All Forum Posts by: Eric Stalter

We are signing on this off-market deal on 8/26/2022. We have a tendency to 'over' rehab our properties, even as rentals, in order to head off a lot of future repairs & maintenance. Should we cut back the rehab or increase the rental amount?

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Quote from @Eliott Elias:

You can’t evict a tenant just to raise rents. Wait till the lease is over and start planning for the under rented unit 

I understand. The person is month to month on her current agreement. 

Quote from @Sam Yin:

@Eric Stalter why not request it vacant at COE? The burden is on the seller.

 That is definitely something for the tool belt. However, after some direction and questions, I think we have things on the right path.

Quote from @Jim K.:

Quote from @Eric Stalter:

@Greg Scott Thank you for the answer. 

We will get a hold of the lease agreement/terms that the seller has with this tenant. We are trying to avoid any legal issues and want follow the proper protocols. 

This is our first multi-family deal and therefore it has it's own learning curve.

The learning curve happens to everyone. Always keep in that mind that for most people, eviction is a controversial, politically-charged hot-button topic that EVERYONE has an opinion about and usually an agenda as well. For you, at best it's a tool, at worst a burden. Learn the laws in your state, county, and municipality. They may all have laws on the books about local eviction proceedings.

But as far as buying a property with a tenant in place and never looking at their existing lease...this is real beginner territory. Can you buy and read two or so books on how to be a landlord, on property management? They will probably help you significantly. They did for me when I got started.

Good luck!

We have yet to get to inspections and sign on the dotted line. Trying to get information.

The sellers agent did say that the tenant was an issue. 🤷🏻‍♂️ 

We have a couple books. Are there any you specifically recommend?

@Greg Scott Thank you for the answer. 

We will get a hold of the lease agreement/terms that the seller has with this tenant. We are trying to avoid any legal issues and want follow the proper protocols. 

This is our first multi-family deal and therefore it has it's own learning curve.

Tenant has a current lease agreement with seller and the rent is low at $600/month. We need to makeover each unit, spruce up the exterior, and increase rent to around $825 - $925. We technically wouldn't take possession until end of July. How do we prepare tenant for eviction before that time? What are the proper steps to take? We know each state has specific rights for tenants. 

Investment Info:

Condo buy & hold investment.

Purchase price: $95,500
Cash invested: $17,000

Purchased ranch condo that needed cosmetic work with some needed upgrades. Updated electrical panel, new water heater, reconfigured kitchen with new doors/drawers, new countertops, new sinks, new plumbing fixtures, new appliances(seller provided), new flooring, new interior doors, new vanity, detached single car garage, new garage door opener, and newer heat pump.

What made you interested in investing in this type of deal?

To help aged relatives in affordable housing search.

How did you finance this deal?

Conventional loan.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $102,500
Cash invested: $28,000

Rehabbed single family ranch property by replacing all trim, flooring, removing kitchen wall for open concept, new kitchen cabinets & island, replaced roof, updated electrical, new heat pump and A/C, complete Master Bathroom(with tile shower), and adding egress window in basement. Turned a 3/1 into a 3/2 - plus options for more living space in basement.

Current rent is $875/Month(cheap) and after tenants leave will be increased to $1150/Month.

What made you interested in investing in this type of deal?

We needed a place for our newly married daughter and son-in-law to live while they decide on their future. We wanted to start with rental properties and it was the perfect time to help each other out. We also needed to re-invest excess profit from our business to reduce our potential tax liability/exposure.

How did you find this deal and how did you negotiate it?

Found on the MLS. This property was vacant and had been on the market for almost 2 years. Four other deals on the property had fallen through.

How did you finance this deal?

Conventional loan with 25% down.

Lessons learned? Challenges?

Lesson #1 Buy at a better price.
Lesson #2 Don't over invest/rehab items.
Lesson #3 Set a reasonable rehab budget and expect way more issues to be uncovered as you go.

We have to get passed the "if we were living here, what would we like" because we aren't living there and I like things to be pristine and aesthetically pleasing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Made a connection with a real estate agent that also flips properties, works with other investors, and has a good knowledge of the area.