All Forum Posts by: Richard H.

Hi Vishwa - I'd reach out to the section 8 coordinator before closing on the property to ensure the tenant is still valid. Then I'd have the tenant sign a new lease once you take over. 

Regardless of whether the lease is with a different owner, it's good to have the lease between you and the current tenant.

@Zach, as someone mentioned earlier, eviction is very state specific. I have properties in PA (landlord friendly) and MA (tenant friendly). My approach to eviction is totally different depending on the state. I'm not sure how Indi is. I'd recommend the letter if he seems willing to move. Do realize though, eviction has to be done 100 percent by the book. If you mess it up, it can be a very lengthy process. 

An MA landlord friend of mine improperly tried to do an eviction before having to hire an attorney. He is already 4 months without rent from the tenant due to not starting the process correctly.

Brandon, your idea sounds solid. I'd only say that you need to not count on appreciation as the area has already appreciated a ton. Interest rates were very low for many years. Home prices are driven in part by interest rates. The lower the rates, the more home someone can afford. As interest rates go up, the price appreciation is less likely to continue. So buy the properties for the current cashflow, potential future revenue increases from raised rents, or things you think you can do to reduce expenses. 

I also considered Newark when I first started. I remember looking at properties that were priced at 500-600k around 2007 that went down to like 300 in the recession and are back up to 500-600k (looked at pricing history on Zillow and Trulia). Point is that prices are back where they were before the recession. With interest rates increasing, wouldn't want to buy at the top of the market.

Hey Nick, I know you said you don't feel ready. But as someone else said, you'll never feel ready for your first deal. I remember that after studying this stuff for about 6 months, I told myself that I needed to study for another 6 months so that I "would know everything." 

Then I had dinner with someone I met at an re meeting. We were discussing things and he owned about 16 units. I shared my knowledge and thought process about waiting an 6 additional months. His question to me was, why wait, I had more than enough knowledge to do a deal. Less than 2 months later I closed on a single family and 8 months after that closed on a 5 unit. 

Point is that I never thought I'd be ready for the first one, but after that you realize that this isn't like studying for an exam where you will know 100% of the material before sitting down for the exam.

It seems like you are far along in the process. Have you visited in person and talked to a dozen locals? What does your gut tell you based on this? 

@kevin - I hear you and I know this is the BP mindframe and exactly how I initially thought. Then I called an attorney to discuss my plans. He told me that MA is one of the most tenant friendly states and that evictions can run into the 5 figures if a tenant wants to fight it. Perhaps that is where the property managent company is coming from, as they are a well know company in the area. The property manager recommended only going ahead with an eviction if the tenant becomes a full month's $ behind in rent.... Crazy I know. 

Hi, 

I have a property managent company for a property I recently purchased in MA. 1 month in, one tenant is $100 short on rent. My initial thought was to ask the property manager to charge the late fee as well as take the tenant to court. The property manager said to not take the tenant to court since filing the paperwork will be expensive and to not charge a late fee because they are never able to enforce it in court. Has anyone heard of this happening in MA or am I being given bad advice?

Thanks, 

Rick

Anyone have any recommendations on agents who can help me get my rental in Allentown, PA rented? It's currently occupied but I expect the current tenants out in about a month. 

Hi BPers,

I have two questions related to a property I own in PA, which I'd really appreciate some input on:

1) The tenant signed a lease with the prior owner (who I bought the place from). The lease expired 2 years ago, but I have a copy, and I think it switches to month-to-month. Do the terms of the lease automatically apply with me, or not because my name isn't on the lease?

2) Assuming the tenant in on a month-to-month, she told me that she intends to move in October. I ideally want her to stay another year and move out in a warmer month. Do I have any options here? If so, what are they?

Rick

thanks for the heads up justin