All Forum Posts by: Lisa Henrich

We use the same rental agreement for our residential units whether or not the resident is paying for the rental unit or a business is paying for the rental unit. The person(s) living in the unit are named as the tenants on the rental agreement and if another entity is paying for the rental unit, we have an additional agreement or addendum that covers their role.

Our residential rental agreement has some terms that prohibits certain types of businesses from operating from the rental unit. Your property may or may not be zoned for certain businesses and industries. Parking may or may not be adequate. Electric service may or may not be adequate. It is important to know what the business will need and if they want to do any modifications to your house. Will a business operating from the home impact the neighbors? If so, in what way?

You need to ask many questions. You need to know what type of business will be operating out of your home. If you decide to make your home a commercial property instead of a residential property, then make sure you are in compliance with local ordinances. Commercial properties would have a different type of lease than residential properties. Also, check with your insurance agent, as the change in use could impact your insurance needs and coverage.

Thank you for the reply! The business is quite small and there is only one person doing computer work. Occassionally, they could have a guest or two in town that would be able to stay at the home instead of getting a hotel. Thanks for your input!

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Originally posted by @Tammy Vitale:

Thank you Tammy!

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I am in the process of buying a new home and will be turning my current home into a rental property. Is there any difference in lease terms if I rent to a small company as opposed to a private renter/family? Would I need to use a different lease? I have a small company that is interested and I wanted to make sure I don't miss anything.

Thank you!

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I recently started a meetup group for women in real estate in the Lancaster, PA area and was wondering the best way to go about finding speakers. I have just over 20 members and we have met two times, but the conversation has become repetive and a bit stale without having a speaker. I posted something on Linked In to see if there was interest in speaking to the group but didn't have any responses. Understandably, I do not want to pay for a speaker, but is paying for a speaker routine practice? All advice is appreciated.

Thank you,

Lisa

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Originally posted by @JD Martin:

Wow. Taxes are $4600 annual on a house worth $40K? Water/Sewer $150/200 per month? How many people live in this house?

Something just doesn't make sense to me with the numbers. With combined HOA/Tax numbers of almost $7K, $775 for rent seems very odd.

If all these numbers are true, and they don't have any other assets, they should probably seriously consider some kind of financial restructure or a default, unless the bank is willing to take a $45K haircut. I just can't make sense of those figures.

I can't make sense out of it either. I did some more digging today and discovered that average rents for a townhouse in that city range between 1100 and 1300/mo. So, it seems as though they are completely undercharging. Although, IF the value has dropped to 40k and the taxes are 4600/yr, would they be able to have it reassessed to reduce taxes? Or, is that not an option?

Thanks!

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CORRECTION: Current rent is 775/mo. Much worse than originally reported.

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I had someone reach out to me this morning with a question regarding their rental property. Currently, there is negative cash flow by a few hundred each month if you also include maintenance and vacancies into the list below. This is a distant property so they are paying a property manager $50/mo. Bottom line is that they obtained their mortgage at the height of the housing boom for $120K and now it is only worth $40K. They currently owe $83K. If they sell they will owe taxes on the difference. Is there a solution that makes sense either way? If they short sale they will be financially penalized and it will hurt their credit. Please advise. Thank you, Lisa

Rent: 1100/mo

Manager: 50/mo

Mortgage: 405/mo

Taxes: 383/mo

HOA: 165/mo

Trash: 25/mo

Water/Sewer: 150-200/mo

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Thank you, @Zach Mitchell That was excellent advice.

Thank you, @Chris Bounds I never thought of using HM for buy and hold before your post.

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Can anyone give me an overview of how one goes about obtaining a hard money loan to flip a property? What do hard money lenders require, in terms of collateral? Ultimately, I want to build a bigger buy and hold portfolio, but I'm thinking it might be worth flipping some houses to build cash.

Thanks!

Lisa

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What is the best method for finding single family rentals that cash flow? And, what is an acceptable cash flow for a SFH? $100/mo? $200/mo?

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All Forum Posts by: Lisa Henrich

Lisa Henrich has started 25 posts and replied 58 times.

Post: Rental Leases - Personal and Corporate

Post: Speakers for my Meetup Group

Post: Rental Leases - Personal and Corporate

Post: Speakers for my Meetup Group

Post: Upside Down on Rental

Post: Upside Down on Rental

Post: Upside Down on Rental

Post: Hard Money for Flipping

Post: Hard Money for Flipping

Post: Single Family Rentals and Cash Flow