All Forum Posts by: Jess Hammersley

I have a tenant that has been in a property for about 5 years now and they are asking about signing the next contract for 5 years with a rent to own option. I am looking for any input on how to structure this deal and make both sides feel comfortable with the amounts. I still want to get good value out of the house.

I have had one, and now that I have been taking care of many aspects I feel more comfortable taking care of this myself. When I first put it up for rent I was in a place that I didn't want to nor have the time to take care of all of it. 

Hey everyone, I have a 5 bedroom 2 bath house with a two car garage and fenced in yard in Ypsilanti, MI. In 2019 after some life changes I went to work with full-time travel. At the time I was very new to everything so I reached out to my Real estate agent and she was also doing property management. She took on the property management side for a reduced rate as I purchased the place recently through her. Fast forward to now we have had the same tenants in the place since 2019. They originally signed for 3 years and then year to year. They have now asked to do another 3-5 year long term lease. My property manager hasn't been taking care of things as much as I hoped, failing to even show up for the last city inspection. So going forward I am going to take over managing it myself. Please let me know how to price this properly for a lease term that would extend over those 3-5 years. They have been fairly good tenets and paid on time every time even through the pandemic. Market rent from what I can see in the area is about $3,000 per month for that size place, they are currently paying $2,000 per month as my PM was advising me she doesn't increase that much. Rent had gone up significantly since 2019 but the three year lease had them locked into that rate.  Thank you all for the advice in advanced!

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This is in Northern Michigan in a very booming rental market. Very little

Availability and seemingly lots of demand.

*This link comes directly from our calculators, based on information input by the member who posted.

@Justin Hammerle thanks for the info. That is what we were thinking. The offer we have is going forward as FHA financing but if there is anything that gets it slowed down or knocked down we will just go back to the conventional. The 20% is set aside it's just nice to have some breathing room to do a few extra remodel things while the building is empty.

My wife and I are looking at a 4 unit property and are going to live in one unit. We can put together the 20% for the conventional but in looking at the deal or lender is very certain he can get an FHA loan on it. Is there any reason to move away from the FHA to the commercial. I would love to keep some extra money in my pockets. Another added piece is the FHA is at 6.25 and the Conventional is 6.99 this is without buying points or anything.

We are currently not in a position that we want to or need to do anything with our current property. Our main objective is to purchase the new property without having to stretch ourselves super thin with a 25% down payment. 

Thank you for the information. One unit is move in ready but the other 3 have had all of their floors ripped out. I will work with the lender to find a solution if they need all 4 units ready for renters. 

Hi, My wife and I are new to this and have seen a four plex that needs some work pop up in our local market. We already own a house but looking to see the implications of house hacking with this? or is this not even possible with he ownership of one property in the area?