All Forum Posts by: John Mark Waide

Okay thanks for the info! It was really helpful!

My wife and I have a triplex with 2 tenants whom we inherited. We're currently living in the 3rd unit and will move out soon. We like the 2 tenants and they've lived in the triplex for several years, but they're paying under market rents and won't be able to afford a significant rent increase. Plus, the location isn't that great and we feel that there is a risk of any new tenants who may replace the current ones to not be as good. Therefore, we have discussed going the section 8 route so it would be a win/win, with us being able to collect the market rent and the tenants can stay. If we do go that route, do we have to register the whole house to be available for section 8 or can we decide to only accept section 8 for 2 out of the 3 units? This is in Washington State by the way. Thanks!

Since the new change in Wa law makes late fees practically unenforceable, can I write in my lease that if rent is late a certain number of times then rent will increase 10%, instead of having a late fee? I haven't seen anything that would make me believe that I couldn't. But I just want to make sure.

So after looking over the leases, all of the lease agreements end by April. The lease for the studio ends at the end of March and the lease for the 1 bedroom ends at the end of April (and the 2 bedroom is month to month). We plan on closing at the end of March and we have 60 days from closing to move in. The 2 bedroom needs the most work and I would like to move into that and get it fixed. But after reading everyone's comments (and it is the unit with the highest rent), I'm thinking about removing one of the other tenants instead, perhaps the studio, and just receive the higher rent from the 2 bedroom and wait until he leaves willingly. Would it be better to empty out the 2 bedroom and get it rehabbed asap, or collect some rent first as a buffer and give it a little bit of time? Or we can move into one of the other units first, fix it up a little, and then remove him while we're living in one of the other units. Thanks again for everyone's advice! (I have a lot to learn about the "people" side of this)

We all learn as newbies. The inspection is this week and I will have a better idea about the amount of needed repairs. His unit is difficult to assess, but the other 2 units don't have very much stuff in them

Well, I'm not able to change it now. It's a triplex but his unit is the only one that's not under a lease and we have to move in since we have a conv. loan with 5% down. 

I guess this seller has been burned by other potential buyers on this place and hasn't been willing to take on any risk, which has been very frustrating. Also, the market here is really hot and most places are selling at asking price or more (and not even good deals in my opinion). This is currently the best deal on the market, even including 30k in potential repairs I've budgeted in. 

Obviously some people may not agree and I admit I'm pretty new, but I've ran the numbers over and over again, even setting aside different amounts for potential repairs and expenses, and this is still the best cash flowing multi-family on the market (that's within our price range). 

Doubling the earnest money was fine by me, but I wasn't willing to make it non-refundable. And after I thought that the security deposit would help offset the cost of repairing that unit, at least a little bit. It may not be a whole lot in the grand scheme of things, but it's still $500. I may have made a mistake and should have probably made him gone by closing, but it's too late now. We shall see how easily he leaves. He did mention to us that the rent is getting too high for him and he will probably have to look for a new place.

Hmm, okay. Thanks for all of your replies! Perhaps I made a mistake, but I guess you live and learn. The tenant seems very nice and accommodating, but I guess you never really know. I do know that his apartment will need a lot of work and we plan on fixing it up once we move in. Oh well. We shall see what happens. Thanks again everyone!

And it is 30 days here. 

No. I mean I will need to learn how to deal with tenants and removing them anyway. I understand that it may be a headache, but I would rather use the deposit to help make repairs and clean his apt than have the seller keep his deposit. He's not in a lease. He's month to month.

Thr seller isn't willing to make any repairs and isn't wanting to put any money in this place. We've been going back and forth for the last few weeks. We originally said we wanted the tenant out by closing day, but he wanted earnest money doubled and non-refundable "since he's running the risk of losing a tenant if financing falls through". Of course I'm not doing that. Since he's not willing to put any money in this place, then I would prefer to have the headache of removing him and using his $500 deposit to help fix the unit up instead of the seller keeping the deposit and I am still left with a unit to fix and clean, except now I won't have the tenant's $500 deposit.

The seller has been frustrating to say the least, but the numbers work out. I'm completely new to being a landlord. However, i am pretty good with the numbers side of things. That is my strength

@Caleb Heimsoth

We did originally, but if we did then the seller was going to keep the deposit. I decided that I would rather learn how to deal with this, since I need to learn eventually, and then use his deposit to help with cleaning and repairing instead of the deposit going to seller if the tenant is out by closing