All Forum Posts by: Bill B.

So using your math, the tenants already owe you years of increased taxes and insurance costs. For the years you haven’t raised the rent. But here’s my thoughts. 

1) You are probably paying to play property manager. Your property manager would probably charging enough extra rent to pay for their fees. 

2) How much your costs go up don’t matter one bit to the tenant or how much rent you can charge. What if tomorrow your insurance and property tax’s went up $500/mo. Would you raise the rent $500? What’s the plan when the current tenants move out and nobody will move in at that new rate? Your costs don’t matter at all. Only your competitions price does. 

3) If you refinance at a lower interest rate and your costs go down are you going to lower rent?

4) Imagine next week your local market institutes rent caps and you are stuck below market “forever”. With 2-5% rent increases base on rents that are 20-40% below market. (If you haven’t increased rents in years.)

Please reach out to a couple local PM’s. Ask them how much rent they would charge for your property and how much it would cost you I’m betting you’ll find you’ll make more with less work while the tenants receive better service. 

I didn’t know they still built that kind of angled support. I replaced one almost 30 years ago in MN and they laughed at the support. Replaced it with 4x4 or 8x8 straight posts from the ground. 

But my real question is.  Is that really an egress? Is there a way to get to the ground from that deck? It’s not really an emergency egress if you’re stuck on the patio. If the city says it can go I take it out because it’s ugly, even if it’s cheap to repair. 

Is your deductible at least $2,500? Try $5,000 or $10,000? You should never make a claim below $10k anyway. Figure out the payback period. If it’s under 3 that’s a definite green light. Less than 6 is probably still a good idea. 

With a dozen properties over 25 years. (300 property years ) I’ve made 2 claims ($30-35k) and ate 1 ($7,500).  higher deductibles have saved me $10’s of thousands. 

If you buy the townhome you're not renting. If you rent the SFH you're renting not buying. The property type has nothing to do with if you're buying or renting.

Imagine a SFH with 1-3 shared walls, that's a townhome. Cheaper to build, usually cheaper to buy, possible to have more "neighbor problems". Either because you share a wall or have a smaller yard separating the two homes.

You need to confirm interest rates are fixed for loan term, and there are no balloons. Either could torpedo any deal. 

You can advertise as a feature any term less than 30 years remaining, explain interest savings. 

You MIGHT be hard pressed to find “creative financing” buyers who want to put 20% down. Try to find deals that work at 10% down as a bonus. 

$150-$200 if they both came at the same time, or each trip…

Could someone who lives there be given the job of getting those quotes?

I have a property in a 6 unit complex and we don’t use a PM. There are 3-4 jobs and someone takes one each. President, treasurer, and basically everything else.   and that’s waterfront with docks being pulled inserted, wildlife, water clarity issues and so on. 

If market rent is $2,600 you should be charging at least that. Nobody’s moving to pay the same rent. Time off work, moving expenses, new security deposit, etc etc. 

You’re basically writing them a check every month for $300, are you going to continue to do that after they move out? I doubt it. 

If it bothers you take Michael’s advice. Send in either a 1 time maid service or once every 6 months after they renew at $3,600/year more.  

Heck, You said you were going to play dumb and only raise it $100-$150. Raise it $300 and send the maids every month, you’re still ahead of plan A. 

Who chose the new PM? Have them use the same process to choose a new one unless the current PM is still the best option you have. Obviously someone knows how to do it if they just did it. 

Heck, maybe one of you 12 wants to become licensed and run it for $500/mo. 

Nobody as paid any property taxes for 20 years and the county hasn’t taken the property back? Usually it’s 2 years for notice and a couple more to lose the property? Even if you just use the 10 years since WF signed a lien release. (In case they did pay it the first 10 years after she signed it back to them.) The county should have taken it by then? Heck, 20 years without insurance is an amazing win  

Does your county not do tax lien sales/auctions? I find that hard to believe. Certainly not a good way to run a county. 

Try to get the quit claim, then try to get a tax lien sale, assuming the property owner gets the excess. If not then just lay the taxes. Maybe just pay them anyway if you have an active tax lien auction group. 

Make sure you are using a true land value, not the number on your property taxes. UNLESS the value of the land and building together are the same or more than you paid. Use the percent of the total of the 2 numbers for land. In almost no county are they the true value. They are often half or some other low number to avoid property tax assesment protests. 

If you paid $200k and the property tax assessor says land is worth $25k and the improvements are worth $75k for $100k total. Then the land is worth 1/4th ($25k out of $100k according to the county) of your $200k or $50k.