All Forum Posts by: Daniel Netzer

 Where are these deals? :) 

Less people are looking right now so they seem to be popping up more and more :) I also use a somewhat different analysis model to determine how suppressed NOI might be from subpar PM performance or exorbitant PM cost structure(s).

Let's chat more if you're interested, I'm always eager to meet more people in this space.

I'm curious the best ways to go about finding STR investors looking for strong wholesale deals here in Washington State. I have a model and strategy which have worked very well in finding lucrative opportunities but I do not have an investor Rolodex to send memos, Pro formas, or other details to. Anyone have some feedback?

So you are suggesting a 4-plex worth $2M producing $100K NOI is worth the same as a very similar 4-plex next door producing $200K NOI? 

 A 4 year lease is mind-blowing. Never heard of anything like that before. 

I originally did a 4 year lease for a friend who was moving to New York in 4 years and she knew positively that she would be in that house for 4 years no matter what.  She begged me to sign a 4 year lease so she could know for certain what her rent would be.  I was just starting out and while it seemed unorthodox I did it for a friend.  

It worked out pretty well.  She didn't end up staying the full 4 years and insisted that I keep her deposit as it was only fair, but it sorta gave me an idea.  So far, no 4 year lease has ever come to fruition and I've been able to keep every deposit from the default without having to feel bad or figure out if there was damage - it's just a given.  You're keeping that deposit.  Then, I get them to clean the house to rent ready status because they want me to re-rent it as soon as possible to end their liability.  I even got one guy to paint the whole house for me.  I bought the paint and told him, it would help with getting it quickly re-rented.  So he moved out the last day of the month and I had a rent-ready, freshly painted house, kept his deposit and rented it the very next day and that tenant is still there with a month to month because he's building a house now.  We were all happy!  What is the down side?

I hate this inflation because it has pushed me to do only yearly leases, even with my tenants that have been with me 10+ years - and WANT a longer lease.  I refused since I'm likely going to be forced to up the rent again this following year.

I've seen the damage a move out and move in can do to a house, so to mitigate that wear and tear and eliminate a month of no rent between renters, I offer the discount of $100 a month for multiple year leases - as it would be the same if I lost a month of rent without the wear and tear of a move out/in.  It has worked VERY well for me and hopefully I can go back to it in the near future.  Every time I have someone move out, I have to go in and paint the door facings where they bumped or chipped the paint.  That just irks me beyond belief!

I hate being a landlord and I resent the time these houses take from me (this business was never planned or anticipated) - so anything I can do to eliminate my involvement I'm up for!  I vet extremely well and (except for this 1) have always had excellent pay tenants...always before or on the 1st without fail and usually they take care of all the small stuff and only call for the emergencies and big issues.

I've taken a beating for these long leases on this forum and have been told I'm in over my head, but my bank account doesn't agree!  Call me greedy, but I love keeping those deposits and writing that 30 day letter is so easy without having to outline the reasons I'm keeping it.:)

@Rehj Hoeffner welcome to BP! I'd tell them they are free to go. Why on earth would you sign a 4 year lease!

Quote from @Daniel Netzer:

The tenant may be technically correct that it's your responsibility (if that's what the lease says) but it was still a false report. She can't falsely claim something exists and expect you to pay for it. If it were me, I would stand my ground and tell her she is paying for the false report.

Under my maintenance clause, I make it clear that the Tenant is responsible for any maintenance caused by their misuse, abuse, or neglect. They are also responsible for failing to allow entry at a scheduled time. Finally, they are charged if they report a maintenance issue and it turns out the issue was non-existent (e.g. the oven doesn't work and it turns out the Tenant unplugged it).

Under pest control, I make it clear that I will cover pest control for their first two weeks of occupancy. After that, any ordinary pest control is a Tenant responsiblity.

Hey! So, you did the right thing by calling pest control when the tenant said there was an issue. At the same time, I would have probably suggested looking at it in person or paying for some big killer spray, even the “safe” kind. It sucks that there were no pests and you have to pay for treatment. Is there anything in the lease that mentions pest control? In mine, it states I will pay for pest control services of mice, ants, silverfish, etc but not for bed bugs or fleas. The property must be kept orderly, food put away, trash sealed and taken out, things sorted properly etc. I would have her sign an addendum for future pest control issues so it’s clear. For now, I think paying the $225 is an expensive lesson. In the future, see if you can go see it in person first. It also sounds like the pest control company doesn’t give a crap, so maybe scout out a different one for any future needs.