All Forum Posts by: David Barnett

Have you offered them cash for keys?  It's probably cheapest to try to get them out and re-rent it.  Unfortunately, you can't evict in Minnesota during COVID-19.  If you can't do cash for keys, you're likely going to be out of rent for 90-120 days and then have to pay for legal fees for eviction once that opens back up.

I would stick to 2.5-3X rent as monthly income.  If they don't make that each month, I'd likely pass.

6 units, 100% paid in the Twin Cities, MN.

Tim, I was wondering if you've seen any pull back from banks/financing institutions on new loans.  

Honestly, I haven't really used them (need them since my entity is out of state, too).  They are relatively affordable, and a national company.  There's probably a ton of them in the area that you are investing, and even lawyers will sometimes agreed to fulfill this role for you (for a fee).

I understand the concern, and will gently mention that there is always recourse if the tenant just so happens to flake out on their rent because of the messaging from the government.  As Brandon Turner so eloquently put in one of his videos, rent is still do.  If the tenant decides not to pay rent, I might reconsider allowing them to stay in the property past their current end date (or let the lease expire, going to MTM and then issuing a notice to vacate once the COVID-19 related regulations are lifted).  It's more of a timing thing, and it will eventually catch up to tenants that try to take advantage of the situation.  I understand that it might be aggravating in the short term, and might need to float some mortgage payments.  It will eventually sort itself out and they won't be able to stay in the property indefinitely.  Also (said with a little bit of snark), I never rely on the government (especially now-a-days) to advocate personal responsibility.

Unfortunately, it sounds like California/Oakland is being what it is known for.  Without looking at the ordinance, my guess is there is a way around this.  For example, if the tenant decides not to pay their rent as agreed to, I might decide not to renew their lease when it comes to lease expiration.  I think that's pretty fair considering the renter (in this hypothetical situation) didn't fulfill their obligation.  Now, if the tenant proactively says they won't be able to pay and has otherwise been a good tenant, it might be a different conversation.

I wouldn't say that this is all reserves, and I have easily 12 months worth of cash to weather any storms.  

My educated guess is that I will receive full rent from 5 out of my 6 units.  For the 6th, I anticipate that it will be a partial rent payment.

It sounds like you need a registered agent that is allowed to do business in Ohio?  I use Northwest registered agent for my registered agent needs.