All Forum Posts by: David Boroughes

Hey Everybody,

Question here about what to do in the situation where a garage space had been rented to an individual for storage, no lease, not a commercial garage just residential, hand shake agreement. Months have gone by with no rent being paid. Tenant makes contact, then fails to follow through with payment. I'm at the point of just kicking them out of the space, but there is a lot of materials and personal property inside the garage. I know for a residence there are certain notices and time lines that need to be followed, but what about in this situation? This is not a residence and no one is living there, there is no lease either. Any help or guidance would be appreciated. I am not going to go through a lawyer, the rent is not much, so its not worth trying to drag them to court or collect back rent, and it would cost me more in attorney's fee's than it's worth.   

@Amy Mueller

I had tenants that started this way too, I let them burn Sage throughout to appease them (their idea), whatever works.  Now they've been there a couple years and are happy as can be, don't bother me for a thing, and actually replaced a screen door themselves cause they wanted a new one. 

I let them talk, but basically let them know my belief is that it's all horseshit, but if they had a solution, go for it, which they did with the Sage. I wouldn't play into the nonsense, if they try and take it too far, just follow the laws in your state regarding eviction for non payment. 

Would like to hear an update on your situation.

@Anthony Thompson  Thanks for the reply. I'm thinking of anything Cranston or south. Just throwing the question out there to see if anyone had specific areas they liked. I will have to investigate rents in different areas ( on Zillow, CL) then search home prices and work it through. I guess the bigger challenge for me figuring out which areas will attract the better tenants, even though it may cost me a little more to acquire a property, I am more comfortable working with a better class tenant, someone who would actually cut the lawn and clear their walkway, respect the property, and can manage to mail a check somewhere around the 1st of the month.   

@Nate Burgher thanks for your thoughts, Yes, RI is small and there are still many many areas that vary greatly. What's a hardware store?? You mean like a Lowe's??? LOL  I've seen LOT's go out of business here over the past twenty years... 

@James Cassell you can have your attorney look over the paperwork, the listing agent would be glad to help you prepare your offer, so long as you don't need their advice on contingencies and offer price, as long as they remain working for the seller (not representing you) and only giving you blank forms to fill out and accept back, you won't need an agent. You might even find they will be willing to reduce the commission (thus reducing the purchase price of the property) since they would no longer have to split it with a buyers agent. However, I do believe finding a good buyers agent will be your best option, so you'll have someone in your corner for the first deal and the next several, also the commission is paid by the seller, not the buyer. 

Getting too expensive (to buy a single family and rent it out) making the numbers work in the Newport area. I'd like to investigate other areas of the state where prices could still work. Where are you having success? Or where do think has the possibility? Ideally, I'm looking for a 3/4 bedroom single family for under $200,000 that would rent in the range of $1,800-$2,000. I like to be hands on, I do my own renting and property management, so I don't want to buy a place out of state. Thanks for any/all ideas 

Perhaps compare the numbers to a multi family in a nicer area? Of course the price will be more, but so should the rent, and have a lower vacancy rate. Just curious. Even after a dozen deals, I still shy away from lower rent neighborhoods, I like tenants who will respect the property and have the ability to pay market rent in a decent area. Units don't turn over as much and when they do, usually can re rent immediately. Just curious if you could buy a nicer 2 or 3 unit in a better area, (it sounds like you have some $ to put down), how would the numbers on that deal look in comparison?   

@Michael Le

@Andrew Beauchemin

@Todd Dexheimer

Thank you all. I will start with my local credit union and see what they say. 

@Joey Nakayama

Those ads look good, the places are nice, you shouldn't have a problem renting them, but might take a little longer than if it was May

That's a good start, write it up and present it, and see what the seller comes back with

Looking to finance 75% of $1,000,000 for a 12 unit apartment complex which grosses $110K, expenses are $40,000, so NOI $70,000 (not including debt service). I'd be purchasing as an LLC and am looking to have the property basically qualify itself, meaning I don't want my debt/income ratio to factor in (because I would not qualify based on high debt to income ratio), have great credit and own multiple apartments and houses with nice net worth, also I have 25% to put down. What types of financing could work here? Ideally, I'd like a long term arrangement, around no more than 5.5%