All Forum Posts by: Anthony McKeen

Fellow BP'ers,

We recently purchased a tenant occupied duplex around 1 month ago.  The existing tenants are long term (5 & 13 yrs).  They seem to be good tenants and don't want to move.  I'm providing new leases and applications as well.  Considering that they are existing long term tenants, do I need to ask for all of the typical info on a rental application?  i.e. bank info, employer info?  It seems that this info is only pertinent to rule out a potential tenant.  I'm still going to have them fill out the remainder of the application just so I have all of their info, licenses and such on file.  Any advice is appreciated!!!

Thanks!

Hi all,

We recently purchased our first duplex and will be closing shortly. We were planning on using Quick Books and I just found out that it's a subscription service rather than a one time payment. All I can think about is how it will eat into our monthly cash flow now. Any advice out there if this is needed with just 1 property? Keeping in mind that we do plan to purchase more properties in the future. Also, if you do use it, which version do you recommend? Thanks in advance!

Anthony

Hi all,

We recently purchased our first duplex and will be closing shortly.  We were planning on using Quick Books and I just found out that it's a subscription service rather than a one time payment.  All I can think about is how it will eat into our monthly cash flow now.  Any advice out there if this is needed with just 1 property?  Keeping in mind that we do plan to purchase more properties in the future.  Also, if you do use it, which version do you recommend?  Thanks in advance!

Anthony

@Nathan Gesner @Zachary Ray @Theresa Harris @Sean Cusack @Mike McCarthy @Adam Zdunek

Thanks all for your input.  It's truly invaluable!  

@John Erlanger @Dena Puliatti @Alex Heidenreich @Calvin Stewart

Thanks so much for all of your input.  It's truly invaluable for us.  Our plan is to have them sign new 6 month leases at the current rent so we can get to know them a bit and see how they are as tenants and then we will re-evaluate.  We will also require them to obtain renters insurance right off the bat.  Regarding pet fees, we are going to grandfather in the current pets and inform them that there will be a fee for any new pets.  We are going to hold off on adding a security deposit for the current tenants.  Thanks again everybody!

Hi all!

We are closing on our first duplex in Ohio 1 week from today. YIKES!!!! I have some questions regarding the existing tenant lease situation and any help from experienced investors would be greatly appreciated!

The existing tenants in each unit are long term at 5 years and 13 years in the property. I'd prefer to continue with some stability and not scare them away. They have been month to month with the previous owner, without a written lease, each paying $700/month in rent. I had them sign an estoppel agreement, stating the above rent payments. We plan to have new leases drawn up and signed by the tenants, sooner rather than later, and this is the crux of most of my questions.

A.) Because they are month to month and have no existing lease, I can have them sign a new lease at any point, correct?

B.) What have you had more success with -- keeping existing rents until the end of the year and then increasing? Increasing right off the bat? Continue same rent for 1 year and then increasing?

C.) Additionally, they do not have renters insurance. Have you had existing renters decide to leave based on being asked to obtain renters insurance? Do you feel it is a necessity that all renters obtain renters insurance?

D.) There apparently was no security deposit in place, per the estoppel agreement signed by the existing tenants and the previous owner. When purchasing a property with existing tenants without any past security deposit, do you typically ask for one with their next months rent?

E.) The previous owner also did not have any fee for pets, and both of the tenants have dogs. I am fine with this, but do plan to have a pet fee.

Essentially, I am trying to figure out the best strategy and timeline to A.) Have tenants sign new leases B.) Increase rent C.) Have renters obtain insurance D.) obtain security deposits and E.) pay pet fees. Obviously there are several things here that could potentially scare away a long term tenant and I'd like to go in with the best strategy. Again, any and all advice/experience would be greatly appreciated and thanks in advance!

Edit signature

Hi all!

We are closing on our first duplex in Ohio 1 week from today. YIKES!!!!  I have some questions regarding the existing tenant lease situation and any help from experienced investors would be greatly appreciated!

The existing tenants in each unit are long term at 5 years and 13 years in the property.  I'd prefer to continue with some stability and not scare them away.  They have been month to month with the previous owner, without a written lease, each paying $700/month in rent. I had them sign an estoppel agreement, stating the above rent payments. We plan to have new leases drawn up and signed by the tenants, sooner rather than later, and this is the crux of most of my questions.

A.) Because they are month to month and have no existing lease, I can have them sign a new lease at any point, correct?

 B.) What have you had more success with -- keeping existing rents until the end of the year and then increasing? Increasing right off the bat? Continue same rent for 1 year and then increasing?  

C.) Additionally, they do not have renters insurance. Have you had existing renters decide to leave based on being asked to obtain renters insurance? Do you feel it is a necessity that all renters obtain renters insurance?

D.) There apparently was no security deposit in place, per the estoppel agreement signed by the existing tenants and the previous owner. When purchasing a property with existing tenants without any past security deposit, do you typically ask for one with their next months rent?

E.) The previous owner also did not have any fee for pets, and both of the tenants have dogs. I am fine with this, but do plan to have a pet fee.

Essentially, I am trying to figure out the best strategy and timeline to A.) Have tenants sign new leases B.) Increase rent C.) Have renters obtain insurance D.) obtain security deposits and  E.) pay pet fees. Obviously there are several things here that could potentially scare away a long term tenant and I'd like to go in with the best strategy. Again, any and all advice/experience would be greatly appreciated and thanks in advance!

Anthony

Hi all! I know I'm even more late to this HELOC discussion but I think it's a beneficial one. My primary residence is completely paid off and I am currently in the process of getting a HELOC to purchase a duplex. Looking in the purchase price range of 120-150K. I am trying to decide if I should use the HELOC to pay the entire purchase price of the duplex in cash up front, or just use the HELOC for a 20% down payment and obtain a mortgage for the remainder. My goal is to have a cash flowing rental unit moving forward. Any thoughts/experiences would be greatly appreciated!! Thanks in advance!!

Hi all!

Newbie REI here. Currently in the stage of analyzing deals and figuring out my best options for financing. I'm looking to purchase a multi-family property in the 100k-150k range. I do have enough for a 20% down payment, but also own my primary residence free and clear (390k estimate per zillow) and could obtain a HELOC to cover the entire purchase price. I'm trying to decide if using a HELOC is the right decision for me. I have some concerns regarding the housing market and my home value decreasing over the next year. My goal is to have a cash flowing rental property and to build a portfolio of rental properties moving forward. Should I pay the 20% out of pocket and obtain a conventional loan? Use a HELOC for 20% down and obtain a conventional loan for the rest? Use the HELOC for the entire purchase price? Any thoughts would be greatly appreciated!