All Forum Posts by: John Ringgold

In a few weeks we will be closing on a duplex where both sides are rented by one individual with a month to month lease.  The young lady is a nurse and is using the other side to "sub-lease" to an elderly person where she can provide care for them by being right next door.

We are working on our new lease as this will be our first rental investment purchase.  The current landlord was okay with this arrangement, but we aren't sure this is a good idea.  Subleasing and running businesses don't seem to be suggested practices with leases.  

Would you allow this arrangement?  What are your thoughts and concerns?  

What is one thing you've added to your lease that may not be in the standard lease that has prevented a problem you had from happening again?  

Not looking for the specific wording unless you'd like to share, but the "why"behind the addition would be a good start. :)

In the process of purchasing our first duplex and we have the BP Lease for our state downloaded and ready to go, but I am hoping to learn from the more experienced to hopefully protect myself from issues from the beginning. 

Not looking for "legal advice" and will run anything we like by a lawyer, but I was hoping for your input.

Hi @Lettie T. I am watching the MLS closely for good investment opportunities and I am doing some direct mail marketing as well. I am working hard to find motivated sellers who we may not have to compete with other buyers for some nice deals. Please send me a and let me know what you are looking for so I can let you know when I come across what you might be looking for.

Thanks @Matt Devincenzo. Looks like at the numbers I have plugged in, my Cap Rate would be 10.54% and NOI at just over $10,000 if I am doing the calculations correctly.

I have happened upon what seems like a nice opportunity with 6 doors. As a Realtor, I can typically find comparable sales, but in this case I can't find any.

I chatted with an appraiser friend who said because it is 6 units, the value should be determined via the income approach.  I have looked online and haven't found a good online calculator or a simple to understand formula for finding value this way.  Not something I typically need to do.

Any good resources or thoughts to help me find the value to ensure my rental calculations work before making the decision if we should make an offer.

@Dave Clauson You are right!  The perfect reason to have a local investor friendly Realtor assisting you if you are out of the area.

@Hobart King typically all you will need to talk to the lender is a "3rd Party Authorization".  It is simply a letter from the current seller (probably need to include the death certificate as well) explaining that she is the executor of the estate and that her mother, the mortgage holder, is deceased.  She then will note the mortgage loan number and notes that that she gives you permission to talk to the bank about the any and all details of the loan.

You will then call the bank and ask for the Loss Mitigation Department.  Let them know you have a 3rd party agreement and ask them if you can email or fax the form in so you can discuss the loan and the options for a short sale.  Once you send it in, it may be a week before it actually gets filed into the system.  Then you can call the Loss Mitigation Department back and ask to apply for a short sale.  Hopefully by this time they have the authorization form in the system so they can give you direction on their process to complete a short sale.

My tips, call the bank every week.  Most won't follow up with you, you have to be the aggressor.  

Also, there will be a time when you call them and although you've talked to them 10 times about the file and the process, they will tell you they aren't seeing a 3rd Party Authorization form on file for you.  Make a note of the date you send it in.  It always seems that when I tell the specifically when I sent it in, they magically find it.

Good luck!

@Bessy Reyes I am not local to the area, I am in Kansas.  I saw the news about the law in Portland via a daily real estate site I watch and was curious what would cause this type of law to be enacted so I could watch for signs of something similar coming my way in the future.

In Portland Oregon, there’s a new law forcing landlords to pay relocation fees to their tenants if they can’t pay a rent increase. Yeah, that’s a tough pill to swallow if you haven’t received any rent over the past several months on top of it all. 

https://thenationalrealestatep... (skip to about 0:45 to bypass the ad)

What is happening in Portland to make the powers that be need to enact a law like this?

Do you this could flow to other States?

FINALLY some financial relief and assistance for renters and landlords that are suffering financial hardship due to COVID-19!

The Kansas Housing Resources Corporation (KHRC) recently announced the creation of the Kansas Eviction Prevention Program (KEPP). KEPP is designed to decrease evictions and increase housing stability by assisting landlords and tenants experiencing financial hardship due to the COVID pandemic. Through the KEPP program, landlords and tenants apply for up to $5000 per household to pay delinquent rental payments dating as far back as April 1, 2020. Payments will be made directly to the landlord, who must agree not to evict the household for nonpayment of rent for the months of KEPP assistance received. Landlords must also agree to waive any late fees accrued during the months for which assistance is received. Applications for the program must be received by Nov. 30 and program funds must be expended by Dec. 30.

The KEPP program is funded through the federal Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. Program funds are limited, and applications will be processed in the order received.

Tenants and landlords should apply as soon as possible to increase your likelihood of receiving assistance.  More information can be found here: kshousingcorp.org/eviction-prevention-program