All Forum Posts by: Alan Y.

Tenants lease ends 4/1/24.  I reached out 2/1/24 to see if they planned on moving at end of lease and they said they would be staying through Fall 2024.  On 3/5/24, I get a text that they are moving 4/1/24 now.  This is less than a 30 day notice when they are supposed to give 60 days per the lease.  Am I entitled to the security deposit (period or only if I cant get the house rented right after they leave or just let it go?).  Tenants were great, paid the year in advance, clean, nice.

Investment Info:

Single-family residence buy & hold investment in Trafford.

Purchase price: $60,000
Cash invested: $12,000
Sale price: $131,000

SFH with equity that needed some repairs.

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

I read a book on lease-options and thought it was the easiest and most profitably way to break the ice in REI. This was accurate! Not only did my wife and I learn so much by doing a lot of the rehab, but we also learned how to manage tenants during Covid. Literally, the month we approved our first tenants was 3/2020. It was as profitable as advertised. Tenants weren't difficult until the end when they could not purchase. I kept option consideration and half of new boiler cost.

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

Zillow.com. House was sitting for at least 6 months and went from $107,500 with an appraisal that supported it, to $79,999. Offered $60K and it was approved and finally closed 6 months later. Owner lived in Thailand at the time and communication was rough, house was totally outdated (cosmetically) and had some knob and tube so I think other investors lost interest. It was worth the wait for us!

How did you finance this deal?

20% down conventional loan, 15 year fixed.

How did you add value to the deal?

Ripped up old carpets and laid new laminate flooring all throughout, new trim, a lot of drywall work due to lack of temp control, new paint all throughout, added wainscoting over tile bathroom and hallways as easy and inexpensive fix. Waterproofing the basement. Cleaning out house and 2 car garage.

What was the outcome?

Tenants moved in 4 months after purchase on a 24 month rent to own contract. Tenants really mostly kept to themselves and paid all their bills for the most part on time and stayed ahead on utilities. We had to change the boiler so we split the cost. Tenants ultimately broke up during tenancy and could not afford to buy the house at the end. They were a little upset about the boiler but it was part of the provisions in the lease. Sold house at top of the market after for $20K more than R2O price.

Lessons learned? Challenges?

I thankfully fully vetted everyone who applied and picked the right people, even if they didn't purchase.
Learned - don't do everything by yourself. What took me 4 months could've took 2 with some help and save some money.
Always stick to what the lease says. Don't be a jerk but if they are late ask them about it and see their reasoning. Send late fee if needed.

Thanks for the feedback, Rick. This is all good know and we have one right in Irwin.

I'm shopping around but to save some time and confirm, I thought I'd also ask in a forum. Appreciate everyone's feedback as to who they use and why!

Investment Info:

Single-family residence buy & hold investment in Trafford.

Purchase price: $60,000
Cash invested: $12,000

SFH with equity that needed some repairs.

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

First, the area and equity and the cash flow potential. It mostly needed cosmetic work. Penn Trafford is a great school district and the street is very quiet.

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

On the MLS. It was listed over 100K a year ago and I first asked for 40K and got turned down. After some time, I reached out for 60K and it was accepted.

How did you finance this deal?

Conventional fixed loan

How did you add value to the deal?

Replaced older carpet with laminate flooring, repainted entire house. Drywall work. Removed knob and tube that was in basement and attic. Removed upstairs kitchen (originally a duplex) and added large walk-in closet.

What was the outcome?

The goal is to R2O once repairs are all completed within the next month.

Lessons learned? Challenges?

Check zoning when buying what you expect to rent as a duplex. Have people in your life encouraging you to win and look for people who you can trust to help with repairs and the business side of investing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent was not a real estate investor but is great for buying own home. My lender also had challenges and was not good with communication. I'm looking for a real estate investor in my area with experience who we can team with me as we help each other with or goals. I am also looking for a lender with real estate investing experience. Would love suggestions!

Hi Joe and Kenneth. Also just got started in Real Estate Investing and bought my first REI property in Trafford. SFH fixer upper. I'd love to connect!