All Forum Posts by: Frank Patalano

I recently purchased a duplex in Fairfield county. Each unit is 2 beds, 1 bath, 9 ft ceilings, parque floors, both apts are 1066 sq ft.

Cost: 600k

Down:25%

When I bought the property one unit was empty and the other unit had a tenant who was paying $1700 but agreed before the sale was final to start paying $1850. In this market these apts go for $2500 to $3200, so she was still waaaaay under market.

A few days after closing I spoke with her and explained the market to her and since she was living at the property for 6 yrs I would only raise it to $2500 and she agreed without even batting an eye.

Something was strange cause 2 weeks goes by and she didn’t sign the lease. So, I see her at the property and her boyfriends comes out and says he will be moving in, I say totally fine but you’ll need a credit check and background check at your cost and also the rent will go up to $2650.

Another week goes by and she says no her boyfriend is not moving in and she’ll sign the lease for $2500.

Again another week she doesn’t sign the lease . I see her on the property and her, her boyfriend and her daughter corner me and almost demand that I let the boyfriend move in but at the rate of $2500 not $2650.

So my dilemma is:

1. I am already just at the market rate at $2500 but should be higher. So I’m already bending for her, do I bend more and give in to her requests.

2. I don’t want them to become tenants from hell

3. Do I negotiate further or do I stand firm on the $2650?

I hope I didn’t bore you, anyone going through this or been through this. Please share your thoughts.

Would love to here from you all

 You know, now that you mention it, I think I can find a 3bd1bth around the city and meet that. I can rent it by room.

BUT, you've given me another idea with the basement. RVA doesn't have a lot of basements per se but the homes I've seen have a tall crawl space. High enough to comfortably sit in but not stand in. I'm thinking, what if I get some carpets for the cheap, put fluff on the ceiling and wall, a dehumidifier, and boom got a practice space I can rent by the hour. I'm connected with musicians around here. I'm thinking I get a 200k house, I'm probably paying $1600 with everything included (PMI, tax, etc.)

I’ll have to see how much those spaces rent for but just thinking creative ways to use a non-bedroom.

I’m looking at my first property atm after a personally rough 2022. FYI, I live in Richmond, Virginia.

The hard news: I was laid off multiple times that year so I don’t qualify for renovation loans. More so I had to move back in with my family which is a major shot to personal morale.

The good news: I’ve recouped my cash savings to $20k in a few months! I’ve got a few lenders lined up and am working with an agent.

My situation is a bit odd, and I’m trying to figure out the best way to go about it…advice is definitely welcome!

Currently, I'm staying with family in Richmond, VA as a 30M (layoffs hurt!) so needless to say, I'm trying to exit asap!

However, I want to buy a house and not get tied into renting. My budget is $250k although I’d like to stay closer to $200k.

I’m looking for homes where I can live with a roommate to offset living costs, and would meet the 1% rule when I move out to my next home.

Unfortunately, I’m having a very hard time with this. Most homes I find are in the .7%-.75% rent to purchase price.

So here are my choices as I see them (again, please offer any advice).

A. Buy a home on the cheaper side that negatively cash flows just so I can move out and collect equity on something using a conventional loan. Then, after a year, I can qualify for a renovation loan for another house, fix that up, and have a positive cash-flowing property. Pro: I have a home and flexibility. Con: I’m not making money on it.

B. Stick it out and hope things get better while stashing more cash away. Pro: Rapidly increase savings. Con: Risk being a 31M living with his family.

C. Rent and hope things get better. Pro: I’m out of my family’s house. Con: I’m losing money and have less flexibility to leave my rental contract.

I personally am leaning towards A. It’s not perfect, but I’m fairly certain I can get my living expenses around $1k living with a roommate and I can bust *** to regain savings to buy a pure rental property.

In addition, we are seeing a huge influx of people from DC, NYC, LA, and Austin. I lived in Raleigh NC a few years ago and saw home prices skyrocket. I don’t want to miss that train here in Richmond.

Thoughts?

@Frank Patalano

IBLOC is insurance backed line of credit.

This is on a new construction with 1 year builder warranty.   Longer term goal would be family use/retirement home so it's not all about immediate cash flow.   

Maybe I'm doing the math wrong, but with purchase price at 330k, 20% down would put mortgage at 265k.

3500 / year taxes

1200 / year insurance

I did just research the JAX REIA, however, I live in PA so it would be difficult to make the meetings in person. I'm going to look into this some more, thanks for your advice !

Hi, I'm looking to purchase my first property with my spouse. I'm not sure which option would be best. Do we start an LLC to get the loan or do we just apply for it as individuals like a regular mortgage loan. this will be for a vacation home that we will utilize as an STR in Tennessee.

just want to know which is best option for us. LLC or no LLC

Hello,

What is a good and (if possible) kind way to communicate to tenants that if they were to renew the lease, the rent will be increased at the legally allowed rate, which in this case is 10%?
They are currently in their third year and last year had $0 increase …

I posted the home on Zillow, at 13% above the current rent, and there is a healthy amount of interest so my guess is the current rent is way below market rate.

I would appreciate insight from people who have gone through this and/or others who have good advice.