All Forum Posts by: Marc Winter

@Phoenix Brooks,

What are your written criteria for acceptance? Minimum credit score?

There are two red flags here: poor credit, late payments, oh, make that three flags--no employment.

Most of the applicants who state they will pay for a year up-front, well, they just don't pass the sniff test.  Ever watch the movie "Pacific Heights"?

I'd pass.

After reading the above comment and your explanation, in a word: NEXT.

Why try to catch a falling knife--if you can't get real equity when all is said and done, just pass and go on to the next deal.

Good luck.

Flood insurance will be covered by your own insurance company with a rider or a separate flood policy. Or check with FEMA for guidance.

For sewer, check with your water company; here in PA we buy sewer line protection from a provider that works with the water company.

We are also insured for water line issues through the same sewer line issuer (above).  

We recommend this coverage to all our management clients--it has saved them $THOUSANDs$ in repairs.

Tenants break leases.  Life is tough.  It's just a fact.

Do you think, if it came down to court, that the Judge would grant you a judgment for the remainder of the lease?  Doubtful.

Have a sit-down with the tenant, and calmly, professionally discuss the situation.  On a friendly, personal level, let them know the situation they are putting you in, and try to work out something amenable. 

Ultimately, we, as landlords, bear the burden; we have more to lose than the average tenant.  Keep a positive attitude, don't overthink it, and look at the bigger picture.  Keep moving forward!

For liability issues, a multi-partnership LLC is good. (Not so much for a solo/individual LLC). If you have many properties, consider having several LLCs.

An alternative plan:  I've been using trusts (inter-vivos, revocable land-holding trust) for decades.  when you pair that with a good umbrella policy, you can keep the target off your back (don't name the trust in your own name, duh). 

You will sleep well knowing the umbrella will mostly cover any lawsuits.  Put each property in it's own, separate trust.  Trusts are basically transparent for IRS purposes, so everything will flow through to you (trustee and/or beneficiaries).

Once you have the trust template, it's just cut and paste--your only costs are recording fees.  

Plus, no due-on-sale worries if you are using the trust for estate planning purposes, which we all are, of course.

My 'avoid liability issues rule':  don't do stupid stuff!  Follow the l/t and other laws to the letter.  Treat everyone courteously and fairly.  

Now don't worry--go get more properties!  

@Alex Quinlan, you are already heading in the right direction! So, congratulations!

1. Live-in renovations are a bear.  If there are even minor cracks in your relationship with your girlfriend, try living surrounded by building supplies, buckets, tools, dust, and inconvenience, and those cracks can break open!  It's a great experience to do a live-in reno once so you'll know you won't want a 'next time'.

2.  I'd go for a duplex to start.  Have a stable home base, and work on the other side as needed.  Also, you'll need the tax breaks owning a rental will bring, as opposed to living in a single family.

3.  At the starting phase, always be saving for the next deal.  Once the ball is rolling, you'll learn to move the money around, because keeping it in a savings account will cost you about 10% reduction in buying power every year.  You'll learn to leverage borrowed funds and keep your money moving.  You can earn about 4.25% in SGOV etf that I've found to be very liquid.

4.  Working in Real estate:  Yes!  The experience and 'inside' knowledge you'll get can supercharge your success in this business.

Let us know about your progress!  

Good Luck!

One would assume the walls of a 100 year old house are plaster.  If so, plaster and the lathe behind it can shift a bit over time and cause some cracking.

To be cautious, inspect the exterior of the property at the location of the interior cracks.  Look at the foundation and walls.  If you see some minor cracking, that would likely explain the shift and cracking inside.  Normal stuff.

This is a common occurrence.  It is unusual to find a 100+ yr old property without some plaster cracks somewhere. 

Unless you see MAJOR cracks in the exterior walls (3/4" --2"), don't sweat it.  

As for the tenant, see @James McGovern comment above.  

Do not show the property until the tenant is out and repairs have been made.  

After 40+ years of experience, I've learned that most folks have no visual imagination, so the condition they see the first view is what they believe they'll get.

Experience fact #2:  tenants say the darndest things, so avoid showing the unit with an existing tenant, esp one who is on their way out.  They will talk trash about the unit, and probably you as a landlord, too!

As others have stated above, avoid the appearance of retaliation for the son's fall.  Use documentation from the tenants downstairs about the smoke as the reason for your 30-day notice.

That said, it is not impossible that the son who fell on the stairs was impaired from de ganja, mon.  I'd consider providing the weed complaints you received to your insurance company's attorney.

Right, fees are high, but not compared to the bite the gobment will take?  All relative, I guess.