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All Forum Posts by: Alex Johnson

Alex Johnson has started 3 posts and replied 36 times.

HELP!  **I know its long, but please read**

My step brother and I bought a 2 family home in MA, in a great location.  We both work from home, and live in the top unit.  Our tenant is a 61 year old woman, and lives in the bottom unit.  This is our first time as landlords, so we did not do a thorough background check on this tenant.  She had an agent representing her, was 61 years old, willing to pay us $2200 a month, drove a beamer, and seemed like an awkward but nice old lady. Her credit score was also almost 800... so we went with our intuition and let her move in (BIG MISTAKE). 

From October until February, she paid her $2200 on time every single month. She harassed us CONSTANTLY with strange requests during this time period.  She would break things on purpose, tamper with things, and then yell at us via text / email that they needed to be addressed.  I could go ON AND ON with crazy stories, but I don't want people to stop reading before I get to my question... 

Starting in March, she stopped paying her rent.  She purposely created a bunch of issues in her unit, then called the Board of Health and told them we hadn't addressed them.  The main thing being that her toilet was clogged (which she 100% clogged on purpose).   After showing the BOH the crazy emails, texts, and photos that our tenant sent us - they agreed that she might be mentally unstable.  The inspector told us to just quickly fix the issues and then either ask for the rent and/or try to evict.  

After getting marked off by the BOH, she still did not pay rent.  We then had a constable serve her with a 7 Day Notice to Quit (which she completely disregarded, and has not mentioned).  We were about to serve her with the Summary Process Complaint and get her in court, but due to coronavirus this entire process just got put on a permanent hold.  We were trying to evict her based on 

  • Harassment (we have various police reports of nonstop harassment, and she has recently threatened our lives) 
  • Cleanliness (she has overflowed the toilet purposefully and left feces and waste on the floor.  She even has picked it up and put it in the tub, then pretended like it was coming up through the tub.  The DPW proved that wasn't possible and then she admitted to putting it in the tub because it was all over the floor... HUH?!?)
  • Nonpayment of Rent (since she has recently stopped paying all together as well. 

Although she is older and MA tenants have a lot of rights, we were pretty sure we would have gotten her evicted based on the insane amount of evidence we have.

Now - We cannot continue the eviction process because of the Coronavirus.  She has been threatening our lives on the security camera, and we no longer feel comfortable in our own home.  We have three separate police reports, but all the cops can do is call her or swing by and tell her to stop.  They don't have enough to send her to a mental institution or arrest her on criminal charges.  (Even if they did arrest her on criminal charges - those are criminal charges, and not civil charges that will get her evicted).  Our lawyer suggested to try to get a Harassment Protection Order against her to try and expedite getting her out... but the courthouse is shut down and it's impossible to see a judge.  We tried to do it at the Police Station, but most of our evidence is video evidence - and the cops didn't think what we had in writing would be enough to evict her, especially at her age and given the current circumstances with Covid19. 

So basically - we are screwed.  We will not be able to traditionally evict her ANY time soon, cannot get an HPO that will force an eviction, and her lease is not up until the end of August.  We are guessing that we will now have to just eat the $2200 a month for 5 months (she paid first and last, but no security deposit)... and try to sue her after she moves out for all the losses.  We are also scared of her squatting when the lease is up at this point... because I feel like she thinks she can just get away with whatever she wants.  We also feel SOOOO uncomfortable trying to talk to her.  She is clearly unstable and we are insanely uncomfortable in our own house... especially getting nonstop camera alerts of her tampering with things in the basement, cursing us out on camera, etc... 

Does anyone have any ideas?? What would you do in this situation?  I'm officially at a loss of what to do. As of right now, I'm planning to just get no rent for 5 months, get her out of my house, and then sue her retroactively for absolutely everything.  Thoughts?

TLDR

-Tenant (in MA) is crazy, cannot evict her due to covid19, now she is squatting / not paying rent... what do I do?

