All Forum Posts by: Al Pat

@Yusef Griffin I know this Portfolio and looked at it. It has extensive repairs and it is in a bad part of the town so stayed away from it. I don’t think you will get appreciation or higher rents.

@Jason Allen I think most landlords know cost of turnover is far more expensive then reduced rent. I always try to find creative solutions for my tenants in need where they can pay weekly or biweekly, I also deferred rent up to two months and allowed them to get on payment plant and that was even before COVID-19. Granted, these exceptions are truly by expectation based on their past payment history, how they care for the unit, their communication with my team and mainly their attitude towards us. However, will see how this situation is impacting our most stable tenants.

@Nicholas DeGaetani If the property is condemned then it is inhabitable and hence you can not rent it, at least that is my understanding. My lease says if I can not repair the problem in reasonable time then I terminate the lease and refund the deposit. Give them a notice of termination citing property status and a violation of city rule to live in condemned property. Get it fixed and rent again at market rate.

With federal reserve cutting rates to 0-0.25%, what do you all think about mortgage rates? would we see record low interest rates for refinance and new loans?

@Jason A. I have seen these both for last couple of years. I turned away from it in 2018 when it was on sale. I’m just not sure why current owner is selling it for less than what he purchased it for in 2018. I didn’t like the area and the property when I drove by, specially when looked on by people gathered at the corners ;) just didn’t feel safe.

@Jane S. And you are still waiting on him...? This will happen every month and you will learn it hard ways. Move on and find someone else. My mantra is “Empty house is better than having a bad tenant”.

@Rick Oaks I always get 30 year loan and recommend to everyone. For one it improves the cash flow and helps with deductions but also leaves capital for me to use for the next deal.

jannice - I had properties with septic system before and let me tell you there is NOTHING that can cause major damage. There is a filter (made of PVC) between the septic tank and the house. Very likely, the snake that has a claw in the front cut through the filter and went into the septic tank. The filter is typically 24" and septic pumping guys charge anywhere from $110 to $160. this filter keeps hairs, and sanitary napkins etc (items that not supposed to be in septic system) keeps from entering the tank. Yes, the filter now needs to be cut through, which can be a pain, but your tenant or plumber can open septic lid (about 2 feet in the ground), where they pump the tank from and fish out the snake and remove the claw head and pull the snake back, that is what he is saying is wrapped up in the septic system but it is a tank. There is practically no way a cable will go into leaching fields, so do not buy that BS. Look up septic tank filter and you will see online, just sawzall it,again easier route is to remove the snake claw and pull the cable back. Don't fall for plumber's scare tactics. Also, I do not recommend giving tenants discount for the repairs, trust but verify. I have guys who do the work in the house but I always check and review if it is repair worthy or made up things.

@Ryan Commesso Zillow, Hotpads and Trulia are the same owner by Zillow and will charge $9.99

@Lyndal McMurphy I had similar situation where water heater was shorted and caught on fire, tenant acted quickly and used the fire extinguisher to put it out. Fire extinguisher came with the property when I bought it from previous landlord who was a fire marshall. Thank god!!

I moved them to extended stay hotel for $165 and it took is three days to clean and replace water heater. She was so grateful and I wrote it off as an experiment my tax return for that property.

Fast forward, she decided to move year later and brought her best friend to take over the unit because she liked how I treated her. She moved out and her friend moved in next day, zero turn over cost and increased rent. It paid off.

I would recommend to pay her excess utility bill and write it off on your taxes, if leak is fixed then you don’t need to put them in a hotel.