All Forum Posts by: Jake Ferguson

So here's a quick synopsis of what happened here. Boyfriend/Girlfriend signed a lease in March. Broke up in July. Boyfriend says he "moved out", but kept his things there and kept paying rent. He recently moved his things out, paid half of October rent, and informed me that there's a new boyfriend moved in (It's a 1BR unit). Girlfriend is given 7 day pay or quit on the 6th and claims she paid (she didn't - all online payments). Now she's buried her head in the sand and won't answer calls or texts or the door since. I do have a clause in the lease that says if someone else moves in we can terminate the lease if they don't comply within 30 days.

I did not issue a 7 day pay or quit to the boyfriend (maybe dumb on my part). He's a service member with 0 credit and fresh 18. He has been very communicative and compliant during the entire time. 

CDC has issued the eviction moratorium until the end of the year, but the tenant has not completed, nor attempted to complete, any step required for the moratorium to apply to this case. 

Few questions. 

1. Should I issue a 7 day pay or quit to the boyfriend? I'm curious that if it goes to court, what the judge will say about the situation.

2. Should I issue the 30 day notice to comply immediately or wait until the end of the 7 day notice? My thoughts were that if she received both she would just wait the 30 days and be confused.

3. Is there anything I'm missing? I should've ended the lease when they split up, definitely a lesson learned here!

Let me know what you all think please!

@Andrew Smith

Thanks for the reply. The addendum is definitely a good way to go if I choose to go with it!

I've got a single family home that my wife and I are living in while rehabbing. We're moving out of state in about a year and were recently pitched the idea for solar panels on the house. We're in the panhandle of Florida with a good south facing roof. The payment plans basically cut out $40/month from our electric bill, but that's with just my wife and I living in a 4 bedroom home.

Questions being, what do you all think about putting the panels on? The payment plan is over 25 years which is a lot to swallow. And I'm wondering if it will be worth it in the long term to rent it out and basically provide my tenants with about a $150/month electric stipend, but I would then have to add that into the rent.

Thoughts??

The due on sale clause is a real thing, but from everyone I've talked to, I have yet to find anyone who has actually heard of banks calling the loan. That being said - it is always possible.

Try talking to your insurance agent and closing attorney prior to closing and ask if you can set up a deed transfer at closing to transfer over to your LLC.

Hey everybody! 

A couple years ago I helped my dad buy his soon to be retirement home, as it was a perfect situation and we couldn't pass it up. I sold him on getting it now and renting it out until he decides to retire and move up there. The home is a modular home on 10 acres. 

My question is, has anyone else had issues insuring a modular home for rent? We have insurance on it now, but it's much higher than any of my other rentals.

And does anyone have any suggestions for insurance agents or companies in Michigan?

Also, is there something that I'm missing when inputing the information about this home, or something that I am screwing up?

Thank you all for the help!

-Get a full security deposit on or before move-in

-Call and confirm all utilities are in the tenants name before they move-in

-If a tenant has a sob story to go along with late or no rent, don't believe it, or at least continue to enforce the lease agreements

-Don't let late payments slide, and especially don't change payment plans with a tenant just because they can't pay the agreed upon amount at the appropriate time. 

If someone can't make the payment all at once, they probably won't make the payment when it's split up either.

-Do background checks on EVERY TENANT

-Above all else - GET A SSN ON YOUR TENANTS! Yep...I had nothing besides a name on an application, and I let her move in with a half security deposit. Long story. Spoiler alert - she trashed the place in a few months and paid half the total rent before I evicted her.

We'll all never stop learning though!

I didn’t want to refi into a conventional yet because I don’t even have 20%, I definitely did not buy right on the first house, but I’ve since learned from that mistake! 

On the other hand, it may be beneficial in the long term to lock in the current interest rates and pay a few months on PMI over a higher interest rate.

I am still eligible for the va loan on the Florida property, barring any changes to the va loan program between now and then. 

Thank you guys for the comments!

Hey everybody!

So I'm in the military, and I'll be moving next summer to Florida. Conveniently, I'm down here for training, and looking for a house while I'm here. I think I've found one, but I'm having trouble deciding how I should buy it. 

I currently own a home in Virginia with a VA loan, with about $30K in equity. I also have enough funds to put 10 or 20% down on the house if needed.

I plan on renting out the house in Virginia when I move to Florida, so I was thinking about taking out a HELOC on that house, and using that to buy the house in FL with a second home loan, with only 10% down. When we're closer to moving down, I was planning on doing a cash out refi on the second home into a VA loan and using that money to pay back the HELOC and hopefully get a couple bucks extra from it.

Any comments or tips here would be great to hear! Please let me know what you think!

Hi Anthony!

I'm relatively new to the investing world myself, but from everything I've heard and read, Cash is king. 

If you put down the least possible amount, yes it will bring in less cash flow for that specific unit, but it will leave you with more capital to invest in other units, which will give you more cash flow in the end. 

I'll steal the example from the BP UBG - if you've got $100,000 and buy 1 $100,000 property that produces $1,000 a month, that equates to 12% return on investment annually.

If you take that $100,000 and use it to put 20% down on 5 similar homes, giving you $80,000 mortgages on each home, you'd cashflow about $300 per unit, which equals $1,500, or 18,000 per year. which is an 18% ROI annually.

Bottom line again, Cash is King. If you can put 20% down and it still cash flows well, go for it, if you have to put 30% down for it to cash flow, maybe hold off and run some numbers again.

One thing I've learned is the numbers are never as good as you think they're going to be.