All Forum Posts by: Lynn McGeein

@Nathaniel C. Can’t you just provide your insurance company with tenant’s renters insurance policy info and allow insurance companies to hash it out? I think it’s reasonable for tenant to pay deductible if it really was their fault, if that’s allowed by your policy, but seems weird to me that you could expect tenant to know hanging a picture in that one spot would cause a leak. If tenant was warned not to hang anything there without using those sticky wall hangers, or if they used something not meant for home use, then maybe.

@Ananth Subramanian follow your lease terms and landlord/tenant laws. Your lease should state what day/time lease ends. Tenant is responsible until then, even if they move out early, unless both sides agree otherwise. If they say they moved early, you go and it’s vacant, if they haven’t turned in key or notified you they’re all out, you may have to follow rules for abandonment, like posting notice. You should have already followed landlord/tenant laws for nonpayment. Good property management should be able to get you back on track. It really is worth it if you worry too much about handling it yourself or don’t want to learn landlord tenant laws, fair housing, etc.

@David Cheng that agent doesn't sound like someone you'd want to work with anyway. That said, as a buyers agent, I've vetted my clients, and find it a bit insulting for listing agent to demand POF or pre-approval just to show. As a listing agent, I pre-arrange a specific weekly or biweekly time window with existing tenants and arrange all showings within that timeframe, with POF/pre-approval required with offers. If buyer won't accommodate time frame, making it difficult, then we may get picky unless buyers agent convinces me otherwise. I prefer to trust that buyer's agents don't want to waste time with unqualified buyers, especially with occupied homes. If buyer not represented, however, I make sure I have seen pre approval or POF before showing so I don't waste my own time.

@Evan T. Ong keep reading many different books, articles, news, research on real estate investing and then you’ll start to pull your preferred themes that run through all. Libraries are a great free resource, save your money for real estate. Compromise with your parents — save up from working and then invest in a home near the college you’ll attend and house- hack it, renting out the other rooms and gaining landlord experience while earning a degree. Or buy a fixer upper and work on renovating (valuable learning experience if damage not too extensive) during college years then sell and keep up to $250,000 tax free profit as your primary residence allows. There are many ways to problem solve this so you don’t feel trapped in a path you don’t want, but also may learn that your parents have a few good points that you appreciate when you’re older.

@Kelsey Vander Meulen unless you have a great team lined up, especially someone who can address a burst pipe or damaged roof late night or on a Sunday, hire management. I self manage the one where my son still lives a mile away for emergencies and I’m 30 minutes out. For the ones out of state, I hired management. It’s more expensive but absolutely worth it, especially in late night/weekend emergency repair issues. Which is when they all seem to happen.

@Raghavendra Jakkani wanted to add that some states, source of income is protected so you can’t exclude income sources that may come from child support, government assistance etc. I screen all 18+. If they are legal dependent of qualifying applicant (ex., college student, dependent parent) then they still need to pass criminal background check.

@Lynnette E. Very sorry for the family and what they will likely be going through. But wanted to add that you may want to consider a consultation with an attorney or even your liability insurance company to discuss best ways to handle this up front to avoid mis-steps in communication with the tenants, neighbors, media etc.

@Angel Peng unless you are very experienced and/or a contractor, I do not recommend waiving inspections. It’s frustrating losing out to those that do, but remember that they may be buying expensive future headaches along with the house. As a listing agent, I explain to seller that an inspection can be more protection for them, anyway, because 1) buyer waives right to repair anything discovered in the inspection if not negotiated during inspection period, so fewer surprises at final Walk Through, and 2) buyer less likely to succeed in blaming seller later for something even their own professional didn’t find (unless seller was really hiding it). So if an offer nets higher, it’s worth consideration. Unfortunately, I also usually reach out to the cash offer and counter first with the higher figure to see if we can get both the higher net and quick close. So usually just hard to compete with that.

We actually have regretted flipping because finding good deals in our area is so difficult, wish we would have just kept them all. But it depends on your philosophy. We found that we are better buy-and-hold investors. But like Drew Sygit said, if you're going to sell it, in the future, vacant is best, especially on a new renovation. Owner occupants generally pay higher, and lots of investors prefer to choose their own tenant, not inherit yours. Plus, tenants get upset when you're forcing them to show the home, and can sabotage showings very easily, lying about problems, clutter and cleanliness issues, etc.  If it's in a good area, cash flows, and hard to find another one to replace it, I'd rather keep it.  

Days on market is actually increasing according to REIN MLS September numbers, median DOM 25 days vs 17 last September and 21 days in August. Sept settled sales were down approx 5% from last year and down approx 15% from August. Active listings are down from August, but up over 22% from last year. So higher inventory, longer days on market, but prices are still up approx 5% from last year, and pending sales are up. It feels like there are two separate markets out there recently. I've noticed that homes in great shape, ready to go and priced right are still receiving multiple bids and moving quickly. But there seems to be a lot of sellers testing the market, listing high even with updates needed, and not many of those are interested in negotiating realistic numbers, just seeing if there are buyers still willing to pay too much. So market feels very toppy to me.