All Forum Posts by: Jeyo Punnakottil

Finally we have a meet up in pearland area.Great and looking forward to meet like minded ppl .

@Nathan G. Thanks ,this is what i wanted to hear just so i could keep away BEING HUMAN factor out of me atleast with this tenant😁

I am kind of panicking because this property  was a full fledged flip project put (80k of rehab) and because luck was not on my side when i put it on market in March 2020(Covid 2020 Hit).I was on a hard money interest only loan with 12 % interest and refinanced into a 30yr fixed loan with 3 yr prepayment penalty (crappy conventional loan). I had to make it in to a rental to the best qualified person .(He wanted to buy + was brining in 80k from sale of his primary home )Here we go again, fast forward 2 yrs and when his lease ends in June 2022 LADY FORTUNA is not waving her wand at me again, Interest rates are at 5.5 for 30 yr with feds probably doing another 75 basis point hike in June and July.  To add to this the property is not cashflow a penny. Increasing rents are being eaten up by increased ppty taxes .LOL......The good thing is I gained some equity. 

 Is there any website or forums about this .I am trying to see if i the bank will charge a  monhtly fee to set an ACH draft 

Is there a way to autodraft monthly payments from tenants bank account if tenant agrees??

@Nathan G. he is not a single dad.His wife works too.Bfore signing the lease with us right in June 2020 in a letter Why we should consider him he said He is selleing his house in washington and will be bringing in 80k need for downpayment .At the end of 1 yr lease he says he wants to rent 1 more yr before buying the house,ie why we renewd for 1 more yr .During a quaterly inspection some time this year i noticed he bought a brand new 80k worth truck.Thats his thing .But now he says he cannot find financing,no banks are lending to him.We gave him an owner finace option.

Sale price 340k With 15% down and 8% intrest. With a refinaceto us off in 1 yr

This was when mortgage intrest rate was in 3.25% for 30 yr . He mentioned our intrest is steep and he could get cheaper interest with less down payment with conventional financing. He said he only have 5k for downpayment and to work something out .We are not taking anything less than 15% down . Now fast forward 5 months he cannot secure finacing.We recommend our prefered lender and lender asked him to submit his wifes docs which he never did.We have been reminding him 60 days ahead to secure financing and to get into a written contract with us.We send him a non renewal of lease letter 60 days prior .He took it lightly.Today i send him a notice to vacate and a cure or leave letter for extra dogs that i noticed in registered mail .He texted me saying he is really intrested in buying the house and open for our owner finance with low down payment as he donot gave any money. There is no way i am owner financing to someone who puts only 3.5% down.

@Dell J. Hope there was a misscommunication.He did pay rent for the past 23 months.His lease ends in 1 month.He hasnot paid rent for this month .He was not always on time .But paid rent everymonth with late fee when we send him missing rent emails & texts.

@Nathan G. Thanks Nathan.Thats the route i am planing to go.One more question..This tenant started off in 2020 saying he wanted the buy the homeafter lease ends and asked for an extension in 2021 saying he will be definitely buying the home in 2022.Here we are at squre one.A few months back when i proposed an owner finance option with 20%down .He said he only have 8k for down and didnot want 8% intrest.His credit score is only in 630 .What if he says he wants to extent the lease for one more yr and he wants to buy it after that .If he was your tenant in this scenerio ,will u give him an option like Rent is going up to by 12% and you need to put 10k down as non refundable earnest money showing he is intrested in buying this house by writing a contract to purchase the house at the end of lease in 2023 .Will you go that route ..Or stictly no options Just leave @ end of lease coming in June 30.

I have a human factor in me .He is a family man with a little girl .

I am in a very weird situation. Here is the scenerio.I was on a flip project back in Dec 2019,Placed the ppty on market for sale in Feb 2020 and Covid hit .Because of the panic in market i wasnot able to sell the ppty and i had a 12% hard money interest only loan on it.So i decided to rent it to a potential tenant. It was a 1 yr lease and the tenants were very responsible .Towards the middle of the lease the indicated they want to buy the ppty but when the lease ended in 2021 june they asked for an extension for 1 more yr .They mentioned they are saving up for down payment and want to purchase at the end of current lease.They were a perfect couple ,No missed rents till now ,occasionally been late but paid the late fee. Current lease expires June 30 2022 ,i send them a no intention to renew lease contract in April 2022 to which they didnot respond.I asked them to secure financing and get into a written contract to which they say they are working with couple of lenders .They have not got into any written contract with me yet on purchasing the ppty .I put a lockbox on the ppty to schedule some showings .Tried reaching out to the tenant but tenant is not cooperative .He doesnt pick up the calls nor respond to my text.I am stuck ,i cannot show the ppty ,also he hasnot deposited this months rent.I went to the pptt other day and they had all their cars @ the drive way but didnot open the door or pick up my calls .I also noticed they have additonal dogs not mentioned in lease which is a lease violation.This ppty was a money pit ,has not cashflowed a penny as it was a flip project.I donot want to get into the eviction which will cost me anothe 6-10k.I am from Texas.I know most of you will say try Cash 4 keys but how can i do it if the tenant is playing a Cat and mouse game. How should i proceed?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,000
Cash invested: $15,000

Primary home .Purchased Right at the Pandemic explosion. Lived in it for 1 yr and 9 months and converted it to rental

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

Increasing my Networth and building Generational weath

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

On market deal. Seller was asking 220k.Got it under contract for 215k and after inspection negotiated to 205k.Appraisal came in low at 198k so renegotiated at the appraisal price

How did you finance this deal?

Conventional financing

Lessons learned? Challenges?

Should have negotiated appraisal first and then negotiated repairs after that