All Forum Posts by: Tyler Ansell

Like @Mike Nelson mentioned, need to determine ROI for renovating units and the subsequent rent increase.

For example, if it took $1500 to get a $100 per month rent increase then your ROI would be 80%. However, if it took $10,000 to get $100 more per month then you are only looking at 12% ROI.

Something to consider.

With a solid end of term date you don't need to give notice. However, if you/them want to stay, I believe it can automatically transition into a M2M contract but not 100% sure on that part.

I'm trying to purchase a 4 unit property in Tampa, FL. It is listed with a commercial agent, and when I've spoken with them they keep saying commercial, commercial, commercial. The asking price is astronomical and they believe that it will underwrite and appraise for that because of cap rate, income, etc. I agree, a commercial valuation does put it at that price. However, in my understanding cap rate, income production, NOI etc isn't referenced when dealing in 4 units or less. It is a residential property and residential properties are valued based on their comparable sales. A residential appraisal will definitely affect the asking price significantly (~$100k) based on comps I've pulled.

My question is: what hurdles am I likely to face trying to buy a residential property from someone who believes it is commercial and worth nearly 40% more. 

We raise generally 3-8% depending on how far below market they are. Across the board if they are say $0-100 below we'll raise 3%. $100-200 might get 5% etc. 

A good PM should be able to get your tenants to stay or quickly fill the vacancy with an increase. There are countless ways to pitch rent increases and get people to sign.

I don't know Colorado specific but the only other route that I know of aside from financial eviction is via a 7-day notice. 

We issue a 7-day notice WITH and a 7 day notice WITHOUT opportunity to cure the problem. If you aren't 100% sure I'd start with giving them the opportunity. Make sure that you specify exactly what lease related breaches are occurring and make sure you state the date you will be back to reinspect. 

If not handled, then issue a 7 day without. Once that passes they can either leave on their own or you file eviction. Talk to your lawyer about all of this.

However, this will likely take you 2 or more months to process so I'd just run with your 30 day non renewal notice.

I agree that success path is trash. I went expecting to learn some new things about investing but was met with a high speed, over the top sales presentation, that when completed...people were literally sprinting up to the front to pay the $2500 or whatever it was. 

Even as a novice, I was sitting there thinking "wow, this is trash". I believe that suing them for loss you incurred as an individual that can make your own decisions and was likely provided with documentation stating what the agreement was won't get very far. Best of luck! If you figure out a class action I'm certain there's tons of people that will get in on it with you!

Who cares? Republicans and Democrats both still pay rent. 

$250 worth of gas and snacks to drive for dollars down every street in your target neighborhood. Then a few bucks left to send hand written letters to all owners that you found. 

I'm doing almost the exact same thing and they said my DTI and all is fine for approval but I need 25% down, ugh. I didn't enjoy my FHA loan because of all the inspection and contingency crap but it did save me money on downpayment and got me started.

That's the first sign of a future skip out. Find a reason to get them out now, as soon as rent is past due in March file immediately. In fact, if you can get your paperwork all set up and ready to "hit send" then do it too. I'd call your attorney and tell them to push this one as fast as they can and pay extra if needed.