All Forum Posts by: Will Kenner

@Michele Fischer great lease content!

@Cory Palmieri Congrats on taking the first steps in real estate! The best part is you have a lot of great options available to get started. If I had to go back and start again, I would definitely start with a du/triplex for sure. Although the favorable VA/FHA financing will be available to you whether you go multi-unit or SFR, my opinion is going with a multi-unit will be better in the long run. Not only are you able to jump right into a multi-unit property with the lowest down payment possible, (such an incredible advantage compared to the 20-30% down for those who can't be owner-occupiers) but looking forward to the time you move out of the property, having individual rental units can be easier to manage than an SFR with a bunch of rented rooms. Now, that's not to say there aren't benefits to renting rooms, many people do that and do it well. Just my preference would be to utilize a VA/FHA loan to acquire as many units as possible (up to 5 of course) instead of rooms. Good luck!

@Erwin U. I agree with @Colleen F. and @Nathan Gesner that consumables are tenant's responsibility. As Nate also pointed out, going forward it's import to specifically outline in detail what is Tenant vs. Landlord responsibility in the lease. That way tenants will be informed ahead of time how things will be, and if any issue comes up, you're simply following the lease - easy! 

The transition period between having existing tenants on old leases and getting new optimized leases can be tricky though. With your tenant currently, you might not have provided a shower rod for your other tenants and properties, but with this tenant that doesn't matter since she didn't move in under your watch. Most likely she was provided a shower rod upon move-in. In a case like this I would simply replace it and start focusing on drafting new leases. Chances are, supplying them with that new highly detailed lease will be enough to make them move at renewal. Otherwise, the other items you mentioned you've completed seem fairly reasonable. It's always a balance between making the tenant responsible for their actions but also taking care of your property. If the tenant's see that you don't care, you can't expect them to care either. 

Thanks @Jill F. for the advice on blinds, that's a great item to include. I'll have to add that to my leases! 

@Juan Hernandez I’d start by just giving your local banks/CUs in SC a call and see what they say. If you need a lender in the same state as the property, easy enough to TVFCU a call and research others in TN. Good luck! Let us know how it goes.

@Juan Hernandez I've had my best commercial loan products through local banks and credit unions as well. It's a completely different experience using them vs. a big bank. For example, on the last deal I completed, we had to extend closing by a month. I was used to having to deal with rate-locks and potential for going back to underwriting when closings were extended with the big banks, but with the credit union I didn't have to deal with any of that. Since they are more independent, the rate they gave me from the start was honored through the whole process without hassle. 

@Jared Hottle In deed, love it when it's only a cosmetic job. I actually look forward to a turnover in those cases! Unfortunately we're going to have to replace the cabinets on this one, so waiting for those will be the longest part of the job. Was hoping to simply paint and refinish but too many of them were in bad shape from decades of use. Bummer. 

How much extra time is doing orange peel and knockdown adding to your projects? Best part of doing that is you can even make a Level 2 drywall look good! 

Demo well underway today on a unit rehab that was a time capsule from '91. Looking forward to bringing modern touches to this place! What rehabs are you all working on? 

Next up, scaffolding to get these lovely fixtures down! 

@Account Closed I don't think your request is unreasonable at, rather it's what you should do. Another way to look at it is, how would you feel paying for all those repairs after closing? Do you have the funds to do so? With those added costs, does the property still make sense buying it at the contract price? If not, then hold to your position. The deal has to work for you. Of course the seller is going to tell you that "everyone wants the property". But do those "interested parties" know about the roof, boiler, foundation issues? Probably not as it's just initial interest. They haven't done any due diligence like you have. I'd call his bluff. Specially with potential foundation issues, that can get expensive. It would be better to pass on a deal that doesn't make sense, then to force it and be stuck with huge expenses that won't make you any additional money, rather just get you back to square 1. Additionally, it's not fun when the boiler goes out and you have cold tenants and HVAC contractors are booked out weeks if not months. Not to mention if you have to start digging up foundations. Take those issues seriously and ask for concessions on any large repairs that you find. 

@Ashly B. Definitely recommend getting paired with a great accountant who knows real estate. Be sure to hire an accountant that is a tax planner, not just a tax preparer - huge difference. As you continue with your real estate, the tax savings with a tax planning accountant will far outweigh the cost, not to mention eliminate the headache of trying to prepare your own taxes. Your taxes will become more complicated, as you are already seeing, as you transition properties to rentals and complete rehabs and acquire more properties. Getting it right from the beginning will make things so much easier down the line. I have experienced this first hand beginning my real estate journey with a tax preparer who was not proficient in real estate, and then switching to a real estate fluent tax planner. The initial cost of switching was a shock at first, but after the first return the money saved in tax optimization made the cost seem insignificant.