All Forum Posts by: Andy Luick

@Patrick Soukupyou've got tenants who have already paid 2 months in advance....while awesome in itself.....usually only problem tenants do that...but if the boyfriend is/was the issue and he's gone...sounds like problem fixed.  Single Moms can be the best renters because most landlords won't take them and they know that....plus they will usually do what they can to keep a roof over the kid's head.  We don't do much of this anymore in shared housing but have one currently that is all single Moms each with 1 child in one of the best school districts.  You've gotten some good advice here.

As someone else said, you can put all kinds of things in  the lease that may or may not be legally enforceable....thing is, most tenants aren't going to fight you on it and will simply move on.  

You will probably also want to repeatedly bomb the place for fleas....they may have had the dog on a treatment but the eggs can still hatch after the fact.  We've had the once or twice on our rentals and it's not fun getting rid of them.....there's also another post or two on here for getting the piss smell out of the floors.

Ikea cabinets are simply cheaply made and a pain to install.  We routinely turn those jobs down at HandyANDY and ask the client to consider a different product.  You can probably find an installer through thumbtack who specializes in Ikea stuff...so many millenials buy this stuff but can't put it together.  That's probably your answer but once you've done a couple of them....it's pretty straightforward as long as all of the parts are there.

I think you will find a much better value if you shop around a bit....you can find hardwoods with plywood boxes at pretty decent prices.  You'll save some money, save some headaches, keep your contractor happier and have something to highlight in your flip listings.....real cabinets

That's when you put on the gloves and do it yourself.  I'm sure you can find some day workers to do it if you live in the area.  There are also guys who post on Craigslist looking for this kind of trash out.  Pay them if you don't want to get dirty.  Find out when the mailman delivers and have someone check the mailbox around that time...unless it has a "vacant" card in it.  It's always good to chat with the neighborhood mailman if you can.  What happened to the dog?  You buy a property with whoever was in it at the time....every market has its own procedures for getting them out.  Be forewarned that Cali is very tenant friendly....

Try finding a good financial planner in your market to assist you with placement of those funds.  The advice you would get from us will be about what you paid us for it.  Situations like yours can and are complicated and, depending on the amount of funds, you might require a good tax attorney and financial planner to map out the best strategy for you and yours!  Luck with it.

Will try to see some of you there!

Appraisers today have a very strong incentive to come in at close to sales price...it's called prison and plenty of appraisers in most major markets headed there in the not to distance past.  Some submarkets...like Memphis...are fairly small and, while these transactions are supposedly at arms length, the reality is that everyone knows one another.  So appraisals have gone from end of the spectrum to the other.

If you're doing any kind of rental investing with borrowed money, the appraisal doesn't really mean much.  What you want to get to is net returns.....what is the net annual rent. When you get to a deal, hire your own inspector that YOU find to inspect the property...just as a check to find anything lurking beneath the surface.   If you're doing turn-key....as you will read all over BP - that means a lot of different things to different people.  The one thing it means to most all....is LONG TERM.  This isn't something with liquidity that you can get in and out of easily....except at a LOSS.  But you're priced out of your current market and that is the appeal to turn-keys.  You're saving a ton every month....but what if the economy crashes and you lose your job?  You have to think about worst case...stay positive but just know the risks.

You've never owned a home and while they turn-keys are saying "sure...I will give you a discount"....they should really be saying "let's do ONE deal and see how it goes" then you can think about more based on experience.  This is really the advice that any of us should be giving you....along with @Larry Fried suggested.  There are quite a few options for the smaller investor.  If you are hell bent on turnkey, find an operator who has in-house management...there's one from memphis that regularly posts here...check them out.  Find one that offers some sort of rental guaranty...otherwise, they will churn you because that's how they make money!!  It's the management that will kill you not just what you paid for the property. 

Memphis has Fedex but there are some really rough spots there and it's nationally ranked as a killing field....as is Atlanta.  Look to some other spots in the midwest...look for a college town where that single family can rent or convert to shared housing for better returns with the management. I hear a lot of good things about Indy...almost anywhere in the states is going to be cheaper than where you are.  I don't like it there....but there are a couple of good operators in Columbus and Cleveland Ohio.......take your time with it my friend....but if you do anything....just do ONE and play that out first.  When the market crashes and it will.....you can then march in and buy 2 or more for what you'd pay for 1 now....happy to help any way that I can! 

Love that you're thinking about this at such a young age...that's awesome!  I bought my 1st 2 deals as a college junior at 21 but it was all owner financed.  You don't have any cash and no credit or job history in the US.....you won't get a loan from any bank so forget about wasting your time and theirs.  You might be able to find private money or something owner financed but you're going to have to have some money or skin in the game.  For now you are best to network and maybe learn some if you can find a mentor...it's always best to learn on someone else's dime.  Best of luck with school and all else.

You've got this!  Luck!!!

It honestly doesn't take much to get a warrant here in the states.  As long as they uphold their end of the lease, you can't do much with them...nor should you if you haven't had any other trouble with them.  We had someone recently get arrested for theft...his crime you ask?  He drove away from a meeting with his ex and she left her purse in the backseat of his car.  He was arrested and is in court with it now.  This is just the system at work.  I would certainly meet with the tenants, express your concerns and get an explanation.  Let us know how it works out.