All Forum Posts by: Andrew Syrios

Finding (enough) good contractors has always been the biggest challenge for us. Other vendors like HVAC, electrician, etc. usually aren't tough but when finding new ones, they are sometimes booked out too far for it to make sense. 

There are several things you can do although they usually don't save it. Usually the bank will let you talk to appraiser if you think something is wrong. We have gotten appraiser's to increase the price, but never more than $10,000, when we pointed out a mistake (politely).

We had one set of egregious appraisals we convinced the bank to discard, but this is rare. Another time they said they would take the average of the two. (We had to pay for two sets of appraisals each time.)

We've also just dropped the loan (or dropped a property from a refinance package) and brought it to another bank, redid the process, got a new appraisal and have it come in right. (One property came in at about $75,000 on one appraisal and then with the next bank, it was like $130,000.) Unfortunately, that takes time and energy as well as a second appraisal expense.

Welcome aboard Frank!

Quote from @Ron H.:

Quote from @Andrew Syrios:

I don't think there's a point to requiring them to go through screening again. Their payment history is their screening more or less. Inherited tenants can be a problem but you often get good deals with such properties because a good number of other investors aren't interested in them (at least as much). 

Almost all rents are low right now too as rents went up so much over the past few years. I would probably just give them a rent increase (probably not all the way to market, but maybe to only 10% below; that way you save the money of a vacancy and turnover) and consider asking them to sign a year lease. If they can't handle that, they'll probably move out on their own.

Under no condition would I give the option for a new 1 year lease, only a month to month one.  You want the ability to get them out quick if they prove to be less than stellar tenants. 

Also do not talk to the tenants about lease or rent increases before closing.  You have no legal connection to them before closing and you do not want to say anything that might affect their occupancy if you don't own the property.  Too many downsides there.

I definitely wouldn't sign it with them before closing and yeah, I would want to see them make some payments on the MTM lease before offering a year lease (or more aptly, telling them to sign a year lease, continue with a MTM but at a premium or move out) but I wouldn't just keep them on month to month until they move out.

I almost always recommend a home inspector for new investors. For new construction it probably isn't necessary, but it's just a few hundred bucks and can't hurt. There are times when developers try to cut corners too so if that happened, the inspector can hopefully spot it.

Quote from @Account Closed:

Quote from @Andrew Syrios:

I would be hesitant to use a hard money lender as they're simply so expensive. I would just try to get an FHA loan and buy a duplex or fourplex. Live in one unit and rent out the others. It can need work but I would avoid major projects. They always take much longer and cost more than you think (especially for new investors). Living with your parents while you save up capital is a great idea.

But I LOVE major projects :( 

thank you! 😉

 Major projects are the most gratifying, I'll grant you that.

What was the rate? ARV?

I don't think there's a point to requiring them to go through screening again. Their payment history is their screening more or less. Inherited tenants can be a problem but you often get good deals with such properties because a good number of other investors aren't interested in them (at least as much). 

Almost all rents are low right now too as rents went up so much over the past few years. I would probably just give them a rent increase (probably not all the way to market, but maybe to only 10% below; that way you save the money of a vacancy and turnover) and consider asking them to sign a year lease. If they can't handle that, they'll probably move out on their own.

First, check out @David Greene's book on the subject: https://store.biggerpockets.co...

Also, start looking for a bank to refinance now. Don't wait until it's ready to refinance. It's always good to have a bank (or two or three) that you know you can go to when the time is right.

I would be hesitant to use a hard money lender as they're simply so expensive. I would just try to get an FHA loan and buy a duplex or fourplex. Live in one unit and rent out the others. It can need work but I would avoid major projects. They always take much longer and cost more than you think (especially for new investors). Living with your parents while you save up capital is a great idea.