All Forum Posts by: David Wiebelhaus

May I ask why you were interested in a certified financial planner as part of your real estate team? That seems a bit out of place

@Account Closed thanks for the help! I was thinking the same thing. No forwarding address provided, & they are still receiving mail at the property. It seems reasonable that the 21 day clock would start ticking once I discovered it was abandoned.

Hi,

My lease has a 60 day notice clause in my MN lease. I gave a tenant their notice about 75 days in advance. However, I didn't receive rent for the current month. I decided to stop by to try & talk to remind them that they had to pay before I was going to file for eviction. When I turned up to the property, no one answered and LOTS of trash was at the curb. I tried texting/calling the tenant (only communication source I have) and the number was out of service. I later went inside and saw that only garbage was left and keys were on the counter. I'm not sure when exactly they moved out, but the next door neighbor said they saw a U-haul the weekend before I came over.

Minneosta has a clause that the deposit statement must be sent out 21 days after the lease ends. Since the tenant abandoned the lease, when does that statement need to be sent? The damages far exceed the deposit, but I will be leaving on vacation and so things will be tight to get all of the estimates/bids to fix everything. Does anyone know when the clock starts ticking on that 21 day clock? Is it when I discover it is abandoned?

Relevant MN statute is here: https://www.revisor.leg.state.mn.us/statutes/?id=504B.178  Subd 3

Hi all,

I'm just getting started with my (hopefully) long-term REI buy/hold RE career. I have ~80k cash available, but am looking to leverage w/ 20% down or whatever is cheapest for a conventional loan.

First of all, before getting to the triplex numbers, as it's my first home purchase, should I be using a different type of financing other than traditional 20% down? I am open to owner occupying long enough to satisfy any conditions required, otherwise would prefer to not move. If I do owner occupy, it doesn't change my investment numbers, as I would just consider myself paying the market rent.

Triplex (C neighborhood, off a main street) - List price $315,000

Current tenants are on month-to-month leases but have been there for 1+ years.

REVENUE

Unit 1 Rent - $1175 - section 8 pays $1000 - month-to-month lease since Apr 2010

Unit 2 Rent - $1200 - section 8 pays $660 - month-to-month lease since Jun 2012

Unit 3 Rent - $1100 - month-to-month lease since Oct 2012

All 3 units are exactly the same & all include a parking space, so I'm not sure why different rents are being paid. Similar houses/condition (based solely on pictures) are ~$1200

TOTAL REVENUE: $3475

EXPENSES

50% rule - $1738

Debt servicing @ 4.5% - $1277

TOTAL EXPENSES: $3015

Cash flow: $460

Cash on cash @ 20% down - 8.77%

CAP rate - 6.62%

Is this a no-go or should I pursue it further? I was told it was turn-key by the selling agent, which is why I didn't include anything for initial expenses outside of the 50% rule. I don't want to bother the tenants by asking for a showing until running the numbers and asking investors smarter than me :)