All Forum Posts by: Joe O

"It's tough to make predictions, especially about the future." -Yogi Berra

I'm anticipating a soft, fairly flat market for 2014.

Not a lot of supply, but not much demand either, so no big swings up or down from an imbalance there.

Assuming the Fed keeps rates around where they've been, I think prices in a year, February 2015, will be about 2% higher than they are now. I think rents will edge up a bit over the next year.

Like you said, Phil, our market could go either way depending on the bigger players. If it were guessing one way or the other though, I'd say it's more likely to be down 10% than up 10%.

Right now I'm watching, and waiting.

Hah, you and me both. ;)

@Phillip Dwyer meant to say "rents have not kept pace," I'm sure.

Sure, I get what you were trying to do. :)

Cash for keys doesn't have to be literal cash on you that second though - letting a shady character who's down on their luck know where you'll be with lots of cash is not a great idea generally. Especially in this situation, where it wasn't a literal cash for keys, but was for the security deposit "I.e. move out at X date with broom clean condition and you'll get the whole security deposit back" - and then when you show up you tell them your standard procedure for security deposit refund is a check within 30 days, per state law.

Still, probably couldn't have foreseen this, and at most it's a lesson that costs you a few hundred bucks (the amount you'd have kept from the security deposit). I've had way more expensive lessons as a landlord. ;)

Glad you stayed safe.

I don't ever bring cash to refund a security deposit. Here in Vegas we have 30 days to refund it, so I explain to them that the law is I have 30 days to refund it, and ask for their forwarding address. I then have them move out, then I send them a letter with an itemized list of deductions (if any) including pictures, which they can protest in writing if desired.

Check how long you have to refund security deposits per your state law, but I'm thinking if you didn't have the $800 on you, you couldn't have been pressured into giving it all up.

That may help you in the future (though again, you have to be the tough landlord and ignore the cries of how they need the money now, etc.., and just refer them to the law).

The phrase "it shall be automatically renewed for a like period of time" indicates to me it's automatically renewed on a 1-year contract, and ditto the recommendation on council if it becomes an issue, but have you tried giving them a 30-day notice? Did they balk?

Also I second the recommendation for @Phillip Dwyer as a great person and property manager.

I also had a problem signing up with them six months or a year ago..

I contacted their support through email.

Just looked through my email archives, it was apparently an issue with verifying my phone number to get my account verified last January. Email address was [email protected] - I actually never received a reply, just found it working a day later, so wasn't sure if they did anything or it resolved itself, but worth a shot.

He may have been pulling your chain. ;)

I went to research where this was, and here's the first (and basically only) hit on Google for Liberty, Nevada: http://www.ghosttowns.com/states/nv/liberty.htm

Google Maps shows no results for that as an actual town: https://maps.google.com/maps?q=liberty,+nv

It was apparently in Nye County according to that one ghost town website, a county which has no incorporated towns whatsoever, and Liberty isn't even listed as a settlement or unincorporated town: https://en.wikipedia.org/wiki/Nye_County,_Nevada

Also, FWIW, even if he was being serious (and just had the name of the area wrong), it's not hard for raw land to go up 30% when it starts so low. $100 for a giant piece of land going to $130 is not a gain that makes me excited, despite it being a "30%" gain.

Follow up with that owner, I'm curious what he has to say about "Liberty, NV."

Sounds to me like he was just having some fun with another investor. :)

Phillip Dwyer does property management in Vegas and is active on BiggerPockets, regularly arranging BP meetups in Henderson. I'd recommend you send him a message. :)

From what I know of the Vegas market, and most our fourplexes here (and the location of most), it's probably something to avoid. Here will be the telling part which will confirm: what is the rent per unit? You'd want it to be 1k/unit to hit the 2% rule, but I'm guessing it's much closer to half that. It may barely hit the 1% rule, and won't be in a great neighborhood.

I could be wrong, but that describes the average fourplex here for sale. Feel free to post more details if you want a more in-depth analysis.