All Forum Posts by: Tracey Marzich

The tenant agreed to take the unit right away and was going to install the carpet himself.  Then he called on Saturday to say he picked out the carpet but he changed his mind about installing it.  So I scrambled Sunday morning to line someone up to install this on Monday.  The carpet that the tenant has on hold at the carpet store that he selected can't deliver it until Thursday. That carpet store is 1.5 hours away where his buddy gave him a deal.  So I told the tenant to pick out something locally so it could get done sooner and he said no.

Learning a huge lesson here!!

Hi BPer's help me out please.  We closed on a property July 1.  A 'nice' fella came through July 10th and "needed to move in right away, that day."  I told him we have repairs lined up and if he'd be patient with me and also passed our application process he could have the place.  So the next morning, a Friday, my on-site representative went through the lease and got everything signed between us and him. 

 Part of the repairs included new carpet for this small place, 496 s.f. and he knew that.  It was written into the lease but with no time frame.  We had the carpet on hold, the pad purchased and the guy lined up to start the work Monday afternoon with a target of being done Tuesday/Wednesday.  The tenant lost his patience Monday afternoon because the installer hadn't started yet (I had been on the phone with the tenant every day tracking the process and keeping in the loop) and now he wants out and he wants his money back.  

He signed a 6 month lease and gave first months rent and a security deposit.  There are no terms in the lease for backing out with a refund.  As a matter of fact if there is a breach in the lease the full amount comes due.  What should I do?

@David Boateng we work with flahertylaw.com but I haven't used him specifically for what you are asking. He's been a great knowledgable guy. 

James G. Flaherty Co., L.P.A. 577-B Office Parkway Westerville, Ohio 43082

Hi @Victoria Jonagan yet another architectural voice here-if your utmost concern is about the ease of selling/renting the place then wood should do a lot better for you for just the acquired taste description @Roman Pak cites (I know because I put in concrete counter tops in my kitchen that I loved but came to regret when I sold.)  BUT you could always go stained concrete and see what happens.  If it's detrimental then wood can be put in on top of it.  Yes I realize that advice is not cost effective but it provides flexibility in your decision. And if you put in the concrete and it 'feels' cold you can warm it up with some area rugs when you are showing the place to potential buyers/renters.  Let us know what you decide and post some pics!  What a fun decision to be faced with :)

@Mike Sheppard hello! We live in a "hot" rental market - Columbus, OH.  But we were broke architects and even the $90k places were 1. Too expensive and 2. Too much riff raff/turn over. So...we went rural! We looked far enough outside of the city center to find lots of foreclosure housing stock closer to $40-$50k where the folks weren't commuting to Columbus for work (cheaper houses!)  We worked closely with a realtor who helped us with the city and where the right side of the tracks happen to be and what real rents were and how much improving we should do (we are natural over improvers and have been told we have the nicest rentals in town which makes me happy.) We get close to the 2% rule..maybe 1.75%.  We also got 3 rentals up and going with conventional financing in a short amount if time (brutal to our pristine credit scores.) This is important because 2 of those rentals (knock wood!) have had very little maintenance but one hammered us (furnace, pipes burst, roof leak, fence blew down, siding blew off, busted screens oh I'm forgetting something I'm sure!) If that were our only rental I might have thrown in the towel (psyche I'm not a quitter but anyway...) What I'm trying to say is you might want to look a bit outside a 'hotbed' area. I had my va look into some 'rural' areas including Fayetteville, NC (where she lives) and she found some positive indicators of cash flowing buy and holds there that would meet my low purchase price 2% criteria.  This post is not meant to be a market descriptor of Fayetteville or anyplace else...you just might want to do your homework and go rural!  I seemed to have the exact same issues you did not so long ago and I certainly didn't come up with the solution on my own... 

@Jessica G. Is quitting your job irreversible? No! If you quit and all of these negative forecasts come true (harder time getting financing, things fall apart with the real estate) YOU CAN GO BACK to teaching! Set yourself free girl! I had cancer. I also have a 2 and a 5 year old. Poor health leads to really bad things. Being emotional (aka as being passionate!) can lead to really great things. I believe you have your answer already. I believe you have the support you need already. I believe you are extremely motivated to do real estate and make it work and make money at it no matter what. My vote is quit teaching while you are ahead but my vote doesn't count. What counts is not being afraid of what the universe is telling you. Trust your gut, make it work and have a great time! LIFE is too damn short.

ps I love that your mom was an architect!  That's one of my keywords and the only reason this popped into my feed so thank you for sharing that!

That's what I needed to know!  I was hoping to take advantage for owner occupied rates as an investor...I was looking for that work around.  The only way I have learned how to do that is to live in the property first and then keep the financing in place when moving on to the next house.  Do you agree everyone or does someone know something differently? I think @Richelle Thomas, you might have a different experience assuming VA loans?

@Wayne Brooks The focus on someone else refinancing it has to do with a better interest rate as well as less money down and avoiding realtor fees.  As an investor I would be facing 20% down and a higher rate which would start to affect the cash flow and it would no longer make it a deal.

I see. This is all very good information. The FHA concept is interesting. I already have an FHA so I wonder if I can assume a second. Does anyone know?

Also my dad is a vet.  Any chance he could refinance to his name and I can assume from him?

I am ok with this showing up on my debt to income.

Am I pushing too hard to make a deal work?!  My husband always criticizes me for that...

Thanks @Richelle Thomas. Could she refi to a VA loan (she's not a veteran) and then we could make something happen?