All Forum Posts by: Derek B.

Please don't do that. Horrible advice.

Congrats @Alex Applebee  awesome job!

Kudos to @Account Closed  nice video, but its advice is horrifically illegal in my state and I suspect in others. You should at least consider a disclaimer. 

Lastly, and my rant is over, if you are engaged in this business and have not personally read your state's statutes relevant to the business you engage in, you are doing everyone, including yourself, a disservice.   

@Dwayne George  one more thing to keep in mind:  your tenants pay extremely high rates for  electricity. Gov McCrory signed legislation earlier this year paving the way for Duke Energy to purchase NCEMPA. I am sure it will take several years for the benefits to flow through, but when the residents in that market see their utility bills drop substantially in the future, all landlords should be able to push market rents a little. 

The place may have been habitable, but it still isn't fully available for their use and you presumably still have contractors going in and out. I would err on overcompensating the tenant.  I guess this is a good reminder for all of us - tenant turnover or once per year check the ac drain line for clogs. 

@Dwayne George  

I knew someone would chime in and tell you that this property meets or almost meets the X% rule. Please do not put too much (any) weight into this analysis. These so-called Rules of Dumb are not accurate across property class, geographic region, etc. 1.8% on this property is much different than 1.8% on a $30k house in the rust belt.

Personally, I think this was a good buy and I know the neighborhood, the street and the houses on the street. I do think market rent is closer to $900-950. However, it sounds like you inherited a long term tenant who did not have a lease and the property is at the top end of what they can afford. It’s a judgment call on keeping them at a lower rate (which you did) vs. pushing for market and risking vacancy. Look at it this way – if $825 is their price ceiling, they may/will be renters for a long time and will probably be long term in your property. As I shared with you before, a friend of mine in that market had the same renters for 13 years in a 3/2 in that price point.

The location of that property has no shortage of renters in that price point.

My only concern, which I shared earlier, would be capex. Make sure you have underwritten the replacement cost and remaining useful life of the major systems (roof, windows, hvac, hot water, kitchen appliances, flooring) and that you are funding for these. It’s a big purchase, so second guessing is normal, but you’ll be fine.

 A few things: you can subscribe to a forum and receive an alert whenever a new thread is started in that forum. You may want to subscribe to the multi family forum and some others. Most people set up keyword alerts to know what is going on in their area, so consider raleigh, cary, triangle, rtp, etc. I actually found your new member post because of a keyword alert. 

Glad you are enjoying our state. Be sure to check out the beaches and mountains if you want to get away. I am partial to wrightsville and boone, but lots of beautiful places here.  Welcome again and reach out to anyone on anytime. 

@Account Closed  welcome and Congratulations on your move to the tar heel state. Michael Jobe hosts a meet up in the area - set up key words and you will get hit for the next one. 

@Sandy Spence  I think everyone has covered it here:  yes, you can likely enter (check your lease - there is a difference between entering for repairs and allowing other people to enter your tenant's private space). No, you can not force them to clean, leave or remove the dog when you show the place.  

I don't rent to dogs, so I don't have this exact problem. I did once have a tenant who didn't keep the place in what I consider "showable" condition (dishes everywhere, clothes on floor, dirty bathroom, etc). I told them that I could not force them to clean, but would not show the place with it in that condition. I told them I had 4 people waiting to see it and that if they cleaned it up and someone who viewed it while they were still there rented it, I would waive 1/2 of the final months rent. Win-win.

You mentioned this is the second showing for this applicant. I also don't allow repeat showings for applicants while the place is occupied. Tell them to bring their camera, tape measure, mother in law and whatever else they need to make a decision but its too much to ask of the current tenant for a prospect to have multiple showings of an occupied place. 

@Kelly S.

I agree with Bill and would proceed unless something about them (other than their age) gave you concern.  Yes, it could turn into animal house, but they could also be responsible guys who go to work every day and never cause problems.  

If you are concerned about parties, move them in and talk to the neighbors in 4 weeks.  If the neighbors express a concern at that time, write your tenants and remind them of their obligations of peaceable use.  If you are really concerned, then put them on month to month rather than a year lease initially to see how things go.

In my experience, 20 something guys will leave the place dirtier than average and they may be a little harder on the property, so get max security deposit.  Assuming this is in n carolina, 1.5 months rent is the max for month to month and 2 months rent is the max security deposit for anything over month to month. GS 42-51 (b)