All Forum Posts by: Leroy Wallace Jr

Thank you all for the advice!

It's not that I am trying to interfere with their lives.  It's just that it's another person living in the house, and I don't know who he is.  On top of the it's more utility cost at the end of the day.

I have a duplex, owner occupied. 

First and foremost, my Tenant is awesome. Pays his rent a day early and is very respectful. His kids live with him (they are 27 and up). They moved in in June and everything has been great.  His daughters boyfriend has been hanging around ALOT, and I believe he has tried to secretly move in.  I did tell the boyfriend a couple of weeks ago that if he is going to be living here that he would need to fill out an application and background check.  He said, "I just be stayin here alot."  To which I replied, "If you are going to be living here I need you on the lease for legal reasons."

Fast forward to today.  I get home and I have mail for him in my mailbox from the RMV.  My tenants daughter and him both sit out in the car and smoke what feels like all day.  I don't say anything about it since I would rather them do it outside than in the house.  Figured I would pick my battles.  He does some stuff thats annoying, and I have to tell him to not do it (ie. work on his car in my driveway).  They also have begun to fight.

After seeing that he received mail here I reached out to my tenant and told him that per the lease agreement anyone that is not on the lease is not to be living here, and that if he would like to amend the lease we can do an application and a background check and go from there.  I am waiting to hear back from him, this has all only happened in the last 2 hours or so.  

In my lease I have it written into my lease that "Any unauthorized occupancy is considered illegal occupancy, and the landlord will have the right to end the lease with 30 days written notice.  An unauthorized tenant is one who is not on the lease."

However, I don't want him to live here, but I also don't want to lose a good tenant because of the boyfriend.  I have googled his name, and (2) minor arrests show up for driving on a suspended license.

Any advice?? What should I do?

Thank you in advance!

Leroy

@Jason Loos

Sounds like you are on the right path.  Definitely look for a better neighborhood, and create a good relationship with that contractor!

@Jason Loos

I wouldn't let the age of the house scare you off.  If older homes are the only ones that the numbers work for you then that might be what you have to do to get in the game.  Inherently there may be more maintenance to the property due to the age.  I think it would be prudent to find a good contractor who can check it out for you and tell you if there are any glaring things that will need updating/repairs.  

Best of luck!

Thank you @Frank Jiang & @Andrew Syrios !

So I actually have a relatively high interest rate for my student loans (8.125). I have refinanced them once almost two years ago and it dropped my payment a bit. So the rate on a HELOC would certainly be much lower.

I am currently house hacking the BRRRR deal with a 203k loan, so I have a few months until I can refi. If I were to move out and rent out the unit I am living in it would certainly cashflow. The rental side currently covers all but $400 of my monthly payment, and the side I am occupying will rent around $2000/mo.

I would be able to save the student loan payment which would mean in a year I could save an additional $10k.  I am currently saving about $15k/year.

So. I am finishing up my first BRRRR deal. The numbers on the refi seem to be working out, almost to the dollar, for what I owe in student loans. I pay $817/mo for my student loans.

My question is should I pay off my student loans and count my student loan payment as my new “cash flow”, or should I use the almost $80k for another property? I know that with paying off the student loans I don’t have the upside that appreciation on a multi might give me. However, in the Boston area where I currently invest I don’t think I could match this cash flow...

Let me know what you think. I’m torn!

PS if it matters I have another 12 years left of that payment... which is daunting..

@Robert Hernandez

I had a very similar situation. I’m definitely wouldn’t recommend having a dual agent, but in my case it did allow me a little leverage since he wanted to get the deal done. 11 year old HVAC shouldn’t need to be replaced for a while. Maybe 5-10 years. As long as you are confident in all your numbers there isn’t anything jumping out at me to scare me out of the deal.

@David Jackson

I found this in MD Real Prop Code Title 8-203 (2017)

I hope this helps.

“g) Withholding of deposit -- Notice to tenant. --

(1) If any portion of the security deposit is withheld, the landlord shall present by first-class mail directed to the last known address of the tenant, within 45 days after the termination of the tenancy, a written list of the damages claimed under subsection (f)(1) of this section together with a statement of the cost actually incurred.”

@Antoine V.

I think you need to narrow focus. I get that you’re here for someone to direct you to what you should do, but there are just so many different ways you could invest that money. I would look around and try to find what strategy you believe you can execute and learn as much as you can about it! Then once you feel you have learned as much as you can without the hands on experience, go for it. Best of luck!