All Forum Posts by: Mike McCarthy

I wholeheartedly agree with @John Warren. I have no issue collecting rent electronically - understanding there is a small risk there... but I always take deposits and first months rent in person.

Agreed with @Peter T. With a bit of a twist.

I take the average water bill, split it, and write it into the lease that way. That way there’s no extra accounting, billing, etc. $30 per month per unit (or whatever). Some months may be a bit short, but me chipping in a bit per year is fine too. I look at it as extra income that I didn’t have before.

@John Deyrup for the $0.25 you need to send the tenant each year in interest, I wouldn’t bother with touching the escrow. Consider it an operational expense, write the check, and be done with it.

When the deposit is eventually paid back, you keep the $3 in interest and go party.

Also check to ensure MA doesn’t allow you to withhold some of the interest for administrative expenses. In PA, we have to pay the interest to the tenant minus 1%. Which conveniently makes it 0% to the tenant nowadays.

@Stephen Scire I don’t think I’d ever consider a sight-unseen property for my first investment. I would have no idea if you’re looking at a $50/100/250K rehab. Plus you’ll likely have the added hassle of evicting the old owner after foreclosure.

If it’s such a good deal, you might be able to make some assumptions from the exterior. But expect it to be a rollercoaster process - not something most investors are looking for.

@Terrill Cham most inspectors will have the basics, but will likely not do an in-depth inspection of either.

If the pool filters are running and there’s clean water in the pool, likely it’s doing fine.

If the water filters are enabled (not bypassed), at least the current owner isn’t aware of any issues. If you’re on a well, you should be sending a water sample for testing anyway. The problem with filtration systems is no one can really look at them and confirm they are still working as designed. You need to test the water to ensure they are extracting whatever bad stuff they were installed to remove.

@Asher Pearl for reporting them to their licensing agency, afaik, there’s no formal process - just a letter.

If you want/need to sue, a lawyer is recommended. Small claims court (typically up to $10K, but varies per state), can be done on your own, but still might be worth an hour or two of insight from your attorney.

@Cristi Lucas I think you’re on the right track. 2 weeks is a long time to wait, but I wouldn’t be getting a Jew stove or anything unless it was on its last legs. And you’re right, all contractors and service people are running behind these days.

I assume they paid their Nov rent. Don’t let them not pay rent - there is a proper way for tenants to withhold rent if they need to, but they just can’t not pay.

I’d maybe consider a $50 or $100 gift card if they are otherwise a good tenant. It’s not to feed them for 11 days, but just to thank them for their patience.

Lastly, I’d call and appliance person and get their timeline. Not that you’d hire them (warranty coverage and such), but as backup that everyone is well, backed up.

Stay strong, this will pass!

@Eric OConnell agreed with the others. Rabbits are fine, but like any pet, they can cause damage. Eating trim is probably the worst part - though some are not house trained well either.

Make sure you have either a pet deposit, enough security deposit, or a monthly pet fee to cover any possible issues.

@Ramsey Rimkeit conventional mortgages (Fannie/Freddie-backed) are limited to 1-4 units. Anything over 4 requires a commercial loan.

@Paul Zhang I agree, shorter lease terms benefit the landlord. A tenant will always leave or end the lease early if they want. But it’s hard to kick out a poor tenant with a long lease.

I use 1-year leases and enjoy the flexibility. Many landlords here stick to month-to-month for even more flexibility.