All Forum Posts by: Jonathan R McLaughlin

You sound like you are in better shape than most, congrats. Now: 

actually talk to a couple of lenders, ideally local banks. You will be much more confident and conversant with the needed terms after doing so.

Get funds in place, including the HELOC. Time involved is not trivial and you don't want to find a good purchase and be unable to execute

Find a good broker or two you can bring in if you feel you need to

These are actual steps, not research....

Dude, what does your underwriting say about what the property can produce? 

Are the rents low? Are there a lot of capex items? Is there path of progress or other appreciation likely?  what is the cost of your debt service? How much money can you make and how much risk is there? 

 It doesn't matter what he wants, or what the asking price is. How much is it worth to you?

as alluded to above, retirement accounts count as reserves in the eyes of the bank, so thats all good. You would want to be able to cover a major expense without using that ideally but you can in a pinch.

Don't overlook dollars to pick up pennies; a mutually beneficial seller finance deal for a good property is an amazing opportunity and I would put my energy into that first. A lawyer drafted promissory note and clear terms is a necessity. Make sure terms of exits and refinances are clearly outlined. This interest rate environment offers a great chance for your in-laws to have a safe ongoing return and you either a lower downpayment entry or excellent debt structure. And having the cash on hand to light rehab is a great way to gain experience

As for the "zillion" properties...there is some safety in numbers as you will have income likely have income coming in even as you wrestle with the expenses in one area. Just make sure you underwrite using appropriate projections of vacancy, repair and capital expenses. In any given month(s) you will likely be ahead in one or more or all of those categories. Thats cool, but remember they are reserves.

Seems like you are in better shape than you think you are.

@Adam Christopher Zaleski Interesting that he has "doubled down on his threats" but has not yet engaged any legal professional. He is trying to bluff a weak hand. Doesn't sound like there is a reason for further communication but one additional lever you have is his credit score. A simple factual statement that you will be reporting all deliquencies of both signatories to the bureaus as of X date may be useful? No knowledge of your local requirements for this.

You could also add in the cost for the licensed contractor gas check out due to the frivolous claim if you are already having fun with this....

@Sylvie Manning I misread and thought she was your current tenant with a new boyfriend. Different sich.

Except that you don’t end it Dan, you keep going :)

Bite the bullet, post the rental in the last two weeks of January for February or even March. Get a little extra shine on the place in the meantime.

Your odds of getting a better tenant go up exponentially after Dec/january. Anyone who needs to move quickly around that time is a risk. Exceptions exist obviously but you have passed the Jan 1st date.

You will send a signal to your pm you care about quality tenants. Your life will be easier and you will make up the vacancy loss quickly with the more prime time rent.

Take this approach that you don’t need to take anyone and I bet you get someone good for FEb 1.

You did underwrite with vacancy yes? :)

We have allowed animals both with a fee and without depending on property, and have added to the lease that tenants agree to an automatic use of security deposit for a professional deep clean and restoration to a non-animal inhabited state. We state a person with a cat allergy should be able to rent the apartment with no ill effects. Make sure to specify all animals must be vaccinated/registered etc.

We haven’t had to use this yet, and people have been very accepting of that as a rationale/potential expense. I think it makes them a shade more motivated to keep up with cleanliness…

Sump pump + carpet= no bueno

I like the idea of taking it all out. Not sure what is down there or how they use it but I like the persons suggestion for elevated storage racks. Maybe some pallets and temp walkways and put a washer/dryer down there if the space allows.

Cheapsest immediate fix would be to diagnose, say you are going to change it, offer an appropriate discount for the loss of whatever amenity it is and with new lease just use as storage or as above

Why not just pull out as much equity as will leave a comfortably positive cash flow? Not sure I see much of a dilemma here. 

Though it would seem prudent to plan such a cash out and wait since the fed has talked about multiple interest rate cuts next year