All Forum Posts by: Ivan Smith

Got it thanks ill check it out, hopefully there is some clear guidelines on this.

Great thanks for the detailed reply. Do you think it would be ok to post a new notice on garage and door stating that they have 30 days from 10/22 (date of their last partial payment) and just file court paperwork on November 23rd? There is noone there so i dont think it matters much to date new 30 day notice from today. Should i also email them or text to show the court or is pictures of notice posted on the garage sufficient? Thx

Hello, i have a tenant in Phoenix AZ area, that has been late in paying rent for last 2 years, due to me being out of state and schedule i finally decided to evict him. He would pay rent usually half around 15th and then the other half around 25th-30th of every month, so he was always a month behind. In August he switched to paying 50% to 75% of rent due and stopped communicating. its a month to month lease so i had to give 30 days. I sent certified mail mid september that was returned from the post office. i eventually flew drove down to the property in beginning of October to post eviction notice on garage and front door. i inspected the property that seemed half way abandoned. Thermostat was off the wall, laundry room filled up to 3ft with dirty clothes trash everywhere, bed frames dissasembled and no water. Water has been off since May according to the city and all plants dead. Food in fridge is from April this year and it basically looks like someone was half way through moving out and then something happened and so a bunch of stuff is still in house. specifically one room filled with about 10 burner phones, 3 tvs, personal clothes, mail, kids personal items and bunch of random stuff new with tags, etc etc. he also had pets which was against lease term. one of the rooms was used as a pet room completely destroying carpet and staining walls with urine etc. 

Today was a month since notice so i called local court and figured out paperwork to file. while looking through bank statements i realized that he has been zelling me random amounts for rent since august and i learned today that if he makes even a dollar payment it voids the eviction process because i "accepted partial payment" according to some regulations in arizona. I unenrolled Zelle so he cant zelle payments this month and going forward.

Question 1. Do i really have to restart the process of doing  a 30 day notice starting from the time he last made partial payment in october? 

2. Will i have to disclose these payments in court during the hearing or do i just say he is behind rent since august. 

3. Should i focus on just one thing in the Complaint? just say rent is not being paid, or should i include things like unauthorized pets and damaging property by not having water on since may and sprinkler system disconnected, damage inside property?....will i also have to furnish proof for those items complicating things?

4. Once judgment is granted can i just throw all his stuff in the trash or do i have to keep it for awhile? 

5. Whats the best way to go about evicting him? i feel like property is abandoned but concerned as there are a whole lot of things normal people would take with them. Even if summons is served at the address noone is there to sign it or receive it when a server tries to serve it. how does it work if server cant reach the defendant. Will court still proceed and grant eviction case in my favor?

Thanks for any advice

Thanks I'll message you.

Great thanks for your input. My wife is looking at it like we are getting 600+k over the 30 years instead of 250-300 we ll get now after realtor fees etc. Also pheonix market is dropping fast. And if they default we get property back. 

They ll most likely refinance it when rates drop And then we get balance but like years later and at that point property prices will probably go up and out money wount be as valuable. Unless there is a way to put in prepay penalty clause of some sort. This is way over my hear though. Anyway appreciate your input. Thanks

Great thank you for the response. I feel the same way about the points you made. 

I have a paid off 2bed/2bath townhome in phoenix. Bought for 90k now worth around 280-300k. Recently did a full rehab and decided instead of tenants trashing it we shud sell it. Rehab around 8k. If we were to rent it it wud rent between 1600-1800. Hoa fees 200 a month. Then minor insurance and tax expense.

Wife is determined to sell it via seller finance because it would provide cash flow and we don't have to deal with repairs taxes hoa fees etc. She says we can also sell the note later if we want to. I want to sell it outright and buy something closer in Dallas are where we live and can take care of the property. 1031 is a concern because we might not find smth comparable in Dallas at the current prices.

Offer we received is : $292,000, 30 year seller financing 7.5% with $29,200 down.

Total monthly payment they'd pay is $1838.00 (they take care of hoa fees taxes insurance etc, repairs.)

Total value of note: $661,680.

My concern is dollar depreciates so quick that 1838 in 10 years could be like 300 today with countries moving away from the dollar. Even if they refi in 5-10 years and pay us off we might not be able to get same benefit of getting money now. We also don't need the 1800 per month right now, though it would be nice. Also we can mostly manage it remotely but it's an older place and we would rather not have properties out of state.

Is this a good offer. Should we just sell traditional way or counter offer the seller financing offer with better terms and what would that be? Please offer advice or strategy. Thank you.

I'm reaching out to everyone I know and I'm not getting much of a solid answer. I need to make a decision whether to sell house in az via seller financing and need to respond to offer by tonight. The market is dropping out in az so we are getting only offers where buyers are asking for seller financing. So we are still within that 5 year rule where we lived there for 2 of the last 5 years and wouldn't have to pay capital gains if we sell it now.

So the question is if we do seller financing with this structure would we pay capital gains on interest payments for the next 5 years and when they make balloon payment would we have to pay capital gains on the balloon payment. Technically there would be a deed of trust and promissory note and sale is recorded as a sale but we just become the bank. So in a sense we shud be able to satisfy that rule but the balloon payment wouldn't come for 5 to 7 years. So we bought it for 350 or so and added improvements inside and back yard so there would be about 350 of equity that would be taxed for cap gains purposes. But house is paid off and we would get a big chunk of money when balloon payment is made. Minus the down payment of 108k.

This is the deal:

House is listed for 700k. Purchase price is 725k , buyer pays 108k as down payment. Then they pay us 5% as interest only till the Ballon payment after year 5. There is however a clause that they can extend for 2 more years on same terms if property isn't appraised at what it is at time of sale.

I don't know if seller financing is a good deal but if they do Interst only for 5 years then we get over 900k for the house over all.

But will we have to pay cap gains on balloon payment and would it be purchase price minus what we bought it originally minus improvements minus down payment = amount we have to pay cap gains on when ballon payment is made? I think the monthly interst will be taxed as ordinary income.

Also is there an issue if the buyer is an llc and it would be investment property. Will there be an issue with foreclosing on LLc in Arizona?

Please let me know. Any feedback appreciated thanks

Sent from my Verizon, Samsung Galaxy smartphone

That's what we ll do. Thx