All Forum Posts by: Joshua S.

Originally posted by @Karla Torres:

Thank you so much for your help and insight. I will take another look with the 670k using the calculator and see if it's worth it! 

Originally posted by @Christopher Phillips:

@Karla Torres

Of course... Welcome to BP!

If they are in a pinch, they are using what would be considered 30 day pricing. Essentially low enough that it should be under contract within 30 days. It usually would be that low. But, desperate measures for desperate times. I would expect the price to bid up rather quickly unless there's a hidden issue you might know about.

"IF" the $662K number is good, let's say +/- 10%, then your ARV with some paint and tile work won't be much higher. Maybe $670K to $680K.

When doing flips, the profits come from getting the property at a deep discount, like with this situation, and managing rehab and carrying costs. Outside of that, it's hard to get $1 for $1 increases in ARV. Depends on where you put the money.

If you can lock it up, even at $600k, put in the paint and tile work needed, you could get $670k to be safe and still have a decent gross profit.

You should use the BP calculators or a spreadsheet and look at where your max offer price might be.

Also, just a BiggerPockets user interface tip, when you reply using the "quote" feature, you want to type your response below the quote. Otherwise, it can cut off your response, because the quote gets rolled up. If you type under it (you'll notice it's not italicized) then it will show up where this one does. Good luck on this endeavor, I hope it all works out!

Originally posted by @Peter Stewart:

I had the same thing happen. For 10 months straight rent was 1-2 weeks late. Often paid in 2 installments. Drove me nuts, but, at the end of the month, the money was there, so I let it ride...UNTIL, they stopped paying. So, I evicted them and won a damages hearing for back rent, back late fees, and damages (they left the unit trashed).

So, I agree with everyone else on here - don't renew them when the lease is up. The bad behavior on payment will most likely only get worse. Give them an inch they take a mile. 

Yep, that's why I charge a hefty up front late fee as well as a daily late fee. So the longer it's late, the more they owe me. What kind of screening did you use?

Originally posted by @Brian S.:

@Joshua Saunders thanks for sharing! I just started using cozy but my tenants haven’t taken advantage of ACH payments.

I put it in my lease that it's required that they agree to use it. May be a good idea for future tenants.  This is from my lease, of course, I'm not a lawyer and you'll want to check local laws in your area to see what you can and can't do in your lease:
"The Tenant(s) will pay the Rent on or before the FIRST (1st) of each and every month of the term of this Lease to the Landlord. The Landlord requires that rent installments be paid through COZY SERVICES (https://cozy.co) – a secure payment processing website approved by the Landlord. The Landlord reserves the right to discontinue this online rent payment service and require at any time that Tenant(s) pay all rent and other sums by certified check, money order, personal check, or other methods deemed appropriate by the landlord, following the same schedule and due dates. No personal check from a person who is not a Tenant or approved occupant will be accepted."

I agree with @Patti Robertson. Huntersville is definitely an area to avoid. I used to know some decent people that lived there and they were still not the sort you would want to rent to. Heavy crime, heavy drugs, heavy gang activity and just real overall craziness. Definitely a war zone neighborhood.

@Colby Mulry Also, did you screen the tenant at all? Credit and background check will tell you a lot. I also have tenants pay for that via Cozy. It costs them $39 per person for credit and background check.

@Colby Mulry This is why I charge a 5% late fee on the 2nd ($60) and then $20 per day for every day after it's late, until it's paid. I get paid via ACH through Cozy (cozy.co), so it takes 5 days to get to me, but as long as the payment is made and being processed by the 1st, I dont charge them. Not sure your local laws on rent late fees, but where I live has no statute for late fees. Lanlordology website has rent laws by state. Hope that helps. Treat your business like a business. This is also why I dont rent to friends and family.

@Account Closed is a dummy account started by someone at Connected Investors. A year later and no profile pic and no other posts related to anything but Connected Investors. Just goes to show you how sketchy their company is. I created an account on their site and will be deleting it.

@Brad Penley If you want to keep it, without paying a property manager, you could always manage it yourself remotely and just pay a real estate agent in the area a fee to show the unit. Cozy.co makes managing rentals easy and you can collect rent online and you can use digisigner.com for the digital lease signatures (both are free), or have the agent get them to physically sign.

@Sedgrid Lewis The only times I wouldn't rent to a sex offender is if they were convicted of a sexual offense involving violence or if it involved a child. It's not a matter of them reoffending, it's a matter of the type of people you want in your rentals, regardless of area. I think a landlord has a responsibility to the try and improve the community in which their rentals are located. This is just my opinion.

Originally posted by @Don Carey:

So im having some issues with BRRRR strategy. The bank i work with is telling me if I buy and fix a property then go to refinance that property in less than 1 year, they can only lend the lower of the appraised value or purchase price. im buying these distressed properties for pennies on the dollar, How do I get around this banking issue?

Hey Don, you can also try hitting up Dan Grubb at ABNB Federal Credit Union to see if there's anything they can offer. He's the Business Services Manager for commercial lending and may be able to point you in the right direction. I'll PM you contact info.