All Forum Posts by: Ian Loonce

Quote from @Adriaan Sierra:

My opinion, so make of it what you will: 

It sounds like your communication has been subpar on many fronts.

If you are doing the PM's work, you need to either fully own it or find someone that would.

If you have grounds for concern about illegal activities why not contact the tenant directly instead of making assumptions. Same goes for work / school, though what people make on their time shouldn't be your business (provided they pay).

If the tenant is clearly communicating a problem (ants), given the observations above, I wouldn't be surprised if she has not received proper information on how to resolve the problem.

I am having them contact them tomorrow.  I am staying in the upstairs unit currently.  My last tenant who knew I was the landlord would do vindictive things like place dog **** next to my car door when she got mad about something.  If they are in fact dealing drugs, they may be dangerous and I do not want them to know I know or I'm the owner.

She has been given communication how to resolve and how the lease says it's her responsibility however she keeps bothering the property manager about it- calling him multiple times throughout the day, she started complaining to me about it the other day when I was walking in.

Quote from @Nathan Gesner:

Quote from @Ian Loonce:

Your PM should require applicants to show current, verifiable income. A letter verifying what she did last year doesn't count. And did anyone verify the letter's author was legit?

So many red flags. 

 I'm not sure if he did.  But yes, I'm trying to get them out now.  I also saw her boyfriend and friends outside engaging what looked like drug dealing activity, my neighbor saw it too.  

Quote from @Billy Daniel:

My first thought is how did she lie about her job and student status?  Your PM should have verified those things, right?  Are they both on the lease?  It sounds like one signed up and then the other moved in.  Most leases don't allow that, so there are some grounds to evict.  Most leases also address illegal drug use at the property.  You would need some solid proof of that though.

Overall, she just sounds like a bad tenant.  They have the right to call and complain, even if it's their responsibility to correct the issue.  

She got a letter from a manager saying she was a student who was coming back to work full time and she worked full time all last year before going home from the summer.  I don't think he verified her as a student.

She's been home almost the whole time since she moved in..so it's hard to believe she is working full time and going to school as school is in session rn.

Quote from @Nathan Gesner:

Quote from @Ian Loonce:

If you have to do the heavy lifting, why not fire them and self manage?

 We did a portfolio refi and the lender was going to charge a few thousand dollars and a bunch of legal paperwork if I switched managers after I closed.  We plan on buying a bunch more and I don't think I could handle more than 10 or so properties so I just signed all of our units over.

Quote from @Nathan Gesner:

Quote from @Ian Loonce:

You have grounds for termination. Tell her the unit obviously doesn't meet her expectations, you smell smoking inside, she complains too much, she has an unauthorized occupant living with her, etc.

Question: why isn't your property manager taking the lead on this? Your PM should have verified her employment and student status during the application process. Your PM should know how to handle unauthorized occupants. They should have a no-smoking policy, established fines, Notice to Cure or Quit letters, etc. They should know enough to lead the way on this issue so you don't have to worry about it. I think you need a better PM.

 I agree. However there isn't many options where I'm living.  The other PM company I know of here, has terrible reviews. Thanks.

I moved tenants into a duplex where I'm currently staying.  It is a very cheap unit near a university.  They have done nothing but complain and make up complaints.  For example: "nobody cleaned it before moving in"  We cleaned the unit 3-4 times, removed dirty carpet, new paint and poly etc.

She called my property manager about 6 times yesterday about ants in the unit.  Even though the lease states we are not responsible for that.

The girl moved in and is proving to be a little crazy.  She may have lied about being a student and her job as well as shes home all day.  Her boyfriend hasn't left since moving in.  I saw the other night what looked like drug dealing activity from my window. The neighbor saw it as well.

Every day I walk up the stairs, it smells like marijuana coming from their room.

Can I evict them for this or do I need to call the police?

Quote from @Joe Villeneuve:

Quote from @Ian Loonce:

Quote from @Joe Villeneuve:

You do realize you asked and answered your own question,...right?  Let me help you.  If you sold the properties to your partner, you would still be keeping the equity...just moving it to a different property...or properties.  I bet the cumulative CF from the new properties would be more than the cumulative CF you're making no too...and, the total PV would be higher too.

 Well the deals are not as good now as they were 2 years ago when we started so I'm not really sure yet.  

Deals haven't changed.  The strategies and location of these deals have...but that's true at all times anyway.

It looks like I'm making about 35-40k a year if I stay with all 10 properties in the LLC.

If I Keep one and sell the other 9 equity.

I'll have 175k cash and about 4k a year off the one house.

But way less headache. I'm just wondering how easy I can get back to 35-40k a year.  

(Where I live the houses are very cheap) 

Quote from @Theresa Harris:

Would your partner qualify for the refinancing on their own?  Have the low end properties been a problem in the past?  

I'd try to sell them and buy properties that aren't as much of a headache.

 Not that bad yet, but high turnovers and they are old houses so over time, I imagine more and more headaches.

Quote from @Joe Villeneuve:

You do realize you asked and answered your own question,...right?  Let me help you.  If you sold the properties to your partner, you would still be keeping the equity...just moving it to a different property...or properties.  I bet the cumulative CF from the new properties would be more than the cumulative CF you're making no too...and, the total PV would be higher too.

 Well the deals are not as good now as they were 2 years ago when we started so I'm not really sure yet.  

I have a business partner, we have 8 homes together.  I have 2 more on my own.  We are about to do a big refinance and I included 2 of mine so we could meet the 500k threshold. 

I am thinking of trying to drop the 1 of mine from the loan...and selling the rest to my partner.

The buyout would be for 175k for the 9 properties.

On paper it looks like I would be making 28-33k a year off of the properties. However they are mostly low-end units in bad areas which could come with a lot of headaches and maintenance. 

If I sold for 175k, I could buy a couple decent single families with less headahces..refi those 2 and be making the same amount of money in no time..with half the work and half the headache.

What would you do?

The other option would just keep buying with my partner with more low end multi units.