All Forum Posts by: Jennifer T.

I house hack and have a dog.  Though I haven't quite been in that situation because I have always allowed my tenants next door to have a dog(s), if they wish.

But if that wasn't my policy and I actually had a tenant or potential tenant with enough gall to actually say something like that, I'd respond with, "Because it's MY house.  So I'll have a dog and all the responsibilities and liabilities that come with it, if I want to.  However, I choose not to take that on for someone else's animal."

It's certainly not a form of discrimination.  You, as the property owner, can have all kinds of criteria you require for a potential tenant, even if you yourself wouldn't meet them.  That is a totally different situation from treating two tenants or potential tenants differently.

In fact, as an owner occupant...assuming the building is 4 or less units...you don't even have to rent to people with service animals or ESAs, if you don't want to.  Though check with your local laws and/or attorney on that.  But usually that is an exception.

Just to add on to that thought, I had my go-to handyman...not a general contractor, but he was very skilled and had his own crew...approach me a few years ago about wanting to partner with a fix 'n flip.  No specific property in mind, more a general idea.

Okay, what does he have to offer?  Skill and labor.  Most certainly.  Money and/or credit to help with financing the loan?  Oh, no, no, no.  All of THAT needed to come from me.  Even the money to pay his laborers and the materials.  Sooooo...why would I want to share potential profits with this guy when I could just hire him out like I normally do?  I wouldn't.

I didn't say it quite like that to him.  But I did tell him that, although I was open to the idea, he absolutely had to have some of his own "skin in the game", ie money.  He never mentioned it again.  It never even got to this point to talk about.  But my other concern would have been...he was good!  So he was busy.  How would he handle the immediate income loss, while he's busy devoting his time to our hypothetical flip.  Right.  I suspect he hadn't thought of that either.

I wouldn't be so quick to dismiss having flood insurance on your properties.  For X Flood zones (no flood zone), they're pretty cheap and something like 20% of homes damaged in floods are in X Flood Zones.  Too much rain, too fast can cause flooding just about anywhere.  Nothing wrong with deciding you still don't want it.  An extra expense is an extra expense.  But, for me, I feel like it's pretty cheap insurance to have as compared to the substantial damage a flood will wreak on a house.

My personal duplex is in an X Flood zone. I have flood insurance at a value of $240K for the property and $50K for contents for something like $650/year. The most annoying part of that is how it breaks down. The actual flood insurance costs $400/year. But then FEMA tacks on an additional flat fee of $250 for non-owner occupied homes or ANY multi-family. So almost half my flood insurance cost is just their stupid fee. And for MY OWN personal home, no less (jerks). It's a $50 flat fee for an owner-occupied, SFH.

For property insurance...which is almost always completely and totally different/separate from flood insurance...it's "named storm" coverage in areas that are high risk for that, that can send rates off the charts. If no lender is involved, you can choose to not include named storm coverage. There are also other calamities that can make an area higher risk, ie wildfires, tornadoes, etc. But higher insurance doesn't necessarily mean a bad ROI. It's just another number to roll into expenses.

A simple, low cost method...especially if it is only a problem for a few months out of the year...is window units (for heat or a/c) or baseboard heating, to help supplement the temperature provided by the HVAC.

You can always use particle board with handles screwed in, like the previous owner did for two duplexes I bought last year.  Classy!

But seriously.  I know exactly what you are talking about and despise bi-fold doors for exactly that reason.  I always replace them with slider closet doors like the below picture...which is one of the "after" pics for that same property.  They're still a low cost, but much better alternative to bi-folds, and can be found at your typical big box home improvement stores.  I've learned it's a little more time and expense on the front end to replace the bi-folds.  But more than worth the time and aggravation savings involved with fixing the bi-fold doors, multiple times a year.

I agree with the general consensus to be upfront that you are the owner. That is ESPECIALLY true for a house hack. I got started in REI house-hacking my personal duplex. It's now been 8 years and I still live in that same property and still rent out the other side.

For a positive reason, I've had 4-5 vacancy periods over the years and shown that unit to dozens of prospective tenants.  I noticed people saw it as a major plus that I lived at the property also.  Now I even put that info in my rental ad when I have a vacancy because people see it as an advantage for the property.  For my other rentals (all in my same city), I'll include the phrase "locally managed".  People like that also.

Just like we look for good tenants.  Tenants look for LLs/PMs who will be responsive and take care of the property.  "Owner occupied" and "locally managed" implies that for them.  Not at all implying it's always true!  Or that OOS owners/managers aren't just as likely to be great, I know they are.  But I know the tenant perception can sometimes be that "local is better".  

I have to admit I read your title and my first thought was, "Letter? (head tilt).  My only 'letter' is the 5-Day Pay or Quit notice."  Most of my tenants are Class C also.

I'll be a little, a little, more flexible with late rent payments on long-term normally good tenants in Dec.  But, other than that, I could care less it is the holidays.

