All Forum Posts by: Randy E.

 I don't believe it's always only "this one guy who's amazing" that succeeds in lower-income neighborhoods.  I agree there are many investors who do not understand what it takes to succeed in lower-income neighborhoods.  By the same token, there are some investors who very much understand what it takes to succeed in lower-income neighborhoods.

I think it's fair to say nearly every city has lower-income neighborhoods.  And every city has tenants who rent in those neighborhoods, and landlords who are profitable operating in those neighborhoods.  Whether that city is Chicago, Miami, or Laredo, you'll find them.

The problem is when landlords who are ill-suited to operating in those neighborhoods decide to invest there without properly educating themselves.  Maybe the education will lead them to NOT invest in lower-income neighborhoods because they realize they would rather not invest there.  Maybe the education will lead them to be better-trained to invest in those neighborhoods.  Whatever the result, not diving in blindly is the best decision.

Not all investors are suited for lower-income neighborhoods.  Maybe it's fair to say most investors are not.  But it's not true to insinuate that only that golden needle in a haystack landlord can succeed in lower-income neighborhoods.  It just takes the will to learn what it takes, and the will to succeed.

Cheers,

 Different landlords/investors have different skill sets, reasons for investing, amounts of money to invest, and goals.  Those criteria and more will dictate what type of property best suits each investor's abilities and agenda.

If an investor finds himself very uncomfortable in lower-income neighborhoods, if the investor finds it difficult to effectively communicate with people who live in lower-income neighborhoods, and if the investor has very little experience being around people who come from lower-income neighborhoods, then it is probably not a good idea for that investor to invest in lower-income neighborhoods.  

Just because it is possible for some people to make money doing something does not mean it is viable for everyone else to make money doing that same thing. 

@CYndilyn J., what does your lease say?  Does it explicitly state the tenant is responsible for HVAC service and repairs?  If not, I don't see any reason to file for eviction.  If the lease does not explicitly state the tenant is responsible, I would expect the landlord to promptly repair and maintain the HVAC and pay for those repairs.

First off, let me say that was a terrible experience.  I've had tenants take light bulbs and smoke alarm batteries before, but never anything like you just experienced.  Like Smokey in Friday would say, "Daaaaaaaaaaannnnnnnnnnnggggggggg!!!"

I would not expect the police to do anything but I would file.  Unless the tenant left a note saying "I took your stuff", he could claim the theft was performed by an unknown third party after he moved out.  Still, I would definitely file a police report listing the tenant as the suspect.

I am torn on filing an insurance claim.  The furnace is the sticking point for me because it's easily the most costly.  I assume you'll put used appliances back in, so that won't be much.  The toilet  and water heater won't break the bank account.  Cabinets and vanities can be relatively inexpensive or expensive, depending on what is chosen.  Personally, I'd probably avoid the time delay and pay for the repairs/replacements myself.  For you, I can't say.  It's not like it's $300 of turnover repairs.  Tough break.  At least you'll get to write it off on your taxes.

Good luck

@Alfredo Diaz, some jurisdictions have a law stating that no more than X number of unrelated adults can live in a home in certain neighborhoods.  Sometimes that number is 4 unrelated adults, sometimes 3, sometimes 5 or more.  Check with the occupancy laws in your city to see if that applies to your property.

 Hi Huiping,

In 20+ years of being a landlord for both residential and office/retail spaces, I've never had a problem evicting in Durham or in Granville County.  NC is a very easy state to initiate and carry out a court-ordered eviction.  Basically, file the eviction paperwork, have your landlord paperwork (lease, payment dates, missed payment dates, etc) ready, tell the magistrate (I've never had an actual judge adjudicate an eviction hearing) the tenant hasn't paid rent, and that's it.  Wait a week more before you can then instruct the Sheriff's department to carry out the eviction, then wait a few days until a deputy contacts you to arrange a specific day and time.  From beginning to end, it usually takes 4-6 weeks.

 Does the tenant know for a fact that the property has been sold?  Was there a "For Sale" sign in front before the sale?  Did you present any official documents to her notifying her of the change in ownership.

If the first she heard of any potential sale was a knock on the door and a stranger saying "pay me", it's not odd that she's refusing to pay.  You've been a part of this deal for a long time, and you know about it intimately.  She's a tenant.  She may know nothing about the deal.  Her reticence in paying you may stem from being unaware, not some nefarious intent to live free.

I'd have my lawyer send a letter to all tenants of the property, informing them of the change in ownership and to whom the rent should be paid and how.  If her lease is indeed up on August 1, include a new lease if you want to keep her.  If you don't, it may be too late to have her move by Aug 1.  Many states have a 30-day notification rule.  Also, do you have a copy of her lease with the previous owner?  If you're planning on asking her to leave, you should know for a fact that her lease does indeed expire at the end of July.

 Not to speak for @Reed, but I'd guess it's a combination of high deductible for insurance, the percentage of his co-pay once the deductible was met, and living expenses (if he has a job requires the use of his legs and that did not pay him for an extended absence.) 

Reed, I would not file for bankruptcy.  Student Loans can be petitioned for payment adjustment, based on your income and other bills.  The IRS will put you on an affordable payment plan.  The credit card debt?  It's a mountain, to be sure, but if you cut more from your budget, get a roommate, and downwardly adjust your student loan and IRS payments, you can slog through the CC debt in a couple of years.  The bankruptcy will affect your life for a lot longer.

 No.  The bank, which has no connection to the car other than loaning money for the purchase, will not give a discount on the monthly payment.  A more apt comparison might be to ask if the car dealership "makes right" the negative experience.

The answer is yes.  Dealerships often provide loaner cars to customers whose recently purchased new car needs an unexpected repair because of a product flaw that is not the cause of the purchaser. 

Regarding this tenant, if there was no substantive loss of use of the house for more than four or five days, I would probably not discount the rent.  If the basement was flooded and/or damp for a week or more and was used for more than storage (meaning it had rooms the tenant actually used, like bedrooms or a living room) than I would offer some sort of discount.

@Thomas S. is completely correct for some landlords. Some landlords do not have the skill set necessary to succeed in C neighborhoods. Fortunately, REI is an expansive and varied playing field and there are many ways for many different types of investors to be successful.