All Forum Posts by: Andrew Marsh

I’m looking for some second opinions on a duplex I’m looking at.

This would be my second duplex I’m purchasing. I’ll break down the numbers, but I have some concerns i wanted to get your thoughts on.

List Price 114,500

Top unit rents for 550

Bottom unit rents for 750

Down payment - 25%

Interest rate is 3.125

5 % maintenance

7% cap ex

15% vacancy

5% property management

Taxes - 125/month

Monthly expenses - 1,054

Cash flow 245/month

16+% 5 year annualized return

Numbers are run at a 95k purchase price. It’s been on the market for a month and no offers have been made yet.

Currently both units are rented on month to month agreements.

All utilities are paid by tenants, even water. Both have sign affidavits with the city in the even water bills are. It paid, it’s not the landlords responsibility

MY CONCERNS

Top unit does not have laundry/dryer included - talked about adding it in the basement and is doable without invading bottom units space. Does anyone know what this would cost to add? Ballpark..

Property is at the bottom of a hill and water in the basement has been a reoccurring issue. When I saw the property, the owner’s contractor was there Watweproofing the basement with foam, concrete injections and drylock paint.

House is on a corner and has two small driveways - both are both in pretty rough shape.

@Greg Scott is it possible to get on the distribution list for when meet ups start to take place again?

@Kyle J. Thank you for your response. This makes me hopeful. I know both tenants have a steady job and should be able to afford paying back the rent.

Your article was great and thoroughly explained the process, very helpful! I might have to spend some time figuring out where the tenants work, so I can file the garnishment form with the correct sheriffs department (in the event I win in small claims).

Persistency pays off! Well done. Hoping to share a similar success story in the near future!

Thanks again Kyle

@Chip Marce I appreciate your response. There is more to the story than what I described in my post. The rental in question is a duplex and the ex-tenant was pretty close to the tenant living in the other unit and she would always tell me about the new stuff they would buy. This is more a case of bad money management and priorities, rather than being able to actually afford the place. The reason behind my potential lawsuit is to “hopefully scare” them into paying the unpaid rent. Since having multiple conversations and trying to offer incentives (discounts on rent) has done nothing thus far.

@Patricia Steiner thank you for your reply! I agree with you, they should be responsible for paying their rent. Any idea as to what cost might be to sue in small claims court?

Hello Investors,

I would appreciate some advice on my situation below. I would like to know if it makes financial sense to take my ex-tenants to court for late rent payments or just cut my losses and move on.

Here is my situation:

I gave tenants a 30 day notice that I would not be renewing their lease due to late rent payments. Besides the late rent, they have taken great care of the property.

I’ve been promised on several occasions that all let rent and late fees will be paid in full. The tenants moved all of their personal belongings out yesterday October 31st.

They still owe rent for August ($180), September and October and three months worth of Late Fees ($35/month) for a grand total of $3,085.

I currently have their security deposit of $1,000. The place is en good condition and rental ready as I have been in the unit to show it to new potential tenants.

Should I hire a lawyer and take the ex tenants to court to try and collect the late rent or just keep trying to pursue the rent on my own?

Thank you in advance!

Hello Everyone, Im looking to get my Real Estate license. I currently live in the metro Detroit area (Royal Oak). Any feedback on online classes vs. in person? Also, if taking them in person, do you know of any places in the Royal Oak area that has evening classes? I currently work every weekday 7-5. Thanks in advance