All Forum Posts by: Axel Scaggs

Hi, I’m looking for advice from the professionals who have already achieved what I’m looking to accomplish. I would like to own 4-6 properties in the next three years. In this market, is it wise to invest in real estate right now?

Here’s a rundown of my current situation:

- Own an S-Corp (landscaping) generating 70k a year

- 160k in available cash funds

- Credit score around 720

- Zero debt

- Own one property valued at 365k, 30% equity

- Property is rented by the room generating $400 a month after mortgage and taxes

- Additional 590sqft house is being built in rear of property for 60k. This cost was already deducted, leaving available funds at the aforementioned 160k after the build. Should rent for $1000-1200. Undecided.

-I live in a modest apartment in the center of the Denton square

- Denton Tx is a college town and there are many renters, especially college students

My question is, if you were in my situation, what is the best first move here? Traditional mortgage, DSCR loan, brrr method? I’m wondering if the brrr method is even feasible in the current market? Anyway, I don’t know if this is a dumb question or too vague, but I’ve really enjoyed the Bigger Pockets website and all the info on here. Let me know if you guys have any suggestions!

Quote from @Alex T.:

@Axel Scaggs And just realized this is a 3-year old post...womp, womp. But yeah, let us know what happened!

Wow I stumbled upon this old post by accident, as now I’m a landlord looking for advice lol. For all those wondering, he did indeed counter-sue me and won. However, I appealed which took the case to a higher court and he settled the day before the trial for the full rent + all my attorney fees. Hopefully that helps someone out in the future. 

Let's hope so. He contacted me again through text and says he will countersue if I take him to court. He is now claiming new tenants took possession of the house a month after they actually did, and therefore he will sue me for the month of lost rent. I'm definitely taking him to court. 

Originally posted by @Fred Heller:

Not giving legal advice, but moving out before the lease expires does not mean you forfeit the security deposit. The landlord can only deduct for actual damages, which can be physical damage to the property or lost rent. Since the landlord didn't lose any rent and there were no damages, I can't see any way this would hold up.

If your lease is the standard TAR lease (I'm guessing it's not), there is a clause which deals with early termination. If you move out early, the landlord can charge a fee even if you find an acceptable replacement tenant. That fee would be clearly stated in the lease.

I would contact the Consumer Affairs department at the Texas AG office. They deal with tenant's rights violations.

 He wrote the lease himself. As far as the specified penalty it states that if any provision of the lease is violated, in this case early termination, the security deposit is forfeited. That page of the lease is what he sent me as my itemized list after move out as well. I looked over the entire lease and the written notice of intent to move requirement was not underlined or bold either by the way. I sent a request for return of security deposit with a forwarding address a few months ago. He is now refusing all certified mail. 

I signed a one year lease and moved out one month early. I asked the landlord if it would be OK and he said it was fine. I found him tenants with good credit before the end of the month. Steam cleaned the carpets, etc, and he determined there was no damage. New tenants moved in 8 days before the month I paid was up and signed a new year lease with a new deposit. I requested via certified mail that my security deposit be returned, but he said that it was forfeited due to a clause in the lease that said it was forfeited if any provision of the lease was violated, in this case not staying the final month. He sent me a letter stating the forfeiture for that reason as well and did not list any damage. He had no losses and lead me to believe I would get my deposit back initially. Should I take this to small claims court? I live in Texas.