All Forum Posts by: Michael Jones

Mark,

Are you putting money in the bank? If I was a betting man i would bet that you are putting a lot more in the bank than the majority of the posters on here that have one agenda and that is to stroke their ego's.

I could not agree more with Deanna's response above. Keep working what works for you.

I buy all used appliances when I need to replace one in any of my units. What is the difference in buying a used fridge and placing it for $100.00 or buying it new for $800 in five years? The only difference will be $700.00 in cash flow tied up in a five year old fridge that looks just like the $100.00 one down the street at habitat for humanity.

I buy used commodes and pressure wash them and then install them. Used vanities and cabinets. Medicine cabinets, building materials. 

And you know what......my tenants have never complained and actually love their landlord. Not because I have cheap rent or I am a pushover, but because if they called me right now saying their fridge is not cooling I would be pulling up within the hour in my 2003 Pontiac Montana van and trailer with a spare used fridge from Habitat Humanity or some yard sale that I bought last spring and have kept in storage for when a fridge went down. When they have a clean working fridge within the hour and none of their food is lost they are never asking me why I am so cheap to put in a used fridge.

I also cut my own grass, for one because it saves a little money but it also gives me a great opportunity to gauge what is going on with each tenant and property on a weekly basis. There is little chance of moving in a roommate or sister with her two kids when your landlord/owner also cuts the grass, changes the furnace filters, checks the fire alarms, re caulks the tubs etc......on a regular basis.

I know there are millionaires on here that can and would never do it this way. However, I also know there are millionaires that started out with nothing but a dream and a prayer just like us and ended up millionaires but are probably to busy to post here because they are currently caulking a tub or getting their hands dirty with some task that others would turn their nose up at.

Donald,

A couple of questions:

Where is the tub leaking? If it is leaking from the drain this can be a relatively easy repair that you can do yourself without removing the tub.

Second, is it sitting on a wood floor or is the floor a slab? 

Also, do not fear the eviction. I have been there and most courts will make an immediate judgement for the landlord when rent payment has not been made. I know we hear all of these stories about how a tenant showed up in court and said the landlord has mold or they did not do proper repairs but there are laws and procedures the tenant has to follow as well before rent can be withheld and then for example, in my state it can only be one half of the rent held. 

If you go to court for the eviction and on the slim chance the tenant does show, more than likely the judge is going to address one issue: Have you paid the rent? If no, do you have rent money plus late fees? If still no, more than likely the next question will be to you asking if you wish for a judgement for Forcible Detainer. if you say yes the judge will inform the tenant they have ex amount of days to move out.

If it seems confusing or overwhelming, go to eviction court ahead of your date and watch the proceedings for yourself. I can tell you in my state the judges have heard every lie from tenants and landlords and can smell out what is really going on real quick and they make quick decisions.

Please read the laws on section 8. I am not an expert and definitely not a lawyer but I do know that I have read that you cannot charge more through section 8 than you would traditional lease for the same like unit/property. If you move to 1100 through section 8 and then rent a unit for 700 to a non section 8 tenant I think you are going to have issues with HUD.

If you buy a four plex or smaller the banks will treat it just like a second home. Generally 25% down on a 30 year fixed and rates are currently around 4.5% for a second home.

I never rent to someone with an eviction. As stated above, there are many opportunities for a tenant to move out prior to an eviction going to judgement. 

Also, you may potential be leasing to a tenant that is not only comfortable with navigating through the eviction process but also skilled at how to prolong the eviction through actions such calling code enforcement for mold, claiming there is vital maintenance not corrected by landlord......

If you are in even a mildly good rental area I would take a chance on younger folks with no rental history before I gambled with someone that has proved they are potential to not pay.

Gwen,

I think you will be perfectly fine and avoid any discrimination liability because both sisters have resided in your property even if one of them are not on the lease. When you file an eviction make sure it states the lessee's name and also states "and any other occupants"

If the sister (or the sister that may be the original tenant) comes calling with a completed application attempting to lease the property simply send her away without processing the application or taking the application and your reason is that you had to evict her. Of course she will say you didn't evict her but she was the "any other occupant".

As far as any other applicant from a certain family, providing they are not in a protected class and you don't state anywhere or say that you will not rent to family members, what case would they have if they tried to sue you for discrimination?

I drive a 2003 Pontiac Montana van. I am sure my tenants think that I do not make much money off of rental property because most of them drive nicer cars than I do.

I would rather use car payment money to invest in more property.

I had a tenant that called me and said their electric was out in their apartment and could i come over and fix it right now (I do most of my own maintenance) because they had a young child and it was very hot without air in the apartment. I asked them to look outside and see if other homes had lights on (it was dark outside) up and down the street. They replied that they were already outside and so were all of the neighbors because everyone's electric was out. I explained that i would call the electric company to come and check the area. They replied that several people had already done that but she was requesting me to come and fix myself since she had a young child.

Another tenant was not going to be home during a pest service so I let the pest company in and noticed the horse head on the counter soaking in a large pot of water.

Yes. Charge them for everything including the clean up. Most states have a statute that governs how much you can charge for cleaning. I would also get a contractor quote for removing the construction and apply this amount against the deposit.

Please go to your local landlord/tenant website and pull the actual statutes and read through the deposit laws so that you are legal in how you deduct and how you respond in writing. I would assume with the amount of replacement/cleaning/contractor work that will be needed that there will be no deposit left to return. However, you will need to still notify in writing that there is zero deposit remaining and document the items and amounts to the tenant.