All Forum Posts by: Brad L.

Is there significant existing damage in the units which you're worried about?

Don't close without speaking with tenants first. I've done this and, while it worked out in the end, I found that I inherited a bunch of headaches when I was able to speak with them after closing. The tenants will be able to tell you if their roof is leaking, if there are electrical issues, plumbing issues, etc. I have also found that it's important to have them sign estoppel certificates before closing, regardless of property type or size; especially if the owner supposedly doesn't have leases.

These days I'm happy to walk if an owner is going out of their way to not let me talk to tenants or get estoppel certs/existing leases.

Some banks don't offer secondary market loans on investment property, or even retail portfolio loans. I'm guessing that's why this lender told you you'd have to go commercial. Specific bank policy as opposed to what you can actually do elsewhere.

@Scott M.

"It's not scalable" means he will not still be meeting a contractor every time he needs a repair if he has 100 units, and like I said now is the time to do it if he wants to get familiar with contractors and basic repairs.

It's not scalable, but if you don't have many units and have some free time it wouldn't hurt to go to get familiar with basic repairs. I always have contractors coordinate directly with tenants.

I won't speak to whether or not you have to fix it, but you should regardless. I wouldn't want to live in a place where I have to use a lighter for the stove, and I really wouldn't want a tenant doing anything like this. On top of that, at $250 for a repair I'd spend an extra $250 and get a new stove. As long as it's functioning otherwise they can wait a couple weeks for the new stove to come in.

You also need to take a look at your title insurance policy so you can read through the actual shared driveway agreement/easement.

I'd hate to throw more concrete at the problem, but would you be able to add a parking pad right after the sidewalk? Tenant pulls into the driveway and immediately left onto the new pad. Can't tell how much room you have there but it could be enough.

Aside from that option, how do the numbers work on this property? Is it worth selling and investing elsewhere? I ask because normally a primary residence turned rental doesn't really have great numbers. On top of that shared driveways, especially one this narrow, are less than ideal; makes it much worse that the neighbor can contact you directly with all complaints instead of working it out with your tenant.

In Wisconsin, we can serve a 14-day notice to vacate if we have already served a 5-day notice to pay or quit within the past year. Texas doesn't have something similar? Might not get you a different result and you could have to evict anyways, but maybe they'd see they don't have the option to bring rent current and move on. Who knows

Look into a secured credit card if you're having trouble qualifying for a traditional credit card