All Forum Posts by: Michael Modesto

I've had this exact scenario happen in one of my rentals, and it sucked.

We actually ordered an air test at our expense.  The results for these tests aren't always definitive.  Meaning, it will report some levels of particles in the air, many of which are perfectly normal and acceptable to 99.99% of people.  However, it opens the discussion to interpretation and gives a whiny tenant more reason to argue.

My recommendation is to get the tenant out of your property at all costs.  That's what we did, since we just envisioned that this person would just end up costing us many headaches in the future if we decided to keep them.

I would think that electric ranges mitigate the risk of gas lines and possibility of fire.

(I like gas ranges myself.)

@Brandon Turner 

Just picked up my Ultimate Package today to support BP!  Can't wait to listen to the audiobook on the drive home today.  Looking forward to receiving my book in the mail as well!

Hi @Chris Simmons 

This was my primary residence at one point, which turned into a rental.  I didn't buy this property with an investor frame of mind.  (I wish BP existed 10 years ago!)

RE prices in that area are generally higher in relation to the rent, which produces a ~.5% price to rent ratio. After PITI, there isn't much room left to allow for repair and vacancy reserves. Whenever something needs repairs, we pay for them out of pocket.

I'm looking to get this off the books, in order to purchase properties in other states where 1%+ ratios are possible.

Thanks.

M

Hey @Nathan Brooks !  

Your suggestion may work.  My current tenants are great, and we have an awesome landlord-tenant relationship.  They had moved in from out of state, and I had helped them get situated with schools, doctors, etc when they were new in town.  I'm still their "personal Yelp" for best restaurants, local events and the like.  There is definitely a healthy level of transparency and friendliness, that we may be able to have this discussion.

I'll give this more thought how to approach this.  

Thanks!

M

Thanks for the tips!  I'll add a buyout to my options list, as well as check out the Marketplace.

@Dawn Anastasi @Kirk R. 

Hi @Elizabeth Colegrove 

How are you managing your out-of-state holdings yourself?  Do you have a local handyman to contact?

Congrats on the deal!

I would keep it.

Hello everyone.

I'd like to dispose of one of my rentals here in CA.   Since it is cashflow negative, and just recently above water in equity, my plan is to dispose of this house.  This will free me up to acquire more 'real' investment properties that produce cash flow.

The current tenant signed a 2 year lease which doesn't end until Jan '16.

What are my options for getting rid of this property?  Some that I've thought of are:

- Wait until the lease is up, then sell.

- Talk to the tenant to see if they're interested in buying the home. If so, work out a deal.

- Try to sell to an investor who can assume the lease.  (I assume this is very hard in CA since deal is cash flow negative.)

Thanks in advance for your input!

@Eric Fernwood 

Would anyone be able to do a search to find out of a person has an umbrella policy?  Is this public information?

My thought on this is - if I have an umbrella policy, I would certainly not tell my tenants (or anyone) about it.  Otherwise, I agree, that you'd be a target for litigation.