prescription for medical marijuana the landlord must accept the use of marijuana, just as a landlord must accept a medical use pet.  But there are (or should be) caveats.  

1) In this day and time, it is not necessary to smoke a joint to enjoy the medical benefits of the drug.  There are pills, edibles, and liquids available. 

2) For non-smoking properties, I would require the tenant provide a copy of the prescription to me so I can verify it.  I would then read the document to see if the doctor included text that specified that only smoking the drug would achieve the desired result.  If not, I think it reasonable to request the tenant imbibe marijuana in a manner other than smoking.

Good luck, @David Shives

In this case, you need to get prequalified for a mortgage before bidding on that property.  If your partner is putting up half the cost, you'll need a proof of funds statement from his bank.  Then you'll need a pre-qualifying letter for your half.  That should do it.

If you haven't gotten prequalified yet, you're not actually ready to buy.

Good luck.

That changes things a little.  

Contact your local Section 8 office and tell them you are the new owner of the property.  (Legally, I don't think they can discuss the property with you until you are actually the owner.)  They should transfer you to the caseworker for the client in your property.  That case worker should be able to explain the terms of the least to you.

If the tenant is on a month-to-month lease, ask the case worker what you need to do to have the tenant move as soon as legally possible.

However, if the tenant is actually violating a written lease by having pets in the property, you may have grounds to evict. 

Good luck.

@Darnell McKinney

1)  Sign up for a Real Estate class at your local community college.  The more you learn about the laws and regulations of Real Estate, the better.

2) Save as much money as you can.  If you plan on being a Real Estate Investor, you'll need money to invest.  If you don't have the ability to save enough to buy a property (difficult, I know) you should also apply to be pre-approved for a mortgage.  That will allow you to know how much you can spend.

3) Even if you plan on being a wholesaler and not actually a Real Estate Investor, you'll need some money to put your plan in action.  So, you'll still need to save some cash.  There's no way around that part of it.  Save, save, save.

4) Read as much as you can here at Bigger Pockets.  There is so much information available here, it would be a shame to not take advantage of it.

5) Did I mention Save, save, save?

Good luck.

Assuming no written lease is in effect ...  He's not communicating, so if he doesn't pay rent on the first, file for eviction as soon as you can.  If he does pay rent, accept it, and immediately hand him a 30-day notice.  Then, if he doesn't move after the 30 days is up, file for eviction.

Good luck.