All Forum Posts by: Melody R.

@Anthony Vicino that breakdown totally helps! Very useful advice. I’m going to use your model to run a few different scenarios. 

@Steve Morris the tenants are far more “well off” than me. They too are property owners but for many reasons are leasing now. They also operate a profitable  business, although their financial position has nothing to do with the increase. I need to manage my portfolio efficiently and maximize it. Thanks for your input. 

@Felicia Feliciano thank you. I like your to the point strategy. :)

@Adam Martin Thank you! With the increase, the house is still a good deal. I could go up to $400 - $450, but I believe it guarantees them vacating. While we are going through their approval process, I left the listing up and received 25 inquiries in under a week. I was assured then that I was priced too low but moved forward to honor my commitment etc. They want a new washer & dryer (the current one is loud), but I do not want to swap it out since theirs works. Per your suggestion, I may reconsider that since the cost of a new w & d would be covered within 6 months with the increase. 

The house was hard to comp and was listed at the start of the pandemic, but I will start higher in the future and bring pricing down if needed. 

Appreciate your suggestions!

I'm renting a SFR well below market. The tenants have been renting for almost a year, we have a month-to-month agreement. They are great tenants and I really hope to keep them but I need to increase the rent by $300 per month which is a 10% increase. What's the best way to do this while retaining the tenant?

@Esteban Jimenez I read the forums daily, spending 15-30 minutes. I listen to about 2 podcasts per week.

I'm enjoying Ken McElroy's content and see he has a RE Master Class for $450. I'm looking to buy small multifamily and notice that his specialty is large complexes, resorts, mobile home parks, and other large scale commercial properties. Would love feedback from anyone who has taken his class, and especially to know if the content is helpful for smaller multifamily investors of 2-4 units. Thanks for any feedback!

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As an expert investor have you talked to your dad about the risk of investing all of his savings into real estate? You mentioned he will not have an income in two years when he retires. There are many red flags in your post and that is one of them.

It sounds like your dad needs to build more reserves prior to risking his retirement on flips and BRRR. He may want fast and high returns but considering all that you shared, it's too risky for him. If he must invest, at this stage, turnkey may be a better option for cash flow since they are lower risk.

You also mentioned that you have the stress of bills that need to be paid. It really sounds like both of you have a money/ personal finance problem that needs to be addressed first.

Communication is so important in any relationship and your communication is another area that needs improving before attempting to structure any deal.

Self reflect and be honest with yourself about your level of expertise. Work from a space of knowledge, confidence, gratitude, and openness to learn more. Right now it sounds like you are coming from a place of entitlement, over confidence and financial insecurity. You’ve received a lot of great advice in this thread; listen to it and you’ll be fine.

Best wishes to you and your dad.

In my career, I’ve encountered three professional squatters -and all within a 2 month period- you are absolutely correct, they do exist. I know their M.O. now which is one of the reasons I have a below average delinquency rate.

You’re wise to be vigilant, during this time, squatters do take advantage.

Like you, we wanted the flexiblity to return to our house but we found the current climate just too unpredictable to stay with short term (Airbnb). Our next best option was finding a MTM tenant who was flexible and had another place to go if we decided we wanted to live in our house again.

You can also explore leasing by referrals only. Tap into your network and see if anyone needs temporary housing for themselves or family, instead of renting to complete strangers. I’ve actually noticed an uptick in people posting in some of the community groups I’m apart of on Facebook. We all are familiar with one another so it’s a less risky way to go.

Best wishes, Kim!

For context, I understand that my numbers may not be the norm so here is an article that details percentage of late payers in the city of LA. https://news.usc.edu/175065/los-angeles-tenants-covid-19-pandemic-rent-usc-study/