All Forum Posts by: Curtis Bidwell

@Gregg Jossie As an owner occupant you typically have additional rights and protections for who you allow to live next to you - as in, your not held to all the nondiscrimination laws (check your state/municipality).  Also, I assume it is just 2-3 bedrooms, meaning you can limit the number of occupants to 4/6 total.  

You will need to be proactive and  VERY clear with your tenant.  9 people in your neighboring unit will be challenging! I would let the actual tenant know that the additional people are merely guests for the allowable time, but if they extend beyond the 30 days it is a serious violation of your lease and you will have to terminate.  
On day 29 when they tell you they’ve found a place and will be out in X# of days, DON’T DELAY! Serve your Notice to Comply, termination of Lease, etc...   If they leave within the allowable time you can choose to not enforce the termination.  But when they don’t leave you will be ready to act without losing additional time. 
Good luck!

@Ned Carey This doesn’t have anything to do with logic or tenant benefit.  This is ideologically driven.  They are working to turn housing into a “human right” and therefore only the government can adequately meet the need.  It is the same play they did with health care ...and we know how well that worked.

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This is a renters insurance claim, not a landlord responsibility.  I would tell the tenant to turn their claim into their renters insurance.  My contract lets them know that we cover NONE of their possessions for ANY reason.  

Hi @Jordyn Rodriguez Its the key question to making your business successful, mediocre, or going bust! Start with Craigslist and look for similar properties to yours in comparable neighborhoods (# of beds, baths, same square feet, condition, and style ie SFR, duplex, apartment, etc). Same with Zillow (and other rental sights). Set your search criteria to mirror your unit and look at the map. Search as if you were your potential tenant. You can also get real time info from Rentometer on a trial basis.

Also, call your local Housing Authority and let them know you are purchasing a property that you “might be interested in opening up to sec-8 tenants”. And ask what price point you would need to be at for their clients to qualify.  That will give you a pretty good baseline.   

Good luck!

@Tim Lynch. Congrats!  That’s how to make it work.  I assume 2-bed, 1 bath units? Where is your property? I have several on the West side (Apartments and sfr).  It’s a great location.  And your price per unit is very good for the market.  Will you have any rehab to do other than routine turnover? 

Your showing that there are still some solid deals to be had -even in a tough market! Good job. 

The question is raised when the potential tenant has issues with their background and want to know if you will thoroughly and professionally vet them or if there’s a chance they can talk their way into unit your unit.  

In my advertisement I always say state basic requirements (minimum income/credit score) and that all applicants will be professionally screened for rent history, verifiable income, credit, criminal ...  that eliminates most people asking.  

Quote your local tenant/landlord law.  For my tenants I say, “Any deposit due you will be refunded within 21 days of vacating.” 

You don’t need to discuss or debate it. Itemize any deductions and send it within the timeframe allowed by your local jurisdiction.  

@Driton Selimaj. Your expecting a lot!  With $300k you could purchase something in the $700k-$1m range (lenders will require you to keep some for cash reserves).  

How much are rents in that area For that type of unit?

What are the costs for the particular building? Will you be paying w/s/g? Hot water, electricity?  depends on the building.  

What are your other costs? Yard care, snow removal, management fee, repairs, routine maintenance, insurance, taxes, reserves for major issues (hot water tanks, furnace, roof, etc). 

As a rule of thumb, you can figure approximately 35-40% in expenses, and then add your mortgage payment.  If you can net $200 or more per door after that your doing alright.  

I have a 10 unit that I got a great deal on that nets about $3k/mo ($300/door), -but I’ve also tripled the value in 4 years by cleaning it up and getting rents up to market! 

So there’s cash flow along with some significant equity building.  Good luck in your endeavors! 

@Pete Harper  I bought a 10-unit a couple years ago with poor/bogus/insufficient numbers.  It all worked to my advantage.  

• I didn’t care what his rents were, I knew what they should be (just call sec-8 office to see what they will pay for your units).  
• I didn’t care what he listed as his insurance cost, my agent gave me a quote ($1k  cheaper than He was paying! BUT I used HIS cost to justify my offer!)
• I didn’t care what his water bill was - he had leaky faucets and toilets throughout the complex! I used his number, knowing I’d cut significant cost by simply repairing the leaks! 
• My contractors did my inspections and gave me bids for the work so I knew what my cap ex was going to be.  
• I looked up the property tax on the county assessors web site and updated his number to the current year.

It’s all part of due diligence.  What I want to know from the seller is when do the leases come due - or are they month-to-month.  You can pretty much figure out the rest on a deal this size.  

We have a home for sale in a HOA community right next to the HOA president. Several potential buyers have been met by her and told how awful the home is, that the neighborhood is not a good place for their family, and not a good fit for military families (we are just a few miles south of Joint Base Lewis McChord). It's a beautiful home and a nice community.

Our property manager lives in the community and has tried to intercede for us but has been stone-walled and even told that she can not communicate with the HOA board any longer!

What would you do? Is there legal recourse for a board member acting in bad faith? Is the HOA liable for her actions?

Thanks for your educated input!