All Forum Posts by: Erin Church

Hey Ananth,

I'm sorry to hear that you're having a tough run right now. Call your credit card companies and see if they will allow you to do 12 months with no interest. I am able to get this with Discover about any time I'm doing a flip/rehab and want to keep a good chunk of reserves available.

As for the tenant breaking things... it doesn't seem like they are. They might be responsible for changing A/C filters (if it's in your lease), but that's about it when it comes to HVAC. It sounds like you've got two units on your house - how old is the older one? It makes sense that two old units would go out at about the same time if they were the same age to begin with. 

Now, you mentioned that he's breaking things every month, so I'm guessing it's more than roofs, HVACs, water heaters (things almost impossible for tenants to break) and it's more likely smaller things that could be the tenants fault (like ripping out towel bars). If it is their fault, then you need to charge them in the moment/add it to their rent to fix it. If things are just old (like oven heating element going out, fridge compressor quitting, etc), then you just have a good chunk of things that are fully on you to fix. If you're in a position where you cannot get the place "up and running" properly, I'd suggest selling. Otherwise, this will be a very expensive and painful run.

Hey Kelsey,

Congrats! (No, seriously!) Having inherited tenants leave and take all their stuff is almost always a good thing! Check into your local laws, but usually it's considered abandoned after a certain number of days of them not responding/it appearing empty. 

Post that you're going to enter to do an inspection with whatever notice your lease says. Then, go ahead and get a list of improvements that you need to do (maybe just paint if it's in great condition, maybe an opportunity for some upgrades). When you purchased, the deposits should have been given to you (if your agent wrote it in). So, that will obviously become yours. Start getting quotes for the work, materials and get started as soon as you're "in the clear". 

Also, change the locks as soon as you're in the clear/it's officially abandoned. I'm a fan of these: https://www.amazon.com/dp/B008...

Easy to rekey between tenants and there's a second cylinder for landlord's key.

@Dan Gaudet

I’d find wholesalers in the area (that have legit operations) and see if you can work for one. They’ll train you and you’ll be able to make money while you learn. John Martinez and Chris Voss are great when it comes to learning how to negotiate!

Hey Dan,

Glad you've decided to get started! I would recommend wholesaling as it's a low cost to entry. You'd be able to make some money and provide value to other investors by delivering them deals. :) Also, see if there are any meet ups in your area. Starting to network has a ton of value!

How expensive is real estate in your area? Could you buy something to house hack?

I want to add a few things to the great points that @Randy Rodenhouse shared.

1. To verify the paystubs, also get them to sign something that allows you to confirm with HR that the paystubs are legit. Then look up the phone number to HR and call. There are tons of folks offering fake paystubs and bank statements specifically for getting a rental.

3. I agree with lots of tenants having pets and being pet friendly helps attract a wider group of folks. I do an additional deposit (not pet deposit) when they have pets so that damage for any reason can take money out of the "pet" deposit. If it is pet specific, you need to prove that the damage was caused by the pet. Also, I charge additional pet rent per pet and require that they go through petscreening.com which keeps up with vaccines/vet records. I require pets to be up to date on shots. 

6. If you choose to verify info with previous landlords, look up the tax records and info on the house. When you call, ask questions that a landlord is likely to know, but not a friend or family (like when it was built, when it was purchased, how many rentals they have under their name/LLC - whatever owns the property you're calling about).

What safeguards do you put in place for potential default from your partner? Meaning, if they die, are in a coma, quit returning calls, appear to run off, etc. how do you protect that your project isn't dead in the water while still having to pay carrying costs?

Hey Drake,

I don't know what kind of financial situation you're in, but if there's a possibility to pay cash or get hard money, get on every wholesalers list in the area and look for them to list something with a fuse box! :) I'd also suggest looking over listed properties and look for the same thing. It's going to give you a huge advantage to not have to pay for labor on a property that needs a full rewire. :) 

I'll echo what @Troy Miller said - the first one is the hardest. :)

First, get their timeline as this conversation may be a moot point. If they're just now batting around the idea of house hunting, it may be several months (or more) before they're ready to pull the trigger.

If the timeline is short, this sounds like a great opportunity as renting in 5 months will likely be tougher. 

I do think that @Michael Smythe has a good point about having the upper hand legally. For me, that isn't my preference. I would rather have a good break lease fee and let them go. I feel like there's a better chance I'll get that than someone paying me rent 4 months after they moved out. There are also potential issues with it being vacant too long from an insurance perspective (they prefer 90 days or less in my experience); although, this is low on my list of concerns. If I'm going to rehab a unit to get top rents, it also gets a little dicey to "rehab on their time/dime" if they're paying rent. Again, I don't like to draw out tenant relationships once they've moved out of a property.

Once you have their timeline, maybe ask if they'd like to pay a break lease fee of a month (or whatever amount you decide) with 30 days notice. That lets them budget for their new house/mortgage, so I believe it would be attractive.  I'd make it clear that the security deposit doesn't count as the fee - that will be returned after assessing damages. In theory, this gives you a paid month to find a new tenant and/or do any rehab/updates you'd like. :)

I'm going to second  @David Ramirez and say that going to networking events is very helpful. You'll have the opportunity to meet folks, but even if they don't want what you have, someone else they know may. :) 

Also, join the local FB investor groups - there are quite a few in the Atlanta area (and don't forget the suburbs). 

Hey Nate,

What are you wanting to do from a real estate perspective? Do you want to have rentals? Do flips? If so, then keep the cash - cash offers give an edge when purchasing (you can still get financing, your offer just isn't dependent on it). I did a 1.5 minute look on Zillow for Grand Rapids and it looks like you potentially have an affordable market if that's your goal. :)