All Forum Posts by: Juan Erick Rico Avalos

@Joe Splitrock thank you for your reply. Your right it’s not an eviction just a 30 day notice of non-reviewal. What I plan on doing is raising rent to 800-850 as i remodel my unit. Once I finish my remodel hopefully in 2-3 months I can rent my unit out at market rent and move into the other unit. I do understand that removing a tenant in January Can be harsh unfortunately the previous landlord didn’t even get a frost from them so they don’t have a deposit. I would consider giving them a 500 dollar incentive if they clean the unit out completely. 

@Brandon Beatty Thank you for your reply Brandon. I will take this into consideration when making a final decision. I will consider doing a month to month lease instead until I get my unit at market rent. 

@Theresa Harris Thank you for your reply. This is a good idea, I can work on getting my unit updated then once finished, decide if I should move into her unit and rent out mine at market rent. The reason I don't want the tenant working on the lawn and snow is because she is elderly, I wouldn't want her to get hurt. 

Hello BiggerPockets, I am closing on my first rental property in a week. This property is a duplex that I will be house hacking. Both units are occupied at the moment with Long term tenants. Both have been living there for 15+ years. One tenant has taken very good care of their unit for all these years while the other one hasn't exactly. I am evicting the tenant that hasn't so I can live in that unit and fix it up. I am having trouble deciding if I should remove the other tenant as well here is why. Her current rent is 575 which is extremely low in my area and for the location of my property. When I first did a walkthrough of the property the "good tenant" told the sellers agent that the most she could afford on rent would be 750. Market rent in this area is 950-1100 for a unit like mine. I know this unit would need upgrades to get it to this level but I know I could do it for under 5k since she has taken care of this unit that well. The agent mentioned to me that the tenant treats her unit as if it was her own property she mows the lawn, get rib of her own snow and as I walked though the unit she keeps it impeccably clean and organized. The past landlords didn't do these things since they are out of state apparently. I think that's why she got such a discount on her rent. I would of course take care of all these things since its a duplex not a single family home. My big question is, is it worth it to remove her for market rents? I would ideally like market rents so that my out of pocket expenses isn't as aggressive without a roommate in my unit, but I also like that fact that I wouldnt have to worry about that unit as much. I would ideally like to offer her a year lease for rent in the 800-850 range but what if she can't afford it and I would have to go though an eviction. My numbers are already really tight unless I get a roommate which I do plan to. I would greatly appreciate your advice thank you in advance, here are my numbers. 

 Monthly Expenses- $1781                                                                                               Income/ -431 that I will need pay out of my pocket

                                                                                                                                     Unit 1-850

Property taxes- $246                                                                                                      Unit 2- 500/ I will rent out one bedroom in my unit

Insurance-120

water and sewage- 35                                                                                                     Purchase Price- 236,000

Garbage- 45                                                                                                                   Downpayment and closing costs- 5,200

Vacancy- 50                                                                                                                    Estimated rehab fro both units- 10,000

Repairs- 50

Capital expenditures- 50

Mortgage- 987

Sub Lien- $88 This is payment for a downpayment assistance program in my state. 10,000 borrowed at 1% interest. 

Mortgage insurance- 110

@Daniel Hyman thanks for your insight. My issue right now is finding a CPA that has this kind of experience. How would you recommended would be the best way to find a good CPA? Mainly by word of mouth? 

@Shane Ryan thanks for your insight. The reason one tenant has to go is because my financing is owner occupied financing. I am having the other tenant move out as well after the winter (I live in Nebraska) because the tenant mentions they can’t afford more on rent. Their current rent is 575 while marker rents are 900-1100. I understand that it would be unfair to charge them that since they’re unit isn’t renovated, but I can’t afford to have them live in this unit for that rent price. The renovation wouldn’t be drastic either, it would mainly be flooring, paint, new bathroom sink/cabinetry and bathroom reglazing. 

@Ben Scott Thankfully my lender will give me 60 days from closing date to move into my unit.

@Ben Scott One tenant is month to month. The other tenant’s lease expires January 30. I am giving the 30 day notice this month to the tenant still under lease just letting them know their lease will not renew. I plan on having the month to month tenant stay until I have the other unit updated. After that I will rent out the updated unit at market rent and move into the other unit. Both units have had long term tenants 15 and 20 years so they need updating. 

@Grace Wang Thank you for the reply! I will keep this in mind when getting new tenants into my units! How do you suggest I should have my tenants pay rent? I would ideally like them to direct deposit or I have also heard of using Zillow to manage my rental? 

Good morning biggerpockets members, I am closing on my first rental property next week. This property is a duplex, that I will be house hacking. The property is currently occupied. I will be presenting a 30 day notice that weekend. I purchased my Leases and noticed from bigger pockets so I have those ready to go. Any advice you would give to someone purchasing their first investment property? Thank you in advance for your time!