All Forum Posts by: Lee G.

I have a 4plex with a coin op laundry. We have about $200 a month in revenue, I split it 70-30 with a leasing company so end up pocketing ~$130 a month. Expenses are about $80 a month so I end up netting about $50/month. It's not a huge money maker for me but $50 a month is a modest dinner out or a couple nice bottles of wine.

I would never recommend working with leasing companies unless you are a good negotiator. You will find weird things in your contract like it automatically renewing for long durations, the contract applying to owners, heirs and assigns (meaning it applies to future owners, whether they like it or not).

When I bought the 4plex, the previous owners negotiated a 15 year lease with a 50-50 split. The lease also automatically renewed for a subsequent 15 year term. I threatened to lock up their washers and driers in a closet unless they changed the terms. End result was a 30 month term, 70-30 split (in my favor) and I get to keep the washers at the end of the 30 months.

The real benefit is more for the tenants rather than for me. If I was serious about running a laundry facility, I'd go buy one. Until then, I'll enjoy the bottle of wine and dinner.

Awesome. Those are some sweet recommendations.

ok. I'll take that... Thanks for your help.

I'm aware of the laws about what I can and can't take and when I should return the deposit. My issue is that this guy moved out and never left a forwarding address for me. The key got dropped in my mail box and that was it. He's coming to me 90 days after he moved out and wanting the deposit back. His last known address was the place he rented from me...

Thanks!

I had a tenant move out 3 months ago. He never left an address for me to send him his security deposit and he just sent me an e-mail saying he wanted his deposit back. We forfeited it 60 days after he moved out as we never heard from him.

My understanding of Utah law is that if we don't get an address from the tenant within 30 days of move out, the deposit is forfeited.

Wondering what you would do in this instance?

Thanks!

Thanks, Phil. That's the thing... I'm going back and forth on this too. I have a couple credit lines available to me that would supply 6 months PITI if it got bad.

Thank you for your advice. This helps.

-Lee

I have units in Utah by BYU. I'm getting stuff at 9-10 caps and have cash on cash returns in the mid teens. BYU also limits single students to living within 2 miles of campus so there is a limited supply of housing.

I do but then I rent exclusively to students so it's expected. I get a fiber connection and a wireless router so it costs me about $12/unit/month.

What is your rule on reserve accounts? How much cash do you keep on hand to CYA? My accountant is suggesting 3 months worth of mortgage payments... I'm saying less like 1.5 months. This is outside a CapEx account. My insurance will cover loss of rents if the building is not habitable so I'm trying to think of situations outside my failure to rent the place where the building would be empty for 3 months...

I'm certainly open to owner occupying.

Now the question is what if I already have an FHA loan on one of my properties?

I take it I'd have to do a HML to acquire and then refinance into the 203(k) or something like that.