All Forum Posts by: Jay R.

Hi All,

Thanks in advance for the replies. I'll try to keep my explanation of issue short and to the point. 

Due to me moving to another state for work I recently put my SFH on the market as a rental and currently have a tenant until next year this time. Long story short I am making just enough to break even after mortgage payments and cap ex.

My lease is somewhat below market value and I believe that once the lease is over I can potentially profit $400 per month on this property. This is with the mortgage and cap ex expenses being paid. Also, the appreciation on my house has been around 20% over the past two years. Obviously I'm not sure with the markets how that will hold up over the next few years. 

My issue is currently if things happen in the house i essentially am in a loss for the year although i can float the cost.

Potential Solution:

During this time I've actually been able to connect with an investor who will actually give me current value on my home which is essentially the appreciated value of 380k. This would net me around 60k which is what I've put into the house, essentially cashing out. 

My question is. Would it be better to hold onto the property and essentially eat the cost if/when maintenance items arrive. This would land me with $400 profit per month as well as appreciation gains. OR cash out the property and look for better opportunities? 

Another thing to note, my interest rate is very low so a cash out refinance is not an option. 

One main concern I have currently have are the high interest rates and finding a better deal. 

Thank you again for taking the time to read my post. I look forward to your responses.


 

@Account Closed the best thing for me right now is to worry about mitigating my losses and getting a higher quality tenant. I think the biggest lesson that i've learned thus far is to never incur tenants with a property because the previous landlord does not always look towards the future. Some are just looking to get money in their hands!

Thank you all for the advice! I hope i can someday get to the point that you all are at!!

*Update*

Tenant called me yesterday mentioning that she will be leaving this weekend and that she cannot afford to pay for the upcoming months. She is paid up to November so as soon as December hits she will be liable for that month, I'm honestly thinking about bringing her to court because she has been a huge inconvenience and has kind of put me in the hole. 

Any suggestions??

Thank you all for the reply!! This is definitely a hard time for me since in fairly young (24), im going to school as well as trying to manage a full time job but I think I can handle it. 

@Jay J. I will be able to pay the debt but after all my personal expenses I will be left with a very small margin to fix anything in the house. I do have reserves though that I am sitting on for the house. 

I've been thinking about renting out the second floor but i still need to fix somethings on that floor. My thinking right now also is to lower the rent for her in December while telling her that I will need her out in January but I will be keeping her security deposit for a breach in the lease agreement. Resulting in her having to leave the beginning of January. 

Thank you all for the kind words. I got very stressed out when I heard the news of her wanting to leave! 

Hello BP Community,

I've recently bought a 3 family complex and everything started off well. I was getting rent checks on time, the house was fine, then everything took a turn for the worse. I had to file a Pay or Quit notice on the second floor tenant because they stopped paying on time. They ended up paying and left. On top of that I had to kick the third floor tenant out because i wanted to house hack. Today my worst nightmare starts because my 1st Floor tenant which is under my new lease, wants to leave the apartment because she is falling behind on her bills. I'm not sure what to do!! I feel like everything that could happen is happening. Maybe this is a good thing but I would like anyone from the community to help me going forward.

Im thinking I should let her break the lease eat the cost for the winter time while fixing the property and then during the spring rent it out. I just dont want to deal with the added stress of going to court because she will not pay. Please help!!

Thank you all in advance!

Hello,

I'm currently looking for a cost efficient plumber for the Middletown area. I currently have a 3 family home that is leaking on the 1st floor. Everyone plumber that i've called so far has a service charge of $170 or more just to come out and look! Any help would be great. Thanks in advance!

Thank you all for the response!! I looked into some of the laws in CT and it states that you can deduct for cleaning expenses. I'm pretty sure what I will do is type up the letter and send him the check with the remainder of his security deposit. 

I recently purchased a property that had tenants in their. I'm wondering how do you handle clean up costs and damages from a tenant. Example. The screen door was broken and they did not clean the kitchen, carpets, etc. when they left. Is there anyway that I can justify taking these damages out of their security deposit. My biggest fear is them mentioning that the damages were there when they started the original lease with the previous landlord. 

I apologize for making my first post unclear. The tenants have both a security deposit and Last Months Rent. They decided after their payment was late and I posted a "Pay or Quit Notice" that they wanted to use their Last Month Rent to cover the rent that was owed. I told them that they would need to include the extra $50 (Rent Increase) and 2 late fees because they were late. I also sent a 30 day notice to vacate. Their response - We shouldn't have to pay the rent increase or late fees and they verbally mentioned that they would vacate by the end of this month. 

Hi Guys, 

I have a quick question that I am hoping someone can answer. To make a long story short. I have a tenant whose lease expired in August. I specifically let them know via certified mail in August that for the month of October their rent would increase by $50 dollars due to them being on a MTM lease now. Throughout this month a had to constantly call them because October's rent payment was late. They then told me that they would like to use "Last Months" rent which they paid to the previous landlord as this months payment and they would vacate the premises by the end of this month.

My argument to them as well as my question to you all is. Shouldn't they owe me for the increase in rent for the amount $50 dollars as well as late fees because as of the 10th I did not receive a payment (They both pay separate so that would be double late fees) and I was told after the fact that they would like to use their last month's rent for this month.

To end this long ramble ( I apologize)!! I am thinking of just taking the money out of their security deposit once they leave. Am i right in thinking this way?