All Forum Posts by: Alex Corral

I have a 3/1 home in great condition for sale. Good producer. Just went vacant and I’ve decided to sell. $110k. PM me for details. 

@Mike D'Arrigo, thanks for the information on the storage time.

Both evictions seemed to be a bit out of the norm. The inherited tenant, the previous PM drug their feet on getting us a copy of the lease and it was also through a rent assistance office. Actually never provided a copy of the lease. Very hard to deal with. The tenant would not respond to our inquiries. The other kept claiming system issues not taking her payment and next thing, we're 2-3 months behind. I'm not sure how often that happens, but I hope my PM has a plan for this next time.

Can this pack out cost be added to a judgment? Unlikely that I get anything back including past rents, but I would like to pursue it anyway.

@Ross Denman, thanks for the clarification on timelines. I will have to go over that with my PM. It seemed to me like they don't issue the pay or quit until 30 days later. I could be wrong, but that's how it seemed from these evictions and me asking the process. I understand trying to work with the tenant to avoid a costly eviction, but at the same time, if things go wrong, that's almost a month lost.

@Ross Denman thanks so much for your reply! I should've clarified this is in Indianapolis, Wayne township, but I think Marion handles it?

It has definitely been a tough process. I'm just trying to better understand the timelines. I could not clearly find how long I would have to hold the tenants possessions, which I also think is pretty unfair to the landlord. I will have to check with an attorney just so I can better understand the process. I thought had read Indiana was a very landlord friendly state.

I agree that evictions should be left for worst case scenario as they are long-dragging and most expensive.

So for example, if the tenant has not paid by the 5th, you can serve a 10 day pay or quit notice? If they have not paid by the 16th, you can apply for a hearing and if you win, the judge may give the tenant 5-14 days to vacate? So there's a chance you can recoup your property by the end of the month?

As far as location, I feel my Realtor did a good job finding me the properties I wanted. They are nice units that are in a solid C area. I invested extra money to update the units, and I think they turned out pretty well. My PM also does a good job of pre-screening. 1 tenant was theirs, another was an inherited tenant. Probably just some bad luck to start my investor career in Indy. We have some good tenants in the other units. I just wasn't sure if these evictions were about average or worse than average. $10k is a big loss to me. I want to be able to be more pro-active when this happens again.

I also had another tenant voluntarily leave and she left the unit clean, and it was turned around and listed in less than a week.

I want to ask your experience with evictions you’ve had in Indiana. What are your typical timelines before a tenant is served with an eviction notice & they are evicted? What has been your experience with costs? What are the requirements to get rid of the tenants possessions they have left on your property? I have been dealing with 2 very long & costly evictions. The tenants stopped paying in September 2018, had their hearing early January. Evicted about mid January.. left all their possessions & I just had to pay to pack up their stuff (over $800). I’m not sure of conditions yet, but I still need to pay for a cleaning, *hopefully just minor rehab.. paint.. etc. But I’m looking at a total loss of about $10,000 total. Would appreciate any advice, where I could minimize this from happening again. I’m a new investor (under 2 years in the game).

Jay Hinrichs Thanks for the reply. I have the insurance side handled. And no, my units are not in the urban core, they are in a better area. I was careful not to buy in the Morris areas, but still affecting me. That's really all the fault of the PM though.

I thought I had dodged the Morris Invest bullet, when I had the gut feeling last year that they were a scam. I did my research & went a different route. Buying from a reputable Agent I met via BP. I bought 3 duplexes, and chose to use a different PM highly recommended to me by BP members for my first 2 units. The PM took my units in March. I just did a surprise visit last week to find my units with 3 feet high grass, and partially completed rehabs. 1 unit never even started. I spoke to the owner & found out this PM took on way too many Ocean Pointe debacles & neglected to take care of my properties which only needed minor rehab. I decided to part ways with them. Extremely frustrating to still have been inadvertently affected by this Morris Invest mess. My units, while not in disrepair are going on 90 days & still vacant. I have moved them to a different PM I met on BP. Hoping they take care of their clients better.

Jonathan Child I feel a little "misled" on how easy it would be to get my cash back to keep investing. It might be my choice of properties (multi-family), but I was definitely not expecting closing costs to be almost 10%. I have 3 duplexes that would've cost me almost $15k in closing costs to get my initial $150k back. All my properties are worth about $80-90k. I think you could avoid the hit for the small loan amount if you buy single family homes of about $120k, but the returns are diminished for me in that case. I worked a deal with Quicken & got my home refinanced, paid off the HELOC & pulled out an extra $80k to look for 1 more property. The closing costs were about .5%. Fixed rate & my interest is fully tax deductible (the HELOC is no longer). Alex

Steve Vaughan I'm now wondering if I can find local credit unions who will do a heloc on the investment properties.

Hello everyone, I just wanted to share and get some feedback from other investors who have used their personal home to get a HELOC and start buying investment properties.

I got a HELOC on my home for $150k. Was able to buy 2 duplexes cash, and was able to negotiate a pretty good deal I think. The issue I have been running into now, is getting mortgages on the rental properties to fund my HELOC again, to continue buying. I have found a few banks willing to lend 70-75%, but the rates take quite a hit.

Investment property

Multi-family

Small loan amount ($50K)

The last Lender I was working with, had my closing costs at about $4600 + prepaids.. $56k loan, I would net about $49k. That is almost 10% in closing costs! Way too high in my opinion. I ended up cancelling all my applications and just doing a personal home refinance for the extra money. My plan is to stockpile as much income as I can from 4-5 paid for rentals and eventually build enough cash to buy another rental. My house payment has gone up, but all in all, it's a better deal than what I would've gotten with the seperate mortages on the investment properties.