All Forum Posts by: Mackenzie Grate

Depends where you are as to the nuance of the law and how courts rule in that area. But generally, yes, the landlord/owner is responsible. If you approach it that way, you will always be covered. Which is why I stress to all my investor clients that even though you have a property management company, it doesn't mean you can just set it and forget it. You still have to manage your property manager and inspect their work to ensure they are following all laws properly and taking good care of your properties. It's essential because they are an extension of you.

This is always a tough one. I guess my main question would be, what is your end goal and how much time do you have right now to commit to it? If your end goal is to scale and you have extra time and energy to do the rehab, list the property and scout for a new like-kind property for the 1031 exchange, go for it. To me, it doesn't matter whether the market is way up, or if it down when you do that. You are still going to be looking for a property of equal or greater value to put your money into...

If you don't have a lot of time and energy, I'd let him know of the rent increase now and give him the option to renew the lease or not. I don't love the idea that your tenant has been violating your lease by subletting it out. That is concerning as there could be extra damage to the unit that you don't know about. So it is important that you have this conversation sooner, rather than later, and inspect the unit to assess any additional costs. If the tenant decides not to renew, then you will have a clearer idea of how much you will have to put into it. If the damage is more excessive than you thought, it might be worth it to fix it up and list it, and trade up.

Just a few thoughts. No matter what though, I recommend you raise the rent and get in the habit of raising it regularly. People are afraid that if they do that "good tenants" will leave. In my experience, as long as it's a fair amount, and not excessive, quality tenants tend to stay if they are happy with how the property has been managed. It takes a lot of effort to find a new location and move, especially in this competitive market. 

Good luck! Sending good vibes your way with this tough decision. I know you will figure it out though :)

In my experience, whenever a lender says "no one else will lend on that either" it usually means there is someone out there who will do it, but you are going to have to do the leg work and call many lenders. Where there is a will, there is a way. No two lenders are alike. Different lenders, especially hard money lenders, have different types of investments and requirements for what they will or won't lend on. So keep looking, they are out there. 

That being said, if several lenders turn you down, there is something to consider there. Is there a reason they all are turning you down? Is the project too risky? Usually lenders will only lend on something that they think is considerably less risky. Is your particular project worth it? Is there enough meat on the bones with the numbers when you run it? If several lenders, especially different types of lenders, are uncomfortable lending on it, that may be pause for reconsideration...

Either way, I'm sure you will figure it out. Good luck! Excited to hear how it goes and what you decide! :)

Echoing what others say, I'd first find out what the plumber says. But then, I'd consult your lawyer and your insurance company before you make any moves. Local laws vary when it comes to who is responsible for these things and how they can be handled. So it's important to find out legally what the next steps are before you make any major decisions and unfortunately, this is one of those learning lessons for next time. You got this though. Good Luck!

There is no right or wrong way to do this. It's really up to you, your goals and the life that you want to lead. I bought my personal residence first because I found a deal in my high cost of living area and then I started buying investment properties in a nearby market that was lower cost. But I know many people who have done the opposite. No one can really answer this for you but you. Take some time, sit down, and figure out your goals. Then work backwards as to what should be the next step most likely lead you towards those goals quicker.

It can feel high compared with the last few years, but it's not high historically speaking. Rates don't matter if you run the numbers and the numbers still work. While rates are slated to go up this year, there is a chance that if we hit economic trouble in the future, the FEDs may respond by lowering rates again, so I wouldn't worry about it. If you run the numbers and it pencils out, go for it. Just make sure you are getting a loan with a fixed rate. If the rates do drop in the future, then just refinance to lock in a lower rate. Better to jump in than to sit on the sideline and wait it out...

Definitely get a survey if you don't already have one. But furthermore, I would figure out a way to de-escalate the situation as much as possible. You do have to live next to the neighbor. I would communicate it in a way that tries to show how they benefit from the fence. Maybe it's more privacy? Maybe it will raise their property value too? I'm not sure, but I would be as gracious as possible and let them know that it's not personal. I would also let them know you are willing to demonstrate through the survey that it's not on their property and if it is, you would relocate it. This is a delicate situation, but it's also about building a relationship if you can so it's less tense moving forward.

I'm not in the area, but I would say shop around. Figure out what is important to you as a RE agent? For me, I was leaving a very structured environment and was not interested in joining a team where there was a lot of bureaucracy and competition. I figured I could always listen to podcasts or read books to learn about how to become an agent, but I really wanted to be in an environment that was creative and allowed me to try new things. I ended up at a boutique brokerage and I have a super tight relationship with my broker. It's been awesome. However, that's not for everyone. Here are some questions to ask yourself:

1) Do you want to be part of a team or more of a loan wolf?

2) Is there a certain type of RE you want to get started in? Residential? Commercial? Luxury?

3) How much systems and structures do you want in place to begin with? Do you need that in order to get started, or are you more excited about creating your own?

4) How often do you want to communicate with your broker? Often, sometimes, never? Does the structure of that office match your style of communication?

5) What is included in the broker fees? Do you want to have a lower cut but have a transaction coordinator that handles a lot of the paperwork? Or would you prefer a higher cut where you do more of the legwork on your own?

Take your time and interview around. I'm so glad I did. It not only helped me to find my perfect fit, but since it's a small world, it helped me to start to build connections with other realtors and brokers as well. In the end, the more people you know who think highly of you, the more business you will be able to do. :)

Good luck! Super excited for you!!!

Speak to your lender first. Every lender is different. But I have a client who changed jobs in the middle of his transaction in the pat 3 months and was just fine. He was buying the home by himself too and there was no co-borrower. I think they have relaxed a bit on this qualification given the massive shift in the job market right now. But again, always check with your lender. They all are different in what they require or expect. :)

Quote from @Dominick Galinis:

@Bruce Woodruff

Noobie question coming in: why do you do the cleaning yourself opposed to just charging it back to the tenants? Not saying you’re wrong or anything, I’m just curious 

It's a way to make extra income. You can still charge the price for the cleaning but if you do it, it goes into your pocket rather than out the door in expenses. Question is, is your time more valuable spent elsewhere? Maybe early in your investing career it isn't, and maybe later on it is?...