All Forum Posts by: Matt Moldenhauer

@Briana Bean I almost did once and then she asked me to commit fraud and that was the end of it for me.

My niece came to me saying she had to be out on the 25th of this month from her apartment, even though she paid the month in full? I called the property manager and was able to get a copy of the contract(un-altered I would hope) and sure enough it says the lease ends the 25th of this month, instead of the last day of the month. I’ve never seen this before? They’re using her money to clean and try to get the place rented again by the 1st. Is this legal??

Up until now all of our buy and holds have been financed with 20% down Fannie loans. I'm looking at an off market deal where i have the potential to buy seven single unit properties. Let's say the sell price is $425,000. What kind of in-house loan can i expect? Ex, 10% down at 6% for 20 years? This whole deal is still in the beginning stages so i'd like to get a little more info before i approach the banks. Thanks!

bump

Coming from someone who has worked for HVAC distributors for the last 15 years, be wary of any contractors that want to just "charge" your system. If a system has ran fine for years and now it's truly low on refrigerant there is a leak and they need to find it and fix it. Always check your filter(s) first. If the indoor unit is running, but not blowing cold air, go outside and check if the compressor is running. It has a very distinct sound. If there is a leak they should be able to show you exactly where it's leaking. Ask them to use EasySeal or Super Seal to try and stop the leak and charge it. If that doesn't work and your system has R22 refrigerant, time to replace the whole thing. R22 is too expensive and not worth the cost of charging the system over and over again. Most reputable contractors will offer financing if you don't have the funds. 

bump. @Omar Merced wellllllllllllll???

I would ask for X amount back at closing for repairs. I would not have them do the repairs because it will more than likely be done by the cheapest contractor and probably in a pretty shoddy manner. I'm always leery of purchasing a house from another investor. They might have their reasons, but I look at it as why would they be selling if it's making them money? Have they put off repairs for too long and now have a huge mess on their hands? Is there an issue with a new neighbor that might make the place harder to rent? The list could go on. I would just gather all of the quotes you received and have your realtor submit them. They'll more than likely cut individual cashiers checks directly to each contractor(which can be a pain) for you to give to them.

@Nicole A. I would never give the deposit back before they were completely out and everything was finalized. I don't think they need the money to purchase the house. My wife and I recently moved and with all of the furniture, privacy fence, etc we dropped A LOT of money, so I guess i'm just feeling a little compassion for them knowing that the security deposit would go a long way with helping them out. I know it's a business, not a charity!!! lol

@Thomas S. I believe in Missouri it can be if I'm reading this correctly: "The landlord may keep all or part of a deposit to pay for actual damages (not for normal wear and tear), unpaid rent, or lost rent due to the tenant moving out without adequate notice." Wouldn't that be considered unpaid rent?

So I like and agree where everyone's head is at regarding getting it rented out and only charging them for the remainder if it doesn't get rented. I really don't think that will be a problem. I guess the only thing i'm kind of up in the air about is keeping the entire deposit for them breaking the lease. This being my first experience with this I just wanted to see how more experienced landlords handled this. 

@Nicole A. Sorry, I wasn't really clear on that. I do NOT want to make them pay the last two months. I meant the security deposit. I spoke to a friend of mine who has several rentals and he had several people break their lease all within a week and he asked my opinion on the matter and how i was handling it. He's letting them out of their lease, but keeping the deposits in full. I'm not so much worried about the money per say, more about possible legal ramifications in the future. Trying to get someone to pay the remainder of a lease after moving out would be near impossible and a major headache. Keeping someones deposit for breaking a lease would be pretty easy though. My fear would be down the road, If i return a deposit now would i be forced to do it from hear on out or risk opening  myself up to a discrimination case. It's probably slim, but still possible I would think?

I have a nice young married couple at one of my rentals that recently informed me they're breaking their lease because they're under contract on their first house. I didn't know they were in the market, although i'm not really surprised. I hate to see them go and am happy for them, but i'm wondering how to handle the deposit and last two months of their contract. I told them we would work something out. I don't really think i'll have a problem renting the place, as it's in a great neighborhood. My initial thoughts were to put it on the market early and let them show it. Let them out of their contract early and return their deposit, less any repairs(which i doubt there will be any). I know they could use the money with things at their new house. Something that popped into my head though is setting precedent and possible problems down the road. Say i had a less than desirable tenant that broke their lease and I wasn't as willing to work with them. Does anyone have any experience with this or opinions?? Thanks!