All Forum Posts by: Sam LLoyd

Great comments.  That's interesting that you wait till something is vacant to set up new tenants.  I've been doing this for 10 years with an average of 7 or eight doors for that time, and this is the first time I've had this issue.  Quite often I have tenants move out on the 30th, and move in on the 1st.  It is quite often that we are doing repairs the last couple days of the month while the outgoing tenants stuff is still in the garage so something, but this is a 1st (and I did have a 15day window to start with.  Having the cash flow from almost 0% vacancy has really helped us build up our investments.

As far as closing... from what I'm told, it's the borrower's qualifications and the properties qualifications that have been affecting the lender's closing date.

Keep the info coming, it's going to be an interesting week.

I'll try to make the story short.  Tenants gave proper notice to be out on the 30th.  I have a new renter signed and ready to move in by the 15th of the next month.  Former tenants are buying a house, but the closing date keeps getting pushed back (or so they say, though I don't have any reason not to believe them... and having bought properties before, I know all about delays in closing).  The incoming tenant has to the end of the month to move out of his previous place, and has been gracious in moving his start date out further.  However, now I'm told that they will not close till the end of the month now, and are not willing to go find a hotel or something for the week in between.  I've accepted money up till the 15th, which I understand invalidates the original move out date, but I have a statement in writing that they will be out on the 15th and the 25th.  I also have protection in my lease (for what it's worth) against the new tenant coming after me if there's no way he can move in on time, but I hate to put him at an inconvenience.  I could give them notice for non payment of rent, but then they will come up with money, and if I accept it, then they are entitled to stay there.

How's that for a tricky situation?  I'm hoping that the incoming tenant will be willing to stay in another unit I have that is vacant for a week or so until things get straightened out... and that they do actually close on their house and leave, but...... If hopes were wishes and all that.  Any advice or ideas would be welcome.

I had one tenant that asked to put up a 12" dish on the roof.... I find a 4ft dish there, and the tenants ran a month later.... 8 years later, the dish is still there because I don't want to be climbing around up there patching holes, but it is very unsightly.

Now I've got another tenant that wants to do the same thing.  I'm thinking of having them pay a deposit for the removal of the dish before signing the waiver for the tv company.  Has anyone done this?  What do you think.

I know there are not a lot of people on here from Wasilla Alaska, but hopefully this will trigger something.  I'm looking for referrals for a good handyman or contractor.  The rental maintenance projects I need done are not anything major, just too many little items for me and my helper to stay on top of.  So, if anyone is on here who might fit this bill, or knows of someone who does, please give me a message or a call.

I'm currently in a situation where I have a tenant leaving on 30 day notice...not on the best of terms.  Up to now, they have been doing online payments through Rentec Direct.  I'm worried that they will make a partial payment, and I have no way to refuse this payment short of removing the online payment ability.  If I accept payment, even partially, then I cannot speed up the leaving process by giving them the 7day late payment notice.  

Anyone have any experience/advice on this?

How long have you been looking for properties, and how good is this compared to other options.  This is how I would proceed.... basically the same as @Sean Carroll said.

If it looks like this is the best deal going, get the purchase closed, and shop for better insurance.  The key to real estate is time, so the sooner you get in, the better... you might loose a little money when you're living there, but that's better than paying rent, and as long as it cash-flows when you move out, great.  You can always sell, refi money out, or something else once become more experienced.

However, if you haven't been looking very long, or there is nothing special about this property, and you are not emotionally attached to it, make the business decision.  Tell them you haven't found insurance close to what they stated and cancel the purchase agreement.... and do it quickly to do both of you a favor.  You can say something like this... "I'm sorry, but With the insurance quote I've got, I'd only be able to pay 90 (or whatever)."  That way, you are not being confrontational, but leaving things open should they want to come down in the near future.  I've had this tactic work for me in the past... though I was just being honest, not trying to negotiate. 

The information we don't have is what your cash-flow situation is now, and what returns would be expected on the large multi.  In some markets, the triplexes will give you a better return on your equity than the multi, in which case there's no reason to go after the large multi unless you can use other people's money.... Maybe you should pull the equity out of A and get another triplex?

@Joseph Gozlan is correct though, the first step is to get your options on the table. For example, I have a great credit score and cash-flow situation, but I can't get a HELOC because of how the banks I've talked with play with my debt to income.... so verify if that's even an option. Good luck.

Good news.... you're free of a bad management company before they slowly bleed you to death.  

I wouldn't try to sue... too hard to prove responsibility unless your contract with the specifically states that they would be responsible for damages... and then even so.... do they have any money?

Where to go from here?  I've had to find a new manager for a New York property from Alaska.... that was tough... I'm sure if you grit your teeth and get it done, you can find someone decent.  This is where the work part of the business come in.  I hope you can find someone with integrity to work with you.

I don't see insurance in your numbers... also, I would get a real estate agent to give you actual sales information... somtimes Zillow can be way off.  That's all I can say from being in a different market.

I think this varies depending on location. For example, in the town near me, my CPA says the average home sale is 10% over tax assessment. For my area, I think it's the other way around often. I think the assessors try to keep up with the market values, but they also have the other variable of the multiplier they use to play with to get the amount of money they need to try for without causing an uproar. I would ask a CPA or real estate agent is familiar with recent sales to determine how they relate in your particular area, and then go ahead and use the value with a 10% plus or minus. Of course, when it comes to commercial properties it gets a bit more complicated. They charge more tax, which lowers the NOI, which in turn lowers the value of the building, but do they bring the taxes back down???