All Forum Posts by: J. Martin

Not bad with 2 units vacant already.. but you usually have to pay up for that..(cover your ears 99% of BP members - yes, you pay a big premium for vacant, beatup units here lol). Of course, you lose the ability to owner-occ evict anyway with a vacant unit (I believe), so you only get 1 "net" vacant unit. But good nevertheless.

I see people budgeting $20-40K for tenant buyouts per unit in SF, depending on how far below market, and particular circumstances. But a colleague told me the other day he was able to get them to take $10K. Not crazy below market in that case.. More than well worth it in this market if you can afford it, even if you have to pay on the high side (especially for a protected tenant..). IMHO. @Amit M. has been in SF for a while, so you might want to chat with him more.. Turnarounds/new tenants are definitely the way to make $$ in SF..

Hi @Adam Hofmann , and thanks for the tip on the virtual phone service earlier.. Just getting started with my odesk VA on another project..

I like your idea, and am interested (and of course, close by!). Good to have a structured way to pursue your goals, bounce ideas off others, and hopefully prod each other a bit to execute on our goals if we're not already surpassing them..

My caveat is that I'm traveling for work on many weekdays, so I'm available on the weekends, and at least half of the Thursday evenings. Hope you can make it out to the East Bay Meetup too, but definitely different than what you are describing. I appreciate both, but I like your idea..

I have your number (and think you have mine). So let me know there or PM on plans to talk about what you're thinking or planning.. You might want to walk to @Andy Kaufman also, if you haven't yet..

Looking forward to it!

Welcome Bill. There are a lot of super helpful people and great advice on this site! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! A lot of others doing flips, wholesaling, notes, everything.. A few tips..

You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. The "Learn" link across the top navigation bar has lots of great info, and most importantly, the BP members! Welcome to BP, and good luck on your investments!

Hi Darieal , and welcome to BP! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! But you’ll find a variety of every type of investor on the site, and everyone is amazingly helpful. Some pointers for you: The "Learn" link across the top navigation bar has lots of great info, and so do BP members! You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. And you can tag people by typing @ before you type their name, then clicking their name at the bottom of the message box. Welcome to the site, and good luck in everything!

@Marcia Maynard ,

Maybe it's just me, but you have a beautiful, radiant smile - and look like a wonderfully positive person! The kind of people I love running into! Keep it up! But on the other hand, don't let tenants get the mistaken impression that you will have so much sympathy, as to not enforce the rental contract.. (not implying that's what happened here.. sounds like maybe some bad luck, or constant job turnover..) But just my 2 cents, since I'm pretty nice to my tenants too..

@Marcia Maynard ,

Thanks for sharing. From what I understand, if they can ultimately charge you for unpaid utilities, they will typically tell you about unpaid balances if they exist - if you ask them.

It looks like you are very perceptive about picking up on little clues. I think you might just need to be more honest with yourself about what you know and what you feel - then ACT on it. Last time I had those same uneasy feelings before move-in as you describe, I made the same mistake, and ended up with a short tenancy. But I charged 2 months deposit because I practically knew something would happen. So I didn't lose a dime on it and rented it out with 1 day vacancy because it was clean and worked with them to do showings before they moved. Got lucky that time.

But trust your observations, and if your tenant pool has issues, get something to mitigate that, to the extent possible. You'd be surprised how people can come up with a deposit when it's required. Or let them pay extra deposit over a month over the next few months..

Congrats! And great rate! (if it's fixed.)

Consider buying a 4plex with an FHA loan for the next one if you're low in cash after this one. Also, if you plan on buying a washer and dryer for your unit and installing plumbing if it not there, consider spending that cash on a small coin-op laundry add-on area to the building. A little extra income, and a nice amenity for renters in the future..

Congrats! And good luck!

Also, take into consideration how close your current rent is to market, and what the rental market is like there. The higher above market, the more the concessions are justified. If below market, maybe nothing is justified. If the rental market is tight and rents are up, it might not hurt to remind them of that either.. Some tenants will stay long-term for a fair deal and a good landlord, so don't feel like you have to give up thousands of income on every unit every year just to keep people.. but strike that balance relative to the market...

@Blake C. , I would consider ways to not lose income first.

I considered this when my first leases were coming up. However, I had received 2 month deposits (1 month is market) - so I offered some of the deposit back.. I figured for $50/mo, I might as well take that as income, and I can use it to replace the deposit money if I can't get it from the remaining deposit or tenants. Of course, you still want them to have some skin in the game.

But if you're going to give up $100/mo, or $1200 for the year, why not give back $500ish in deposit, which might help them out after xmas? (if the place is well kept, and you want to keep them). Or why not pay for upgrades instead of just cash out of pocket? Offer to spend some money on an upgrade to the place, or something they want - that will stay attached at the unit. Is the bathroom old? Maybe a new vanity/mirror set? They love to cook? Maybe a nice backsplash, faucet, spice racks.. Fridge too small for their family? Sell the old one on CL and upgrade to a bigger fridge..

I would look at those options first. Shows you care, better bang for your buck, and hopefully should lengthen their tenancy by giving them something they need/want that will also provide benefit for a future tenant, reducing your turnove time in the process..

@Donald Longo , my best recommendation is to keep your expenses low, read lots, and I recommend using an FHA loan to buy a 4plex if you want to really utilize limited capital..