All Forum Posts by: Chris B.

I've found all of my recent tennants through Zillow which automatically cross posts to their network.  As Bjorn said, there is a lot to learn.  Like real people and contract management things that will burn you good if you aren't prepared.  Learn as much as you can before you jump in.

One small down side with cash then refinance is you would have a "cash-out refinance" and interest rates are about a half percent higher than a refinance and I assume that holds for new purchase financing also. If you can get enough of a discount when buying with cash, and then having to sit on the property for 6 months in some cases before you can refinance, then consider cash. Unless you get a good deal, it seems going in with financing is the option. Regarding the mortgage rate you're being offered for investment properties compared to a HELOC, I'm seeing them pretty close so shop around some more. For example, I got a cash-out refinance on an investment property recently at 3.99%. I was concurrently investigating a HELOC on my primary home and was seeing around 4.50% at the same time. What you would qualify for would depend on your situation which may be quite different than mine.

This is really out of my realm, but how much can you sell the contract for?  If others are going for $1M, can you easily sell the contract for $950K without putting in your money?  Given the uncertainties / complex and different legal systems in other countries, I'd sell te contract if its as simple as it seems to avoid unforsceen pitfalls.

I would lower the rent 10% or even 20% to get more interest and take that loss for 6 months or a year before choosing this application.  Inevitably, sooner and not later, they aren't going to be able to come up with rent as they don't appear to have a good financial track record.

I think Mike is stating if you take a loan out on your property, its tax deductible. Not from a life insurance policy. How expensive is this insurance policy? I know term life and whole life aren't the same but I can get a million dollar term life policy for about $40 a month and I'm not young. The rest of the money can go into a 401k or IRA and you will do much better. Its not uncommon for people to have a 5 year IRA average return of 15% right now and you generally can borrow from a 401k should you want to do so also. Those pushing the selling of the policies are looking out for the commission and not necessarily for you. Do you really need whole life because when you retire if your investments will be plenty for the family?

Update: Greg, interesting.  Good observation on the policy interest deduction.

I'd not share any food at all.  Leads to problems.  I buy - you consume.  You buy food - I don't like it and you consume.  Have separate refrigerator space for everyone even if it means getting more than one.  If people have separate bathrooms, they cover their own expenses.  If a bathroom is shared, then share the cost of cleaning and supplies.  Dishes can be shared if everyone is OK.  Some people have different cleanliness standards and if its an issue, then get an old set of pots and pans from Goodwill and people need their own dishes, cups, and utensils.  Its not asking too much for others to purchase their own coffee for the machine.  As mentioned previously, if people get along well, there tend to be a lot less problems but I have rarely seen this when renting out to random people.

Keep verifiable documentation of your communications on the issue over the past several months.  Take pictures and videos.  File a report with the local housing authority.  Start looking for a new place and move when possible.  Ask for your deposit back and when the landlord says no, you may need to attend small claims court and likely would get at least your deposit back.  I wouldn't consider staying with this LL and I wouldn't consider hassling with fixing his issues and seeking some kind of reimbursement.

Ditch this guy ASAP!  So many NOs in this story.  Is he a licensed contractor or has many years of experience in the construction business?  Prices aren't necessarily excessive, but...   Have you seen the quality of the work in person?  Does he have liability insurance?  Is his work any good or is it dangerous to tenants or just plain poorly done?  Was the work needed?  Was even half of it needed?  Probably not unless this place was destroyed.  He disrespected you by doing this kind of stuff without consulting with you.  Also, I wouldn't trust a PM who also does his own maintenance in general unless I knew a lot about him and his history first.

If the guy lost his job, and was the primary source of income, I wouldn't sign a new lease.  I'd consider a temporary month to month with a compassionate discussion and agreement that they will start looking for an new place and be moved out within X months.

Check to see if you can charge utilities per person.  You might be able to do so, but this would need to be consistent across all of the apartment units.  I don't think you can charge more for the unit as 7 occupants of the same family are not considered excessive for a 4 bedroom home.  There may be some grey area if more than four of them are adults or from different families.