All Forum Posts by: Ashley Ernst

I am under contract on a four unit in Cincinnati and looking for property manager recommendations. Specifically want someone who is responsive, has integrity, and specializing in Section 8. 

Hi Robin - All residential, 100% occupied. I’m buying. 

Looking for recommendations for a commercial lender for a 6-unit property in the Cincinnati area.

 Michael - This was super helpful and, quite frankly, your comment that "what are the chances the seller is a flipper who threw the first applicant they got into the property just to make a sale happen" is what my concern is.  Seller owned the property 4 months and did some remodel before putting tenant in the property and immediately selling it. Property is rented for $100 over the avg for the C+ area, which already made me suspicious, but when running the numbers, it still cash flows even if I assume avg rent for the property. Property was a rental prior to this for several years (I confirmed with prop mgmt company that used to service the property prior to the Seller buying it.  This morning I finally received the report run on the tenant prior signing the lease.  Tenant has poor credit, no eviction history, and two historical collections on record.  To me this is a ticking time bomb...

 No, sorry. I was not clear.  tenant paid first month's rent prior to moving in.  When second month's rent became due, she is 10 days late.  

Thanks, Dave.  This is the first payment from the tenant under the lease (aside from the security deposit), and we have documents (and seller confirmed) showing it was 10 days late. I can survive an eviction financially, but it would mean zero cash flow for me in yr1 if this ended in a worst case scenario of tenant not paying rent for 2 months and cost of eviction. So from that perspective it's not ideal.

Here's the scenario: In escrow on property, seller provides rent roll and tenant is 10 days late on first months' rent. Note, lease was signed right before listing property, so this is first time rent has become  (i.e. 11 more months left on lease). Under lease agreement, tenant has 3 day grace period before late payment. So effectively tenant is 7 days past grace period. Is this a red flag for those who are experienced investors? This is my first out of state investment property and i want to make sure i'm not buying a sour deal with a problem tenant. Would you run from this deal or continue?

Here's the scenario: In escrow on property, seller provides rent roll and tenant is 10 days late on first months' rent.  Note, lease was signed right before listing property, so this is first time rent has become due.  Under lease agreement, tenant has 3 day grace period before late payment. So effectively tenant is 7 days past grace period.  Is this a red flag for those who are experienced investors? This is my first out of state investment property and i want to make sure i'm not buying a sour deal with a problem tenant...

 Because I don’t want to leave all my cash in the deal, so I can use it for another property? Paying all cash was simply to have a competitive offer and get the property at a discount. Must I get it out? No. Would I like to get it out? Yes. 

 Because I don’t want to leave all my cash in the deal, so I can use it for another property? Paying all cash was simply to have a competitive offer and get the property at a discount. Must I get it out? No. Would I like to get it out? Yes.