All Forum Posts by: James York

How much in repairs are you talking about?  The tenant should be liable but you should get in contact with the new owner.  You need to balance the cost of the repair with the new owners desire to inherit a hopefully good tenant.  You may be able to split the difference with the new owner.

If you have a clause to apply rent payments to repairs first you may be able to use that to recover the funds, but you may leave the new owner with a past due owner.  You should also weigh the potential profit from the sale against the repair.  Your agent might also have a suggestion on how you could possibly alter the deals structure to cover repairs.

Aloha,

If you are under contract to sell, typically you are required to maintain the property in same condition as pre-contract. In other words, you just need to make the repair. As to the Tenant's responsibility, that becomes a charge against the Tenant, assuming you invoice them prior to sale completion. Unless you negotiate otherwise with the Seller, this would be a debt owed to you by the Tenant and would need to be collected outside of the sale. This could be attempted in small claims, with very complete documentation and photos, including a copy of the signed Rental Agreement for the period the Tenant occupied, and invoice showing date of repair/replacement.

What language is in the Tenant agreement placing this responsibility on them, and how do you perceive that they caused the issue? A sewer pump would normally be an Owner responsibility from my experience.

@James York

I hustled to pay my first two rentals off. Then I realized my CoC return was horrible and my cash flow was only $1700/month. Then I learned to leverage and harvested all my equity to scale up. I now have 18 SFR with 1.2 million in debt, but my net cashflow is 12K/month. For me, I'd rather have an extra 10k/month in cash flow and some debt my tenants are paying off vs two paid off properties. But I know many investors would rather have just a few paid off properties cash flowing much less. To each their own!

Have you looked at your return on equity? I can show you a calculator to help you see if you have great return on equity. 

@Anthony Thompson I have went down to planning and zoning, they gave me a hard no. That is why I was hoping to connect or get some insight from someone that has been able to work with the town on getting something like this accomplished. 

Good note on making one of them affordable housing. When I brought up about the military in the area that seemed to have a positive affect as well, so I might be able to play both cards with a percentage being military and affordable. Thanks for the feedback!

Quote from @James York:

Originally posted by @James Elden:

Honestly it sounds like the poster is trying to start some kind of political argument. Section 8 has it's positives and negatives, any real estate investor should be aware of this already, acting like it's all roses is a bit ridiculous. 

This has nothing to do with starting a political debate. It has to do with starting a discussion. I feel certain that, much like myself, many of you aren’t aware of all the previous injustices done in housing. Anyone who knows me would expect me to make all the same statements seen in other comments. After reading this book, I’ve come to realize that the problems are greater than I had imagined. It goes far beyond calling someone lazy and assuming they could easily do better. I realize in the context of a forum it’s hard to fully understand, but if you knew me you’d know that I am absolutely an advocate for working hard and helping yourself over handouts. I simply think there is a case for public assistance far greater than what I had previously believed. You’re welcome to disagree and I’m most certainly NOT here for a political debate. Regardless of your thoughts on section 8, I’d encourage you to check out that book. It was eye opening to say the least. 

 Whats the name of the book?