All Forum Posts by: Harry Lin

Hi All--

I saw a property listed for $500K with an AVR of ~800K. The owner started the construction in 2016 and have had issues with multiple contractors, and had enough at this point. Owner just want to sell it.

I am a newbie with zero experience in BRRRR but based on my estimates, I think repairs are like close to 200K. I will definitely ask for quotes from contractors.

The property rents for $4K / month after its ready.

From the pictures, it looks like all the foundation/framing is done and water/electric is set up with no equipment.

Everything else is not done - meaning if go inside the house, all you see is wood frames/trusses.

Is this too big of a project for an first time investor? I am thinking of $400K offer via conventional mortgage. Would hard money or private lender be better?

Any advice is appreciated. Thank you.

@Adam Martin

He is 500 behind water now, about 5-6 months. The water is under his name but I will be liable if he leaves. He canceled his auto pay last month telling me his salary got cut, which was fake. I had to give him a discount for him to pay last month’s rent. I also promise him a reduction in forward rent by 10% until next year ( verbally). Hopefully this is nothing binding. The lease is expired and currently on a month to month basis.

It’s a dumb situation I put myself in being a new landlord but hopefully will learn from this.

@Percy Matsunaga

Thank you. Appreciate the response. I think I will probably have to evict next time. He’s been missing his water payments every month. This tenant is taking advantage of me because I’ve been too nice to him.

I asked the prior person that responded but can I evict for late water payment ( water is under his name). Water bill is like 500 past due now.

@Pat L.

This is probably a dumb question but can I evict for late water if it’s under his name? He’s been up to date with the rent but just never pay water.

He’s on month to month lease, meaning I can give him a notice anytime?

Apologies for these dumb questions, in new to the game.

Tenant wants us to install a fence in the backyard because his car got vandalized. The way he positioned it is that it could be the House next time.

This is a bad tenant who knows how to play the system. He recently lied about his salary got reduced for us to give him a discount. He is 5 months late on water (under his name) in the state of P.A. the owner will be liable for any unpaid water if he leaves. I have to remind him to pay water every month, most of the time he doesn’t pay. The initial contract was set up by a poor property manager and then I fired him and took over.

Are there any legal precautions if I tell him no? Due to zoning requirements (i don’t know if it’s really allowed). I don’t want to install a fence or want him to install one.

I’m worry that he might come back and sue us later if anything happens to his car. He doesn’t have renter insurance as well.

At this point, I just really want to evict him as he’s on a month to month lease now but think it’s better to keep him until covid is over.

Thanks for your advice.

I appreciate everyone's response so far. I am trying to get a attorney ASAP. Does anyone have any recommendations for the Philly area and how much should I expect to pay in fees? 

Thanks again everyone.

Thanks everyone for your responses so far, can you all recommend a real estate Attorney in the Philly area? Thanks so much.

I posted this on the landlord/tenant forum but also want some input on the Philly sub as the property is located in Philly. Mod - feel free to remove if I am violating any rules. Apologies in advance.

This is a complicated situation and sincerely hope everyone can give me some advice on what to do next. This is a long story but going to quickly summarize it below.

I purchased a property in Philadelphia on Sep 2017 and my dad had volunteered to watch/manage the property for me since he lives 2 hours away from the property. He hired a PM recommended by our relative who also owns investment in the area. We were able to secure a tenant within 2 weeks after hiring the PM.

Everything was going well, and the tenant was paying rent every month until 2 months ago. He lost his job and now is behind rent for the month of Sep and Oct (rent is due on the 15th of each month). He has also not been paying his water bill since the day he moved in. I had the bill send to both my personal address and the tenant’s address, but I had never received a water bill from the city of Philly. As a result, we owe about $650 in water bill from Sep 2017 to Apr 2019. The water company shut the water down on Apr 2019 and the tenant took it to himself to create another account without my or the PM’s permission. He has also never paid a single month for this new account and now owes about $300 in water bill from May 2019 to Sep 2019. Again, I was not aware of any of this until 2 weeks ago because I thought my dad/PM got it all under control.

