All Forum Posts by: Malcolm LeBourne

 Hi, @Christopher Philbrick . I am looking to move into the South Jersey area and would like to use my first property as an owner-occupant investment property. If there is any advice you'd be willing to share in terms of location or insights, I would be very appreciative. 

Welcome @Sidiky Kima I invest in the Akron/Canton area but would be more than happy to connect and talk shop with you. 

Hi @Anthony Sanzari great question to keep it short there are definitely some advantages and disadvantages to section 8 just to give you a couple for each.

Advantages: 

1. Section 8 pays landlords directly for a portion of the tenant's rent. Having that guarantee does help with peace of mind/reduction of risk. 

2. Section 8 tenants generally have a larger need for stable housing so this typically leads to longer tenancies and lower vacancy rates.

Disadvantages:

1. Section 8 properties must meet certain housing quality standards and undergo regular inspection by your local public housing authority. Develop a positive working relationship with the local PHA to help facilitate interactions.

2. Section 8 tenants can present issues. Issues however can arise with any tenancy. The important thing here is to screen tenants thoroughly. Despite the program having a vetting process, you as a landlord (if you don't have a PM company doing it) should still conduct your own screening process to reduce risk and ensure compatibility. 

Helping Section 8 tenants can be a rewarding experience. Just make sure you are well prepared and understand the program dynamics carefully. 

I think @Corey Conklin has covered this question really well. 

The lease agreement is the lease agreement, which it seems they are in violation of. However, as a landlord, you get opportunities such as this to make empathetic decisions to help people who are in need. 

Knowing the type of tenant you have is crucial in how you approach this.

Have an open honest conversation with the tenant about the ordeal, acknowledge their situation, and also express your concerns about code compliance and the suitability of the property for additional occupants. If you have a great tenant maybe you can find an alternative solution that works for both of you like letting them out of the lease at minimal cost (as stated by Corey) or if it's not in violation of the code adjusting the lease agreement. If not you may have to take a bit more of a "stern-by-the-book" approach.

If you have any doubts regarding the occupancy restrictions you can also consult legal counsel about it. 

Good luck! 

Hi Frankie,   

There is a lot here but I will offer what I think are the next best couple of steps:

1. Determine your strategy - I know you are interested in both flipping and long-term rentals. It's probably good to focus on one strategy first before branching out. Given your current situation and opportunity with the duplex, starting with long-term rentals may be more straightforward. 

2. Evaluate your investment - Fully assess the condition of the duplex and the potential costs of the updates. You want to be able to with some accuracy calculate your potential ROI. (A home inspection may not be a bad idea).

From there you can work on building out your team (if you need to), securing financing, and further planning... but those couple of things I suggested would probably help you get a clearer picture of your path moving forward. 

Best of Luck.

Depending on what market you are in will determine eviction laws. I would have a follow-up conversation (in person & in writing).

Restate the rent due date, Let them know if they are late, the date they will get a notice, and let them know when an eviction notice will be sent in.

I would also start trying to automate if you don't already via PM software -  It will automatically send a rent-due notice a couple of days before the actual date it is due, then again the day it is due, and then if they are late.

Hi, @Alex Goodwin it's a good question/discussion,

I was thinking through this and created a pros and cons list for you here. 

Reasons to hire a property management firm: 

Time and Scalability - One of the key advantages is time saved, my partners and I have multiple properties and are looking to continue to scale quickly. Managing multiple properties yourself can be a time-consuming task especially as your portfolio grows. With a PM firm in place, you can focus on growth. 

Expertise - Are you all well-versed in various aspects of property management? Including tenant screening (critical!), maintenance, rent collection, and legal issues? If so great but if not their expertise can help you avoid costly mistakes (as you learn what can and will go wrong). 

Tenant Relations - PM companies are equipped to handle relations including addressing concerns, handling disputes, and dealing with evictions if necessary. This can be huge especially if you have difficult tenants (different states have different laws on eviction). 

Our PM company is dealing with an eviction right now and it's a process. 

Reasons to self-manage:

Cost control - The 10% management fee can add up over time, and you may want to keep control over your expenses.

Hands-on Experience - Getting hands-on experience in managing properties can be valuable especially if you plan to be more involved in operational day-to-day stuff as you scale.

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My thoughts: Your answer likely lies somewhere in the middle, focus on growth with a PM Company first.... learn, grow then gradually take it on yourself. 

Kinda long but those are my thoughts hope that helps, others please add on anything I'm sure missed!