All Forum Posts by: Account Closed

The grass always looks greener on the other side...but if your making 10% ROI on an investment that on average returns around 7% in your area, I'd say the grass is pretty green where you are. Think of it as your 401k. My 2 cents.

You need to understand that a legal contract is binding for the term of the contract. The contract can only be broken if both parties come to an agreement. He didn't have to allow it. He could have held you to it. He doesn't owe you anything unless you had an agreement in writing that you would get that money back if certain conditions were met. 

If you try some sort of legal action to get your one months rent back, he could likely counter your one month with the full value of the lease depending on how the contract was written, how the exit was handled, and how savvy his attorney.

I would highly suggest you cut your losses and move on. If this was my property and I was gracious to let you out of your lease early and you returned the favor with some sort of legal action...I would make you my attorney's new hobby.

Just sayin'  

I didn't read all posts, but when you break a lease you don't get the privilege of making demands. You should be grateful that the property owner allowed you to break it. It is a legally binding contract and he/she could have held you to it.

I have no experience so take this for what its worth, but I'm right there with you...Naysayers abound. However, there is something to much of this advice. Regarding buy and hold SFR properties in my area, I'm having a hard time making it worth it on my spread sheet and in my head unless:

1. Its bought right (No more than 80% of Market Value after repairs) 

2. Small simple inexpensive family oriented properties in good school districts where there is less to maintain and break in older stable neighborhoods.

3. Neighborhood and City are growing and have reasonable promise of growth in the future. 

4. Being in a Cash position to invest. 

I've read a ton on here and everywhere about the importance of Leverage. Unless everything goes perfectly, It doesn't seem work unless the property is discounted very heavily or the values are increasing at breakneck rates. Maybe I'm simple minded, maybe my area is different from others, but not accounting for the unknown (appreciation) there is not enough room in the few analyses I have done to pay a mortgage, cover expenses, and have and reasonable positive cash flow to grow your portfolio without borrowing more money. 

I feel like a lot of people are getting in too much of a hurry...buying high and financing themselves to the neck...they are ok until one thing goes wrong...and it will....then the whole ship sinks. 

So as a new guy learning the business looking in from the outside, I see opportunities for good returns with manageable risk if you don't send all your profits to the bank. 

I'm with Benjamin. Tenants will leave before they pay to pump septic. If you want to recover this cost, work it into the rent. It Shouldn't need to completed but about every 5 years unless there is a problem with the system. $300 over 5 years is like $5/month

I live just northwest of Tennessee near the small town of Pleasant View. I am a doting dad of two young boys (2 and 6) and have always had a dream of building a portfolio of single family rental properties in my community that will not only provide for me and keep me busy in retirement but provide for my boys and their families.