All Forum Posts by: Luis Silva

@Gordon Cuffe - Thanks Gordon, that is great feedback. Would I call the tenants directly or have my agent handle this? I'm thinking I could have my agent work on this with the listing agent, correct? 

Hi all, 

Thank you in advance for reading my post. I am currently in escrow on a triplex in Kansas City, KS. The leases/tenant structure is as follows:

Unit 1: Studio - Rented for $440 - One year lease (Ends May 2018 - just resigned)

Unit 2: Studio - Rented $480 - two year lease (ends May 2019 - Just resigned)

Unit 3: 2 bed 1 bath - Rented $625 - Month to month lease. 

1) On Unit 1: the lease states that the tenant pays 2 installments for rent (she pays on the 1st and then again on the 15th). She also pays in cash. Do I have the right as the new landlord to renegotiate these terms? What is the best way to go about doing this? Mainly, I just can't accept cash... I probably could work with the two installments but that is a bit of a pain for me.

2) I am worried about inheriting tenants. The landlord says that unit 1 has been rented by the same gal for several years and unit 2 (just resigned for 2 years), is a great tenant that pays on time every single month. What can I do to validate this information and/or make sure they are good tenants?

If you can't tell, I am new to property management so any feedback is welcome and appreciated. 

Thanks a bunch! 

 lol no relation.. just coincidence.

$100k deals in this area seem hard to come by, I wouldn't mind a few of those myself! 

Welcome to BP Sandra!

hi @matt smith! I'm curious to see how other investors in the area respond to your post. I have been searching for deals but very difficult to find properties that pass the 1% test.  There are a couple areas (duplexes) in Sacramento that come close but still challenging because owners are required to pay garbage and sewer costs. Does anyone know if owners need to pay water as well? I think they do..

welcome Tim! Perhaps some yellow letter campaigns may be a good starting point for acquiring the projects. @derek Jones is right about mls right now.. Super competive (not impossible, just challenging)

Hi Joe, 

Congrats on taking the first steps to get started. I am very new to this as well and am learning new things every single day. With regards to your questions...

You may consider taking on a partner that has experience flipping properties and has already been successful. This will limit your risk and exposure while allowing you to build your knowledge base. typically, private/hard money lenders will finance up to 90% of the ARV (after repair value) of a flip so you could potentially looks at properties between 40-60k. With that said, the $10k you have will run out quickly if things go wrong or it takes longer than expected to move the property. The extensions for hard money financing are very expensive. A partner may let you invest for a piece of the profits while acting as a mentor throughout the process. I am seeking mentors in the Sacramento market now for the same thing.

 Sorry, I must have misread something.. thought you mentioned you were newer to RE investing, my apologies. 

@Daria B. That sounds great. I am also new to RE investing and just starting to work on my first deal. Have you heard/read about the "BRRRR" strategy? It stands for Buy, rehab, rent, refinance, and repeat. It may be something to consider when just getting started in investing. It will allow you to potential recoup most of your capital and still cash on your property. Listed below is a link to an example, but I would encourage you to search around the forum as there are several more examples. I also believe bigger pockets has a great podcast on the strategy. Best of luck to you!

https://www.biggerpockets.com/forums/522/topics/192058-diary-of-our-first-brrrr-in-our-real-estate-life 

Money should be made going into the RE investment. Use smart buying techniques, seek to add value, and make sure they cash flow. In a perfect world, this will allow you to sustain even through the more difficult economic times.