All Forum Posts by: Cory Benhardt

Hi BP, if you inherited a tenant & their lease was up & you gave them an option to renew but at current market rents, would you increase their security deposit to reflect the new market rent or keep the security deposit at the same amount that it was when they signed their original lease with the previous owner?

Thanks 

@Bill B.  Wow thats a hell of a month. I appreciate your feedback! 

@Scott M. @Nathan Gesner Thank you both. I have personal reserves that can fund the rehab. I don't have reserves from the cash flow of the property yet because we just bought in January and are working through the inherited tenants as their leases end, we'll be able to double rents. Do you use the reserves from your personal account or reserves from the cash flow over the years? 

Hey BP, I'm working on doing a full unit rehab (after the inherited tenant moved out). When we're done the rehab & get it rerented we'll conservatively cash flow 600 a month after cap-ex, repairs, etc. 

Do you use the cash flow to repay the rehab costs? If so, how many months of cash flow do you sacrifice when planning how much you're going to spend on a rehab? 

Hey there!

Looking for some advice with my soon-to-be inherited tenants. For a little bit of back story, My wife and I are about to close on a 4-Family house. Rents are HALF of the current market. rented between 600-725 and market is going for 1,300-1,500. Unfortunately, all 4 units just renewed on a 12 month lease on Jan 1st. The property is still profitable for us at these current rents so we are fine with keeping these tenants for the next year, but ideally we offer them an out and at least one of them take it. 

So here is my question- how would you offer this? We did speak with a Real Estate Lawyer who looked at all of the leases (they were one page leases written by the old owner, nothing official or state approved) So we had hope that we could get out of them, but we are stuck with them until December. They all know their rent is way under market value so we assume they know come December, we will choose to put them on month-to-month leases and rotate them out while making renovations. But, we do not want to say something too soon, and then them get upset or angry and take it out on us by not paying rent or destroying the property. 

The one option we have considered is offering them cash for keys. I would like to offer to pay their security deposit at a new place or somehow make it worth their while to leave their lease early. 

How would you offer an early lease termination? Or do we stick it out until the end of the year?

@Aaron Montague How much is "enough" for a condo association to keep in liquid capital? I live 3 blocks away from the property so I plan on managing myself

Non warrantable condo due to commercial/residential ratio. I can get financing at a local bank under the following terms:

$235k purchase price 

10,1 ARM 30 year amortized

20% Down

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Jason Wray They're listed as a condo. Single story attached. 

Hi BP, I have a tricky one for you. I'm looking at buying a package of 2 condos in an A+ location with tons of value add to increase rents. The issue I'm having is that these are the only two condos in the condo association & the rest are commercial (2 units above store fronts).

I could owner occupy at least one & my partner could owner occupy the other one but I don't believe a residential lender and appriser would ever approve this as a residential loan so my options would be to try and get these two rezoned to a multi-family, get a commercial loan, or possibly seller financing? 

I'm open to all options & opinions. Thank you in advance BP 

@Sheryl Sitman Where in Bucks County was your most recent rental?