All Forum Posts by: Walt Payne

@Manuel Sarabia  There are multiple facets to liability. 

What you legally had to do. That is a big one that can cost you, in more ways than one. Smoke detectors, building codes, building permits, etc.

Next comes what you knew about and didn't fix. If someone can show that situation  exists, you are screwed. That includes uncorrected sins of past landlords, if you knew about it.

Things you should have known about, but can't be proved. Those will still get you but less of a hit.

And then there is the case of the thing that was obviously done behind your back, or "just happened" in spite of your significant efforts as a landlord. This is where you want to be when and if something goes wrong. Not necessarily a situation where you will be found to have zero liability, but those factors will weigh heavily in your defense. Unfortunately you never know where the sympathies of a jury might lie.

One little thing that may not be shown to be your fault but that can be done as an added precaution is that I have noticed a tendency of electrical outlets and switches to be very cheaply manufactured over the last decade. Check switches for arcing occasionally and replace them if it happens. You will hear it when you flip the switch. Also, check outlets for arcing, and also make sure they are not moving around in the box (that is an installation issue).

Or he might file a mechanics lien, depending on how knowledgeable and or vindictive he is.

@Mario T.  the list provider should include that as a filter criteria.

@Mario T.  There are a number of criteria you could use. But before you do that, decide how many you can mail to per month. Consistently. If it is only the 300 you mentioned, you need to mail to the SAME 300 many times. Five or six times each, once per month. But that quantity will not get you many responses.

As to narrowing it down, things like amount of equity would be good. Maybe just out of state owners. I am sure @Michael Quarles can suggest more.

@Lee Miles  It comes down to how much are you willing to stand up for what you believe is right. Sometimes it can be very expensive to win. And it can be very humiliating to give in to such extortion. 

Maybe send him a check with a memo comment of "final payment of amount due" and on the back something like "cashing this check is acceptance of this amount as full and final payment for all services rendered". Make it for less than he asks, but maybe a little more than you think you owe. If he is having problems he will probably cash it. That does not 100% cover you, but it would sure put the balance in your favor.

Important point. Working in your business is a good way to use sweat equity to get started. Working on your business is how to grow it into an income making machine. 

@John Van Uytven  Personal opinion here. 

Tenants will sometimes cause serious problems. That is a fact of life. But myself, I would never hand them a gun and dare them to shoot me. That is what you are doing. You are giving them permission to do something that could result in problems, and making it acceptable. What happens when they drip, drop and outright spill paint? You gave them permission, how can you charge for damages?

 Actually there were five in Maryland.

Congratulations @Joshua Dorkin  and @Brandon Turner, that is another major accomplishment. 

I think @Mark Ferguson summed it up perfectly. Flipping is not the means to long term passive wealth, but as a vehicle it can help you get there by providing cash to invest in additional buy and hold properties.