All Forum Posts by: Cameron Pendergraft

I would look into a wifi thermostat and encourage tenant to look into Amazon Key.

Congratulations Man

Hello all,

We recently closed on a duplex with inherited tenants on month to month leases in Kansas City. Both leases are under market rent and we plan to have the raise rent discussion but we're not sure of how much notice we need to give tenants. We plan on cancelling their old leases and signing them to market rent on our own lease. From my understanding, we need to give 60 day notice for a rent increase but only 30 day notice of lease cancellation for a month to month in Missouri. Seeing as we're cancelling their lease but also intend to raise rent, I'm not sure what amount of notice to give each tenant. Can anyone offer some insight?

Robert, Without details it’s hard to be as specific but if he wants to sell all 3 together, I’d think you’d have a few options. Would he seller finance? You could also get a commercial loan for the portfolio but I doubt the terms would be as good. Or, you could use residential loans for each individual property if you had the 15-25% down payment for each. That way you could get better terms but then you’d be stuck with 3 sets of closing costs. Cameron

Jeff,

Unfortunately for you but fortunately for me, I do not have a referral as we haven't needed one yet, knock on wood. We just got to 3 units so we're just starting to get our wheels spinning. Feel free to reach out if you ever have questions.

@Quinten Sepe has a monthly BP meetup in KC he arranges so any questions you have or referrals you need could probably be met by attending one of those, as well as asking here on BP.

That doesn't sound right, here is a link discussing some aspects of security deposits in Texas

http://texastenant.org/security_deposit.html

Welcome to Bigger Pockets Jeff, my wife and I actually live in Northwest Arkansas but invest in KC. Just a few questions for clarity:

Would your parents be selling the Pennsylvania house and 1031'ing into a KC rental? Or would they be living in the KC house they purchase with proceeds from the Pennsylvania sell? I'm not too familiar with all the rules of a 1031 but I don't believe you can 1031 an investment into a primary residence. If they 1031 into another rental, that could help them defer taxes but they'd eventually pay  those taxes when they sold the new place to you. However, I'm not sure selling to you eventually would pass the smell test of an arm's length transaction. You and your parents would probably want to seek advice from a lawyer or 1031 expert.

Cameron

Building Wealth one house at a time, Schaub

Hold: How to Find, Buy, and Rent Houses for Wealth, Keller, Papasan, McKissack

Millionaire Real Estate Investor, Keller

@Eddie Sorrell

We are going through the same situation currently with a duplex we expect to close on next month. Both units are substantially under market on M2M leases and there was quite a bit of deferred maintenance. Our plan A is to give 60 day notice of rent increase and offer some cosmetic upgrades to help justify it. It doesn't matter to the tenant if you can logically prove their current rent is below market, they'll still want something for the increased rent and they won't care how much deferred maintenance you've had to fix that their old landlords neglected. Our plan B is that we're prepared to update both units at the same time should both units become vacant, and if you're not ready for plan B it might be easier to leave the rents where they are.

Cameron

What % return is the 25k on the money you're putting up? If he weren't an agent but a bird dog and came to you with this deal offering a 60/40 you or 70/30 you profit split would you still say no? I don't know the legalities of being an agent but I feel people are getting hung up on this simply because he's an agent. People partner on deals all the time without bringing money. Ask him to waive his commission and negotiate an actual %  of profit split with him.