All Forum Posts by: Daniel Rehner

Hi all,

Background:

So I've got an interesting possibility. I had the landlord next to my rental in Lexington, KY recently contact me about helping pay for cutting down some tree limbs that were from my trees that were onto her property.  I at first wanted to just tell her go ahead and cut them down if you want but I didn't want to help pay, but for some reason it just didn't feel right, so I told her I would help pay.

Anyways come to find out after talking with her, she is an older lady that has own 6+ rentals.  She has owned them for a while and told me that eventually she would sell them because she did not think her kids would take them over. Her only big issue is she is worried about the amount it would cost her in taxes.

Question:

So I got to thinking that there must be a way to creatively finance a deal with her that spreads out the costs she might incur with taxes.  I thought that maybe if she would be open to owner financing that she would at least be getting monthly payments and interests that could spread out her cash-flow as to not have a lump sum gain all at once?

What do yo all think?

Thanks

Republic bank was the one who did the commercial loan and guardian savings is the other bank I've used for my personal home

Hey all I need some advice. So I recently bought a duplex in lexington, ky (Victoria way) and was able to secure it with a commercial loan, even though it's not a typical commercial property. I did this because of a good deal they were having that was helping new investor get started. They only were requiring 10% down for a 20 yr 4.5, fixed for 5 yr, balloon at 10. They only problem with this type of loan is I cant extend a home equity line of credit. I bought it for 102,000 and the bank appraised it at 115,000 at the time of purchase and that was before I even fixed it up a little. I've reached out to another bank and can refi for about $3500. I would refi for a fixed 30 yr and it would decrease my monthly mortgage about 100$ and allow to repeat the process with another. Seems like a now brained but I'm a little stuck on thinking I would be making my initial investment worst by spending and additional $3500. Should I wait until I have another property in the cross hairs or move to be ready beforehand?

Sounds great, I am going to try and make this one.

@Jonathan Jewell The female is pretty admit about moving out, and the male told me today he would like to stay regardless with her moving out. He says he wanted to make sure he could cover the finances before he told me yes. Now I don't like just taking him by his word, but honestly I think he paid most of the rent to begin with. 

As far as legally neither of them has said anything about domestic violence, all she has filed is a emergency protection order. As far as anything with changing the lease I think I will wait on that. But if she isn't going to be living there then I think I will need to write up a new lease as if he was a new tenant. He was also concerned about her coming back in and stealing his stuff because he has child service and coming to check out the place Andy wanted to have the locks changed. I am Jesus tan the to allowing this because legally she is a till in the lease?! Thank so for all the help and advices so far

Well he has left yet. I spoke with him yesterday and have him the option to break from lease AS long as I get someone lined up to move in before he leaves,  as I feel he probably won't be the best tenant to keep in the long run especially with him and her being just above the minimum 3x income vs rent.  He days he can take extra hours to cover rent but I definitely don't see it as a long term solution.  I told him to keep communicating with me so that we can come up with a solution that is mutually beneficial. He was concerned with him getting stuck with paying the whole rent and the girl getting away scot-free. And well depedning on the type and reason for the restraining order,  she very well might. But i made sure he knew that the worst thing he cpuld do was just bounce, because then he will habe a record that follows him whereever else he rents. The girl told me the restraining order is called EPO or ETO, but didn't know what that stood for. So I told her to let me know by tomorrow exactly what type or restraining order it is so that I know how to proceed. 

Thanks Deanna McCormick. I'm from Lexington, KY so I will look into kentucky's landlord tenant laws. 

So I've got an update, I'm still trying to get a hold of the male tenant but the female tenant and here daughter moved out and file some sort of restraining order against the male. She has contacted me in order to try and get her name of the lease. Both their incomes were needed to meet the minimum qualification of 3x rent. I'm still to find out the male tenants intentions on his plans of staying or leaving, and I'm still trying to keep my rental as a business but I already feel like I'm about to tread into complicated waters. If the male tenants can continue paying should I let him stay? He will no longer meet the minimum income qualification so I could terminate his lease early...thoughts and suggestion from those who have gone through similar are much appreciated.  Thanks

Thanks for the advice! Very helpful

Hi all, 

I am a first time real estate investor and bought a duplex back in Feb and was able to turn ithe around before the 2nd mortgage paymen, which I was pretty happy about. And if you would have asked me how things are going with the rental 2 days ago I would have said...pretty good, both tenants have paid on time for the he last 4 months. And that is still the case so far but a pair of my tenants are breaking up, and although I don't have all the details yet (I will be finding that out today), what is going to be the best form of action to take? Both tenants are on the lease so they both are responsible for paying rent. Any advice will be appreciated as I have a couple weeks or less to figure this out before the next payment is due.