All Forum Posts by: Allen Tracy

This was Donny's response, not sure what can be done at this point.

"we can get money for the tenant to let them stay..its called impact and prcwe do that 24/7..but they have to apply and get approved"

Oh wow, hadn't heard anything about that, thanks for the heads up, I'll ask Donny about that.

I don’t know exactly what damages were done for the $12,000 eviction but I know it took a lot longer to get the tenant out.

The inherited tenant I had to evict never wanted to pay full rent, stopped paying rent completely, and stopped all communication.  They were super dirty so cockroaches and bedbugs made their way in and into the other unit which was over $1,000 to treat. It took a couple of months to get the tenant evicted since the courts are so backed up, then $500 to clean the place out after they left. I think I was lucky though since they didn’t do any damage and they weren’t a big hoarder. 

That was in Columbus. It included lost rent for the time it took to get them out, legal fees, and damages they did to the property.  

Not sure on the legality part but are you sure you want to rent to a high risk tenant?  I just lost around $4,000 to evict an inherited tenant and another investor I know just lost $12,000 to evict a high risk tenant he thought would be ok to rent to.

Same as what @Cuong D Nguyen said.  I just finished a rehab with ERA a few weeks ago and I was very happy with it but you have to chase them a bit for updates.  They don't give you a timeline unless you ask and I had no idea the rehab was even done until I saw a flyer advertising the unit for rent.  They charge 10% on top of the bid but from all of the other investors I've talked to ERA is really good at getting low bids.  Their scope of work will always be bare minimum though.  They do just enough rehab to get the rent they think they can get but you can spend a few hundred dollars more here and there to make the place nicer which usually (not always) makes the tenant treat the property better.  Also if you plan on refinancing or selling you'll have to suggest getting quotes on additional work.  

The wood floors weren't in good shape and the tiles in the kitchen and bathroom were terrible but they didn't have anything for those in their scope.  I ended up adding LVP to the entire place which almost doubled the bid but I plan on refinancing so it was worth it.  The bathtub didn't look good and the shower surround was old and yellow, they were just going to clean them.  The basement floors looked terrible, and the kitchen cabinets looked really old.  I ask them to reglaze the tub, replace the shower surround, paint the basement floor, and paint the kitchen cabinets.   Lots of little things like that.

Either way they get good work done, they get it done decently fast if it's just all cosmetic, and I feel that it's totally worth it as an out of state investor.

Thanks for the update, I remember reading about these a few months back, didn't know they had passed.

I don't know for sure and I haven't done it before but I've heard you can make it part of the purchase agreement that the unit will be vacant so the previous owner has to get them out.  That may have to be part of the original purchase offer contract though, not sure if you can add it after your offer is accepted.  One of the tenants I inherited I was able to keep month to month.  You may be able to give 30 days notice as soon as you take ownership of the property and if you're lucky they'll leave willingly.  I ended up having to evict my inherited tenant after she had multiple bug problems from not cleaning the place and stopped paying rent with no communication.  I believe the eviction moratorium is only for those directly affected by covid but the courts are really backed up right now even for non covid evictions.  Mine took about two months from the time we filed to them being out of the property.

@Young Park I'm not sure who created it.

Investment Info:

Single-family residence buy & hold investment in Chatsworth.

Purchase price: $760,000
Cash invested: $330,000

My primary home that I house hack and rent out to film companies for movies, television, and commercials. Some of my clients have been Honda, Lifetime Network, Disney, Harbor Freight, Orbit Gum, Lionsgate Studios. The rental income covers my mortgage. Instead of having one person rent for 30 days I have 30 people rent for one day averaging about once a month. I also took out a HELOC on this property which enabled me to purchase duplexes out of state.

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

When we were visiting the home during an open house we noticed there were some filmings happening down the road. We asked the seller's realtor about it and he confirmed there were a few houses in the area that made good money renting out their home to film crews.

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

Found on Zillow, negotiated through realtor.

How did you finance this deal?

40% down to get monthly payments down to manageable amount. I was able to pull this money back out as a HELOC at a later time.

How did you add value to the deal?

I started marketing this property to film companies.

What was the outcome?

The rental income covers our mortgage.

Lessons learned? Challenges?

Banks will not consider the money from the filming rentals as income when trying to get a loan because it's not steady rent. Set rules for each film shoot or else they will go through your closets, take naps in your beds, bring pets into your homes, borrow personal items, and leave tons of garbage behind. Also, the really large film shoots may pay a lot of money but they are very hard on the home and the neighborhood.