All Forum Posts by: William SaintAmour

Let me set the stage:

I have a 4 plex in Michigan.  The neighbor in the bottom unit smokes.  The neighbor above smelled it and brought it to my attention (we are a non-smoking building, it's in the lease).  I provided notice to the lower neighbor, and they stopped smoking in the apartment (at least for the moment).  The neighbor above says it has permeated to her apartment, and she cannot stay there.  Her lease is up in August 2021.

BUT about a month before all of this she let me know that she plans to move out to a SFR as soon as she can, and would like me to find a new tenant so she can break her lease. Between the holidays and COVID, there hasn't exactly been a line of qualified people wanting to move at the moment.

I'm sympathetic to the smoke complaint, and I have documented my action based on it.  I plan to visit her apartment personally and do an ozone treatment, and document that.  I'm happy to boot the downstairs tenant if they smoke again, and actually plan to boot them in the spring to clean their place up and get it to market rent levels (they were inherited).  I am not inclined to break the lease for the apartment above because of the smoke smell if it is not noticeable when I go in or after ozone treatment.  Am I taking the best path?  I don't want to keep a tenant if they want to move; however, I'm also not inclined to eat rent and utilities in the winter until I can fill the vacancy.

What am I missing? Better options?

Welcome!

Welcome, Stephanie. I'm from Charlotte, Mi, and my wife and I bought our first property in April last year. Three main lessons: put a deadline on any contracted work, get their tax info before you pay them, and if your flooring guy says his son can do a great job painting for you, do not believe him. Hire a real painter. It may cost you a few hundred dollars more, but it will be done in days, not weeks, and actually look good.

There is a lot to love. Welcome!

Fantastic Thread! Thanks to everyone who chipped in! I'm in the process of wrapping up employment with my current organization and becoming the sole employee of a 501c3 as executive director.  I also have my llc for rei.   Can I set up a 403b for the 501c3, and a solo k for my llc, dump my old 457 between them, and take out a combined loan of $100k to invest? I would dump over the $200k in each to meet the 50 percent rule. And I have no other loans. Separately, what should I look for in a solo k provider to ensure they are legitimate and will be around? Finally, can I charge myself any custodial fees on the solo k?

Look at the towns about half an hour outside of Sacramento, and you may find a great community to dig into. I like Michigan, but as a new investor, learn the ropes close by.  Your first property is stressful enough without airplane rides, taxis, and snow removal.

I'm looking at purchasing a small retail/office space between Lansing and Grand Rapids, Michigan.  This is my first commercial purchase.  Can you recommend a cautious, thorough inspector and appraiser?  Thanks!

I live in the area. If you are willing to be outide city limits, then I would recommend Holt for multis. Excellent schools, very walkable, and good supply. Lansing and east lansing are more tenant oriented I their regs.  Other good towns are Haslett, DeWitt, and Grand Ledge, but not as much multi stock. OKenosha is a great town, but more pricey. About 15 minutes outside lansing are Williamston and Mason, which are both good, and then Spunky old Charlotte, which is in revival mode, attracting new businesses, has excellent schools, but is very affordable at the moment. Look me up when you all arrive.

FYI, while my experience with rural rentals is limited, my understanding is that you have a smaller market of potential renters, thus lower returns and lower quality tenants.  And they have more room to trash your larger yard, which you have to maintain during vacancies. Will you allow farm animals? Liability? What if they abandon their diseased cow, 2 mean goats, and 53 mite-crusted chickens guarded by two roosers of the dark pit: ripper and slasher? Rural is nice for your quality of life, but may be bad for business.

Welcome from Charlotte, MI! Personally, the math on mf house hacking is really compelling over sf. Has the girlfriend listed to or read the rich dad book? Also, set for life would be relevant too. Good luck!