All Forum Posts by: Dewain J.

@Theodore Arzt Yes this is a old post, but the good thing is, 2 years later I know the answer to this question lol. 

Definitely screen them at least through the eviction process. A couple people I had to evict, (the most troubling tenants smh), easily would have been disqualified with ten minutes of screening. 

In terms of credit, I'm not checking their credit. I just try to verify they have some income and some good sense. The income just needs to be enough to cover their portion.

But honestly I really agree with the others who say vet them just like you would any other tenant. I'm going to stop skimping on the background check. The more info the better. You'll have a better understanding of who you are dealing with. It's worth it. 

I recently purchased a property in my LLC that I did such a great job on it that I decided I want to keep it for myself lol.

Initially the plan was to do the normal BRRRR. I was going to rent it out and refinance out of it to pay myself back and my hard money loan off.

Now I am trying to figure out the best way to get it in my personal name so that I can get a personal loan on it and keep it. I'm not sure what is the best way to do this without causing myself pain from a tax standpoint. 

In terms of profit, this project actually ran over budget, and there won't be any true profit in terms of ARV vs all in costs.

@James Wise maybe it’s a city by city thing but  I have a few duplexes and they all have only one address. 

I own a side by duplex and the renewal quote for the insurance came in and I looked at it a little closer and realized that they quoted it as if it’s two different locations/premises. 

So while I only wanted covered for 130k, it’s been covered for 260. 

There is only one deed, one BRT number etc.  but they are saying because it has two separate entrances and a wall between the units it has to be treated this way. 

My question is, does that make sense, and if so would I be able to then cut the liability in half on both locations so that I am not overinduring this property?

@Luke Badalaty I'm definitely going to update my lease addendum to include this. Wish I had done it before but what can you do. I'm going to spend a good minute updating my lease addendum to address all these type of things going forward for sure. 

@Cara Lonsdale 

I have a tenant who in a triplex, who brought bed bugs into the building. Fortunately they did not spread up to the other apartments. This was confirmed by the exterminator to be the source of the bed bugs and he said he had them for a while without notifying us, causing the infestation to be worse than it could have been had he spoken up. He also had a roach infestation limited to his unit. The exterminator said that he observed unsanitary living in the unit including pizza slices on the floor. 

The cost of extermination was obviously expensive. Can I bill the extermination charges to the tenant? I'm in Pennsylvania if that helps with potential responses.

@Jimmy Moncrief 

I'm not clear on how that would be any different than having the minimum balance requirement?

It was a typical 75% LTV deal. Nothing crazy. I've done 80% LTV with no such holds on my account. This is on a Refi, so they have an appraisal value to work off of.