All Forum Posts by: Scott M.

I hope you learned the lesson about telling tenants about potential upgrades?  While I don't have any creative solutions for you I would advise everyone else reading this post to learn from this mistake.  

The cause of death is not important.  And while you may have good intentions of wanting the family to profit from the sale you are better served to take possession back, sell it yourself and then if you want to give the family money, you can do that. 

The family is grieving and has told you what is best for them, to give it back to you.

You own a property and the caregivers have told you they don't want it.  If you don't take it back, this could turn into a giant mess for you as the asset sits vacant and rots away.

NARPM.org is a good place to find good property managers. Tons of places to find good realtors.  I can't recommend anyone to you but I do suggest you take back possession as step one.  Then you can figure out what to do with it, step 2. 

If the current tenants are there, only talk to them.  They will tell you everything about the place.  Sellers may not.  

Put together a book of all the comps.....just kidding.  You need to do two things.  1) take an honest assessment of the condition of the units.  Are they in market condition?  If not, then you can keep the condition and rates below market value.  2) Raise rents (and conditions if necessary).  You can give the tenants the choice of staying at market rates and with a refresh or going.  Lot easier to just start fresh but some like to give the tenants the choice.  

There is no easy way to do this.  No easy way to tell someone their rent is going up 50% (if your local law even allows that kind of an increase).  Don't try to be cute with 50 a month more for 1 year etc....

I wouldn't.  Doesn't mean you can't try.  They may fight you on it and you should understand the consequences of that.  But no, if I can't prove they did it, I don't keep it.  

Not even close to a red flag.  The answer is in your original post.  You said "Seller is requesting cash offers only and 30 days or sooner on closing".

That is your answer.  Seller can't guarantee he can get someone out in 30 days.  He could request it (read on) but he can't guarantee it.  So the seller has to decide on what is more important.  Your wishes or theirs.  Clearly their desire for a 30 day close is more important to them.  

If you want the tenants gone you should do just what you did, ask and make it part of the deal.  Doesn't mean the seller is going to accept that though.  You now have a choice.  1) Pass on the deal because it doesn't meet your criteria or 2) Accept the seller counter.  3)Counter their counter etc.....

As a seller, I would be hesitant to get rid of a tenant for a buyer because if that buyer backs out then I am stuck with a property that isn't cashflowing.  

No red flags to me.  Do the proper due diligence if you decide to keep them.  Then you can ask them to leave, offer them cash to leave, evict them etc....when you take over.  

Can't expect every buyer to bend to your will.  Some will, go find that deal.  

Yes, you should.  If you don't in the blink of an eye you will be losing thousands of dollars every year.  Just like when a tenant is late you need to start eviction on day 1.  If you don't, by the time you turn around they owe you thousands.

Need to stay current or close to it.  Unless the property is a dump (respectfully).  If it is then no, I would not.  

Bit of a confusing question.  Why are you only looking for insurance for your kitchen?  Get insurance on the property and your kitchen is covered.  You want extra coverage for the kitchen, tell your agent, they will be happy to charge you more.  

Really makes me shake my head when someone suggests a free lease agreement.  You just bought a very expensive asset, likely in the top two or three things you own in terms of value and you want a free legal contract to protect your interests with the person who is going to be occupying said asset.  

When we started we bought one from a local landlord/tenant attorney, he was also the one that would be representing us if we went to court so having his buy off was important.  In the 22 years since we have modified it heavily from the lessons learned both from ourselves and others.  Always being updated.  

Don't cheap out on the lease.  

In general yes.  But you should list the county and state the property is in so you can get local responses.