All Forum Posts by: Jean Sanchez

@Kyle J. #1. Tenants complain about car vandalism #2. My contractor has complained that 1 tenant is sabotaging his projects by deliberately crossing his caution tape after he retires in the evening, #3. One side is a tenant who has elected to holdover on his expired lease, has a pet without permission, and has been busted and put on probation for cocaine possession while living there.

I just bought the place about 3 weeks ago, so just trying to get a handle on what is really going on down there. It’s a C class neighborhood in a small town, nothing huge is happening, but if I have competing stories coming in or need to report criminal activity, I figure having external security cameras would be worth it. Going to look into the other suggestion. Thanks

Hi Everyone,

Recently acquired a class C duplex where neither tenant has internet service. I would really like to set up an external security camera, but are there systems that will work without an internet connection? Are there relatively cheap internet services I could buy just for the security system? I don’t pay any utilities at this duplex and don’t want to suddenly offer everyone internet access on my dime especially because I inherited the tenants and due to our Covid eviction policy, neither is current on rent. Thanks for any ideas and help. Cheers!

@William Espich Hey William, I am also totally new although I have 1 duplex in South Bend. We recently moved here from Houston (where we lived for 4 years after living in Austin for 16). Anyhow, trying to learn all I can about this market and if I come across anything cool I’ll shoot it your way. Listening to Slaid Cleves and Hayes Carll as I drive back from a Father’s Day walk, it warms my heart to connect with someone from Austin. Wishing we kept the house we bought 2005 on 13th street in the ‘02 for 145k!

@Sean McCluskey And that 100 billion is also supposed to go to the utility companies for accounts in default. Who do you think will get it- small landlords or big utility companies?

@JR C. That’s because a ban and forgiveness doesn’t cost them anything. There’s no motive for them to take it out unless their constituents call and raise hell, so call and send letters to your senators ASAP.

Hi Everyone,

Spent my Sunday morning trying to take a deep dive into investing finance through an open source university course. Great stuff, but my brain is now mush. Need to do something totally different (ie: gardening or a very long bike ride) in order to process.

https://dspace.mit.edu/bitstream/handle/1721.1/41057/11-431JFall-2002/OcwWeb/Urban-Studies-and-Planning/11-431JReal-Estate-Finance-and-InvestmentFall2002/LectureNotes/index.htm

Copy and paste to check out if you understand on a basic level, but want to really understand the math behind the numbers and truly understand the variables at play. Dated (2002) but the math hasn’t changed.

Now time to process!

Hi Everyone,

I am a new investor who has only lived in this area about 9 months. We have recently closed on 2 properties that need some remodeling before they are rented. I am in the process of getting contractor quotes and I am wondering if it is a good idea to request a quote from the father of my daughter’s best friend here. I have looked him up and he does provide the services we need and has mostly good references on Yelp, home advisor, and of course, his own website. I have met him in the context of overnight drop offs and pick ups and he is very nice. My daughter is 12 and going into the 7th grade. She is super social, but new to this town and school, and this is by far her best friend here. Would you allow your business to get intertwined in this type of situation or just avoid it all together? I am not afraid of the hard conversations during a job or telling a contractor that I went with another company and why, but I don’t want my concern for my daughter’s social life to steer me to make a decision that is not in the best interest of my business. I also don’t want to exclude potentially the best contractor in the area and one who might go over the top to ensure that we get the best of everything since he has a unique relationship with our family (there are not a large number of recommended contractors in our area). Thanks for your opinion.

Cheers!

Hi BP Community,

I am i

At the final stages of closing on a duplex in Indiana. Although this is an all cash deal, I was concerned by tenant statements during inspection, so asked everyone to sign basic estoppel certificates. The tenants completed the certificates and both the PM and owners signed off on them. However, the next day the seller’s agent sent us the sellers response to inspection and on it she stated that the PM and owners had signed the estoppel, but do not agree with all the statements on the estoppel and that their signatures do not indicate agreement. There is a significant disagreement about back rent on one unit (tenant wrote that last payment was given on June 2 and no back rent is due. Rent roll indicates that the tenant is more than 4 months behind). That same tenant indicated that he was pursuing legal action against the owner and had a court date set for September. The owner and PM did not indicate what they agree with on the estoppel and where they disagree. The numbers on the deal are strong and allow room for the eviction of at least the most problematic resident, but I, a.) don’t want to get dragged into their legal and financial drama, b.) I don’t want to be caught unable to get this tenant out of the building because he has pending legal issues against the previous owner. His lease is up at the end of July. The other side of the duplex has some minor issues of conduct, but I can handle those with a few property amendments (like adding a fenced in place to smoke outside and more garbage cans for the whole building) and a brief conversation. I need advice about the side with the huge rent backlog and the court date. I could do cash for keys and get them out either at the end of the lease or before, but I need to know if any action like that could be held against me because they have already filed for a court date to complain about the previous owner. Ok, now I am rambling. I apologize. Thank you in advance for any and all advice on the next move.

Yes, you can always refinance and pull out the money. The taxes won’t hit until you decide to sell. If your sell your homestead as a single tax filer you can exempt 250k in profits from additional income tax (500k if you’re married and filing together). Ask your tax filer to confirm the length you need to stay at the home. We have a friend who sold it after only 13 months and was able to claim homestead and avoid tax on his profit, but we have always been told 2 years. Wishing you luck on your flips!

Hi Everyone,

Working on my first cash deal for a duplex. Are inspections it is clear that about $10,000 of pretty much mandatory improvements need to be made to bring it to code and for safety. I understand that laws went into place after 2008 that stopped the practice of buyers with mortgages walking away with cash in hand and only allowed credits to be used toward closing costs (or something to that effect, it was confusing). I would like to keep the sales price at the previously agreed upon position in order to take greater depreciation, so is it legal for me to request a “credit” at closing for a cash deal when the credit I am asking for is 10k and my closing costs are only around $600? Or do I legally have to do it as a reduction in price? Thanks in advance for any insight you have to offer 😉