All Forum Posts by: Jon Holdman

Duplicate of 

https://www.biggerpockets.com/forums/81/topics/585...

Duplicate of

https://www.biggerpockets.com/forums/81/topics/585...

Sell it empty.  Many buyer's have a hard time looking passed other peoples stuff and sellers have to do a lot of dejunking and putting stuff into storage when they sell their house before moving.  Your tenant isn't going to do that.  So, get them out.  You'll also discover all the damage you don't really notice while its occupied.  Fix that.  If needed, stage it so its not empty.

The seller could work out a payment plan with the nursing home.  Then Joe can use a servicing company to make the payments and be sure the nursing home is getting paid.

In Joes shoes I would certainly not do a lease/option.  Rather, I'd want a simple seller financed note.  Because of the existing nursery home lien, the new note would be second in line.  For that matter, assuming a payment plan with the nursing home can be worked out, Joe could make those payments directly and get the seller out of the picture for that lien.

Really, what Joe needs to do is fix his own finances.

Your neighbor is entitled to cut the limbs that reach over the property line.  Is that really what you want?  She's offering you a chance to fix the situation before she takes more drastic action.

I'd start by contacting the tenants and getting their story.

As always my advice to new landlords is to find a landlord/tenant attorney and have a discussion about relevant laws.

I would address this with a "cure or quit" notice.  That is, a notice to tenants to either fix the problem (i.e., replace the trees and other landscaping) or get out.

But, have you had a discussion with them?  Tenants can be hard on landscaping.  You don't say where you are.  Around here, water bills can be several hundred a month in the summer to maintain lawns and landscaping.  Most tenants aren't going to foot such a bill.  So, either you pay for water or the landscaping it going to die.  Maybe there was a problem with these bushes and the tree and they dealt with it.  For that matter, perhaps the PM gave them permission.

First you really need a landlord/tenant attorney and you need to have a discussion with them about relevant laws in your area.  This is essential for surviving in this business.

I would not have accepted any money from them.  IDK exactly what that might obligate you to.  This is where an attorney would be able to advise if you've created any sort of contract by accepting that money.  

You've not received an application so there's nothing to deny.  My process is I need applications filled out for everyone 18 or older who's going to be living in the unit, and I need the application fees in cash.  I will then evaluate their application and let them know if they are approved.  If they're approved and are ready to sign a lease, we sign the lease, they give me the deposit and one full months rent in cash or money order and I give them the keys.  

No variations, like signing a lease before handing over the keys.  If we're a few days before the end of the month and the unit is ready, I'll give them a few free days.  If we're a week or so out, and they do want it, I will take a NON REFUNDABLE hold deposit equal to the deposit.  The form says non refundable in big, bold letters multiple times.  If they sign a lease by the agreed date, the hold deposit becomes their security deposit.  If not, I keep it and resume marketing.  If we're multiple weeks from when they want to move in, I tell them they have the right of first refusal, but that I will continue to market the property.  Here and now I expect to get a new tenant very quickly, and will not hold a unit empty for more than a week or so.  I do not take any deposit at this time.  If I do get another approved applicant that will move in sooner, I offer the first approved applicant the option of moving in sooner.  If not, I take the second applicant.

So, and I have no idea if accepting the money created some sort of obligation, I would simply mail them a check for the money and a letter stating the applications have not been received so you cannot proceed with approving them.  End of story.

I also have copies of my lease at showings.  Applicants are free to read it or take a copy.  But if they want to start changing things, we're probably going to have a problem.  Mine's been reviewed by a local attorney and there's nothing in there I'm much willing to budge on.

No, having a successful airbnb operation will not affect the value of your duplex.  Duplex values are determined by comps.  Not income.  Some property types, including larger apartment buildings and commercial buildings, do have their values set by income.  And, for those types of properties, increasing the income will increase the value.  But duplexes are values based on comps.

Even if you find a naive buyer who will accept a higher price than is justified by comps, your sale will fall apart when it gets to the appraisal.

I'd have some real estate agents give you an as-is value. If that's enough to get out of the place without having to bring cash to closing or do a short sale, I'd recommend selling it as-is on the MLS.

She needs a general contractor, not a property manager.  Property managers deal with tenants, not construction projects.

She can try to sue the former tenants.  In small claims court if the amount is small enough.  But all the courts can award is a judgement.  Its up to her to collect.  Usually that's difficult if its possible at all.

The homeowners claim does not depend on the water heater being in warranty.  Hopefully she actually had landlord insurance, not homeowners.  If she really had left homeowners in place rather than landlord insurance, she may have a difficult time with the claim.  If she had landlord insurance it would cover loss of rent while the place is getting fixed up.