All Forum Posts by: NaTarrio Jones

@Thomas Shaw  This was my initial concern also but I was able to find good tenants.  Screening was the key.  I have one tenant that is on her second lease and one that did not renew due a family situation that required relocation. Each side currently rents for $750. 

@Andrew Bang  This wasn’t my first choice on location.  At the time I was working with very limited funds and my ideal location was overly competitive, many times asking price wasn’t enough.  After months and months of missing out on deals I decided to rethink my strategy so I found an area where the price point was more tailored to my circumstances yet still had a good rental market. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Texas City.

Purchase price: $54,500
Cash invested: $32,315

Small Duplex. 2% Deal. 22% ROI. Monthly Cashflow is based on self management.

What made you interested in investing in this type of deal?

The potential cashflow and ROI really made this deal attractive.

How did you find this deal and how did you negotiate it?

This deal was found on MLS. I was able to get an offer accepted for less than asking and after inspection I was able to negotiate an additional reduction in price.

How did you finance this deal?

Conventional Financing 25% down.

How did you add value to the deal?

Both units received updates. Tiled floors (no carpet), new kitchen cabinets, counter tops etc.

What was the outcome?

Initially I was terrified to pulled the trigger but it turned out to be the best decision I have made. Cash flow is great plus I'm learning a ton about the business by self managing.

Lessons learned? Challenges?

There were several areas of miscommunication with contractors. I had to get rid of one because of the level of work being performed. I could have done a better job of vetting my contractor. I also learned that I need to have a more detailed scope of work and have everything in writing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Boydeia Glass of Generation Realty

Forgive me if this has been mentioned but how do you determine if a property is located in an OZ.  Is there a map or link someone can point me too?

@Jennifer T. Exactly. 

@Rob D. Sorry I wasn’t as clear initially. 

Thanks for your response @Rob D.  The matter has been resolved.  The tenant has paid all fees.  This was not an instant where a great paying tenant had one NSF.  We typically will waive a fee for a tenant as a courtesy with good reason however we are already past that point with this tenant.  We have waived several fees in the past even though the excuses then weren’t the best.  We are beginning to see a pattern of a priority shift with a once automatic paying resident.   At some point we have to ensure they realize that this a business and we have to run it as such.  Nothing personal. Also that they are responsible for prioritizing their finances.  For instance  if they chose to pay their cable on time instead of their rent, it’s their decision but it comes with consequences clearly spelled out in our lease agreement.  Sometimes even good tenant needs to be brought back a on track.  This was the case here. 

Thanks for you responses @Timmi Ryerson @Jonathan R McLaughlin @Thomas S. @Ned J. @Renee Potoczny @Anthony Wick @George Pauley Update:  I requested that she furnish proof from her bank showing that the funds were available and remained sufficient through the processing period.  Initially she stated that the bank told her it was a breach of privacy for me to request a statement from her and it was illegal.   After submitting edited transactions and other inadequate proof I simply stated that the all charges were valid, but we were willing to review any information she chose to provide as proof.  I also informed the tenant that the past due balance needs to be paid immediately or we would take legal actions per lease agreement.  The full balance including all daily late fees and NSF Fees were paid just days later.

@Timmi Ryerson I did contact Forte and it turns out that payments process the next business day after it is made.  The tenant's balance did actually fall below the payment amount on this day. Also note that we have waived a previous NSF fee as well as daily late fees for this tenant as a courtesy in which we made sure she understood it will not be granted again. So we had to be firm.

Thanks @Dave Rav

Thanks for your response @John Underwood    The bank is saying that her deposit posted on that day but not verifying the end of day balance.   Forte payment system explained that it would not have processed until 6PM CST so it is dependent on balance at that time.   Has anyone experienced a transaction being wrongfully reversed by there payment system?