All Forum Posts by: Caleb Dryden

@Ibn Abney you make some good points. Thank you for shedding some light on the "beefing up" of the electric system and other pointers I wouldn't have known about. My initial thoughts were much like you. He doesn't have a lot of options so if everything checks out okay with odor and all systems being upgraded appropriately, he could be a steady long-term tenant. I mean who would want to move all that equipment anyways? Thanks again.

@John Mocker that's funny timing. I was just on the phone with my insurance agent about the matter and they're working up a quote now. Since the discussion with this prospective tenant began last week, we've since discussed moving his operation to an outbuilding so that sounds like a much better option. Not sure I'll end up going this route since I've had a lot of applicants but it's at least good to know for future. Appreciate your response. 

@John Teachout I’ll keep you posted but not likely I’ll go with this tenant. Just looking to gain some insight into this scenario so I can make an informed decision. Appreciate the feedback.

@Andrew Syrios sorry haven't been on in some time. The ARV (appraisal) came back at $145,000 and I've had two people call me (not listed) to buy it for $150k and $155k. Loving it!

@Ned J. Thanks for the input. I think odor is my biggest concern. I’ve vetted his certification and he is legal. One thought I had was writing in the lease that I can come by for monthly check ins to monitor the process and make sure he’s cooperating. He did say he was willing to pay me a large deposit and 6 months up front.

@Joshua W. I have a lot to think about for sure. Appreciate the upside and downside you presented. The guy I’m screening also said he would give me a large deposit and pay 6 months in advance. I’m wondering if I have it written in the lease that I have ability to do monthly checkups on the operation and any mold damage (specifying there is currently no damage) the cost would be the tenants responsibility. Some ideas I was tossing around.

I’m currently trying to lease up one of my single-family houses and have had several applicants. One potential tenant in particular was very forthright about his intentions for my property. He plans to use his caregiver license (in Michigan) to grow enough plants for the five individuals he “cares for” and himself. He’s offered to pay quite a bit more than what I’m asking for rent as well. I’ve conducted my usual background and credit check and everything looks good. I’m not very well versed when it comes to the risks of growing marijuana in ones home. I hear it can cause devastating amounts of mold. I’m on the fence about which direction to go as I consider him as a potential tenant. Anybody had a similar situation or who’s more familiar with the risks please chime in. Much appreciated!

@Natalie Kolodij what exactly is QOZ?

@Ethan Mastrodonato I think it depends on your strategy. But I agree, I would make sure you're figuring all your expenses in addition to PITI. Even though you'll be doing the work (good for you), you'll still have vacancy, cap x, any utilities not paid by the tenant, etc. It's already been said but you'll always need to budget more than you think. It's better to be on the safe side than be at break even or take a loss in monthly cash flow. Good luck!

@Yahya Omar that's a key part of the BRRRR (as are all the steps) so good to figure out the numbers and how to execute your plan before moving forward. I would recommend talking to an appraiser and/or realtor prior to purchasing a property. Give them specs on the property as well as upgrades/improvements you're going to complete. From there you can get a pretty good idea what the ARV is going to be. Most lenders will give anywhere between 70-80% loan to value but I would suggest having some of those conversations prior to a purchase as well. With all this information you should be quite informed as to what number makes sense to offer. Hope this helps...what market are you invested in?