All Forum Posts by: Andrew S.

I have one set of account for all units - Maint, Security deposits, Taxes/ insurance, General (incoming rents & mortgage payments), profit. 

Offer him his full deposit back to  leave. Regardless of condition

Find a house in a good location and house hack it. House hacking (eliminating your housing expense) will probably do more long term than a flip would. And be more educational. 

I'd recommend laminate, easy to DIY and cheap. Looks nice. I've had 4 people assume my countertop was granite (it looks good). 

I would let them know that their current lease is ending in 30 days and their new lease (your lease) is starting then.  I purchased a 6 plex unit a couple years ago and it was fairly smooth transferring over leases.  With my new lease I did a rent increase in another 2 months.  I wanted to give them time to find a new place if they desired to.  I also made a regular presence at the apartment to try to let me know that I cared about it. Painting exterior doors, clean up the lawn, minor landscaping.  Arguably not "need to do" items; however it shows that you care, which makes them more willing to pay higher rents. 

You won't need to pay to have the current tenants move.  One thing to consider is that they're currently paying under market rent.  Fair assumption their apartment conditions are below nice & shiny fair market rental today?  The few thousand it may cost to increase each unit up to nice & shiny fair market rent, may be years to get paid back.  I've gradually bumped my rents up so that there is enough leftover cash flow to fund any future turnovers.  Food for thought, do what works for you. Enjoy and congrats

Request closing being delayed for 2 weeks and the current tenant lease to either not be renewed or renewed on a month-month basis. 

I think that is a great idea @Theresa Harris.  They put skin in the game and you have a good conscience for letting them stay. And charge them a fair market rent for short term or long term rental. 

I would put in contract that house must be vacant before closing. Current owner can deal with negotiations / evictions / cash for keys / etc. Sounds like more of a headache than a blessing

That would turn into a squatter situation it seems like.  I would recommend giving them a 60 or 90 day notice with your intention to move in, which will show good faith on your part and give them ample time to find a new place to live. Let them know you plan to give them their full security deposit back assuming they clean the place. 

I'd be hesitant to fireproofing, adding a sprinkler system, and trying to make the 100 yr old house up to new construction code.  It would probably have no return on investment and require significant investment.  There's fire barrier 5/8" drywall that you can throw over lathe, or when building walls.  Another investor I know had to fully fire barrier separate between 2 units that we had creating out of a single family, and the cost ended up killing the deal.  He was already in the process so he had to do it, and made no profit on the flip. 

I'm not implying to make your property unsafe, but there's probably no need to bulldoze the building and rebuild a new one so it's up to code.