All Forum Posts by: Matt Blutowski

I can't prove the tenant is a drug dealer, nor do I know for sure. I do know that they have an arrest record which includes theft and possession - enough to know I don't want them in my property, but not enough to remove them legally. The dog should enable me to remove them legally, though I'm not sure I want to force the issue with someone who has a record. Of course, he may move without much of a fuss to avoid the spotlight...

Sorry, this is complicated, but I want good advise from any/all, so I'm going to include some details.

I closed on my first duplex two weeks ago. The property was fully occupied and according to the previous lease, I'm stuck with the tenants unless they break the lease.

Issue 1: One of the three people living in UNIT 2 moved out and has not been paying there share of rent. Initially the remaining tenants in unit 2 said they were not going to pay the entire rent, but now they say they will. They also planned to sue the third tenant. The tenant that moved out just contacted me. They will pay me all the rent due for the remainder of the lease, but they want to be removed from the lease. Basically, I create a new lease with the two current tenants for 2/3 of the rent and receive the other 1/3 up front for letting tenant 3 out of the lease. A good solution, until I learned WHY tenant #3 wanted to move out of UNIT 2.

Tenant three claims that UNIT 1 is being occupied by a coke dealer. I suspected something was not right about unit 1 before I was told this. Two other people familiar with this tenant/property have said things before. UNIT 2 pays rent on time, though the lease is for 1 person, but there are two people living there and a dog. They are not allowed to have a dog, nor is occupancy two people.

Apparently, two tenants of UNIT 2 are customers of the tenant in UNIT 1 and there are drugs there all the time. A tenant in Unit 2 has a criminal record which includes several assaults as well as a rape (found not guilty). The suspected drug dealer in UNIT 1 has no record.

I'm supportive of a new lease for UNIT 2 that does not include that third teanant. However my larger concern is the teanant in UNIT 1 and his drug dealing. He is in violation of the lease (with dog and second occupant)? I don't want to cross this person, but don't want my new property on TV news with busted doors, etc.

Again, these tenants were not mine, but I have to live with them or try to evict for cause. Unit 2 lease ends in April, UNIT 1 lease ends in August. The previous landlords were absentee landlords.

Any helpful advice would be appreciated!!! Should I just try to ride this out until the lease ends, or use the dog as a path to evict??

The dog is small, and their lease is not up until August, 2011. I'm told this tenant has complained about cutting the grass, giving access to the apartment and painters working outside - he's been a jerk.

Neither of the tenants pay on time, though the previous landlord didn't seem to care. I do, so I hope the tenants are ready for my more meticulous system.

On top of all of that, I will occupy whichever unit is available first, so if I evict I'll be moving in.

On another note, the current leases are horrible, so I'm going to ask each unit to agree to a new lease.

I closed on my first duplex this week. Both units are filled and I have the leases.

One of the tenants was a real jerk when we did a final walkthrough, and I have witnessed on several occasions that there are two people living in the apartment and 1 small dog, although the lease states an occupancy of 1 with NO dog.

I don't want an immediate problem, and would prefer to avoid immediately having to deal with an eviction. Another alternative is to ask him to sign a new lease, with pet addendum and additional monthly fee. If they disagree, then I'll consider eviction.

Any advice?

I'm new to landlording and am searching for a great lease to use. I have a close friend who will be giving me a copy of what he uses, but I'd like to find other good leases to compare. I'm in Pennsylvania. Any advice where I should look, or does anyone mind sharing their lease???

Thanks ahead!

Thanks Jeff,

I'm seeing stuff close to passing the 50% rule of thumb, but no where near the 2% rule. There are less safe areas of the city that I would live in, but my wife will not. I bet the deals are better there, but I'm not interested in that stuff now.

Here are my rough numbers (I still don't have expenses):

Purchase = 150,000
Monthly gross income = 1670
expenses = 751 (45%) or $835 (50%)
monthly NOI = 919 or 835
P + I at 4% and 4% down = 698
Cap Rate = 7%, which I believe is about right for this market

CF = $221 - 137 range

If I put 20% down, my monthly payment would be $582 and monthly CF would be ~ $300.

I'd prefer to use other people's money while rates are so low, plus I'm saving all my dry powder for the stock market :-)

Yikes, using 2%, I'm off quite a bit. My numbers show cash flow, though am I passing up a better investment? I've spent only 1.5 months looking, but I've seen many places and none come close to 2% and few pass the 50% test. The rental market is hot here.

I currently am living with friend and need to either buy my own place, or find something to rent ASAP - I'd rather put a years worth of rent into my own place, so I am a little more motivated.

I'll be borrowing at 4% and putting 3.5% down. I can afford to put more into the place, but would rather use someone else's money. I thought my financing puts me at a slight advantage. How much of a factor is it?

Amanda,

The properties just came onto the market. This is an older couple, moving several properties in this part of the city. In fact, of roughly 6 multis for sale in the area, 2 or 3 are theirs. Since it just came to market, I imagine I'd need to wait to get much on price?

Glenn,
Thats ok, I appreciate your time.

Yes, I'm buying as owner-occ, but I'll stay for a year and buy another one, so I want this to work without it being my primary residence. I'm hoping to make the numbers work in true biggerpockets fashion like you pros... well, as close as I can get?

Jeff,

Many nearby properties have off-street parking. This is a corner lot that is against a minor side street, so on-street parking isn't difficult. The nicer properties offer off-street.

The owners are an older couple, selling several properties in the area. I really like another one they are selling, but don't think I'll qualify for that much $$$.