All Forum Posts by: Denice S.

Backing out in the appraisal phase isn’t usually an approved “out” unless the property doesn’t appraise. 

There is no guarantee this person will follow through and make everyone whole.  Find out the sellers thoughts on you backing out and ask your agent if you’ll be on the hook for damages and/or lose any deposits.

Michael, Buffalo is a great place to invest but it is not without its challenges for out of town Investors.  Some things for you and your sister to consider while weighing your options...

1-Buffalo area is seriously deficient in quality, trustworthy propery management. I’ve tried many and have taken my properties back every time; and I’m local.

Air bnb will be extremely complicated without a 24x7 manager and cleaning/maintenance team...we just don’t have these companies in place and certainly not in abundance. 

2-Self managing in Buffalo is allowed, but you have to have a local property contact registered with the city of Buffalo rental registry.  If you have any family here, that would likely be acceptable. 

3-We are approaching the best time of the year to sell (June, July, August) and properties are achieving extremely high sales prices with favorable terms for sellers such as no inspection and no contingencies. 

All of the above is just food for thought, but you also mention perhaps moving here to Buffalo which reduces the challenges if you’re into self-managing. 

I think you also made mention of HOA terms which leads me to believe your mom's place is a condo or patio home. If that's the case and the association has systems in place to help you sublet on a months basis or if they help owners manage units for Airbnb that's an entirely different situation and could, in fact, be lucrative.

Denice

In my experience, tenants do what you allow them to do.  Unfortunately you’ve opened the door by saying “I’ll work with you.” That’s nice of you, but doesn’t get you where you want to be which is in their unit.

When tenants ask “what if” questions it’s helps to always respond with these 4 words: “then you’ll have to”

Tenant: what if I can’t find a place?

You: then you’ll have to store your property and move in with family.

Tenant: what if I can’t pay my rent?

You: then you’ll have to borrow money.

Tenant: what if I can’t mow the lawn?

You: then you’ll have to hire lawn service.

These are not meant to be scripts, just examples of how important it is to get yourself in the habit of putting everything within their control, squarely back onto their plate... not yours. 

The moment you take the problem on or agree to assist in the resolution is the same moment they hand it over to you.

Best of luck-you’re best way to plan is to acquaint yourself with recommended holdover attorneys. You’re probably very limited in what you can do until they’ve officially over stayed. 

Kerry,

Welcome. Take a day or two and get all of your goals on paper. Why are you pursuing real estate outside of your banking career? Do you need income or are you looking for something to do with your extra income? How much time do you have to offer a new business? What exactly do you envision real estate doing for you?

After you put some effort into clarifying goals (they don’t have to be exact) come back and share them. Experienced investors can help guide you in the right direction and make suggestions that align with your goals.

Your question is currently way too broad to get advice beyond: read books, listen to podcasts, buy good property, invest wisely...etc..

Jo, you say you haven’t performed a background check, credit check or employment check like it’s a good thing. 

The fact that you “haven’t”  performed a background check, credit check or employment check (all LEGAL reasons to deny an applicant) is exactly why you might get accused of discriminatory screening practices.  

You have NOT put her through your screening process because you’re:

1-wondering about sec.8 inspections being worth the extra rent

2- concerned how the age of her child might impact the housing inspection. 

Both illegal reasons to not move forward with your screening here in Buffalo. 

...Section8 inspectors have 1 checklist and it’s on their website. They use that 1 checklist at every inspection. Go to Belmont’s website and review the list.  It’s exactly what they’ll bring. 

Joe in the city of buffalo you cannot even consider the age of the applicant’s children or their source of income in the tenant screening process.  Taking into consideration either one of those factors is illegal.  

The city holds regularly  scheduled training for new Buffalo landlords.  Definitely worth the investment and you’ll avoid lawsuits and fines.  http://www.homeny.org/landlordtraining/

Hi Leslie, there are no full service pm companies that come with good recommendations.

Most local investors know them all and have either dealt with them personally or have a list of clients with bad experiences and new ones pop up all the time.

I’ve learned to self manage.

Just a brief google search for Buffalo City Living shows very mixed results with lots of reviews you can read.  If you happen to find success, please share your experience.  

Sadly, you will not find that in Buffalo. No such thing as one stop shopping here and I have yet to meet a successful out of town investor.  

I second Dave Niles comment- no one to recommend and plenty to avoid.  

Hope Arizona has a better outlook.

 A gradual increase may have been a more successful approach.  Imagine your rent or mortgage doubling?

Anyway, here’s the thing.  If you evict now, it will be a pay or quit.  So, if he shows up to court and pays then he can stay.

I’m assuming his notice to vacate is for Nov.1? If that’s the case, staying past that is considered holdover and with this type of hearing, he cannot show up and pay.  

Assuming you did everything by the book? An eviction lawyer would be a great idea at this point.  Run everything by them now as 1st consult is typically free.  Show them the inherited lease and your notice of new lease terms etc..so you know if you’ve done everything properly or if you need to start over. 

Sounds like your seller is referring to concessions.  Usually the buyer asks for them because they cannot afford to close without money back from the seller.  If your friend doesn’t need them, he should simply say he doesn’t need the down payment assistance because yes, he will pay more in principle, interest, taxes, deed stamps, sewer rent, filing, etc... at 200k than he would at 183k.