All Forum Posts by: Mike Schoeffel

Did you use a licensed home inspector when you purchased the home? Does the home inspection report state anything with regard to the joists or foundation? If the joists, rim joists, or foundations have damage causing structural issues, then the home inspector would be liable assuming it was pre-existing and that it was accessible during the inspection. If it is not stated in the report and the report does not state that it was not inspected, then I would definitely follow through with the home inspector. They have insurance for missing things like this in the final report. Review the home inspection report if it does not state anything about the above issues then follow through with an attorney.

So the tenants noticed something was structurally going on and then informed the city? Was that their reason for stop paying rent saying it was unsafe? Wouldn't you be able to get your home owner insurance involved for this? I thought thats the whole purpose of insurance is for situations like this?

From my experience a lot of home inspectors do the very basic. I wouldn't go the inspector route cuz that maybe hard to prove in court. I woud get home owner insurance involved and they would actually pay you lost rent due to house being unhabitable or unsafe and give a tenants a place to live.

For your tenants, hire an eviction attorney and get rid of them.  This should have been done as soon as they stopped paying the rent.

Why did the city inspect the property?  Are the joists something the inspector could have seen or did they have to move things to see the problems?  The property inspectors won't move anything.  Talk to the lawyer who handled the closing for you.

Not sure about Pittsburgh specifically, but on the east coast when it gets cold it can be very tough to fill a rental at full market rents because so few people around here want to move during the winter. If it is a very nice/updated rental at a good price it will still usually rent out though, and then you can raise rents to market later on. 

My suggestion is if you have to do that, make sure that your first lease is 6 or 9 months, whatever it takes for the expiration date on the lease to be in the spring/summer when it's easier to fill a vacancy if you have a tenant leave. 

I am currently on my 9th BRRRR. I fix them up some a full gut and some just a cosmetic lift. Then I cash-out refinance and put the money into another property. I am not worried about trying to pay off my property because the tenant will do that with the rent money. I think you have to decide what your goals are and how can you get there. I always like to write things out. Every Sunday my wife and I will sit down and write out our goals and how we are going to do that this week. We have our big goal but to achieve that there is a lot of small ones along the way.

@Mike Schoeffel I agree with @Steven Foster Wilson on the truth that you have your big goal but it takes constant checkins to see what actions you need to take today, tomorrow, next month, etc to achieve the big goal.  That being said, do you like doing the STRs on your property?  If so, I'd put the equity into increasing the cashflow from the STRs.  If you don't love it or just want some diversification, there are some compelling reasons to look into the Columbus, OH market depending on what your skillset is. I love your thinking so far!