All Forum Posts by: Account Closed

@Mike Wood,

Please read my response to J Beard.  If you did you would have known that I do clean and paint the house for turn-over.  I do not pass on maintenance issues to my tenants and I am unclear how you could insinuate that I don't from my posts.  I simply attempting to secure a tenant before the physical turn-over so I can have a signed lease as soon as possible.  

So the questions where:

"(1) how others avoid this scenario in there lease and

  (2) how to proceed with the current tenant. "

Any thoughts?

@Caleb Sandfort,

I would recommend lending your capital and collect interest. I loaned a similar amount from a retirement account for 3-years at 10%. With $20k it would be difficult to get better returns then the conventional MLS route.

If you go the conventional route, you would have to buy a turn-key single family residence (SFR) for $100,000. Turn-key as in no upfront repairs needed and standard updates. You would need somewhere between $1,200 to $1,500 to sufficiently cash-flow after your mortgage and other expenses. This rent range would demand at least a 3 bed, 1 bath depending on the area. Maybe a 2/1 in a desirable area. There are two realities here:

1) MLS hardly ever has $100,000 SFR and if they do they need extensive repairs or updating. Also, they will be in less desirable areas and would be on the low side of market rent ($700-900). More capital and/or leverage needed to secure a property.

2)  Market determines rental rates, not your agents estimates and not Zillow or the like optimistic estimates. Because of number one, the monthly mortgage will exceed market rental rates (meet at best) and not cover anticipated expenses.  Let alone capital expenses (roofs, water heaters, flooring...). 

A similar alternative could be "house hacking" where you live in the investment property and rent a room or other unit if it is a multi-family. Problem is multi-families on the MLS are priced even more excessive then the SFR. I hear room sharing can work well but this is outside the passive investment realm.

Caleb,

Vancouver like the Portland metro area has a strong rental/selling market and has rebounded quickly. Most who held on during the housing crises and over spent are now able to sell at the pre-crises prices. With that said there isn't much low hanging fruit, i.e. MLS "deals" here. How much capital are you planing on using to achieve your goals? Knowing this I could suggest a specific strategy for Vancouver or otherwise.

Thank you for your consideration.  In the past I simply showed the place, with permission, to one or two parties individually in about 30 minutes.  The one party who wanted it would then apply and pay the refundable holding deposit on the spot.  Only way they lose the deposit is if they refuse to sign a lease when the house was available.  Any other scenario ends up a refund.  This gave me the minimal vacancy time,  prevents shiny object tenants, and gave them security knowing they have a place.

Having 100 year old hardwood floors helps when showing while occupied.  Mostly rugs and minor imperfection are part of the charm.  Hate having to paint but a must.  Not a slum lord yet but working on it ;)  Who doesn't love turn-overs!?!

Thanks for your input.  At no point was my original post reflecting what my lease should/would state.  I was just admitting that I lack verbiage that covers these scenarios and the next statement was merely stating my legal right to enter the property.

She was not a good tenant but would still and always have respected her privacy.  I'd prefer to show the property while she was at work but wouldn't do it without permission.  I will just count my blessings if she leaves the place near the same condition she moved in.

@Michele Fischer,

Thank you for your response and always enjoy your posts.  Next time I talk to her I will try to feel out as to why she is against the visit and see if money for her inconvenience would be an option.  Thanks again for sharing.  

@Andy Luick,

Thanks for the input.  I do have a virtual tour in the ad but at 625 sq-ft I have to have the tenants feel it out to make sure it will work.  Appreciate the lease verbiage too.  Next time!

@Michael Noto,

Thanks for the reality check.  Just didn't see this coming as it has never been an issue in the past.

@Michael Julian,

I hate and expect a day or two vacancy but not having the ability of lining up the next tenant is unexpected and kind of infuriating considering all the things I've done to help her.  I wouldn't feel comfortable showing the place if she wasn't comfortable about it so not really trying to force the issue.  Always have good relationships with my tenants but have yet to have one show the place to potential tenants.  That would be amazing.  Property tour and a customer testimonial in one.

@Neil G.,

I agree and have always have had the tenants privacy in mind whenever I visit the premises.  Always to their schedule.  Never had a tenant have an issue with it in the past and caught me off guard in this instance and was totally unprepared.   Hopefully she will be mostly out and in the new place this weekend and can inspect or show then.