All Forum Posts by: Mike Wood

@Jim Robertson Contact to county court and ask about the eviction process.  In landlord friendly states, the process is very easy.  In New Orleans, the court was very helpful and the process was very easy to completed by myself without the need for a lawyer.

Now with that said, some areas have very cheap eviction lawyer services, which might be handy if you do not want the hassle of filing notices and appearing in court.  If there were cheap eviction services around me, I would definitely consider them. 

@Abad Marroquin I would serve them the notice to quit or pay (3-5 day notice depending on your state law) ASAP.  This starts the eviction process typically can be done by the landlord (we are able to do in in Louisiana).  If they vacate and the place is not trashed, move on.  If they are lying, then you did not loose those days in the eviction process.  I would not evict them just to evict them, as that is generally a cost you will not recover.

As many people will tell you, its unlikely you will ever collect the lost rent, even with a lawsuit judgement.

All of my units come with washer/dryer.  Given that your unit requires a stackable washer/dryer, I think you will alienate alot more by not providing them.  Stackable units are generally more expensive, and could cause potential tenants to pass on your property, given that they would have to spend money to get washer/dryer that fit the space.

Around me, units with washer/dryer supplied get a $25-50/month premium.

@Ryan Walker I think you need to check your numbers. Duplexes almost always sell for less $/ft2. Assuming equal level of fit and finish, duplexes cost more to build.

If your plan is to build and sell, then single family homes is the way to go.

@Linda Weygant Sorry it takes the sheriff so long to actually evict.  But the end is in sight.

I personally would not recommend any tenant that was being evicted.  Just think about how you would feel if an ex landlord did the same thing for a prospective tenant that you were looking into?  I would play nice with the tenants until they are out, lie if you have to.  The more they think you may help them, the better chance they will not destroy the place. 

I also agree with @Dawn Anastasi, we as landlords needs to separate emotions from business. Remember that our bills dont care about the tenant problems, we still have to pay them.  Your tenants knew exactly what they had to do to keep the unit, they failed you, not the other way around.  

Good luck. Hopefully they move out before Dec. 2.  Otherwise, be ready with some help to remove their belonging and lock them out (after the sheriff removes them).

@Mike Jones I think you will find that new construction is much different from renovation.  My experience is the city's pay much more attention to new construction that they do for renovation.  

It might make sense to talk to a builder. 

The permitting process is typically much more thorough, sometimes taking quite a bit of time and cost.  

@Jeremy Gonzales You should know or be able to estimate the value of a completed house in a specific area, say its $150/ft2 sales price for new construction houses in your area.  

Next you just have to figure out your costs.  Land costs, building costs, holding costs, closing cost, etc.  If you can define your building, holding and closing costs, then you can back out the land price you are willing to pay.  

I have seen lots of people on BP talk about land being 25% of the final sales price of a house.  I dont use this, as I just use a cost approach.

You can imagine that if houses are selling for $150/ft2, and you plan on building a 2000ft2 house, paying $200k for land (land cost would be $100/ft2 of living space) would not work, and you would have to built a larger house to bring the land cost down.  

Around me there are areas that lots sell for $150k, but you never see anything less than 3500ft2 houses going up on them, because they are only able to sell them for $200/ft2. This would mean the land is ~$43/ft2 of living space, figuring they are spending about $125/ft2 to build it, leaves a gross margin (before holding cost, closing cost, etc) of $30/ft2.

I personally focus on lower price points for my land and builds, but that is manly a factor of building duplex rentals that I hold onto.

This is definitely a regional thing.  Down in the south, I have never seen a change in the demand for rentals, with the exception of May thru July being slower for student rentals (which four of my units are near a university).

I second what @Steven Hamilton II said.  Those fee's are on you.

If you dont have a formal lease where any late fee is addressed, I would let this one go, but let them know there will be a late fee of ?? in the future.  Given that you have had them as a tenant since 2002, I would just let this one go.

I have one (1) unit that is a 1 bedroom condo that I rent out. All of my other units are 2bed or 3 bed units (7 units total).  I would also agree with others, that the 1 bedroom units will have higher turn over.  I think repairs depend of the areas and the quality of tenants, but turnover costs and vacancies will be higher.

I wish I could get rid of my one bedroom unit, but the market its in just will not support a sale.