All Forum Posts by: Lisa Hoyt

There is a Real Estate education group that meets in Salem at Jersey Lily's on 419 every Tuesday at 6:30. Lots of investors and related fields attend.  Amazing group of people with a wealth of info.

Emailing my agent now! Thanks for this post. One more thing to add to my mental list of things that could happen... 

@Michael Noto  @David Faulkner @Justin TahilramaniThanks for weighing in on this. I spoke with an adviser last night and when he looked at the possible exit plan, ROI, etc, the number he came up with was a break even at 110k, but he wouldn't personally touch it even at that price because of the as yet unknown potential variables. I notified the bank this morning that we would not be submitting an offer, but would keep the door cracked if the price were more negotiable at a future date. Son is continuing to look at properties which line up with his needs and we will keep our eyes on the DOM once the clock starts. I am really grateful for the guidance of BP members and shared the website with newcomers to our group last night. Also grateful for our local group which has such a vested interest in supporting its members.

@David Faulkner Thanks for weighing in.  The appliances are missing or not working, Electric appears to be working, but  many code violations so it is unsafe (though easily fixed).  Plumbing has been winterized, an obvious kitchen sink plumbing failure resulted in rotten floorboards in front of sink. I asked for their cash price (@Justin Tahilramani and he said they were discounting their list price by 10% and that's what they came up with).  I did ask about financing through them and they said there would have to be two loans, one for the house purchase and second for the renovations, but once the renovations were complete, they could be combined.)  He also said they were having one of their customers do the work for them, but their schedules hadn't coincided yet - since December? I feel like geography is on our side, and maybe the bank doesn't yet have a true picture of the repairs needed.  Agent did say that it took a "while" for them to regain control of property because there were tenants who wouldn't leave. I think tenants did some damage as well as allowed other stuff to go unreported (hole in roof for example).

My son is a college student who has found an REO near his campus. It is owned by the bank, a smallish bank located about 40 miles from property. We have been shown the property twice, once to look, second time with a contractor for estimate and evaluation. House has mold, needs a roof and some other repairs to the tune of 35k. ARV is easily 185k, currently assessed at 157k. The bank said that the lowest cash offer they would entertain is 139k. Their plan is to fix it themselves and resell. I am thinking this is pretty inconvenient for them and at 139k plus the repairs, it would be out of our reach. (Son wants to live there - house hacking and have roommates pay the mortgage). Son has cash for a down payment. What would you do? What kind of offer would be taken seriously? Or do you not know until you try? There is no realtor involved at this point. Bank is on record as having foreclosed at 112k in December. They are having their quarterly foreclosure meeting today per bank agent, trying to plan for listing it if we don't have an offer for them. I am going to my local REI meeting tonight for suggestions as well, but they have already said things like "offer 85k", and "if they accept your first offer you started too high". Then there is the matter of financing...but that is a different problem. Thanks for any suggestions you may have!

Wow, Peter, harsh...old, inefficient, intermittent dryers can be electricity sucks and fire hazards!  But my new thought is this:  Simply say, hey, FYI, I finally got "Tom" to remove the washer and dryer from the basement.  Didn't want you frightened to see a stranger hauling out appliances. Completely evades the subject, but you are a little wiser that she might not always play by the rules...

"works intermittently" caught my attention...and what my brain turned that into was "fire hazard".  We just went through this with a washer/dryer set that someone gave me to use temporarily until I could figure out what I wanted to buy.  Long story short, both had wiring issues and when I unplugged and moved the dryer I was shocked that we hadn't had a fire. Evidence of smoke/charcoal was on the electrical plate inside the dryer!

My second thought was she has boundary issues, she is sneaky if she waited until you were away.  This will only be reinforced if you decide to ignore or let her continue to use.  Third thought, (probably running out of thoughts) this is on your dime.  Regardless of whatever else you decide, you are taking on a financial burden.  What if "your" washer or dryer ruins "her" clothes? What is your liability? Or if she falls down the stairs carrying a basket? (different then trying to access emergency switches- she wouldn't be carrying a basket).

If upgrading her unit could involve washer/dryer outlets for her own appliances, that might be one solution and a reason to up the rent.

Just my thoughts...

 This is the update and end of the thread.  Yesterday, on The BP blog was a post on "How to Raise the Rent" which gave me enough new key search word ideas to find this from a MA.GOV pamphlet called "Landlord Rights and Responsibilities": 

If you have a written lease and do not have a housing subsidy, your landlord cannot increase your rent during the period of your lease, even if you and your landlord agree to an increase and put this agreement in writing. For example, if you signed a one‑year lease that runs from September 1, 2008 to August 31, 2009, your landlord cannot raise your rent in January 2009.

The only exception to this is if the property tax has risen during the year, the rent may correspondingly increase.  Thanks for helping me sift through the finer points of this issue, and maybe this case study will help landlords in other states with a similar issue.

My final determination:

The teen sister moving in can have no legal bearing on the rent required until the lease is up for renewal AND it is familial discrimination to refuse to allow the sister (assuming legal custodian) to live with her family.

Thanks for your help.

@Paul Metzler  I love your creative and proactive solution!  I bet your tenant appreciated that too.  Thanks for the input.

@Colleen F. I think you are right - the aunt's remarriage probably generated a lot of family dynamics which just came to a head.  At least this girl has a sister who wants her and is trying to make that happen.

Regarding the water meter, we looked into that at last turnover, her house, pipes, plumbing would not easily allow for installation of such, though it is legal in MA, it is pricey - her plumber told her it was not a workable solution.

@Marcia Maynard I am trying to PM you, but it says we have to be colleagues.  Once I figure that hurdle out, I have a PM for you. Thanks.

@Account Closed) AND insist that the sister understands the rules she must abide by as a new "resident".  Make lemons out of lemonade.  Move forward.  And IF, legal guardianship was not what tenant had in mind, she knows that she is putting her own lease at risk. If not now, then at time of renewal next year.

And yes, landlording is hard, no easy cookie cutter solution for everything.  I get that. Especially in MA.