All Forum Posts by: Hank Walter

Kurt,

Yes they paid an initial pet deposit of $50 per cat, but that is far from the cost that it will take to re-do the room. New paint, flooring, and removal will cost around $575, the revised lease that they wanted more clear details on the pet policy but evaded that lease, suppose I'm screwed for that remainder huh? 

I have a rental that I homestead and rent to my friend, and a friend and his girlfriend. The friend and girlfriend are looking for some apart and she has informed she will be moving out in 1 - 2 months. 

They were originally given a lease to sign within the first week of moving in. My friend had the lease looked over by their family friend who happen to be a contract lawyer and didn't sign yet. After several weeks, the lawyer finally returned the lease with several comments, mostly clarification about the pet policy. (The cats are poorly behaved and leave behind a mess around the liter box area) My friend wanted the clarifications added to protect him as a tenant more clearly I guess, even though it is the generic Minnesota Lease. They still have not signed their lease after adding the pet policy information. My other fear is that she will just try to move in with a friend (Rent Free) but still come over every night and still spend considerable time around the place. 

They have been renting from me since September of 2019 and have neglected to sign the lease after months of notice and sitting on the kitchen table and hung on fridge. The other tenant signed it the day he was given it. 

My questions are... Can I have the girlfriend pay me the remaining lease amount or not because she has evaded signing the lease? Also since the boyfriend never signed either could I still increase his rate? Would a small claims court see them as month-to-month renters? Is the girlfriend still going to be responsible for her cats odor and carpet clawing? Am I just screwed out of my rent because they continue to wait this long to sign? Could I evict them because they never signed the lease? 

Any Help is Appreciated. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $6,000

First rental property purchased with value add potential; bathroom and bedroom addition, installing dishwasher, new driveway, shed addition, and wood flooring. This was financed via conventional mortgage.

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

Monthly cash flow, location, tenants, and ease of upcoming projects.

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

MLS access and sent an offer after running it through my excel model.

How did you finance this deal?

Conventional financing with Cardinal Financial

How did you add value to the deal?

Adding bed & bathroom, dishwasher, flooring, new driveway, and shed.

What was the outcome?

Work in progress..

Lessons learned? Challenges?

Having friends as tenants is a difficult challenge to both be fair to them with rent, upgrades, and privacy as well maintaining the friendships.

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

Tyler Mulcahey with Cardinal Financial

@Armin Nazarinia Come May I’ll have a BA in Financial Economics with a Minor in Statistics.

Hi It’s my first time so go slow,

I’ll be a college grad in the spring and am looking to invest right away. I’ll have a little debt (around 20k) and petty cash around (10k) with a credit score of 721.

I’m looking to get into multi-family properties, so I can live in one while renting out the other. I’ve looked around at loans and the 203k Loan has peaked my interest, but not sure if I could meet all the requirements though. I’ve worked throughout college but I’m not sure if that’ll suffice for the employment requirement. I’ve done a little research with trying to create a predictive housing model for the Minneapolis house prices, it’s still a work in progress.

I guess my questions are:

What are some other viable financing options for me?

Potential hurdles ahead?

With the 203k loan, adding in repairs to the principle of the loan, do I have to get actual contractors or can I do the work myself? I believe they require multiple estimates.

Books to read?

Thanks,

Hank