All Forum Posts by: Keiko Bake

Thanks All.  Love the ideas.  I just moved to using Cozy (automatic charges ACH for late fees) and will actually be decreasing my deposit to 75% of the rent so it's clear when they have not paid their rent and cannot just simply substitute the deposit for rent.   

Thanks for all the input.

Hey Gang,

I just had a renter who's lease was set to end on June 30th, send me an email on May 20 of their intent not to renew.  I had my property manager start finding new tenants and he was scheduling showing the place for the few weekends going from  May to early June.  

So, I'm still expecting a June rent check and my renters normally pay pretty early (28th or 29th of month preceding), but the rent check doesn't show up.  I send an email on June 5th stating that I have not received the rent check and please ensure I get it.  I also state that per our Lease, Last Month's rent cannot be paid by the deposit.

Well a day later, I get a call from the renter and he's furious that he cannot use the Deposit as rent and basically states that he'll be following his own process of will not be sending any rent and I can use the deposit for rent.  I nicely state, there's late fees associated with you late rent payment and I'll be sending you an invoice for this.

So I send the Late Rent Invoice, basically $50 late fee on top of the $1450 rent due (making it a $1500 total).  During this time of getting the Invoice to the renters we're into mid-June.  My Property Manager reaches out and the renters schedule a Move-Out Inspection.  I tell him to ensure he documents everything.  Luckily, they have a great inspection with no findings.

Though not optimal, I decided not to pursue my $50 late fee and the whole issue with my renters breaking the lease by using their deposit as the last month's rent.

I'm curious if you all know of a more functional approach to this whole last month's rent and  deposit thing.  I'd really love to report my renters to their next place they rented but they did not give me a forwarding address.

Love to hear the advice from you all.  Thanks ahead of time.

Kk

@Justin R. thanks for the perspective.  It is much appreciated.  Time to get the wife on board with this paradigm. 

Hello BP,

I'm a former Marine and was on a plane with a Sailor  (CH53 pilot) when we started talking about real estate and he introduced me to BP.  It's now been a month and I've listened to over 30 podcasts and am now just getting into communicating with the community.  What an awesome place.  I've definitely grabbed the Kool-Aid jug and am ALL In.  Love the podcasts and the site so far.  This is one of my first posts so my apologies if I broken some posting etiquette.

Having said that, here's our (My wife and I) real estate situation:

We currently have 5 rental properties (single family) and a home in San Diego. 3 of the rental properties are in different states (accumulated through my moving and were Primary Residences over the past 17 years) and 2 of the rental properties we've accumulated as previous residences in San Diego. 2 of the 3 out-of-state rental properties are cash flowing with a total $800 cash flow (after expenses with the non-cash flow costing around $150 per month) and each property with a 60% LTV. Our 2 San Diego rentals have a $1000 cash flow with a 50% LTV. All homes have

Our Goals are to significantly build out rental portfolio (exponential growth over the next 10 years and currently thinking  multiplexes) more than likely outside of CA (thinking Syracuse NY, due to awareness, potential and family location) with the ultimate goal of transitioning from our W2 jobs to full-time real estate.

Key Questions:

1. Having being introduced to the BRRRR strategy, inadvertently through the years (thanks for putting a process around it), what is the best way to effectively/efficiently pull cash (minimizing overall costs) out of our current properties in order to fund future purchases? Or is there a better way to fund our future purchases?

2. Is there a Note strategy with our current properties that may allow for a better approach on maximizing cash flow?

I look forward to hearing feedback from the BP community.  We're in San Diego and very open to meeting great people with similar interests so if there's a meet-up, please let me know. 

Good Investment Building to ALL,

Derek,

I'm currently looking or a property manager in mpls.  Any luck with finding a good one? 

Thanks.

Hey Albert,

I'm currently looking for a Property Manager for a property I have in MPLS and would love to hear how your search went and who you ended up with?

Thanks.