All Forum Posts by: Jon Mason

We're negotiating a few properties at the moment that we'll be BRRRR-ing. I read a post on IG where someone was saying the non owner occupied mortgage rates are a point higher than they previously were and are on the rise.

I can’t seem to find any information online to corroborate this, but it has me a little nervous as that would put a big dent in our cash flow on these properties. Any insights would be greatly appreciated!

I heard a podcast within the last 2 months where they discussed at length why ARMs aren't so bad, and actually have some benefits. I can't seem to find it searching through the descriptions. Does anyone happen to know/remember?

We've created an LLC in TN to hold properties in, and I'm wondering if we also need to have a business license to invest in buy and hold properties? I know some states and/or municipalities require a business license to be property managers, but I'm thinking we would not require one to purchase real estate and self manage. Any insights would be appreciated.

Thanks!

We have good renters that we hope will renew in a few months when their lease is up. They’ve only been late once, so overall it’s a good situation.

He has been sick and apparently has been out of work while he was getting cleared of any COVID risk. He just texted me and said he’s been cleared to go back to work but that his wife has had to stay home with the kids (not sure why both of them had to be home, but trying not to be suspicious).

He mentioned in his text that “money is tight right now for sure”.

I suspect he is hinting at some kind of relief and I’m very torn about how to approach this. On the one hand I don’t want to set us up as being the LL that will bail them out whenever things get tight, but on the other hand these are certainly extraordinary circumstances.

Any thoughts on the right way to handle this?

I’m open to helping but I would almost rather him come out and say, “hey, i have $x for rent and I need help.”

My initial thought is to tell him that if he needs assistance then we need to know ASAP and we need to know what portion of the rent he can pay.

If we could cover our mortgage that would be ideal, but we could handle not getting any rent if it comes to that as we have some reserves. I just don’t want to set a bad precedent.

Thanks for all your input here, it’s super helpful. I spoke to our attorney and she said that an easement does exist based on the verbal agreement that was made. That easement would be more difficult to defend in court but despite that fact, having so many years of continuous use would constitute an implied or prescriptive easement. She said no court of law would uphold the neighbors claim. I reached out to the neighbor and politely explained this fact and told him if he wanted to get something in writing for the future to let me know. I haven’t heard back. 

I just spoke to the city and they said it was run through the neighbors property because the grade of the lot put the sewer line much lower than the street it butts up against. So rather than pumping it out to the street, they just ran it through the neighbors lot.

They basically told me my options were to work out an easement with the neighbor, or pay to put in a line and a pump to take it out to the street. 

The “funny” thing is, I found out about this situation bc last summer I had to replace the line well into my neighbors property because it was the old style pipe and had roots growing through it. I actually replaced part of his line and they fixed basically a sinkhole in his back yard created by the whole situation. So I paid $5000 to solve a problem that really we both benefitted from. 

I don’t know if I have any legal recourse with the city for this, but I get the impression that the neighbor is not going to be easy to deal with.

I’m in contact with the title attorney who originally did the closing/title insurance and I’m hoping they can provide some guidance on what we should do. 

Ugh.

@Kenneth Garrett, that sounds like a good idea...

ok, thanks for the input @Simcha Davidman. I am not 100% sure this guy will pursue anything, unless he just wants to be difficult, but I think I will double-check my documents and then head to the county clerk's office on your advice and see what they have to say on the matter. Thanks!

I purchased a rental property in 2018 that was a totally normal real estate transaction with no existing easements or irregularities mentioned.

During the reno I found out that back in the 50's when the house was built, the city (presumably) had run the sewer line out of my back yard and tied it in with our neighbor's sewer line, and then run it out to the main line on a side street, rather than running each sewer line up to the main at the street our address is on. (i.e. I'm one lot away from a corner lot, and our sewer runs through the corner lot to hit the side street.)

Anyway, a while back I had messaged the owner of the house next door to introduce myself, and just last night he replied to my message basically saying our sewer line runs through his property and he never gave us an easement to do that, nor does he know of one that exists. I'm fairly certain both houses and their respective sewer lines were in place prior to either of us owning these houses, but I have a very limited knowledge of how all that works legally.

Googling this scenario was unsuccessful. Any recommendations on how I should proceed in the event that this guy decides to try and be a headache?