All Forum Posts by: Ed Morrison

H Everyone. I delivered a 3 day notice to perform this morning on what we thought was a great tenant.  I took pictures to document what is listed below.  Not sure if that is a violation of anything but I did it anyway (thoughts?).

We received a call on Sunday from the tenant that the AC stopped working. I was able to get an AC company out yesterday (Wednesday) to fix the system.  When I met the AC guy, we walked into the garage to check out the heater/blower portion of the system.  To my surprise, when I walk into the garage I see that it had been partitioned off in half length wise with cubicle style partitioning.  Long story short the other side of the partition had been made into a bedroom (as there was a bed on the floor) /office/game room. In addition, there was a hamster/rodent box in the garage (We have a no animal/pet clause), she had sealed up the vent opening under the side garage door that is there to prevent carbon monoxide poisoning from the gas water heater/gas heater/blower and the gas dryer that all reside in the garage and the last thing is she had put cardboard covering in the garage door windows and the side garage window to the block sun from coming in.

I am told the gentleman that is staying in the garage is the boyfriend of one of the daughters that is a tenant.  That it is against the young mans families religion for him to stay inside the same home as his love interest if they are not married which is why he is staying in the garage and that it is only for the 3 months of summer and EVERY weekend that he stays there the rest of the year.

Before leaving I had a talk with her and I listed the issues to her verbally i.e. He was not a tenant and could not stay in the home, that the garage is not a living space and that there were significant safety issues with what they were doing and that the tenant needed to resolve the garage situation immediately.  I informed her that the only way this person would be allowed to live at the home would be if he qualified and he would have to be on the lease.  He will not qualify as he does not have a job.

I then dropped off the 3 day perform or quit notice this morning.  Curious, are there any issues with me taking the pictures to document the lease violations?  Any thoughts on what I have done or should do next?  I already know we need to make a few changes to our lease i.e. identify on the lease those that allowed to live in the house, add a visit term limit.

Thanks,

Ed

Hi Blake,

Cash flow is the secondary option we are looking for.  In doing research, I see that some homes out of state have not appreciated much at all in decades.  These are really not the properties we are looking for.  It is also an adjustment for me to see how old the homes are.  I have bought and sold several personal residences, the oldest was built in the 1960s and was my first home.  All others were built in the 1980s or later.  I know the amount of money I have put into these and an older home concerns me even more.  Not sure if these homes are just for cash flow or if they can appreciate also...not like we see out here but still see appreciation.

Thanks for taking the time respond.

Hi Everyone:

My name is Ed. My wife and I own 3 properties, 2 SFR's (we manage our self) and the home we live in. I came across David Greene's BRRR book on Amazon a couple of weeks ago, bought and read it and I am currently reading his Long Distance Real Estate Investing.

Our previous investment strategy was to buy, hold and pay off our two rentals. Now I am trying to figure out the best way to leverage them for more rentals. Currently due to the payoff strategy we have implemented we owe less than $30k on a 2Bd 2Bth home and we owe $150k on a 3Bd 2.5Bth home. The 2Bd house has an approximate value of $290k and the 3Bd has an approximate value of $350k.

We are looking to include out of state properties in our portfolio. We have not decided where to concentrate our efforts, that said we have a few potential possibilities, Houston Tx., Kansas City Mo., Detroit Mi. and we are looking to include Florida locations as possibilities also. I am currently thinking we would refinance the 3Bd home to fund our out of state expansion and continue to pay off the 2Bd house until we see how we can make BRRR work for us.

I am not sure if it would be best to start with a SFR or MFR as our first BRRR. Our ultimate goal is increasing our networth with significant cash flow. We both have decent paying careers so cash flow is secondary for now.

If anyone one has suggestions about anything I have said above, I would appreciate hearing from you. Sorry for the long post.

Ed