All Forum Posts by: Cassidy Burns

@Karen O. Thank you.  I think that is the route I am going to take.  For a few days I fell into the much dreaded shiny object syndrome.  

Thanks for the help!

Hi BP,

I have a few scenarios that I would like to run by you... So I purchased my first investment property in Washington DC in the fall of 2016. I currently have it it rented out ($3,750/month, PITI= $3,150) but tenants are now breaking the lease and leaving December 18th. I am currently renting a 1 bed/1bath unit for myself in a high rise apartment complex for around $2,400/month (rent, pet fee, water, trash, sewage, utilities, and cable.) my lease is up February 1st. I had planned on purchasing another condo, in Washington DC to house hack, as I have a roommate that would be paying $1,650/month in rent. In order to purchase this unit I would use a lot of my liquidity that I have been saving up to purchase more investment properties ($25,000). My question is which scenario would be best:

1.) Continue to find a tenant for my current rental, even if vacancy is longer and continue to pay $2,400/rent and potentially have to cover the PITI on my current rental.

2.) Live in my current rental (3 bed/3 bath), with my roommate, he pays $1,650 and I pay the remainder of the PITI ($3,150-$1,650= $1,500), and potentially find a 3rd roommate for the third room. This saves my $25,000 and I can purchase a few more investment units.

3.) Purchase a second condo as primary residence using the $25,000 as down payment, roommate pays $1,650/month, I would pay remainder of PITI ($3,000-$1,650= $1,350.) Have to cover PITI on vacant unit until tenants are found.

What do you think would be the best scenario for the next step in my investing career?

Thank you in advance!

@Account Closed.  Thank you so much to all of you, this has been very helpful.  The unit is in the District of Columbia, 16th St. Heights Corridor to be more specific.  I actually did use the GCAAR lease and just read it over and it doesn't state anything regarding a penalty for breaking.  So I do have two more question.  I have had it on the market for a few days now, and no interested parties as of yet.  Since it is the holiday season, should I reduce the rent, which would eat up a little cash flow, in order to attract more potential tenants in order to have more options?  Or ride it out and hope that the new year allows me to get my current rent rate?

Second, how do I go about generating my own personalized, more specific lease?  Schedule an appointment with a real estate attorney that is familiar with the area and the rules within that area?  Also, would I have to do the same thing for out of state rentals?  Meet with individuals that are familiar with the areas?

Thanks again for all the great input.

Hi BP,

I have run into an issue and need some advice.  

My current tenants are breaking their lease and leaving early, December 18th, horrible time to try to rent condo out even in Washington DC.  I told them that they since they broke the lease they would be responsible for the whole month of December and I would be keeping their security deposit.  They responded 3 weeks later stating that my lease never stated they would be responsible for the security if lease is broken, I checked and unfortunately it doesn't.   They have offered to pay the prorated payment for staying through December  18th and forfeiting the security deposit.  

IS this a fair deal or should I respond and try to retrieve the full months rent for December?

ALSO, I now know that I need to upgrade my lease.  How do I go about developing a more detailed lease?  Should I have a different lease for my future units?

Thanks for any help.

Welcome @Brandon Kelly

@Matt Clark Great advice.  I really appreciate it.  It seems like there are a lot of homes available in the William Flemming and Patrick Henry school districts.  Any input on these areas?  Also do you have a recommended property management company that works well with out of state investors?

Thanks!

Hi BP,

I have really been studying the Roanoke and Salem Virginia markets and it seems to have good values and the numbers work.  Does anybody have any input on which neighborhoods to avoid?  Which neighborhoods seem to be the most popular, etc.?  

Thanks guys!

HI BP,

My soon to be private money lender just applied for a HELOC on their current residence. Their home is 100% paid off and will appraise for around $90,000-100,000. She currently has a Home Equity Loan with a remaining balance of $7,000. She went into the bank today and she said they could potentially approve her for $40,000 due to her DTI. Does this play a role? This number seemed low.

Advice on other steps/options we could take?

HI BP,

My soon to be private money lender just applied for a HELOC on their current residence. Their home is 100% paid off and will appraise for around $90,000-100,000. She currently has a Home Equity Loan with a remaining balance of $7,000. She went into the bank today and she said they could potentially approve her for $40,000 due to her DTI. Does this play a role? This number seemed low.

Advice on other steps/options we could take?

HI BP,

My soon to be private money lender just applied for a HELOC on their current residence. Their home is 100% paid off and will appraise for around $90,000-100,000. She currently has a Home Equity Loan with a remaining balance of $7,000. She went into the bank today and she said they could potentially approve her for $40,000 due to her DTI. Does this play a role? This number seemed low.

Advice on other steps/options we could take?