All Forum Posts by: Diana Duncan

I've run into a little problem with 2 adopted tenants from an existing owner. The first 8 months they were great, paid on time, no issues, etc. As of the last 3 months they have been a nightmare. One has definitely taken the power position and has gotten the other on their side. Late of rent, pushing back on late fees (is it worth evicting over $50-60 in late fees), putting in a ton of maintenance requests that need to be done IMMEDIATELY (according to them), but then never respond with photos/ times of when the contractor can come in and/or don't want the contractor in while they aren't home. One even called the old owner to ask questions about the building. Very frustrating.

Self management has been great thus far, and quite frankly is necessary due to the lack of good property managers in the area. BUT THIS is really starting to frustrate me. How would you handle this?

I would love to evict both of them as the building is very sought after and one of the nicer buildings in town so would lease up quickly.

@Cassidy Burns, I can see how this would be a frustrating dilemma. This is my two cents:

Emotionally detach yourself from the situation; tenants are not your friends/family
Use landlord and tenant law to remedy breaches to the lease; that's the only real weapon in your arsensal
Tenants are obviously building a case to rebut any possession proceedings, so definitely deal with the repairs; ensure you correspond with them in writing and keep all records
Familiarize yourself with the state/city/county requirements and check against the repairs they've asked for. Quote the relevant clauses in your correspondence for gaining access or to justify your refusal to carry out a particular repair job/request. This will increase your confidence and strengthen your position; tenants can't argue with the law
Start action against the follower first, perhaps a couple of weeks apart; that tenant may then renege their allegiance with the ringleader

I'm curious to know whether you're aware of anything specific thing that may have triggered the non-compliance after a relatively long time.

All the best!

5 Votes

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1 Vote

Thanks Keren, let's connect!

0 Votes

Hi Caleb, unfortunately it isn't. We get good deals all the time so if you're interested I can take your information and contact you when we get something else in that area. Are there any other areas or states that you are interested in because we actually find properties all across the nation.

1 Vote

Lets try that again...

Here's the link to the video and more photos

https://drive.google.com/open?id=1yz1XwNEChLA-ujKkQM1Sp2NzX8Lq6wV4

0 Votes

**This is a substantial feature property**

BUY | FIX | HOLD

5 beds / 1 bath

2,904 sq ft Single Family Home sitting on 0.81 acres

ARV: $150k (Potential to be more!!!)

Estimated Repair Costs: $60 - $70k

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Must be able to close quick!

The title already clear and ready to go!!!

Check out more photos and a video of the property with the link down below

https://drive.google.com/open?id=1Arhbv4ItQc7rtSOQrG7rkHTfYB_qafCB

Thanks for taking a look! If you're interested please let me know immediately, this deal won't last long.

Diana Duncan | [email protected] | 772 497 6765

0 Votes

Originally posted by @James Wise:

Originally posted by @Diana Duncan:

Originally posted by @James Wise:

Originally posted by @Dimitri Metropulos:

Just wondering if anyone is utilizing Section 8 on any of their properties and how they feel it is working for them. I understand the pros and cons of taking this route but wanted to hear from someone that has actual experience with it.

What Property Manager do you use if you don't manage them yourself, What are your struggles and successes you have had... etc. Any information about your personal experience would be greatly appreciated.

Section 8 has it's pros & it's cons

Pros

Rent is guaranteed.
Rent is typically higher than cash paying tenants.
Allows investors to consistently get high rent on houses in riskier neighborhoods.

Cons

Dealing with CMHA (Section 8) is a pain. They are slow, have employees who are clueless and you will often get a different answer to a question every time you speak to a new person.
The process of getting a tenant moved into a house takes a long time. Typically the tenants are dirt poor so they don't have money to pay a hold deposit while you go through all the red tape and inspections.
Inspections are inconsistent. You may have one inspector site 5 items. You fix all five and the follow up inspection results in a different inspector siting something totally different, thus starting you back at square 1.
The annual inspections are a pain because the tenants will break stuff while living there and you'll be forced to fix it or loose your payments.

All in all I think the pros outweigh the cons if you are in a risky neighborhood. If you've got a nice B class property with a solid cash paying tenant base it's not worth the additional red tape dealing with CMHA (Section 8). However if you're in the hood where evictions and non payment of rent are an everyday occurrence that guaranteed government cheese is mighty nice.

@James Wise Do you know if the CMHA provides general guidance notes on what the requirements are at inspection so that you can attempt to take care of these issues before they arrive?

Yes. However the biggest fall back is inconsistency on their end.

