All Forum Posts by: Sue Bladek

Shaun C. good catch! it is a typo.

Unfortunately, it is illegal in MI to collect last months rent. 

Reply is appreciated #NickWatkins!

I have been at this for several years and I know about all the information you provided.

As mentioned in my first post I HAVE had the rent is DUE discussion with them. I have shown them the paragraph in the lease that they signed.

However they have no intention of paying. Period. Their argument is that there is more than enough money in the security deposit to cover the rent and any damages.

I can tell them until I'm blue in the face that the security deposit cannot be used as rent. What I believe is happening here is that they have had to pay a security deposit and first months rent at the new place and don't have the rent to pay me.

Does anyone have a suggestion that gets them to pay. What is my legal recourse? 

 I have a tenant that has given a 30 day notice, which puts their move out day at June 25. They get keys to their new place June 5th and plan on having the unit "move-in ready" and surrendering it by June 12. I explained to the tenant that rent was still due on the first and they will be prorated back any rent for the month, if I am able to place a tenant prior to the 25th.  In Michigan it is illegal to charge one and a half months rent for security deposit, which the tenant now believes can be used as their rent. They believe because their giving it back "move in ready" they will still have the "half a month" for repairs.

I've read hundreds of replies on other forum posts about being tough regarding paying rent late, but I just don't know what my recourse is in this situation. They are leaving and I don't feel as if there is anything I can legally enforce. 

Hello Michigan Investors,

I am looking for a property to purchase in the Holland, Zeeland, Hudsonville area. I would like to get started ASAP. My full time J.O.B. is seasonal and I have the time now.

Minimum size, 3/1 or 3/2.

Preferably around $40k

However, price depends on repairs and ARV, of course, and what the BiggerPockets flipping calculator tells me!!

Please add me to your buyers list. Message me for my cell #
I have cash and can close quickly.
Hoping to come up in some keyword searches....

Sorry for the confusion. I have 2 accounts w Equity Trust. A traditional IRA and a Roth IRA both can be used for real estate investments.

Is there a way to put a link in this so you can see my rental deal investment calculator? It would be so much easier if you could pull it up too.

So here is some information and what I plugged into the investment calculator.

SFH in a small rural town. Approximate value $55k. It would never sell for that in current condition according to pictures and what she has told me. But I would buy and hold anyway.

Owner paid 25k, put 10k into it, owes her partner 14k.

She has moved and lives 3 hrs away (one way). Sick of the drive.

Has stable renter @ $600 mo. & they pay all utilities. I have not been to the property yet, but she said the renters are happy with house AS IS.

Her ins. is $90 a month b/c she doesn't own a home so I think I can get that lower.
Plugging in a "all in" purchase price guess of $40,000,00 the cap rate is 11%.

50% rule is $300. Calculator cash flow $397.75 mo.

Listed on Craigslist at 45k asked her for best price for cash & quick close, she could let it go for 37k. Other investors have offered her 20k and she has rejected.
I think the deal is solid... I would like to go and look at it but I need my ducks in a row before I call her back to make the appt.

Do I talk $$ after seeing the property?

How do I ask her for better price? Is that the best she can do?

How do I estimate closing costs, I guessed $2000.00? Do I pay all closing costs?

How can I be creative?

I would buy this with a combination of my ROTH and Roth IRA

Constant communication with your subs is the key.
 In my opinion you should be stopping by the jobsite a least once a day, twice is better. The quicker you answer their questions & keep them moving, the better. You'll also know in a heartbeat if they are there working.

Everything requires lead time and if you don't stay on top of it you'll be sitting on your house longer than 2 months.

For example: Lead time for our countertop installers to come out and measure for the quartz was one week. 7 weeks for fabrication and installation. If you don't stay in touch with the cabinet installers you won't know when to call for the counter. In my area no one delivers solid surface next day, like on TV.

You have to keep your subs in the loop or they will pick up another job the very day before you need them and you'll be left waiting.
Also require that they contact you immediately with anything that could cause a delay in the project or a delay in their arrival at your jobsite.

Most banks will require you to be "seasoned" meaning owning the property for a year. If you search you might be able to find one that may not require that long. Maybe find the bank first if you want to refi prior to the 1 yr heloc.

The land contracts are in an LLC, in order to get the loans refinanced on the secondary market lenders are requiring that I have them transferred into my name. He will be in a higher tax bracket due to capital gains if I pay him off. Sorry Doug C I do not have an answer re: the taxes. Sound like I have to put on my big girl panties and get this deal going back in my direction.