All Forum Posts by: Katie Southard

Quote from @Ben Trageser:

There are a lot of options here. It really depends on what you are looking and I think your thought process is correct. Bigger Pockets is the right place to come for resources as there are plenty on the site here.

My love and my hate: options. I love that we have several ways we could go, but I’d hate to make the wrong decision. If it furthers our goal of a couple acres and a home in Texas in 8-11 years without being a slave to the system, I’m all ears.

Moved July 31 2023

Renters lease expires 2/2025

Must have lived 2 of last 5 to avoid cap gains if sold.

I’d rather not sign a new lease and go month to month but they’ll push for it.

Worst case scenario we do, they leave 2/26 and we must sell by 8/26. 
To be honest, I’m too busy to be making this decision right now. Our life is complicated and I work a complicated stressful job, but if we’re being honest, I also don’t have time for renters, but I somehow make it work and I personally think it pays off.

Mtg: 1800

Rent: 2900

Owe: 200

Rate: 4.5 I think

Sell Price: est. 450-460

No other rentals except an in law suite on our current primary

Future goals: would love to use this properly to buy other properties to get out of the corporate rat race. 

Background: was primary residence for 10 years . Suburb of Denver, growing area, but not exploding. Primarily 3/2 first time buyer homes. Setbacks holdbacks include a crazy complicated parenting situation (husbands ex) who aggressively pursues our money. A busy marketing career. The house is only in my name at this point, which was intentional when we married, and when we moved out of it as a primary residence to hopefully avoid ex's gotta financial pursuits. Most advisors I've spoken with have said this won't really work unless we put it in an estate or LLC to keep it more private. So we had it on our personal return last year and i won't detail it but it was a bit sketch when we had to provide financials (we can redact mine but not hers long story).

We have a real estate agent and investor friend, but not sure we’ll work with him. We have a financial advisor, but he favors market money over real estate so we don’t feel fully advised on all options. I need a CPA and had a quick consult but haven’t found someone I love. I need an advisor and tax helper and confidante etc. 

We comfortably could use the cash flow but could probably survive if reduced by half but only as long as have our tenant at the primary residence. We purchased July 23, it’s a remorseful purchase in terms of quality (new build, got a 5% interest rate). 100% NOT our forever home. 

Goals: 

1.I would like all rental income off personal returns if possible. But I’d also like to own a bunch more properties, and continue this growing as a business venture and not a side hustle. Yes i know that’s a process.

2. I don’t want to die in any corporate job.

3.I want a long term goal, a midterm and a short term. And a plan to build that out. We rarely have time to discuss it, but we want to build wealth in a way that allows us to potentially work together, get out of corporate, and move to a forever home in another state in ten years when there are no longer any parenting plans governing us. So ideally, we are just building portfolio or wealth until then.

do we sell and put money in the market? 

Keep and 1031 later?

Sell and buy 2 or 3? 
Something super creative and crazy? I love a risk if it means a reward. 

we’d love to buy a rental in our future home state but recognize the complexities of that. We’d love a vacation home that airbnbs but i don’t think i have the time for that. I want to spread out whatever “wealth” we have into other properties that could potentially benefit us. Or, keep current rental at low interest rate and 1031 it at a later time. I have NO IDEA. I have not done 1031 but I know a bit.

Quote from @Colleen F.:

@Katie Southard  If the key is marked you definitely should use the post office process for replacement.  If not I would do what is convenient for you. If you choose to copy the key you could make a copy and mail it to them, then they have to pick up the held mail to get it. 

As for asking for things when people are there I would put a stop to it. First, tell everyone to just say no, we need requests in writing to keep track of repairs. You could point out to your husband that unless you have a record he isn't going to remember the slow drain request was the last 3 times and now maybe you need a plumber. Consider using the key request as an opportunity with the tenants. Tell the tenants I think we need to talk about communication.  First, we consistently need to get your repair and replace requests in writing.  If you have a request this is how you send it to me. Only these type of requests (water leak and no heat are urgent) and then you should text/call (your preference). Let them know you want to be responsive to important issues but you also expect they will respect your procedures and the time of the people doing repairs.  If it is because they are young they can probably be trained to your expectations. However I have let tenants go for being too high maintenance. 

