All Forum Posts by: Chris Eaker

@Max T. you make a good point about those expenses, which I neglected to account for. The more I think about @Ryan Donohue's situation, the more I think it might be better to simply raise in smaller increments and then take the full raise when she finally moves out. A solid, paying tenant is valuable.

@Ryan Donohue

Let's say you raise to $1,650 and she moves and you get someone in after just one month vacancy. That's $1,650 x 11 = $18,150. If you leave the rent alone, that's $1,250 x 12 = $15,000. So even with one month vacancy, you will still come out ahead raising up to $1,650. If you don't mind the vacancy and are pretty sure you'd have no problem filling it, then go ahead and raise the rent. Alternatively, if you don't think she'd move out if you raised it to $1,500, then you'd come out just about the same as if you raised it up to $1,650 and had one month vacancy. You will still need to explain to this tenant that she is still getting a deal at that price. Show her some comps of equivalent properties and their prices. Show her comps of what she's paying so she sees what she'd get for the same price elsewhere.

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@Michael H., have you considered a master lease and option on all the properties? Offer to pay her the current NOI per month and then you get the upside. Get an option for the $900k she wants for five years from now. Master Lease it for 5 years, then exercise your option. I would not depend on the Zestimate for your rents. Use Rentometer, or better yet, buy a rent report from Cozy. If you can raise rent $2,000/month, that's $24k increase in the NOI and a $240k increase in the value of the portfolio. Over 5 years, you should surpass the option price of $900k.

@Kevin Brinkmann I have loaned money in the form of notes on real property, but I have not purchased a note. I would love to learn more. If you decide to have some sort of meet up, please let me know.

@Emily Golec, there is interest in this property (see original post), but the price is too high.

I'll echo everyone else and say it's just too expensive, and apparently the owner doesn't want to come down. I like the area. I lived in that area when I first moved to town in 2008, so I am partial to it, but not at this price. Just make an offer and see what happens. Either they will come down or will it be perpetually on the market.

It's the 80/20 principle. These guys are taking up too much of your time. Time to fire (evict) them.

@Matt Bigach Do you realize how much of a barrier your suggestion is for people? $100k in the bank is EXTREME overkill. You need, at most, 6 months of expenses. On one rental property, that's no more than $15k in this market, and that's conservative.

Also, this ad is in violation of Craigslist's terms, which prohibit overposting ads.