All Forum Posts by: Troy P.

I'm in Louisiana, so this is understandable, but this is my first.  Does anyone have experience with "Cajun Underwriters Reciprocal Exchange"?  I'm assuming this means the premium will skyrocket like many others, but wanted to see if anyone experienced this transition or company in the past.  Thanks!

Quote from @JD Martin:

There are times in most people's lives when renting makes sense, and I don't think any more or less of people who rent one way or the other - but lifetime renters who haven't deliberately chosen that path are generally there because they blew opportunities everywhere to own their own home, and if it doesn't bother them to be renters why should it bother me to charge them rent?

 Bingo.  Renting isn't meant to be permanant, but the people who get such good deals from their landlord on below market rent have no issues making it permanent.  The vast majority of potential tenants I interview say something like "I'm only here for school" or "I'm only here because we're between houses".  None say "I want to live here forever".  And that is why rent is supposed to be expensive.  It is temporary, convenient, and necessary.  

Quote from @Troy P.:

I agree it is a tough decision, but at the end of the day, this is a business and they should live where they can afford to live, whether that is on your property or elsewhere.

That being said, you have every right to improve your property and allow for a better quality of life for someone.  If your rent is significantly below market for the area, you are essentially operating a charity.  If that's your goal, I applaud you, but I'm sure most would choose other avenues for their charitable contributions.

I like the idea of "organic vacancy".  You can wait for the tenants to move out on their own or allow them to move into a newly renovated unit at a temporarily discounted rate.  You avoid having multiple vacancies, it allows you to renovate their old unit, and it gives them time to figure out if they are able to stay.  If they aren't interested in a better unit, then I would respectfully ask them to start looking for another place to live.  A lot of people will disagree with this and say cut the cord and evict them, but I think it's worth trying to keep a solid tenant.

 Edit: you would give them a notice to vacate, not technically an eviction.

I agree it is a tough decision, but at the end of the day, this is a business and they should live where they can afford to live, whether that is on your property or elsewhere.

That being said, you have every right to improve your property and allow for a better quality of life for someone.  If your rent is significantly below market for the area, you are essentially operating a charity.  If that's your goal, I applaud you, but I'm sure most would choose other avenues for their charitable contributions.

I like the idea of "organic vacancy".  You can wait for the tenants to move out on their own or allow them to move into a newly renovated unit at a temporarily discounted rate.  You avoid having multiple vacancies, it allows you to renovate their old unit, and it gives them time to figure out if they are able to stay.  If they aren't interested in a better unit, then I would respectfully ask them to start looking for another place to live.  A lot of people will disagree with this and say cut the cord and evict them, but I think it's worth trying to keep a solid tenant.

I have a townhouse for sale by owner in Baton Rouge currently with A+ tenants on a month to month lease.  Even with conventional financing, it will have significant cash flow as an LTR or MTR.  Let me know if interested!

https://www.biggerpockets.com/forums/517/topics/1204764-cash...

*** Off-Market ***

B+ location with A+ tenants on a month to month lease ($1,500)

$200+ monthly cash flow via conventional financing

3 bed / 2 bath

1,098 sq ft.

Double carport facing the street

New roof in 2022

New AC units in 2021

Updated kitchen and paint in 2022

Wood-look plank tile throughout

Fully-fenced backyard

5255 Cumberland Cove Dr.

Baton Rouge, LA 70817

$156K

Please do not disturb tenants!

Quote from @Melanie P.:

What's the business case for this transaction? YOU required she have a cosigner to rent and you're surprised a bank doesn't feel she's a good candidate for a loan? 

She can order a transcript of any returns filed under her social with the IRS. If her spouse didn't file returns she must do so on her own.

Respectfully but importantly, it sounds as though you spent too much time in your tenant's life and are now looking to "take care of her" the way her spouse once did and in the process trigger a bunch of taxes and frustration for yourself - trying to sort out a tenant's circumstances.

No, I'm not surprised.  I'm simply asking what our options are so I can try to help her stay in the home.

I actually know nothing about her other than what she willfully offers to me to explain her ability or inability to buy the home.  I'm not trying to "take care of her", but trying to offer a solution that will benefit both of us.  Thank you for your concern though.

Quote from @Richard Elvin:

@Troy P. Another option write up a lease option, then sell the house to an investor that is willing to rent it until she's either ready to buy or she fails to buy. Since it's cashflowing, and it sounds like the loan is assumable for an investor (Maybe?), that could be a win-win-win.

I thought about this, but it always seemed like unfavorable terms for the next investor. Selling near market value, at a higher interest rate, etc.  I don't think conventional loans are assumable from what I've read.

Quote from @Henry Clark:

Please post a picture of a stick of boudin.  Missing it up here in Iowa.  

Absolutely!  And Happy Mardi Gras!

Quote from @John Teachout:

Did you do a credit check on her? What's her score? A lot of people say they don't have a credit score but I think I've only run into that once in many years. It's highly possible she's just not in a financial position to be a home owner so you can continue to rent into the future (does the property cash flow?) or you'll need to vacate her so you can sell the property. (vacating a property is NOT an eviction)

 Yes, I did a full credit and background check when she moved in.  She had no income and no history, but she lived on the same street and I got a signed lease without ever advertising it.  The cosigner was the only reason she qualified.  Now, she has the income, but still not enough history.  The property is cash flowing great, but I'm wanting to change strategies and redeploy the capital into other opportunities.  The ROE isn't worth the effort at this point.  I've owned the home for 7 years and we are planning to move out of state in the future.  That as well as flood insurance, landlord insurance, and capex items constantly increasing will slowly eat away at the cash flow.