Just bought a 2 family home with my brother in Wakefield, MA (right on the lake, great location). Looking to find tenants for the downstairs unit since we both work from home and will be living in the upstairs unit.  We were going to use Zillow, Trulia, Facebook Marketplace, etc... but since its our first time, we were thinking about just getting it off our plate and having our real estate agent do it for us.  We are very busy right now, and feel like the broker fee (one months rent) will pay for itself if they can get someone in there much faster than we will be able to.  Do you guys think we are overestimating how much work it is to find a tenant, and underestimating how quickly we could probably get someone in there?  Has anyone else used an agent to get tenants in their first time around?  We just want to make sure we are doing this the right way to kick things off... but also don't want to lose a months rent if its a lot easier / more straight forward than we think. 

Any thoughts or feedback is appreciated!

Thanks,

AJ

@Dan K. @Adam Sankowski thanks guys! That's good to know about the LLC. I just remember reading rich dad poor dad and he talked about protecting homes under llc's, but obviously he was just buying cash so its different lol. I should have probably known that. We will just have one of us put it in our name and then get insurance, and next time we get something, the other one will put it in their name.

That's good to know about the FHA situation. I got a little discouraged yesterday because I really wanted to buy a 2 or 3 family home, but the absolute most we could put down is 70K up front (right now at least). Finding something in the 800K area that we could put 3.5-8.5% down would be ideal... but like you mentioned, we just need to look in the right areas that arent getting scooped up too fast. My best friend's dad is a loan officer and just told me on the phone that they have plenty of products that could get us into places without using FHA for under 20% as well, and knows a TON of the listing agents in the area.

Learned a lot more than I thought I would in just a few days... thanks again!

-Alex

@Seth Williams that is great information, thank you very much! We will definitely do that. We are starting to realize though that we don't have the money to NOT use an FHA loan... so we might have to just look at SFH right now and maybe rent a portion of it out to a friend or something like that... or airbnb a portion of it. Would we have a lot easier of a time closing a large single family with an FHA loan? If so, does Somerville / Medford still sound like an Ok place to do that? Sorry for all the questions, but just taking advantage of the great info!

Thanks again,

-Alex

Wow. Thank all of you guys so much... Really great information!  

@Adam Sankowski -  Thank you for all of that detail.  I just saved the zip code by Night Shift and will definitely be checking out that area.  I kind of had a feeling Somerville was saturated at this point... I was living in Scottsdale for work the past two years, and figured by the time I got back it would be tough to find something good in Somerville. I live in Melrose MA currently (renting) , so its not like it has to be Somerville or Medford.  I am literally open to any good opportunity to house hack (or at least live for cheap while renting), anywhere in the Greater Boston Area (although I would prefer the North Shore, and not TOO far north. 

@Dan K. - That is great information about the 881K, I did not know that... We were going to probably put the house under an LLC that we both own 50% of. I would like us both to be on the loan, since we are very close and I don't see any BS happening between us. I like the condo idea, but I would really love to have someone renting and at least paying SOME of our debt for us. I agree it would be nice to get a 3 or 4 family, but according to @Joe DeFarias , @Justin Rank , and @Adam Sankowski ; it seems like we would need to go in with traditional financing in order to land anything... and we definitely don't have enough for that right now.  Do you guys have any suggestions for raising additional capitol / investors for something like that?

@Seth Williams - Thank you for such a quick reply this morning, sorry for the delay. I just added you and followed your BiggerPockets page. Would love to connect and learn more.  

Really happy I decided to post - you guys are awesome and really knowledgeable!

-Alex

Hey BP,

My brother and I (27 and 31) both live separately in the Boston area, and have an idea to buy a rental property within the next few months. We plan to but a duplex and live in one unit, renting the other unit out (finding a deal that keeps our out of pocket monthly costs minimal). In a perfect world, we would find something in South Medford / Somerville MA. We plan on living there, so using an FHA with 3.5% down, therefore PMI will be involved. Any suggestions?? I'm guessing we will be looking at the 600,000-900,000 range, but I'm a first timer, so this is all just my most educated guess... coming here for advice first.

Any help is appreciated!!

-Alex