All Forum Posts by: Andrew Kessler

For properties with inherited tenants that are currently on month-to-month leases how do you personally go about the leases in place/rent increases?

If the tenant is month-to-month do you have them sign/agree to your lease upon taking ownership or continue with the one that is already in place? (My lease is more thorough and has been reviewed by multiple attorneys).  My plan is a gradual rent increase over 3-6 months to move up to market for this specific example. 

My thoughts are to bring documentation for the first rent raise and our lease agreement to the tenant upon taking ownership. 

Any feedback is greatly appreciated, thank you! 

 Eric Reiss https://www.smithreiss.com/

Very personable and easy to work with. He has me on Grange Insurance, I believe they are out of Columbus, OH. Would highly recommend. 

I would like to hear more in detail about his land deal for that senior living community. Regardless if you agree or disagree with his opinions, it was awesome to see him on the podcast!

Hi Katie! 

I am also self-managing/house hacking a duplex currently. For my property I ran a full background/credit check/income verification on the potential tenant(s). I stated up front that the cost of this would be (x) amount of dollars. This helped weed out anyone who was serious vs. those who would potentially waste your time. If they were willing to pay the money upfront to run the background check then we took them as a strong potential tenant. 

I just made sure to let anyone know that if we did not choose them that the background check fee was non-refundable and if you were chosen, you would get reimbursed on 1st month's rent. This has worked out great for us and our tenants have been phenomenal so far. 

Those who are unwilling to provide simple basic information are those I would stay away from. It is always a great idea to have as much information about your tenants as possible. I personally would rather wait and find the right tenant(s) than rush to get someone in the property who is a consistent problem.

Best of luck! Hope I could help. 

If the property is in good condition all around I would look to raise the rent on the 3 bed/2 bath unit since it is currently the same price as the 2 bed/1 bath. What are current market rents for 3/2 and 2/1's in your area? 

I would factor in a certain % each month for capital expenditures, such as a new hot water tank, furnace, etc. If you set aside some money each month for these future expenses it will help you be better prepared for when those expenses come up! 

I personally would paint the paneling if keeping as a rental, if you flip it I would go with sheetrock. Good luck! 

Hey Josh!

I would have a number in my mind that would be the highest purchase price that would still make sense for you and your numbers. When you're on the phone with the property owner you could ask to walk the property with them for you to be able to give the most accurate offer. That would allow you to do your due diligence in the home and decide if it makes sense for you to make an offer. If you haven't already I would look into Sterling White. He's been on the BP podcast and is frequently on the BP youtube page. I've learned a ton in this area from him!

Thank you both for your responses! 

Hi all,

One of my real estate goals to drive growth is to acquire some seller financed properties. Any tips, experiences, or guidance would be greatly appreciated!