All Forum Posts by: Joel Fine

I bought one SFR, then went to small MF (2-4). Then a 5-unit, and a 7-unit. Better cash flow on the MF. I plan to go for larger properties over time.

Seeking wisdom from the BP community.

I recently bought a 7-unit apartment building in Ohio. At the time of sale, some of the units were occupied by tenants who are on 1-year leases that have several months to go.

A couple of those tenants decided to skip town shortly after I bought the property, before their lease terms were up. They did not pay any rent to me. I don't know if they were current with the seller, but I think that's irrelevant.

Their leases obligate them to pay rent for another few months, but of course the leases only name the seller of the property, not me.

Do I have recourse to go after them for the remainder of their leases? Even if I do, is the pursuit likely to be worth my while, or am I better off just letting it go and focusing on finding new tenants?

Joel Fine

 That is one impressive metamorphosis. Well done. 👏👏👏

Looks phenomenal. Need some "before" pics so we can really appreciate what you did to the property 😉

San Jose might be a little far from you in Vallejo but I can point you to a couple of meetups here in the South Bay Area. PM me if interested.

The bank doesn't say to me: "Hey, it's December, don't worry about that mortgage payment."

The water company doesn't say: "No charge for water this month!"

The county doesn't say: "It's cool, skip taxes, Merry Christmas."

My plumber doesn't say: "Sure, I'll repair that leak for free, it would be heartless to make you deal with that problem until January."

So why should I be expected to do the same for a tenant?

1. Buy a multi family that needs some work. Move in.

2. Fix it up.

3. Rent it out.

4. Go to step 1.

I would look at it differently. The lack of transparency prior to offer reduces the seller's leverage during the inspection period. Everything you find in inspection is fair game for negotiating the price downward. 

I would make a fair offer, maybe slightly below market, with an inspection contingency. Then you inspect. If any renters are present during the inspection, ask them what needs fixing etc. Make a thorough list. 

Then ask for a full set of concessions based on that list. You can't call that retrading since your original offer was based on a view from the curb and a presumption that everything inside was perfect. 

Downright inspirational. I want to be you when I grow up. ;)

@Tom Wilson runs a meetup you might be interested in. Tagging him so he can reply with more info if he is so inclined.

Oh, and I'd be interested if you start something up.