All Forum Posts by: Kyle Kline

Hey Cameron thanks for the suggestions. I met with one today that was on the porch and explained just that about raising it in 2-3 months when this all cooled off. He seemed to understand and expect it as he knew he was way underpaying for so long.  

Thanks for the suggestion! I did give them a quick letter stating just that, I was leaning towards getting them all out as you suggested just form hearing all the horror stories on here about inherited tenants.  

I am closing on my first deal today, 5 unit apartment complex in North Carolina, and have 3 inherited tenants on month to month leases at well below market value ($200-300) and am looking for some advice on how people handled their first interactions and what they wish they would have discussed sooner.  I am not planning on raising rents during this pandemic, but do you think it is a good idea to mention that after this is over I am going to raise the rents or just wait and have that conversation later? Here are the talking points I have so far and would love more input and advice from some other landlords. 

1) introductions and exchange of contact info 

2) New month to month leases signed with me 

3) discuss things they see could improve from the previous landlord to make things run smoother 

4) How to pay rent and the system I am using (Cozy) 

5) Potential rent increase after covid????? 

Thanks in advance for the suggestions and I am excited to get started on my real estate investment adventure! 

@Michael Vu i am working a similar deal currently on a 100 year old home with some knob and tube and other issues that come along with that age. I would say that’s a big priority as a landlord just because the liability of it. I had electricians come out and to replace all the electrical it was going to be between 5-6k per unit to get it up to NC code. I went back to the seller and got the deal knocked way down (110k due to other things needing fixed).

My advice would be get a professional to look into this and leverage all the quotes because the seller is going to know even if you back out the next person is going to see the same stuff pop up on inspections and know if will continue to haunt them in the selling process.

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $115,000
Cash invested: $5,000
Sale price: $149,000

This was the first home I purchased for myself with no real idea about real estate investments until I rented out my additional rooms to cover my mortgage and saw the possibilities and started doing research and realized I was house hacking and didn't even know it. After that, I was hooked and eventually sold this property when I moved South for a decent profit and a lot of lessons learned.

What made you interested in investing in this type of deal?

I was home from my first deployment and wanted to stop paying rent and making my money go towards an investment.

How did you find this deal and how did you negotiate it?

I utilized a local realtor in the area.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

I refaced the cabinets, new flooring throughout.

What was the outcome?

Renting two rooms covered my mortgage payment allowing me to live for free and seeing a good ROI when I sold it.