All Forum Posts by: Eddie Werner

I would call around and ask other PM companies if they require this to see if its something they are just adding in.  If you are not comfortable with that just tell them they need to strike that from the contract to get your business.

I would not start this way.  As your first deal you want to build positive momentum with success!  I'm not saying you won't be successful in this deal but if it does bite the dust it may be too hard to continue on and pursue RE.

If I was in your shoes I would find a property you can fully analyze and protect yourself agsint with inspection, walk through, title insurance, etc. 

I prefer to acquire properties vacant so tenants have to pass my screening requirements. If you are in a good market and your property inspector doesn't find anything serious I would not worry about this.

Curious if any other investors own a multi unit building where tenants share a common bath?  I came across a listing for a 8 unit building.  The second floor is made up of 4 studio apts. all sharing a common bath.  Does anyone have a building like this?  Pros/Cons?

If you are at market rent I would not lower the rent. You need to make sure you are making enough money to cover maintenance, CapEx, ect. If you don't like the thought of losing this tenant then I would do a coupon rent reduction plan.

This is something my first landlord did when I lived in an apartment (before I learned about RE investing lol).  I signed on for a year lease and they gave me a coupon book allowing me to lower my monthly payments.  Each coupon was $100 and there was 12 in the book.  Each month I could apply one coupon to my rent saving me the $100.....however....the catch was that if I had to leave and terminate the lease early I had to pay back all the money I saved using the coupons since I did not fulfill the lease term the coupons were tied to.  I did this....to buy my primary residence, so I had to cut a hefty termination check.  I was able to do it because I knew I would be building equity from here out.  Might be worth a shot even if you offer $50/month coupons.

I wouldn't put anything in for advertising, just use postlets, its free.  How does the current rent compare to other 2/1 properties in the neighborhood?  If you can get the duplex for 100k and get 800/month per side in rent and keep the tenants paying all utilities that is the deal I would go for.  Still a bit pricey for me but I am used to Pittsburgh pricing.

Does anyone have a 2/1 apartment for rent near Addison IL for around $800/month?  Please provide listing link if you have one available.  I have a family member with an immediate need.

Can you provide more information about the home?  Current value and what it could rent for?

I would lean towards keeping as a rental if the numbers work.  It could be a great asset in growing/maintaining your personal wealth.  I think it would be worth a call to a local PM company to evaluate it for you if you don't plan on managing yourself.  I am sure some other members from your area could make recommendations.

It depends how long ago all of this happened.  Just call him up and ask him to clarify these points that your screening process uncovered.  If all has been in line for the last couple of years and he has good references from the past TWO landlords I would consider it.

Don't feel that this is the only tenant you will ever be able to get.  Give them notice of the rent increasing to market rates in 90 days (or whatever you lease stipulates) so they can decide if they want to stay or move.  If they say they want to move you should have plenty of time to market it and possibly even have it rented before the current tenant leaves.