All Forum Posts by: Mandar A.

Hi Everyone 

Recently I came across a duplex deal. The cap rate on the property is really good. The house is older house and needs some work like roof. Both the units are occupied and are income producing. One of the tenants has been there for a long time and has been good tenant according to the seller. Now here’s the part that worries me and why I need your advice...the second tenant has been there for almost a year but she has been behind on her rent. She almost owes like $6000 in back rent to the current property owner. The seller told me that she got affected by covid  this year and fell behind on rent. To make matters worse it doesn’t help that tenants cannot be evicted right now for no payments. The seller told me that he has come up with a debt payment plan with the tenant so that the tenant can pay 700 dollars extra per month(in addition to her monthly rent). The seller claims that in recent months tenant has been paying including extra 700 dollars.

As part of the deal the seller is offering me to collect and keep 100% of past due amount. Meaning from the time of closing whatever is the back payment left I can collect that going forward from the tenant.

Do you guys think under current covid situation it’s a good idea to inherit this kind of tenant who has history of sporadic payments? By agreeing to collect past due amounts am I taking a risk under current situation?

Sorry for long post and appreciate any advice you guys can give.

Regards

Mandar

@Karina Mejia Thanks and Congrats on closing your first property! I used HELOC to buy both my properties. If you want details feel free to message me and I can provide.

Hello Everyone,

Just wanted to provide you guys an update. Last month I bought my second rental property. That will be my second property of the year. I started this year on BiggerPockets hoping to learn about buying rental properties. Never thought that I will end up buying not one but two by the end of the year(and the year is not even over yet :))

I wanted to thank BiggerPockets community because I learnt so much from the forums, blogs and podcasts. Another reason I am posting this update is so that if there are any new investors out there who are just starting out and wondering if they can do this I just hope my story will give you little bit of motivation that if I can get started so can you. Hopefully you don't get stuck in too much analysis paralysis and just go for it and achieve your dreams.

Thanks,

Mandar

Hi All,

I am going to buy a property soon. The tenant pays all the utilities on this one except water and sewer. The water bill has to be in Owners name in our city. The previous owner used to pay monthly water bill and then ask tenant to reimburse the money every month. This was not part of the rent and the tenant pays a separate check for water bill every month. Once I buy the home I feel like this will increase my work and its extra co-ordination with tenant every month to get water bill reimbursed. Has anyone got any suggestion to streamline this? Does any one have a suggestion to deal with this differently?

I would like to put new system in place as soon as I buy the property rather than wait.

Regards,

MSA

@Mark Ainley My ultimate goal is to reach my financial independence number from rental income so that I can free up my time to spend with my kid and travel whenever I want. This is just first step towards that. My first rental is townhome, next one I want to buy duplex by next year. My goal is to achieve my financial independence number in next 6 years.

@Alyssa Dyer  Yes I definitely learnt a lot. Right from finding the deal to financing for rental property everything was new so everything was learning experience and still learning. I am out of state investing so that has added little extra layer of complexity. Actually on the day I closed I came to know that the city I brought my rental property has a law that I need to have property management firm to manage my property if I live out of state. I was anyways looking into having property manager so not too worried about it but sometimes there are unknowns that we dont know until last minute.

Hi All,

I joined BP few months back and my goal at the time was to learn more about rental property investment. My ultimate goal is to achieve financial freedom through rental properties.

Well I am happy to report that today I closed on my first rental investment property. It was a long and sometimes challenging process but I completed my first one today. Hopefully there will be may more to come.

Today I just wanted to thank the BP community for  all the help you guys have provided to me via Blogs, Forums and Discussions. This place is a great platform and resource for someone like me.

Also if someone is a complete newbie all I have to say is hang in there and you will start seeing the results. And if you have any questions during your journey feel free to ask, if I know the answer I will try my best to help.

Thanks,

Mandar

Congrats! Your story is inspiring to someone like me who is just starting out. I aspire to be there one day.

Thanks for your response

Hello,

I am in the process of buying my first rental property. The property already has a renter and his current lease is until the end of the year. I have not closed yet. But I wanted  to know if someone can explain what is the process to transfer lease in my name. Does this typically happen at the time of closing and will the closing lawyer take care of this?

Thanks,

Mandar