All Forum Posts by: Tom Kaz

Great insight, i will need to draft up a letter and have them sign it to save my a** in the long run if i am able to rent it out sooner then later. I also plan to have them remain liable as this is a business, they are nice people and would rather not put a judgment on them. Again, if it comes down to it then it might become a reality. 

Morning BP,

Im kinda in a jam right now and looking for some advice. Im currently in the process of evicting a tenant in 1 of my units who refuses to pay rent on time and keeps lying to me about EVERYTHING. This is taking place in cook county Illinois so the process could be rather long. I have served her the 5 day notice to quit and have also filed a complaint and summons. 

On the other hand i just got a call from my other tenants in the building who stated they will be closing on a house 3/27. There lease is up in June of this year and they have requested to end the lease early. I would be all for it since its pretty close to the end of their lease but im in a jam with this eviction and would be hustling to get this unit ready along with trying to get the devil out of my other unit during this eviction. I dont have an early termination clause in my lease, what would you do in my situation?

I dont want to be the bad guy, but in this current situation i want to recoup as much as i can until i have the other tenant evicted. Should i give them the option to pay 2 months worth of rent and let them slide for June? Or state that they need to pay the rent until i can get the unit filled? I have seen other posts were people have kept the security deposit as well, but it seems like a gray area (ask for 2 months rent to cover April/may and request to keep the security deposit for June/clean-up?)

Any thoughts? This is my first eviction and early lease termination... what a drag! 

Thanks, 

Rob, did you end up pursuing the multi-unit?

@Robert Dabicci sounds like a good investment, what city is the 4plex in?

I recently just bought my first 4plex, I went over on everything like you did and ended up cash-flowing more then expected.

Seems like your due diligence is dialed in, ask the seller for utility bills to get a feel for the expenses. Luckily for me the tenants pay everything besides water.

Good luck!

doing some more research, is this HELOC rate at 6.3% seem high? Should i try looking elsewhere? My credit was already pulled with this institution.

Hey BP!

So i finally received an update on my HELOC im trying to open up for investment purposes.

I saw someone post on here awhile back about Huntington bank being a great institution for opening up a HELOC. I went thru the process and the terms came out to be 77k @ 6.3% variable APR. Does this sound like a reasonable rate (market rate is around 6%?). The terms of the HELOC are interest only payments with a 10 year draw. I was more inclined to use the interest only payments for BRRRR buy and holds, but i have also been thinking about using the HELOC as a 20% downpayment on multi unit buildings if the purchase price was right (and then paying down the HELOC with cashflow and a possible cash-out refi down the road). Is a interest+principle HELOC better for the multi unit strategy or is interest only payments better overall?

Any input is greatly appreciated! I currently own a 4-unit multifamily (purchased with 20% savings as DP) and want to add to my portfolio ASAP! I love the BRRRR strategy but deals are hard to come by in decent neighborhoods with the amount of credit i can take out. That is why i also including the thought of using the HELOC as a down-payment (20-25%) on another multi-family. I also have read that seasoning the downpayment in my checking account is required if conventional funding is wanted. Do all banks require this, i figured that if i got the money from my equity there would be no issue.

Thanks, 

@Derek Gibbs congrats on the purchase! I just closed on my first multi family building in September and love how it’s been performing. I’m currently looking to add to my portfolio ASAP! Wish I started doing this in my teens!

@Mark Ainley thanks for clarifying, makes much more sense now and I love the idea of acquiring an investment property when all is said and done. Now to look for a property that needs work well below market value.

@Mark Ainley let me elaborate from my last message.

Are you saying I should pull the equity out of my house, find a property on the low that needs rehab and then get it appraised after it’s been done. Keep/rent the property and use the cash out to put back into my house?

Love the idea just wanted more clarification, you seem like you know your stuff!

@Mark Ainley thanks for the response! Are you speaking in terms of the equity from my home or the multi-unit?