All Forum Posts by: Wilson Lee

We own some class D 3 and 4 unit builds which are profitable. The NOI has been suburb. It was a pain mapping out a system to manage such a demanding tenant pool. But now that have systems in place we want to expand and are looking to single family class D. I purchased one! I have ran into a financing hiccup though.

No one wants to fiance low priced single family, with loan amounts of $50,000 and under.   The 3 and 4 unit builds are valued enough to get normal financing.  I have 1 building can't get a refi on it at all.  I found one local bank who would.  But they are not investor friendly and would only finance for 15 years. Here is the numbers. on it

Project cost total, $45,000.   Purchased $13,000 Rehab $28,000  closing cost $4,000 (purchase and refi)

Appraised for 66K (Current rehab is done)

Max loan amount $49,250 cash out. (75% LTV)

Rents for $800/month.  Tenant placed with a 12 month lease. 

So, what is the main option people have to get long term financing?  portfolio loans?  Also, We would like to buy 2 or 3 at a time but, to do that, we can't buy in cash.  What finance product exist for this?

Ok, Any tenant that wants to buck up to there landlord is a massive red flag. I strongly recommend you end the lease now and enjoy a nice new tenant. If there is not a written lease, it is a verbal lease. If you every go to court. The judge will decide the general terms of the lease. Check your state laws, Most states say your on a month to month where there is no term.
Give them a notice that the lease is not renewing and to vacate in XX number of days, whatever your state requires. A lawyer is a good idea.

Now, If the tenants are barking threats now, It will only get worse later.

 Months,  6 or 8.   It was our first deal, so we could not mess it up.  

$8,000 got me my first 4 plex with owner occupied finacing.  

 Yea she is not helpful.  But I need to keep it rented while listing it. It is just that type of area.  It seems like she is going to break her lease.  I just got the notification she turned off her auto renew.  It seems like she is trying to stop her current (pending) payment too.    I plan on sticking a notice on her door explaining the eviction and wage garnishment process in Alabama.  

 Agents...  talking one on one is like pulling teeth.   I have not confirmation yet.  And don't have an offer yet.

 Our lease has a right extended to the landlord allowing for termination with 60 days notice within 60 days of a sale.

She seems like she wants to withhold rent.  Which would be bad for her and for me.  Any though on how I can explain that to her?  I am not gifted with tact.

I am selling a low-end rental. It has been slow, 5 months now. It is a rental neighborhood. Having a lease is a plus. Now there is someone interested in the property and they want to view it.

My renter has been reserved about the process. She has a lease agreement with 7 months remaining. She has one renewal already. She pays on-time, Has good credit (which she values) and has a steady job.

We have offed to pay a small sum for tidying up the place for the viewing. But now she don't want to let people in. She fears the new owner will not let her lease the home,  She fears being kicked out before she finds a new home. She is asking for a month to month lease so she can jump ship before it sales.

I have offered to find a replacement tenant while she looks for a new place. Then we change position all with in a few weeks. She gets to move, I don't lose out on rent.
But she don't want to let people in the house for that also.
She has damaged the floors (last year) which is a $900 repair. So she will not be getting the deposit back.

Today we she called me to ask again for the month to month lease. I can't allow that with my loan and insurance states 1 year leases (long term rental)  She became angery over the phone and said she will do what is right for her family and we will not see a penny.

Also, My state (and lease) allows me to enter with a 48 hour notice to show the property for sale or lease.

What is a solution? How can things go south?

 this is an access point for maintenance and cleaning. it is next to house in the back yard.  there are tire marks in the grass running over it.   They drove over it, or allowed a guest on to the property who drove over it. 

My plumber suspects a car has driven over the drain access for the sewage line. And it seems to have damage the pipes.

The tenants are not coming out and saying that they hit it with their car. What is the most effective way to hold them accountable?