All Forum Posts by: Account Closed

@Steven Foster Wilson

I think I'll be doing just that Steven, I'll notify them of the rent bump this weekend. Have you had any issues with getting a tenant to leave with the eviction moratorium still being around? I'd rather have a lower paying tenant than someone I'd have to evict to then turn the unit. 

Water was already split but only had one meter that I was paying. The cost of the split will payed for after 8 months of tenants paying for water. 

Great point Karl, 

One of my tenants is a problem and would like to raise only their rent. Any idea if that goes against fair housing practices? Last thing I'm looking to do this summer is get sued.

Yes I am around 2 months away and hope to notify the tenants this weekend by email. Do you think I should also mail them all letters? 

Yeah, I don't think an additional 20$ a month from these tenants AND a water bump is asking too much from them. You're exactly right Corby by expenses going up and they won't be stopping anytime soon I'm sure. I I'd rather have a slow annual rent bump than a mad tenant at me in a few years down the road. I really appreciate your comments. Thanks for looking out for me and my tenants :)

Hey Troy,

Great to see you on here. Yeah, I just surpassed the 60 day mark but I'd like to give them as much time as possible to make a decision.

Yeah I fear that some may move out either way and although vacancies and turns aren't attractive the added cashflow that comes from a turn is significant in the long run. Thanks for the input Troy, hope to see you at the next meetup

Hi all,

So I bought a 4 plex last year in Lansing MI and didn't want to raise the rents due to covid and just starting out (since the 4 unit was my first multi). The rents were fairly under market value 600-700 while in todays market it's closer to 800-1000. I will be paying a few grand to split the water and plan on notifying the tenants 2 months prior to the signing of their new lease. 

What I'm wondering is if I should also bump their rent the same year I am splitting their water. I don't want to be shifty money grabbing landlord but I feel like there's untapped potential that I want to get into. What would you do? I'm not thinking of adding much of a bump, maybe just 2-5%.

How early do you disclose to your tenants rent goes up at lease signing?

Thanks a million!

This July I bought a 4plex in Lansing MI for 158k off market from a local investor. Total rents are close to 2800. Cash flow is around 550 a month. All utilities split but for some reason owner still pays water. I didn’t want anyone to leave on my first big purchase so I continued to pay it this year. Will make tenants pay water at start of their next leases and will increase my cash flow of 250 a month making the total cash flow 800 (if I don’t raise rents but a few of the units are very under market rent so I just may). When I bought the building it probably needed 5k of touch up work and maintenance.

In October of this year I got a call from the old owner of the 4plex I purchased and asked if I wanted to but his 3 unit across the street from my 4 plex. I said of course and we struck up a deal. Bought the 3 plex for 102k and partnered with my parents to help pay for it. The rent is 2005 a month and there isn’t much room for rent growth but it should be a good cash flowing asset throughout the years. The cash flow for this property is 490 a month.

This is has been a good buying year and I’m excited to see what 2021 has to offer.

I know it's been interesting for me to be in self isolation with my roommates. Learned that one is really into singing a lot and the other hasn't cooked a meal at all during quarantine. Overtake we're all safe and in good spirits though

@Christian Hall

Hey christian, I've been thinking of getting into investing in the south Warren area due to its prices being nearly as low as Detroit. Any spots that you would suggest being "hot" or "on the rise" in that area?

So I currently have one property and pay for everything for that property on a specific debit card or checking account associated with all the repairs and maintenance ect.

I was taking to my brother in law who's a financial advisor and he thinks it's best to have all the properties under one account, he says, "as long as it's being tracked on paper you'll know what's your money is going". I think it makes more sense for my next property to structure it as follows

-Make an LLC

-Make business account for that LLC (get all the startup benifits of opening a business account with a big bank).

-Purchase house personal account then transfer property to llc.

-Pay all bills with associated credit and debit cards linked to the LLC.

Is this a good way to structure my real estate finances? I'm open to hearing what all of you are doing and how I can improve.

I'm also thinking about adding in a property management LLC but I'm not sure where that would fit into the equation.

@Brandon Peery

Had to Detroit!

Rates are jumping up like crazy

Employment is jumping up

Barrier of entry is good

Huge amount of investors and prop managers to learn from in the area

I know Josh Dorkin isn't a fan but it's real profitable.