All Forum Posts by: Jennifer Rysdam

I'm having a hard time following exactly what your question is, but I'll try. When I used my HELOC for my down payment on my 8-plex I just wrote a check from the HELOC and deposited it into my business account. Then I used the business checking to pay the down payment. That way I can have the correct paper trail in my QuickBooks account of what I invested in the business and what the business paid for with it.

Then money you are investing isn't considered income. It would be called "Owner Investment" or something like that. Later, when you pay yourself back, you'd deduct it back out of the same account. 

I would rebuild. I don't see anything about spindles being added to make it kid proof. You'd hate to spend all the money, just to have to redo it later because it's not to code or your insurance company doesn't approve it. I'd build a new one that is much bigger. I can't really tell, but if the house is small, a big deck would be a great selling/renting point because of added outside living space.

I agree. Just give the 30 day notice. The one in custody probably won't even be back by then anyways.

I guess I would need more information. Why are they/you going this route? The first thing that came to my mind is what happens if they don't pay you, then you can't pay them, and they take the property back? I know how expensive real estate is in Hawaii, so would you be able to keep paying them even if they don't pay you? Or would you want to? 

Don't do it. If he's not licensed and insured then it's an accident waiting to happen. Not only that, but there are SO many problems that can go wrong as far as quality, timelines, money, additional materials, etc.

I bought an 8-plex a year ago. It had been a low income building that allowed smoking and didn't really enforce much for rules. I immediately informed all tenants, via a letter sent in the mail, that there would no longer be smoking allowed in the building and that they needed to go outside. Plus, as of the next month, they were going to be required to pay full rent. They had been informed previously, but were not complying, because the landlord was a push over and didn't want to deal with it. I also sent a letter to the one dog owner that he needed to get the back yard cleaned up and keep it clean or he would have to get rid of the dog. I also sent a letter to the apartment that smelled like cat pee that she needed to get rid of the cats or move. She moved the next month.
I put smoker chimneys outside of each entry and cleaned up the place. I had 2 that moved out because of the rent increase and smoking rules. I got their apartments fixed up and rented out. Then I ended the lease of the one that had the kid that was damaging property and littering all over.
I tried to spread it out over the summer because I knew the units would need some major cleaning and updates. The one unit had been lived in by the same chain smoker for 25 years! The ceilings were almost brown! By the end of summer I had the building in pretty good shape and had good renters. I would very much advise to take it slow because you don't want them all moving out and being stuck with lots of renovations and no cash flow. Lay down the law, see who moves out, fix up, rent out, then start kicking out those who aren't following the new rules. As I moved in new renters I raised the rent to market. As of June 1 this year I have the rest of them moving to market rent as well. Good luck!

I think it's best for you to do what you think is best in your situation. You know the tenant and your relationship with them. I have 6 kids, one that's handicapped, so I know how tough family emergencies can be. I've gone 50 miles away to a hospital in an ambulance with my child before, twice! Sometimes you really can't get home. We always tell them not to dole out keys to their friends or family, so who else can get in but you? Again, it depends on your situation, and maybe exactly what the emergency is.

I bought my 8-plex a year ago. I had a guy in there that had lived there for 24 years. He was on the second floor, was now using a walker, and was toting it up and down the stairs. When I bought the building I made it smoke free, and he was a smoker (as was all of his company). He decided to move out. I was glad to see him leave because he was an accident waiting to happen. 
His apartment was a total gut job. The ceilings were almost brown, the carpet was full of burn holes and drink stains next to his easy chair. I came to the assumption that when he started the carpet on fire from his cigarette burns he was putting it out with his drinks! The floor under the carpet was weathered just like drift wood! The place is beautiful now :)

I use SmartMove through Bigger Pockets here to do the credit/background checks. You email the link, they click it, fill it out, pay the $35 fee, and the results come to me. I've used it since day 1 and it works great.
I have locked storage closets under the stairs in my 8-plex. I put a drop slot in one of them with a bucket on the other side. They just drop rent, contracts, applications, etc. right in there for me. It works great because it's right outside everyone's door so there's no excuses for it being late. They also have the option of doing ACH through the QuickBooks invoice I email them every month, or just dropping it at the bank. I have one tenant that pays cash, which I don't prefer, but he's old and I don't feel like arguing with him about it. Rent is due on the 1st, but I give a grace period until the 5th. I stop by on the 6th and collect it all, along with the coin out of the washer and dryer.
Hope this helps. Good luck :)

I require everyone 18 and over to supply an application and do the credit/background check. It's not always about just getting the rent paid. You don't want criminals living in your building either. The credit check will also let you see if someone owes money to previous landlords and such, which could indicate that the destroyed the place. I go through SmartMove and it costs each of them $35, paid straight to SmartMove on their website. The only time I may avoid the credit check is if it's someone's kid and they are in high school or college still. I would require the background check on them though. 
Good luck!