My attitude:  I'm sorry you (the tenant) have come this far in life without being able to tell the difference between a need and a want.  Let me help you with that.  Here's your eviction notice.  Hopefully you will not choose lots of and/or expensive Christmas presents (wants/luxuries) over your housing (need), with your next landlord.

Plus, ya know what?  It's my holidays too.  And I have my own bills to pay...including for the property you live in.  My own gifts to buy.  My own vacation to take.  And my own family to support.  So pay December's rent and can you actually pay me in advance for January also?  Because that would REALLY help me out buying my husband the new iPhone and some Bose headphones he has really been wanting for Christmas.

$38K, 4 bed/2ba.  Inherited tenant paying $1125/month.  Put $1500 in right away, but knew there would be additional rehab costs whenever she moved out.

For more details.  New Orleans (though outside the city core) in 2016. Worth $50K back then, even with the deferred maintenance.  S8 was responsible for $1,025 of the rent, tenant portion $100.  Tenant lived there for 3 more years.  When she moved out, I put in $16K to repaint, replace the living room/hallway floors, and replace the kitchen.  Currently worth $70K and rented for $1200/month.

Found it on a Craig's List ad from a wholesaler. I closed on March 20, 2016. Got my $1,025 direct deposit from HUD 10 days later on April 1st. No April Fool's for me that year!

To add on to this caution, I had a coworker with a weird situation to his personal home where the driveway had the property line going down the middle of it.  It was a small driveway and I can't remember if only one car would fit on it or two passenger cars would, but it was tight.  But it was something like that, so he needed access to more than half.

He happily lived in that house for YEARS with the same neighbors who had the other half of the driveway.  They didn't use the driveway much anyway.  Great neighbor relationship.

Until those neighbors sold their house to someone else.  Then the parking wars started.  Obviously I'm just getting his side, but he supposedly tried a number of compromises with the new owner and they wouldn't work with him.  Including offer them a nice chunk of money to sell him their half of the driveway (something like that).  No dice on that either.

He ended up selling his house within two years.  While the driveway controversy wasn't the only reason, it was a main one.

In my first non-owner-occupied duplex purchase, one unit was vacant and the other unit had the seller's brother living in it.  I knew he'd be a challenge.  He was disabled and had been living there for free, for 10 years.  The duplex, including his unit, needed substantial repairs.  Just for some crazy examples.  He'd been living in that unit for 10 years...with no drywall on the bottom half of the main kitchen wall.  So no kitchen sink or lower cabinets either.  The flooring for the two bedrooms?  The concrete that was literally the top of the foundation slab.

I posted a 30-Day Notice to Vacate the day after closing.  I also included some verbiage on how to get in touch with me and encouraged him to do so.  While I don't normally offer "cash for keys" because I live in a landlord-friendly state, I felt it would be prudent in that situation because there was no security deposit and I figured if he was a little more flush with cash upon move-out, it would probably make his ability to move go more smoothly.

He was too upset and "shocked" to even contact me himself and had a friend do it.  Shocked?  Really?  The property had been up for sale for a few months and he was well aware of it.  But sure.  You just keep on trying to block out the sun with one finger and pretending your gravy train isn't coming to its final stop.  And then be "shocked" when it happens.

At any rate, I set up a meeting the next day with him and his friend.  I have my "cash for keys" offer written up, signed, and ready to go.  $500, plus either one month of storage or an additional $100, if he is out in 2 weeks.  Or $300, plus either one month of storage or an additional $100, if he is out in the 30 days.  Only paid on move-out in exchange for the keys AND the property needs to be in the same condition it was when I bought it.

They give me the sob story about his heart condition.  That his monthly disability is only $560.  And there is no way he can move out in 30 days.  I asked how long he needed.  90 days, but he would try to make it shorter.  Hard no, that is not even remotely happening.  I'm a straight shooter kinda person and laid down the facts:  I realize this will be a difficult transition.  That's why I'm offering you money just to do what you are legally obligated to do.  I want to make this smoother for both of us.  But, make no mistake, I will file for an eviction on the 31st day if you refuse to leave.  That's nothing but a lose-lose situation for both of us.  I'll be honest, that will buy you 2-4 more weeks, depending on the court's schedule.  But now you'll have an eviction on your record and you'll lose out on the free money I am offering you.  My suggestion?  If you can't find another place to live in 30 days, then take me up on my storage offer for a place to put your things and go stay with family until you can find another place.

Surprisingly, while his friend was obviously more on his side, I was glad she was there.  Because she was a reasonable person and actually ended up being a good mediator.  There were a number of times she was nodding along with me, especially for that important piece at the end.  She told him I was right.  And was already "switching strategy" and reassuring him that he could do this.  That he knows he can count on her and their friends and his family to help him with moving and looking for another place.

In the end, apparently the "impossible" was possible, with the right motivation ;).  The keys were turned over to me 30 days later.  All his stuff was out.  The place was in the same condition I'd bought it in.  He ended up taking the extra $100 instead of doing a storage unit.  I was happy to pay him $400 cash, wish him well, and send him on his way.