All Forum Posts by: Jennifer Rysdam

I recently had 2 tenants bring in boyfriend/girlfriend roommates. I had each of them do the whole process: application, background/credit check. I then just did an amendment to their leases that states that new roommate can live there, but original tenant is responsible for apartment and full rent, and that upon landlord or tenant asking them to leave they have 24 hours to vacate property. I didn't want to deal with breakups and having them decide who stays and who leaves and who is responsible, bla, bla, bla, lol! I've had to deal with this before and it's not fun. Sounds like yours is just a regular roommate. I guess maybe I would make sure that they BOTH can afford the apartment on their own, and state that upon one tenant leaving, with appropriate notice, that the other will be 100% responsible or something like that, and can find another approved roommate if they want. I do month to month leases though. I just don't want miserable people to have live together if they don't get along. I realize that's not my problem, but it would become the building's problem if they are yelling and fighting.
One other clause might be that the deposit runs with the lease and if one moves out early that they are responsible for getting their half of the deposit from the other, or their new roommate.
You just have to do what you think would work for you and your business. It can be tricky! Good luck!

If the price is right you could purchase with an inspection clause. The inspector can tell you what the issues are. Inspections can be expensive though. I personally would pass on it. Looks like a bad roof leaking on the ceiling tiles. The roof may need replacing, along with the ceiling tiles. Some of those tiles may have asbestos in them as well as the flooring. You can cover up the flooring, but removing the tiles can get expensive. Looks like you will also need some flooring, lots of paint, all new appliances, and bathroom fixtures. How is the lighting? Replacing that can be quite expensive too. All of this is just compounded by the expense of having to hire it all out.
If you do decide to get it, start with the roof and then replacing the ceiling tiles. That way if there is asbestos or mold you can take care of the whole building before anyone is living in it. Then focus on one unit and get it ready to rent. Then work on the others. That way you can get some rental income coming in. Good luck!

It's kind of a crap shoot. Depends a lot on your market and what is out there. I agree with @Seth Ferguson that if yours is the only good one out there at the time then you might get lucky. I'm in MN and the holding costs would be tough. I just finished and listed a flip. I closed on the purchase Feb. 1, so I got a great deal buying Dec. 1. I hope it goes soon because heating with propane over the winter is going to cost me!

Definitely get it on Loopnet. Also contact local investors with other buildings. Some might like to add to their local portfolio. It also helps spread the property management fees out to have more units.

Another approach is to advertise it to tenants since it's 4 units and they can purchase on FHA and live for free. Be sure to include that in your Zillow listings as well. Most people don't know that unless they are already in the business of landlording. Good luck!

I would raise their rent a little bit at the end of their current lease, so that they stay (provided they are taking care of it). I'm not sure what your plans are, but in a year I'd buy another duplex (or whatever) and move into that one and rent your side that you've rehabbed out. Then raise the rent the rest of the way on the current renters. That way if they pay it you're good to go without the big cost of rehab, and if they move you are ready to remodel it because you have paying tenant in the other side in your old unit. Good luck!

I think the previous answers are missing something. Did you say that you are going to go and sign the lease at his current place? So it's hard to change your mind at that point. You can, but I would think at that point he'd be boxed up and ready to go. If you really feel the need to check out his place, maybe stop by a week ahead of time and drop off a copy of the lease for him to review ahead of time?? Then you can see the place from the doorway without doing it at the signing time.

Personally I'd do more checking into previous landlords instead of running around, unless it's close. Plus you really don't want to wait until that point to find out you no longer have a renter that you want.

I agree with @Dennis M. Verify all the info and then you'll know if it's true or not. I also would wonder about the grandkids part, but previous landlord can let you know if they wrecked the place or not.

I think for me it would depend on what those utility expenses are. Get copies of them and see if they seem way out of line. What kind of heat do they have? If it's hot water heat then I don't know that they could abuse that too much since the hot water in them is always hot anyways. Depending on your market, if those are 1 bedroom units then $700 might be a great deal for you. 

However, having said that, I have recently been looking into purchasing another multi and found that a 5 unit house means 5 kitchens and 5 baths to stay on top of! Maybe a 4-5 bedroom duplex might be easier to maintain?? It's a toss up though. With 5 units you aren't very affected if one moves out. With a duplex it's 1/2 of your rental income. Definitely check these things out. If the 5 unit house has newer appliances that might be reliable then it might work. Things like LED bulbs can help with the utility expenses. The washer and dryer will help too if your prices are good. I have an 8-plex with appliances from the 90's. Every year I end up replacing a few of them because they die. Good luck.

You may want to use a good primer before painting to keep the smell from coming through. I had one that was smoked in for MANY years before I bought the building. I had to KILZ the walls, ceiling, and cabinets to get rid of the smell. Good luck!

First you should learn your state and local laws. All states and all opinions are different. Are they good tenants? What is their history? If they are good renters then I'd give them the option to stay with the higher rent (provided that's within your laws). One thing to consider though is that time is not on your side. Here in MN I'd have to give notice by the 31st to have them move out at the end of August. Make sure you don't get too far into the year and end up with two empty units for the winter.
You didn't mention what they are paying right now, so we don't know how big of a jump the rent would be. Maybe do half of the difference now and then the other half next May 1. That way if they both move out you'll have the whole summer to find new tenants. A lot also depends on your market and how easy it is to fill rentals. Good luck!