All Forum Posts by: Tony Savage

Hey Marc,

That's a tough situation you find yourself in.  Tell me, what were the few issues that you may not be able to fix?

With regard to the options you came up with:

1. 1) Sell now and lose 100k including the renovation costs and closing costs (unless I get lucky and find someone willing to buy above market) Speak to a local real estate agent first and let him or her comp your home in as-is condition so you know what you're dealing with in terms of what your home is worth now compared to the comps.
2. 2) Turn it into a short term rental for a year and see how it goes. Any potential loss could be offset by bonus depreciation against my W2 salary. Even though the place would have negative cash flow (negative 3000 to 4000 per month), that could be offset by appreciation. Again get some advice from an agent that works with STR investors. Do not count on offsetting that 3K to 4K in neg cash flow with appreciation.  Over the last 12 months appreciation has slowed and sellers are reducing their price.
3. 3) Stay in the place as a primary residence and hold on until I could sell it at net neutral (maybe 3 more years pending how the San Diego market does) If the other options are not feasible, you may want to live there for awhile and enjoy the San Diego beaches!

If that condo is a model match Brandon for the one that you're getting 1,400 a month for.  Then yes, spend the 5k to re-do the bath.

DO NOT RENT TO THIS WOMEN! You will eventually have the same horrible problems that you had before.

Hey Chris,

Stick to your original 45 day notice.  They had and have more than enough time to find another place to live.  

Hi Bonnie,

You will be going the new owner of the duplex.  You do not have to honor the current property management agreement.  That agreement is with the seller not you; communicate with the seller via escrow that you will not be needing the current property managers services.

You are never stuck with a tenant Allende.  As I said in my previous post, if they choose not to leave on their on accord, then evict them!

They are in violation of your contract/lease. Give them the choice to leave or you will proceed with the eviction process.  Yes, it will cost a few thousand but in the end you will come out ahead.

 You can't keep going back and forth with these tenants.  All tenants need to know that when you tell them eviction is possible that the landlord will follow through.

Don't know if there are any other simplified solutions Max.  That 300K is a big nut so you want to make sure whatever strategy you choose make sure you do your due diligence. 

To me BRRRR is not an efficient strategy because of the time it's going to take and the rates right now on a re-fi for an investment property will be high.

Hey Kosh,

My rentals are in Lansing, MI, It get's very, very cold there in the winter.  All of my leases end on 7/31 of each year.  That way I can get them lease out during the summer when the students are coming back to school at Michigan State.  

I can not do a month to month. If you decide to do that, raise their rent and they must agree to help up you with showing your property and give you a 60 day notice.

Hey Tyler,

I have 9 doors in Lansing, MI.  I set up a C-Corp (Balboa Management) that I use to flip in.  It's also my property manager. My tenants don't know I'm the owner, I'm just an employee of the management company. I blame everything on Balboa, it's great!