All Forum Posts by: Michael Noto

@Russell Brazil Nailed this one so I won't add much to what he said. Also, keep in mind if you are new to the home buying process it does not hurt having someone to help you navigate the process. 

She probably gave the key to someone she doesn't want to have it and is just using the landlord as a way to get you to do it. 

@Chris Duffy How much of a deposit does she currently have? What is the norm for the market? Sometimes people look at added security as a punishment and if they are otherwise a good paying tenant it could turn them off. 

You are in the business of collecting rent and you know the tenant does not have a means to pay. This is a tough situation for your tenant, but it will probably be better for them to get into a place they can afford also. The issue you are likely to have is the tenant will have no where to go so the sooner you give them notice the better. 

When you say townhouse, is it a condo complex? If so, you want to account for HOA fees.

If you are going to keep it furnished direct your marketing towards tenants who would be looking for this type of setup. Travelling nurses or other travelling workers, people relocating, etc..

@Derick Hanna This is the best way to look at a house hack when you are running numbers in an area that is desirable to live. You are basically using the rented unit to supplement you monthly payment as opposed to eliminating it. Having a place you and your family are comfortable living is most important and finding a place where the numbers work like this is the best of both worlds. 

Based on the info you have given I would keep the tenant and propose an increase of 5-7% for the renewal. Calculate the costs associated with vacancy, turnover, etc and it will become clear that this is the best option. 

How long were you under contract? Did you have a rate lock period?

You are smart to get this cleared up now. Hold everyone's feet to the fire because this information is very important to get squared away because it is the only way you can make an informed decision on how to move forward or not with the transaction.