All Forum Posts by: Chan K.

@Robert Shadley You can just use your standard lease (can pull one off from docu share from this site) overlay whatever the paperwork from Section 8 office. They usually give you a lot of forms, in which will cover the basic. 

There is not much different between renting to section 8 and others. The only exception are:

1) Yearly inspection requirement ( a paint in the a*). 

2) You can get high rent and 70% of the money is guarantee from section 8. 

3) Section 8 tenants are a bit more messy .... (based on experience)

Good luck. 

You rent a basement. So the question is, is it even a legal unit in the first place? If it is not legal, you can get into a lot of trouble. If it is legal, send her 3 or 14 days notice to quit. Then, you can proceed to eviction. Depending on her age, if she is considered senior, more time might allow her to camp out. It is going to be a big expenses as you have to pay for storage, sheriff, and mover by law to remove her belonging out.  

@Mona Medina

I would say if you are nice, reliable, professional, and good at showing, yes. 

You also need to know investor terminology and know your number. 

If you don't, it won't be a long term relationship.

Investor who is active and have vision only wants agent that can sync with their conversation.

@Jeff B. Agreed to that, loosing tenant is expensive. I usually like tenant at will as it is easy to raise rent and let them go if the personality does not match. 

I used to put tenants on a 12 months lease. They used to call me a lot complaining about random stuff costing a lot of money just to send service provider over. It is still within their right to the lease clause. I have to sit in for the whole 12 months. In other instant, the tenant would just take off breaking the lease. There is nothing I could do about it, except keeping the deposit. I think going to court and all are a waste of time and energy. 

I think if you have a way to post bad credit on their credit report, then I would say - 12 months lease. If you don't, TAW is desirable. 

For me, personally, paying late is OK as long as it does not past 1-month cycle. There should be a late fee clause to collect extra money. In any case, the first time it is late, you should have the constable sends over 14-notice to quit just to protect yourself. You can make decision later to evict or not. Tenant is allowed to get 2 14-day notice to quit every 12 months. Then, the third time it is late, you can evict them immediately.

@Zulf H. I would say to transition slowly. Quickly, try to determine which tenant can afford more. Then, you can raise the rent for that tenant as close to market as possible, but not still keep your competitive edge.

You should not do this all at one, but try 1 unit at a time to feel them out. 

If you have money to withhold the vacancy, and expected the move out, then I would say raise all of them at one. 

I did that once on my 4-unit. Each unit is 20% below the market after my acquisition. I brought all of them back up to only 5% below market on the next rent cycle. The outcome, 2-unit left and 2-unit remained. I rehabbed the vacant units quickly, and were able to rent them out at market rate. 

Gradually, the other 2-unit left two. I also rehabbed both of them. I brought in two new tenants at market rate at well. 

At the end of the day, I would say yes bring up to market. The question is, do you have the money to sustain and people to help you rehab if they move out? This is personal .... If your answer is "Yes", bring the unit to market. Usually, tenants are anticipating rent increases when there is new owner if the rent is below the market. 

They also know that they have been paying below market. If they don't, you make that clear to them. By bringing the current listing, and show it to them. 

I think that is a legitimate concern. I would say for the most part, you should only use 1-agent. This is to gain trust, interpersonal, loyal, and connection between you and the agent.

I would say only transition to additional agent if the current agent is unable or hesitate to show you the house that is far away from his radius.

Ideally, it is your due diligent or research to find out about the market you want to invest. It is a plus if agent is aware of the neighborhood, but not required. If you are an experience investor, you can tell how the property and tenants are like the moment you step into the house. 

You can also walk around the street during the show or at night just to see how you feel. This will tell you a lot about the area. 

I have a 6-plex with shared water, electricity, hot water boiler, and heat. I build the rent rate to include them. I think tenant will understand the rate. The one that lives there now prefer pay one bill that included everything. 

MA does not have rent rate cap, and I put all of them on month-month. Overtime, it is easy to predict who is the one that is not frugal. When something is not going well, I would identify the trouble maker. I either kick them out or raise the rent so high that until it is not affordable for them to stay. 

I charge extra if they have window AC (in my lease). For heat, you can add thermostat that only max out at 68 or 75 degree. 

I only have one system to worry about. Make sure you have reserve in place. 

If the hot water or heat fail, you can send all of them to a motel or reduce rent ... etc.

@Holly Saxby You should shop around. I think some institution will allow you to get HELOC up to 100% for owner occupied. The earlier you start investing, the better you will be from compound and accumulation perspective. Even if you made a mistake (small one), you still have more time to correct it instead of waiting. Your owner occupied only has value when you are utilizing it. If you don't, it is still the biggest liability.

@Mike Hurney Hi Mike, we have been exposing to each other for a while now, and I just notice that you are a wholesaler. Can you please add me to your mailing list for lead for any multifamily? Thanks, -Chan- 

@Mike Hurney Hi Mike, I know. I am at the initial/evaluating step. At the moment, I want a report that I can bring to the bank for financing. Without an estimate, I could not have details conversation, except the 25% down and 100% rehab money.

@Derreck Wells I just sent you private message. Let me know what is the process and if you can come down. Do I need to notify my agent or the seller agent? I want you to get in ... I know there is plumbing leak and roof issue for starter. 

@John Tower What information do you need? Feel free to ask me for details here or private message me. 

"I want to find out overall cost, and an itemize report that I can bring to the bank.

If I end up moving forward with it, I might sub-contract out the roof, plumbing, or any electrical work. My maintenance guy and I will do the cosmetic rehab ourselves like floor, paint, bathroom, porch update, .... etc. "

I have been in the landlord environment for about 2-years. So far, all my acquisitions have been turned key with minimal update required when tenants moved out (paint, carpet, sink .... etc - nothing behind the gut, heat, or wiring). 

The property is a B/C, and I am not looking for anything fancy, but something that works.