All Forum Posts by: Bartholomew B.

I had a tenant move in who agreed to pay for a year upfront because he had no credit score. He passed away two months into a 12-month lease, and now his brother is asking for a refund of the unused rent. I have no problem returning the unused rent, but I want to make sure I return it to the proper person. I believe the brother is the next of kin, but I have no way to verify that there isn't a wife, child, or some other relation that should receive the refunded rent. 

I asked the brother to get named the administrator of the deceased estate by a probate judge before I would release the funds to him. The brother is getting agitated with the situation and wants the funds returned. Has anyone else had to deal with a similar situation? How did you handle it? 

I invest just north of Rockford in Machesney Park, IL. I would recommend you check out the Rockford Apartment Owners Association. I'm sure you can find a member that is or has implemented the exact strategy your looking into. 

Have you driven by the 50K and under houses in Rockford? You're going to want someone very familiar with the area to guide you in your property selection. These properties are likely in rough areas and need extensive work.  Are you trying to get HELOCs on the rental properties? If so many lenders will have a 6 month seasoning period before you can take out a loan. I don't see any holes in your strategy but go into it knowing there is a lot of work involved in low price point rentals. 

I invest north of Rockford, in the Loves Park and Machesney Park area. Not the same area your looking in but I'm happy to share my numbers. Cap rates are in the 8 - 10% range and the vacancy rate is right around 8%.