All Forum Posts by: Robert Belz

Hi @Colin Williams

With month-to-month leases, it sounds like the most straightforward option is to give one of the apartments an 'End of Term' Notice, effectively ending one of the leases. Then fix up the unit and rent it at market value. Once that unit is full, end the other lease and repeat. 

Another option is to increase rent to market value without fixing up the units. The decision is then on your tenants then whether they stay or leave. You should be able to do this as the tenants are currently month-to-month. Good luck!

Hi @David Sienema,

Sure thing. This was for a property in SLC, UT. I tried to stay away from the big guys: Wells Fargo, Chase, BoA, etc. Even the more regional banks (Zions, UT Bank, US Bank) were either not offering the the product or were not competitive. I ended up calling a lot of Credit Unions, and America First Credit Union ended up having the most competitive offer for a non-owner Occupied HELOC.

Since I can't speak to your market specifically, I'd recommend calling regional credit unions, as more of them seemed to offer that product. 

Hi @Evelio Martinez,

Sorry I can't speak to the South Florida market, but I was able to get a non-owner occupied HELOC on an investment a few months ago. I probably called 25 banks and credit unions, only a handful offered the product, and only one was a fair offer. I'm sure if you were looking for a owner-occupied HELOC you would find willing lenders, especially since owners now have significantly more equity in their homes as the real estate market continues its current tear.

It's safe to say that underwriting typically takes longer and requires more information/detail from the customer when compared to pre-pandemic times.

Hi @Elliot Cole,

Not much help here, but I'm based in Las Vegas as well, and would definitely be interested in a meetup. 

@Marqus Freeman

Zelle, Venmo, and PayPal are all solid choices, and I particularly like the ability to 'Request' money from people on these Apps. It serves as a little reminder, and they should receive a notification on their phone.

ACH method or Zillow (assuming you pay for the service) are also safe bets. 

@Tony Wilcox

Thanks for the input. I could be off the mark then. During the closing process of my last MFH I received two quotes for premiums: one agency provided by the lender, the other quote from the agency I always use. The premiums were very different based on the amount of coverage on the dwelling. 

Hi @Luis L. González París,

Great question with a lot of options. 

-The easy answer is to start the rehab on the vacant unit and the exterior. This could give you the time required to wait for a current lease to expire.

-If you find yourself in a hurry, you might consider negotiating a lease buyout with your current tenant in order to have them vacate. 

-If you find yourself under contract, order an inspection that includes meth. If a unit comes back positive for meth, then the tenants will be required to vacate due to unsafe living conditions. Recognize that you or the seller will be responsible for decontaminating that unit. (I'm happy to talk more about that if you'd like. It is not as scary as it sounds.)

-I have heard of certain lease agreements containing a clause known as Sale of Property. This clause would allow the owner to terminate a lease with a current tenant. Typically this happens once the owner has entered a final earnest money agreement with a purchaser. I would ask for the current leases of the Triplex, see if that clause is present, and ask the seller if he/she would consider it.  

-Tell your tenants your plan... you plan on rehabing each unit to add value and increasing the rent. Are they interested in moving into your recently renovated unit?

Good luck on purchasing the Triplex!

@Jordan White,

I'll have agree with everything above. 

Let your insurance company know its a non-owner occupied investment property / If it's your first rental property and a SFH, an umbrella policy is probably overkill / it is smart to require Renters insurance

The one thing I'll add regarding insurance policies is that you have a vote as to what the limit is for your 'dwelling' on your policy. A lot of times insurance companies will increase the 'dwelling' limit to include both the structure and the value of the land it sits on. This allows a company to charge you a higher premium based on the higher limit. Fortunately, you only need coverage for the dwelling, as the land 'indestructible'. We employ this to tactic to save a bit of money on our insurance premiums.  Goes without saying though: it is important to be accurate on the insurance limit of your dwelling, 

Hi @Justin Rockitter,

BP is the definitely the best place to find this info. I found that this blog post by @M. Ian Colville really nails it. 

https://www.biggerpockets.com/...

Some of these questions will be answered by doing some quick due diligence on the PM, however a question I would ask in addition to #7 is... asking them to explain the process for an eviction. 

The most important piece of advice in that blog is following up with question #2. References are essential before committing to a PM. Even if it's a larger PM firm, attempt to find references on the individual who is assigned to your property. Good luck!

Hi @Jordan L.,

Sorry to hear about this... frustrating to say the least.  Have you involved insurance companies at all? Either yours or your neighbors? 

Additionally, shouldn't it be the responsibility of your PM to get the information of the neighbor?