All Forum Posts by: Adam Reed

thanks for the replies. I guess the main issue is that I've been reading that you should never accept cash. Otherwise they are perfect tenants. I think I'll go the money order route, as record of payment was also a concern.

I bought my duplex 3 years ago as a house hack (before I knew what a house hack was). I inherited tenants who are fantastic. Quiet, clean, always pay rent a few days early and have been okay with hefty rent increases (nearly 100% over 3 years).

The only problem is they can only pay cash. This hasn't been an issue up until now, as I wasn't planning on growing an actual business from any of this. Things have changed (thanks Bigger Pockets!) and I'm getting myself organized for the next few investments. If these were new tenants, they probably wouldn't make it past the initial screening. 

How problamitic is this? What would be the best way going forward to collect rent from them?

Investment Info:

Small multi-family (2-4 units) private money loan investment.

Purchase price: $230,000
Cash invested: $250,000

Bought this two family before ever considering actually being an investor. I was just looking for a house that I could live in that would also pay my bills.

What made you interested in investing in this type of deal?

I thought it was a good investment.

How did you find this deal and how did you negotiate it?

Through a realtor. I wanted to go in with a lowball offer (that my agent advised against). I didn't care and we got the price I wanted.

How did you finance this deal?

Cash

How did you add value to the deal?

New boiler, hot water heater, coin operated washer and dryer and new electrical panel for whole property. Unit 2 got new paint and very mini-renovation for the kitchen.

What was the outcome?

Currently renting until 1 for $1,500/month and unit 2 for $1,600/month (when we aren't living there). Current estimated value of the property: $310,000

Lessons learned? Challenges?

Always learning, but luckily

My very limited experience working with realtors hasn't been great. But I also never took much time to vet anyone. I just called up an agency and said "hey I wanna buy stuff." I was buying in a market that I was very familiar with and didn't feel I needed too much extra support. Now I'm starting to "formally invest" and looking outside my current market. I would like to find an investor friendly Realtor but unsure of how to approach them. How do I interview these people? What questions do I ask?