All Forum Posts by: David Neely

Honestly I don't have a copy of the lease: that's all handled through a property manager. Probably should ask for a copy lol

Yes, the intent is to ask them to leave prior to the lease is up. Willing to buy them out of the rental contract, but the tenant keeps countering with "I'd be happy to buy the house with seller-financing" which I'm not interested in at all for a number of reasons.

Good morning,

BLUF: I have a SFR that is starting its final year in a 5 year lease. However, I'd like to move into the house as my primary residence this summer (due to school year timing, etc)

I'm familiar with a lot of the options to get a tenant out like cash-for-keys, etc. My question is this: if the tenant refuses to leave voluntarily prior to lease expiration, are there any legal options at my disposal? Or do I just have to wait it out?

Property is located in NC.

Thanks in advance!!

I think it helps to have clearly defined roles or titles as well, same as if you worked a "real" job, meaning one of you handles the money and budgeting, the other handles finding and negotiating the deals, or something to that effect, whatever the arrangement may be. Also having an explicit business model and vision helps keep one or the other from straying into territory that would create a fight. Plenty of people do it successfully. IMO the hard part is that if somebody gets on your nerves one day at work, you can't get away from them when you go home for the day in this scenario ;)

Unfortunately it will be several months until I can attend due to some ongoing long-term "day job" conflicts, but as soon as I can I will! Sounds great!

I wish I could attend this. I've never been to a meet up but would love to. I'll be checking the boards to see if I can make one in the future. Thanks for putting this together though

Nashville is pretty darn expensive these days. If you're interested in that area, I'd look north towards Clarksville. There's a lot of folks from Nashville moving up there for the more affordable (realistic) housing prices, plus there's a huge military population there that supports a strong rental market due to the transient nature of PCS moves. 

So there's a few ways to go about this that I know of:

1) They shady way: do it and hope the bank doesn't call the loan. Strongly not recommended for obvious financial reasons, never mind the implications to your reputation as an investor if you get caught trying to "get one over" on the bank

2) Wait until the loan is paid off and you have the title free and clear

or 3) Talk to your loan officer, discuss your situation, and see if they're willing to either let you do the title change with you as a personal guarantor (or assign the loan to the LLC). There may be fees and additional paperwork involved in this, but it's the honest way to do business. If they say no, they say no and that's that, but at least you maintain your reputation as an honest investor.

There may be more educated people on this (CPA, title company, attorney) that can provide clearer guidance with all the legalities involved...

One option to consider would be to invest in some kind of crowdfunding site like Realtyshares.com. Many of their opportunities have minimum investments of higher than 5k-10k, but many do not. Gives you a chance to see how people have put together deals that they're now trying to fund. Big leap of faith, but it's an option other than the standard list of SFR vs multifamily vs wholesale vs everything else without having to find the deal yourself.

If that's too out there, the question(s) really become: what are your goals (specifically)? What markets are you looking at? What is your timeline? How much time do you have available to dedicate to a project? How's your credit? Do you know anybody locally you could partner with? Do you have any personal experience in construction? etc. etc. There's no "right" answer for a 5-10k beginner investment without knowing a little more info to shape the answer: it's going to be a different answer for everybody based on their own desires and abilities. 

The hard part is, there's no hard and fast rules to defining A, B, C, D areas. Many have described them ("want to live there/would live there/etc") but there is no industry standard. I agree with @Ali Boone: local experts are the only way to get a real pulse on it if you're not personally familiar with the area, although I have heard one interesting shortcut (I want to say on one of the podcasts, though I may be mis-remembering that): Search to see what is closer: a Starbucks or a Dollar General Store. If it's a Starbucks, it's probably an A or a B....if it's a Dollar General...well...

Personally, I think it depends on the volume of deals you're making. If you're putting in offers on multiple properties every week (as many here on BP do), lowball them and see who is willing to play. If, however, you're like me only doing 1-2 deals a year I think it's more prudent to make a "realistic" offer based on the amount of research and numbers crunching you're doing. Just my opinion, I'm certainly no expert. If you lowball and they say no, you can always find another property, not the end of the world. Dave