All Forum Posts by: Travis Beehler

If they are high maintenance, my inclination would be to say no.  However, because I'm not an expert at cleaning up dead bodies, I'd ask your local crime scene clean up company what their opinion was.  If you can't find them, call the police and ask who they use.  It's usually a private company that comes in and cleans up all the gore for a fee.

I'm of the notion that this is a business and I'm more than happy to try to make my customers happy, but if they are high maintenance, at some point, you're going to have to be the "bad guy" and say no.

For example, I've got a tenant who is ALWAYS late with the rent.  She pays the late fees no problems, but my property manager is constantly having to chase her down for the rent.  On top of that, she's had nothing but excuses and has lied about where the rent was (rent was in the mail on the 10th she claims, but envelope is not stamped until the 13th)

She actually had the nerve to come to me and ask for a complete bathroom remodel.  Nevermind that there's nothing wrong with the bathroom, she just wanted a jetted tub, tile floors, and a new vanity she saw at home depot.  All told, it was north of $5,000 just in parts.  I told my property manager to tell her flat out no.  That was almost an entire year's worth of profits for that property.  On top of THAT amount of nerve from her, then she had the nerve to say she'd go in half's with me.

My thought was: "Well, if you can afford half of the bathroom remodel, why can't you pay your rent?" and "If she bails on me, I'll be on the hook for the entire amount".

High maintenance people are a pain, but just do your research with a crime scene clean up company and their opinion, and be firm if the answer is no.

 Hi Merrit!

For you to do a cash out refinance on a rental, most banks have a seasoning period.  If you do the cash out refi before that period of time is over, then they go by purchase price, not new value.

Some banks are 6 months, some 1 year.  I managed to find a bank that will do as little as 90 days.  This is for commercial loans on residential houses though, so rules are a bit different.  But, that 90 days gives me plenty of time to buy the property, make necessary fixes, and get a paying tenant with a lease.  Banks feel a WHOLE lot better if they do a cash out refi if there's an existing tenant, so they know there won't be likely issues getting paid back.

Hope that helps!  I'm going through this exact thing at the moment, so I've had the fun of finding this out all on my own. :)

Happy to help Avi!  Glad to see you're making your way!  Also VERY nice of you to mention me.  It's not necessary of course, but it's always nice to hear kudos.  Congratulations!  Hope all works out well  for you! :)

Nice!  Congratulations!  Doing your first deal is always the scariest.  Just keep focused on the math and you'll do just fine!

You can use private lenders for whatever you'd like.  However, just make sure that the math adds up, so you don't get into trouble.

I invest out of state, and I cannot stress how important it is to find a good property manager.  Ask tough questions, trust your gut, etc.  As for contractors, if you've got a good property manager, they can point a few your way.  Investing out of state requires a great deal of trust, and if you find the right PM, they are worth their weight in gold.

The one that I have I sent an expensive bottle of scotch when he pointed me to a deal that has really catapulted my investment returns.

 No worries! :)  

 Me to!  Although, I don't invest in Birmingham.  I would add that I'm getting about $350 a door right now profit, so don't take any one person's numbers as gospel. :)

We all get nervous from time to time about various issues.  Comes with the territory. :)  If you're doing your due diligence and paying attention to the math, you'll be just fine. :)

 Hi Rahul,

Take a look at commercial financing for residential places. They don't care about DTI, 10 loan limits, or other such nonsense. They care about cash flow. It's difficult to find a place that will loan under those circumstances, but once you do, it makes a WORLD of difference.