All Forum Posts by: Allison Karrels

Thank you all for your feedback.  I read over the lease and the security deposit section is very general.  It just says the landlord must mail the tenant within 30 days notice to impose a claim against the property and then they have 15 days to respond.  

The lease does say they are responsible for yard maintenance.  I do not know if they take pictures on move-out and move-in to help prove issues or if they just write it all down - I will check with them on that.

If they can prove the condition of the property I would say stick with the Cleaning $225.00 and general repair items $82.25 - but get rid of the other charges.   

I have a property manager who runs some homes for me in Florida - today I got this email from her:

I have made a security deposit claim for $518.99 (out of a $1,100 deposit) --  Cleaning $225.00, general repair items $82.25, $150.00 yard service, $30 trash removal, and our usual Admin fee $25 and $6.74 Certified Mailing.

The tenant has disputed the claim and is threatening to take this to court. While I feel that we would be within our rights to claim most of this, it would not make sense to have a possible law suit over $500 that would possibly involve court costs and legal fees for both sides, if we didn't prevail.

So I am inclined to just return it to not deal with the hassle. Thoughts?

What would you guys do in this situation - the property manager is not a big company, they don't have a legal team waiting to swoop in and fight this (which I am sure the tenant knows).   We already have new tenants moved in to the house and spending $518 in turnover isn't a major deal financially - I am more annoyed that the old tenant would dispute it and immediately threaten a law suit.

The blog/podcast I write for, Listen Money Matters, recently interview Chris Clothier from Memphis Invest.  I wanted to share it with you all since I know many here on Bigger Pockets are interested in turnkey real estate or building up a successful business like Chris and his family has done.

I am about to close on a home in Houston with Memphis Invest and have 2 others under management with them.  

Hope you enjoy the podcast!

https://www.listenmoneymatters.com/real-estate-investing-without-the-mess-with-chris-clothier/

I bought my last 2 rentals in Gainesville, FL from Leslie Suskin

http://suskinrealty.com/

Leslie and her husband Marc own a dozen or so rentals themselves so they are familiar with what an investor is looking for. 

Good luck!

@Vincent Crane - it has been a mixture of things.   I did a refi on one property for the downpayment and rehab on another rental.  I used my normal savings I built up over the year for one property and I am using the loan from my mother in law for the downpayment on the final property.

For my excess cash flow each month I have been putting $100/property/month into a separate account which is marked for large expenses (cap ex).  The remaining cash flow goes towards my next purchase down payment.  

With 6 rentals now, if I have no extra expenses each month I cash flow $1,814.  $600 off to cap ex reserves, remainder towards the next purchase.   I used to have my rental income mixed in with my personal checking accounts but earlier this year I separated out my rental property income/expenses to make sure they can be self sufficient.

All were 25% down payment conventional financing.  The down payments came from a mixture of personal savings and a private loan from my mother-in-law.

In 2016 we might be moving and selling our personal home so until we do that I might be in a holding pattern for any new purchases until after we sell our home.

@Shannon Bae - I spoke with Maverick and Philly a lot. Got preapproved and even reserved a duplex but ended up canceling the reservation.  I could not get my husband on board with the Philly area.  He didnt like the row homes or the crime rate and didnt feel like it was worth it compared to where we have been investing.  

However, I was very pleased with my interaction with Maverick, their lenders and their partners.

At the beginning of 2015 I had 3 single family homes and next month I close on my 3rd home this year bringing me up to 6 rental properties!  

It has been a fun year and I am excited to continue to grow our long term cash flow rentals :)

I only had 1 rental prior to the RE crash and it didnt slow down at all.  Now I own 6 rentals and I am going to relax for the 6-9 months and put some excess cash flow towards my mortgages since I think the housing market is heating up a bit right now.  Balancing your purchases with your amount of leverage will help keep you in check and prevent you from crashing & burning. 

Good luck!

I would not evict them. I would raise their rent and raise your insurance but keep them on.  They have a good rating, so they are keeping the house in good condition, they are paying their rent. 

yes they should have told you they are doing this so you can protect yourself, check with your attorney what else you should do.

good luck