Below is a breakdown of the tenant’s debt:

• $300 in Sep 2019 rent (paid $1K)
• $1300 in Oct 2019 rent
• $650 (under my name) and $300 (under Tenant name) in water bill

Total: $2.6KA

Once I took over, I immediately issued a notice to quit on 10/15 to him but was told that he accepted a new job that will pay him $100K, starting on 10/28 and his next paycheck will be on 11/15. He even forward an offer letter to me as prove (seems real/legit). He said he would pay off the remaining rent of $1.6K and the $650 in water bill. I told him maybe we can work out a plan for him to pay it all off in 4 months ($1.3K in rent + $650 for 4 months). The lease had long expired and now it is month to month.

Few days later, I asked if he had paid off the $300 in water bill (under his name) and he said he did. I called the city of Philly to confirm and was told he owes $300.

I called the tenant and was told he’s been paying it off every month and has a statement that shows a balance of $45. He sent me a screenshot of the statement with a balance of $45. I called the water company again and found out that page 2 of the statement shows that he’s pending approval for bankruptcy. He lied and did not mentioned about the bankruptcy.

It took a while for me to unwrap the whole situation because my dad/PM was managing the whole thing and this is a huge mistake on my end....... I am obviously very pissed and mad at them/myself but at the same time I just want to solve the situation.

Couple of other things....

1. PM set up a rental license but did not perform a certificate of suitability
2. PM does not care about the whole situation and I am pretty much Googling and learning how to deal with the situation myself
3. We have $1.3K in security deposit

I know I should fire the PM ASAP and hire someone that can help me walk through this process (any recommendations?), what else should i be aware of and should or should not be doing?

Should I evict this tenant ASAP? or wait until 11/15 to see if he makes that payment.

Sorry about this long but I desperately need some advice right now.

This is a complicated situation and sincerely hope everyone can give me some advice on what to do next. This is a long story but going to quickly summarize it below.

I purchased a property in Philadelphia on Sep 2017 and my dad had volunteered to watch/manage the property for me since he lives 2 hours away from the property. He hired a PM recommended by our relative who also owns investment in the area. We were able to secure a tenant within 2 weeks after hiring the PM.

Everything was going well, and the tenant was paying rent every month until 2 months ago. He lost his job and now is behind rent for the month of Sep and Oct (rent is due on the 15th of each month). He has also not been paying his water bill since the day he moved in. I had the bill send to both my personal address and the tenant’s address, but I had never received a water bill from the city of Philly. As a result, we owe about $650 in water bill from Sep 2017 to Apr 2019. The water company shut the water down on Apr 2019 and the tenant took it to himself to create another account without my or the PM’s permission. He has also never paid a single month for this new account and now owes about $300 in water bill from May 2019 to Sep 2019. Again, I was not aware of any of this until 2 weeks ago because I thought my dad/PM got it all under control.

Below is a breakdown of the tenant’s debt:

• $300 in Sep 2019 rent (paid $1K)
• $1300 in Oct 2019 rent
• $650 (under my name) and $300 (under Tenant name) in water bill

Total: $2.6KA

Once I took over, I immediately issued a notice to quit on 10/15 to him but was told that he accepted a new job that will pay him $100K, starting on 10/28 and his next paycheck will be on 11/15. He even forward an offer letter to me as prove (seems real/legit). He said he would pay off the remaining rent of $1.6K and the $650 in water bill. I told him maybe we can work out a plan for him to pay it all off in 4 months ($1.3K in rent + $650 for 4 months). The lease had long expired and now it is month to month.

Few days later, I asked if he had paid off the $300 in water bill (under his name) and he said he did. I called the city of Philly to confirm and was told he owes $300.

I called the tenant and was told he’s been paying it off every month and has a statement that shows a balance of $45. He sent me a screenshot of the statement with a balance of $45. I called the water company again and found out that page 2 of the statement shows that he’s pending approval for bankruptcy. He lied and did not mentioned about the bankruptcy.

It took a while for me to unwrap the whole situation because my dad/PM was managing the whole thing and this is a huge mistake on my end....... I am obviously very pissed and mad at them/myself but at the same time I just want to solve the situation. 

Couple of other things....

1. PM set up a rental license but did not perform a certificate of suitability 
2. PM does not care about the whole situation and I am pretty much Googling and learning how to deal with the situation myself
3. We have $1.3K in security deposit

I know I should fire the PM ASAP and hire someone that can help me walk through this process (any recommendations?), what else should i be aware of and should or should not be doing? 

Should I evict this tenant ASAP? or wait until 11/15 to see if he makes that payment.

Sorry about this long but I desperately need some advice right now.