All Forum Posts by: Ashley Schroeder

@Kevin Hunter have you tried talking to them about the late payments?  It seems that they've been relatively happy with you as a landlord and vice versa.  Maybe it just takes some communication.  Maybe they changed jobs or had an illness; maybe they need a different schedule now with a possible change in their life.  Even saying something like "I noticed you were late recently on your payments and I know you guys are normally pay on time.  Is there anything we can do to make sure this doesn't turn into a larger problem?"  Show them you are willing to work with them.  We have found keeping an open line of communication with our tenants really seems to help.  It's allowed for us to plan ahead when a tenant states they were going to be late, even if they were great tenants (ex. our last tenants worked on commission and then all of a sudden her pay schedule changed; it allowed for us to put a new schedule in place).  Definitely keep paying if you always have been though and it "came" with the house

Did they place it initially or did it come with the property already?  If it is a regular maintenance that came with the property then it is appropriate for you to pay for the cost of upkeeping the mulch. If it is something "extra" they added in hopes of improving the property, then I feel it is up to you.  If it actually does improve the property and they maintain things well, I would highly suggest paying for it; but if it is just an extra cost that they just want something because of personal preference then they should maintain the cost.  Good luck!

Just checked out your sites; thought I'd let you know fliper is no longer operational 

You really need to ask yourself, where do you see yourself in 5-10 years? 15-20 years? If your future is with your degree and you just want REI to supplement your income or offer extra cash for whatever your needs, then I say go and get your grad degree right away. As some have already touched on, it is easier to get your degree while you're on the school track (versus going back after taking time off). Especially if you've already been accepted and have potential scholarships and grants. BUT if you see yourself just doing REI for your future then why are you bothering with a degree? As Shannon talked about; degrees are expensive, and loan rates are astronomical (especially compared to investment loans), so why burden yourself just for more education that you will not use? Some of the business aspects might be nice, but they will be completely unrelated to your REI for the most part. Basic business is easy enough to learn and there are plenty of available resources. Good luck on your journey!

Welcome @Adam Stohlman! My husband and myself have been on BP for a little over a week and it is giving us such great insight into starting our REI business! I hope you find much success along with the help of BP's information!

Thank you @Account Closed for the suggestion! I'll definitely check it out as we are looking at the property tomorrow as my COC and ROI numbers are coming out looking good.

Definitely do your due diligence and research what the laws are in Pennsylvania.  My guess is your third tenant is not going to get much better.  For how much your third option seems to be best; I am not quite sure the Jedi mind tricks work on non-Star Wars fanatics... experiment for another day maybe! Maybe there will be some way to come to an agreement with her, but without a signed lease do you have the option to evict then?  For how much you don't want to evict, with the problems you listed that this person has had with the previous landlord and many of her refusals, eviction is probably your best course of action.  She is probably just hoping if she puts up a big enough fuss, you will just give in and forget about the security deposits, lease agreement, etc.  Unfortunately that is not how the real world works.  If you don't nip this in the butt it will only come back to bite you.  I'd put my foot down to an agreement if that is what you are legally bound into, but I'd find the best way to evict if it were me.

You definitely seem correct in saying your other two tenants are nowhere near the problem of the third.  If you are unable to allow any vacancies at this time I would get a game plan started.  If Miss Salon Owner is evicted then I need Artsy and NoCo to stay then I will give them notices of rent increase and new leases in x amount of time (again always check with local laws as to any legal notices you have to give).  If you come to an agreement with Miss Salon Owner then within your given restrictions send out notices right away to Artsy and NoCo informing them of rent increases, and a reminder of when rent is due, penalties and fees for late rents, etc. and then hold them to it.  If you aren't looking to increase rents anytime soon then leave it be and good luck with Miss Salon Owner!!!

The townhome/condo does show nicely in the pictures but there are a few larger things that trigger concern (and you would want to check out).  Maybe they aren't major but they may be.  Such as a very large space heater in the bedroom.  I understand it being cold (we get -40F temps at times during our winters), but your house shouldn't need a space heater that large (unless if it is a personal preference).  Also in a lot of picture there seems to be electrical wires hanging.  In the basement they have a light with outlets at the top.  Are these signs of not enough electricity?  Needing a new panel or rewiring?  Again they may not be major; and with it cosmetically looking okay maybe you'll be able to afford to do some major updates that don't pass inspection or are not up to code.  Just some things to keep in mind!

Thanks for the info!  The cap rate works out but my comps are all over the place, but it gives me more info to ask my realtor.

My husband and I are new to multifamily purchases.  What is a good way to figure out what the property is worth?  Looking at land/tax records indicates the seller is way overpriced (by $100k), but I know that is not what they all go on.  This is only a 12 unit, 3 building property.  There aren't really any compareables in the area; there are either larger apartment complexes or duplexes.  

It is a low rent area, and we are okay with that as long as the ROI is within range. The landlords claim most of their tenants are long term as well as large referrals to his complex because of their "friendly" nature. (My best guess is these are all Mexicans working at local farms and the local slaughterhouse and when family comes up from Mexico they advise renting in this smaller complex which would be great for us). They are getting way below what rents of units of similar size are going for around that area, but even without changes to the rents, the ROI will come out where we want them as long as we stay under a certain number for the purchase price. (We do plan to update units as people move out as it is definitely needed and we will be able increase rents accordingly without a problem - the area still supports all of this).

Any advice?  Thanks!