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Has anyone ever taken a delinquent tenant to small claims court to collect past due rent after eviction?

You're in Arizona Geoff? We have a management company, but the stress continues. We aren't in a negative cash flow situation with the property but we are in our lives. I had a benign brain tumor removed but I'm having post surgical problems- so I have to be a little more hands off and less stressed. We're hoping to sell the duplex with everyone coming out happy, 20-25% equity in the property, after commissions. Obviously we'd make more if we held onto it for another year. As you know Arizona is still hot and investment property is on it's way back up. But we just can't wait. If you know of an investor, let me know.

Someone mentioned hard money lending, and buying and selling notes, any comments- pitfalls, resources?

Thanks for your help everyone,
Dianna

What do you think about what Donny Baker wrote in Feb. 6 (this forum) about Arizona and tax lein certificates that are like bonds?
Thanks, Dianna

This was posted in Fe. by Donny Baker. How are these tax lein certificates different from the leins being discussed on privately held properties? Or are they? Anyone know how these work? Anyone ever invested in a company that invests in trust deeds?
Thanks

Tax lien certificates are like bonds on delinquent property taxes, largely a product of the recent real estate downturn. County governments like Mohave County, Arizona are trying to curb budget deficiencies by enlisting the aid of real estate investors. By selling the tax debt at high interest rates (up to 16 percent in Arizona), they’re able to continue to provide for government infrastructures without interruption.

Schools, police, roads, and other government programs are the direct beneficiaries of tax lien sales. Without the financing that comes from these auctions, county governments would need to cut their annual budgets.

“It’s an amazing investment opportunity created by the government,” said Don Sausa, tax lien expert. “Tax lien instruments can give you high returns, plus they help the community overall.”

With interest rates almost four times higher than CDs and market accounts, it’s no wonder tax lien auctions are becoming popular. Another reason for its popularity is because of its security. Depending on the state, if tax liens are not paid off within two to three years, investors could foreclose the property and own it outright.

“It brings in tax money that otherwise we wouldn’t get,” said Janet Baker, a county official with Mohave County. “Thankfully, there are investors out there willing to pay for other people’s taxes.”

Sample Rates of Return
Alabama Up to 12%
Arizona Up to 16%
Colorado Up to 14%
Connecticut Up to 18%
Florida Up to 18%
Indiana Up to 15%

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We don't want to be landlords but we do want to stay in the game. What have people found profitable besides flipping or managing property, (we've tried management companies). We know there are a number of options but difficult to know a direction to go in. Any feedback?
Thanks,
Dianna

Fizzie,
I'm a newbie too. Although we have our house, a couple of duplexes and some land, we need to use some of the advice given.

I'd really like to know how to find an honest mentor. You can get paid to bird dog? We don't know many people. I'm in Tucson. What's the process of making and sorting out finding a mentor, especially if you meet people cold at investor meetings?

We haven't lost money but I can see mistakes we've made. I plan on doing the reading and studying suggested. I'm luckey to have a husband who pays the bills, but they are right about getting a hold of your finances. I can't believe we're in our fifties and have considerable Credit Card debt. Don't make that mistake. Also, good credit has been invaluable. Pay your bills on time. Bad credit will limit you in more ways than you can imagine. Good luck.
Thanks to all of you for your generous advice,
Dianna

We have a duplex which we bought at a very good price and even with repairs, we're ahead. However it's not in the best area. It's an up and coming, centrally located neighborhood, but it's not quite there. It's a property we should hold onto but even with a management company, we did discover how much we hate being landlords. So I'd add to your analysis, who will be your tenants, how difficult will it be to rent out, and do you want to be landlords.

We want to sell and do something else. I'm not sure about rehabbing and flipping. Don't know enough yet. What are some other REI ideas people have had success with? Has anyone partnered when rehabbing and what kind of agreement did you make? We'd be the money. After the sale we should have about $50,000 to work with.
Thanks for the great advice. The generosity at this forum is really great.
Dianna

We don't want to be landlords but we do want to stay in the game. We're going to sell one of our duplexes cheap right now even though it has really good potential. We just rehabed it but we should still come out with some capital to start going in a new direction. What do people feel is a good newbie investment that doesn't require being landlords, that includes using management companies.
Thanks,
Dianna

Thanks, This helps us sort out our decision. We are going to sell one of our duplexes that is really ready to sell with about $20,000 equity for the buyer and will still leave us with some seed money. The real problem is being landlords. There are too much emotional issues that get triggered. I'm a psychotherapist. When you say, do you have any other options, any suggestions for investment ideas that may give us a little more emotional distance? We'd have about $30,000 to $40,000 to invest.

I don't know if we have what it takes to manage the stress when the bills mount. It feels like we're too much in debt but maybe we're not used to what to expect and are over reacting. We're in our fifties with no retirement, a lot of credit card debt, and just a little in 401K and IRA. So real estate was going to be our ticket. We have two duplexes and land-which costs $1200 a month, and our house. We hope to build on the land one day. It's prime. Our duplexes are not in great areas so we've always had tenant headaches. We had both units, go empty two and half months ago. We turned it over to a management company. Finally got one rented, but the rehab costs were a lot. Now I've had a third tenant not pay for last month and this month. I didn't want to have to rehab that property too so I've been working with them. All thes bills are coming out of home equity loans which are pretty high interest. Is this typical, what you have to expect but in the long run it's worth it? Should it take a management company two months to get tenants? They ask for rent and deposit is price of rent and a half. I've been really stressed out. Help!
Thanks in advance. I do feel like I have a community out there. That's a comfort.
Dianna