All Forum Posts by: Jason Herbert

With it not being your primary residence you will have a tough time getting residential financing weather it's in a LLC or not, I'm going. I'm going through the same thing right now with a cash out refi. With that many partners I would suggest a LLC for the protection and know that your more than likely going to be getting commercial financing.

Deanna & Thomas thanks for the great advice. The $25 rent increase brings it closer to market rents. I would like to retain the majority of the tenants so I dont want to shock them with a $50-$60 rent increase right off the bat seeing some of the tenants are low income. 

I am closing on 2- 4 unit buildings at the beginning of next month. The existing owner has been nonexistent for the better part of the a year at the properties. We are planning on starting capital improvements right away and should be able to turn the properties around rather quickly. The 8 units are currently 100% occupied and are all on month to month leases. We will need to have all the tenants enter into a new 1-year lease with us and we will need to increase rents a minimum of $25 per unit per month from the start, rents are currently under market rents. My question is what is the best way to be respectful of the tenants, many of which are long term tenants, but also let them know that they will have to sign a 1-year lease and that their rents are increasing as of the first? I want to be respectful of them however they need to know that this is nonnegotiable.

I am closing on 2- 4 unit buildings at the beginning of next month. The existing owner has been nonexistent for the better part of the a year at the properties. We are planning on starting capital improvements right away and should be able to turn the properties around rather quickly. The 8 units are currently 100% occupied and are all on month to month leases. We will need to have all the tenants enter into a new 1-year lease with us and we will need to increase rents a minimum of $25 per unit  per month from the start, rents are currently under market rents.  My question is what is the best way to be respectful of the tenants, many of which are long term tenants, but also let them know that they will have to sign a 1-year lease and that their rents are increasing as of the first? I want to be respectful of them however they need to know that this is nonnegotiable.

Briana,

I think the first thing you need to do is narrow down what type of properties suits your budget and long term goals the best. As you know Saginaw has many different demographics. Narrow it down to what suits you best and start searching. I have been investing in the Saginaw market for 8 years now and have been very happy with it. If you have any questions I'm here to help. 

No I don't have my RE license. 

Thanks a lot @Daniel Hyman

@Rob Joon we have not. It is something that we have talked about wanting to look into but the opportunity hasent came about yet. Down the road it is something that we are going to look into. 

I am a business owner and a real estate investor in the Saginaw, Mi area. My real estate portfolio consist of single family,  multi family and commercial real estate. I want to gain knowledge of the real estate industry and find future opportunities