 Great advice that I have been echoing. They are young. 

Quote from @Russell Brazil:

I'm kind of dumbfounded here. You have a copy of the key. Make a copy (or 2) and give it to them. I don't understand why anything else would be an option.

Because someone, somewhere, either has the key or will find the key. And that is a liability for us and for future tenants (and technically for the current tenants). They were entrusted with a key that they lost, and their lack of responsibility is evident. My availability to go make copies of keys is limited and my time is valuable. The tenants do need to understand that I am not at their beck and call for irresponsible behaviors and while I want to be kind, I need to be firm. 

I will preface by saying that we have tenants who are annoying as all get out. They ask us to step in for everything from a lightbulb to grass seed to whatever. They also bother our HVAC guy to do general handyman tasks when he is there and I am paying him hourly for HVAC services only. Personally when I rented I never wanted my landlord bugging me but they don't care if my husband ("the handyman") is there all the time. When he is there, they always opportunistically find something to bug him about (slow draining drain, changing a filter on the stove).

I have asked tenants repeatedly to email requests and they continue to text them, so I reply with email. Anywhoo, just setting the stage. 

Most recent issue (there are lots): Tenant lost their mail key and wants us to replace it. This is my prior home so I know what happens when you lose the mail key. It is the large community mailbox and you usually have to pay to rekey the whole thing for security issues. Also in the meantime they recommend stopping mail to the mailbox, holding at post office, and manually picking it up (all of which I had to do once when I lost the mail key). It's a pain but the post office has a sytem set up for it.

I told the tenant I couldn't do anything for him until AFTER Memorial Day and after that I would figure out if we had a spare and get back to him, , but I told him to in the meantime, call the post office, hold the mail, and manually pick it up, and keep looking for the key. Luckily its only a mile away and a short drive with no street lights or traffic. Monday (Memorial day) Tenant texts me at 8am asking what the plan is for the mailbox key saying he has a prescription coming and he really needs it. He indicated he would call the post office soon but had not yet. I have not yet answered his text (it's now Tuesday).

My question is...we do have one spare. But, I have read about liability issues with lost keys. Do I really think they will find the mail key and keep it and come back after their tenancy to check the mail? Meh, I am about 75% no, I think they are fairly honest just green tenants, young, and annoying. But in the grand scheme of things, if they WERE bad people and did that, or if someone else found the key and was checking the mail, that could certainly come back to bite me (say future tenants suspect someone is ruffling through their mail only to find prior tenants are coming back because they found the mail key when they moved or had it all along, etc). 

There is nothing in the lease about keys. I thought I hit everything this time, but I regretfully did not.  Do we just make them a key and get it to them? We are super busy, and aren't really in the business of running errands for tenants and then bringing keys to them like their own personal assistants. The whole process will take 2 hours start to finish and I am not even interested in billing them for the time, time is more valuable to me than money, and I just dont want us to have to take the time. We work very busy jobs and though we do our very best to be good landlords, ensure health and safety are always addressed quickly etc...these tenants are just too much. 

I thought maybe we could make the copy next time we are at the hardware store and have the Tenant pick it up, but husband doesn't want them knowing our address and I see the point and I don't either. Husband is more inclined to just do all the favors and avoid conflict which is why he is not the main contact. I have a legal background and am more assertive and the Tenants go through me for requests. I believe that you need to teach people how to treat you and I already made the mistake of texting with them initially and now am paying the price by having to respond to texts via email. But I'd rather handle the issue now before it gets even futher out of hand, if you know what I mean. And I feel the same about the key. Teach them that this IS a big deal and it's not just No-Big-Deal-Let-Me-Do-Whatever-You-Need.