I live in hope that if and when the time comes and I decide to dip my toes in the S8 waters the FL HA's will fare a little, a smidgen better :)

0 Votes

Cleveland, Ohio

Originally posted by @Bob Collett:

@Diana Duncan

Yes, Cmha provides an extensive check list of inspection items, including items that are automatic fail (example: each window that is designed to open, must be operable, have working window locks, and have screens)

Overall, the inspection itself is not so bad... it’s getting to that point. Unfortunately, they will not pre’inspect. You must first get a tenant. Also, you do not get to know how much the rent will be until you go through the entire process... then at the end they say take it or leave it.

Bob

Charming! :) Thanks for the info Bob, appreciated.

0 Votes

Cleveland, Ohio

Originally posted by @James Wise:

Originally posted by @Dimitri Metropulos:

Section 8 has it's pros & it's cons

Pros

Rent is guaranteed.
Rent is typically higher than cash paying tenants.
Allows investors to consistently get high rent on houses in riskier neighborhoods.

Cons

Dealing with CMHA (Section 8) is a pain. They are slow, have employees who are clueless and you will often get a different answer to a question every time you speak to a new person.
The process of getting a tenant moved into a house takes a long time. Typically the tenants are dirt poor so they don't have money to pay a hold deposit while you go through all the red tape and inspections.
Inspections are inconsistent. You may have one inspector site 5 items. You fix all five and the follow up inspection results in a different inspector siting something totally different, thus starting you back at square 1.
The annual inspections are a pain because the tenants will break stuff while living there and you'll be forced to fix it or loose your payments.

@James Wise Do you know if the CMHA provides general guidance notes on what the requirements are at inspection so that you can attempt to take care of these issues before they arrive?

1 Vote

Cleveland, Ohio

Originally posted by @Edwin K.:

Hey, the best way to learn is to jump in. Just like riding a bike for the first time you will get some scrapes and bruises. I got mines on my first deal but best part about it is I started and learned. You ran the numbers and they work(check)

Now go view it. You decide what "a good neighborhood is". Don't let anyone else decide that for you. I look in areas where some people on BiggerPockets will say it's not "good" but to me there's nothing wrong with the area. I grew up in areas that was deemed bad by certain people but in reality it's not. Heck I'm currently house hacking in a C area and I'm enjoying it.
After you view it get a good and I mean good inspector. The one thing I learned from my first deal is picking a good inspector. Make sure the inspector have good reviews online and ask him/her to send a sample of how their inspection sheet look like. No sense in paying an inspector and you can't read their inspection sheet.
If you have time get a contractor to bid on the issues the inspector found.
After step 1 and 2 and 3 run the numbers again with the new information you have gained. Renegotiate the price if you need too. If the numbers still work move forward.
Ask the owner for copies of the lease and all other paperwork on the tenants. Read the leases carefully find all the clauses for ending the lease, find the lease terms, rules, and so on
Now close on it.

You got this... I believe in you.

Great advice Edwin K. I would also do a background check on the tenants.

0 Votes

All Forum Posts by: Diana Duncan

Diana Duncan has started 3 posts and replied 59 times.

Post: 2 Tenants in a Quadplex Joining Alliances: How would you handle??

Post: 18 Unit Apartment Complex (Off Market For Sale) in Tampa, FL

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Does anyone utilize Section 8 Housing on their properties?

Post: Does anyone utilize Section 8 Housing on their properties?

Post: Does anyone utilize Section 8 Housing on their properties?

Post: Knowing When to Walk Away or Take a Chance

Diana Duncan has started 3 posts and replied 59 times.

Biggerpockets Logo Post: 2 Tenants in a Quadplex Joining Alliances: How would you handle??

Biggerpockets Logo Post: 18 Unit Apartment Complex (Off Market For Sale) in Tampa, FL

Biggerpockets Logo Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Biggerpockets Logo Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Biggerpockets Logo Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Biggerpockets Logo Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Biggerpockets Logo Post: Does anyone utilize Section 8 Housing on their properties?

Biggerpockets Logo Post: Does anyone utilize Section 8 Housing on their properties?

Biggerpockets Logo Post: Does anyone utilize Section 8 Housing on their properties?

Biggerpockets Logo Post: Knowing When to Walk Away or Take a Chance

Post: 2 Tenants in a Quadplex Joining Alliances: How would you handle??

Post: 18 Unit Apartment Complex (Off Market For Sale) in Tampa, FL

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Spartanburg, SC | REHAB INVESTOR SPECIAL SERIOUS BUYERS ONLY

Post: Does anyone utilize Section 8 Housing on their properties?

Post: Does anyone utilize Section 8 Housing on their properties?

Post: Does anyone utilize Section 8 Housing on their properties?

Post: Knowing When to Walk Away or Take a Chance