They said become a property investor it will be fun. *SOMETIMES*

They said become a property investor it will be fun. *SOMETIMES*

Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes

Bought this property a few months back. Got it at a good price in a B area, Parma OH and put some additional capital to fix it up. Just general updating and making it more homey. (I still ask myself why though, tenants just trash your property, they don't care they move onto the next and repeat, that's their BRRR method, BREAK, RENT, REMOVE, REPEAT)

These tenants lived in the home for two months, then they decided to get a divorce. NOT my problem but I felt the effects, they didn't pay me rent. They just stalled to save up for the next deposit and moved out in the middle of the night leaving me with trash, furniture and repairs. Deposit won't cover it all. I've filed for eviction but took back the property, boarded up the broker windows, changed the locks and started cleaning out and getting ready for turn over. I bet the next landlord won't even check their rental history.

This is just a picture of all their stuff I cleared out after they left me in the house. Find it funnier that behind the garage they had a whole bunch of older windows that had been taken out from some unknown property and stored at my property? The guy was a GC/Handyman.

Point of all this? Well investing ain't all fabulous times of sipping drinks on a beach front while your tenants pay you rent. It's sometimes a war out here in Cleveland, OH. I find it amazing when BP members say I'll just self manage it from afar.

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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y

@Federico Gutierrez I have had multiple divorces in properties and you are correct, it is not possible to predict. But as landlord you get stuck in the middle. I talk with them immediately about plans for the house. Is one of them staying and if so how will they manage the payment. If they can't manage the payment, I would let them out of the lease. It is better to get them and their junk out. 

Overall the best part of being a landlord is:

1. The thrill of buying new properties, making offers, getting good deals. Love that part.

2. When you go by a few months with no problems. Money is coming in and life is good.

I am in total agreement with you that problems are just a matter of time. The best screening will not prevent every problem.

@Lionel Li it is very common for people to go through bankruptcy during divorce. People who had otherwise a good history, run into major issues when getting divorced. It is an emotional and financial hardship. You are trying to use logic by saying good tenants wouldn't risk tainting their credit. The problem is logic goes out the door when people get divorced. It gets ugly. 

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  • Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Irina Belkofer:

    @Jack B. obviously you don't buy $750K houses to rent, but your first house was a good deal: for rent and to re sell

    In A neighborhoods appreciation is always a factor. Plus, you can use HELOC to finance your investments! Way to go

    This was actually a house hack, with the intent to stay two years and then sell. But I figured I'd give it a shot while I'm at it. You have to keep in mind, most houses in Seattle are at or near this price range. Even a house in the ghetto here is 400-500K.

  • Investor · United States · Member since 2015 · 415 posts · 487 votes
    9y

    Sorry about your place. That'll ruin a few weekends.


    I have one house that always seems to have something going wrong. Sometimes when I'm over there snaking the same drain that always clogs, or whatever it is, I get to the point where I just want to sell the dang thing. 

    Afterwards, I go home and pull up my spreadsheets, take some deep breaths, bump up the repairs budget, look at how great the IRR still is, and I'm good to go :)

  • Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
    9y

    @Jack B. Excuse my ignorance but why would someone willing to paying 4K not just buy their own property instead of renting?

    But just a little update, everything is cleaned out, dumpster is gone. The broken glass on the doors are now fixed. My GC had to remove the lead glass panels on the front door, lost a bit of character but its now fixed. 


    Side door also fixed and looks like there was never any broken panel. 

    Tomorrow doing some touch up painting and cleaning and should be rent ready by the weekend. At the same time also installing 8 new glass black windows in the basement.

    This was a light turn over I have to admit due to the higher quality area. My plans since mid last year was to move out of the C area's and into B area's. I got tired of seeing holes in the wall when tenants left. Now they least plaster the holes themselves lol. 

  • Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Federico Gutierrez:

    @Jack B. Excuse my ignorance but why would someone willing to paying 4K not just buy their own property instead of renting?


    Because they need the flexibility to move, or have bad credit due to a bankruptcy. For example, one of my tenants lived in a million dollar house, owned his own construction business, was a multi millionaire. When the housing industry turned, he lost everything and filed for Bankruptcy. He and his wife still have high incomes, but their credit is shot....they can't buy a house for a while...

    I've also had tenants who are executives for major companies and they move around the country/world for their career every couple years or so. When you factor in the transaction costs of buying and selling a 750K house, it's a better deal for them to rent. 

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