All Forum Posts by: Account Closed

Ok, we are waiting to hear from an attorney but would like to hear from others.  We're in California

Husband and I accepted an offer on a SFR we own. Terms as follows

1. Purchase price 420K 

2. Buyer t pay $5K above appraised value up to agreed purchase price

Purpose of sell is a 1031 exchange.  We were overly optimistic about finding a replacement home given lack of inventory in our area, higher purchase costs, remodeling done on previous home and agent+ closing fees.  Lesson learned:  add a clause as seller that gives you a 'way out' when not 100% sure of exchange.

Appraisal came back at 410K, making the deal 415K.  Can we use this as a 'way out'? since we didn't get our asking price?  I've been reading that it's possible and we can opt to 'not negotiate'.  I understand we'll have to pay the deposit+ appraisal+ staging fees and possibly other costs.

Thank you in advance!! 

Thanks Colleen,  any way you could share the document you use to have the leaving tenant acknowledge termination of the agreement?

Hello and thank you in advance for your help. Single family home is rented to 4 girl friends with a one-year lease.  One moved out two weeks ago, gave the others a month notice and payed rent to cover till the end of this month.  In the last year, group has been responsive and we have no issue continuing to work with them.

Payments are done through Cozy.  For roommates convenience there are 4 accounts set up for online payments but ultimately it's managed as one payment.  If one is late, everyone is late.  There is a joint and several liability clause in the contract.

I'm researching local ordinances on the number of unrelated people allowed per home.  One of the remaining roommates states her brother and his girlfriend want to move in.  If ok w/ city, and ok w/ us for this couple to move in, would need to set up a new contract correct?  Or change previous contract with an addendum?

With a group, it's understandable that moves may happen more often as compared a single family. I do want to add to the contract that a tenant can pay an extra fee of two month's rent if they wish to be released from the lease early to ease hardship on remaining group.  Is this something we can do in CA?  Then, if a new roommate is found before end of the two months, should pro-rated amount be redistributed equally to remaining roommates?

BTW, we plan to complete a thorough background/credit check just as we did w/ current tenants.  I know it is potentially more 'hassle' to handle a roommate vs single family situation.  But as I mentioned, we'd like to work with our tenants in the current situation.

Also, since we plan to return the deposit at the end of the lease, next year, this means the remaining group will have to figure it out in terms of deposit payments between them, the person that left and the new people correct?

I'm thinking we should also assign a single person return designation for the security deposit at the end of the lease to make things clear.  Thank you!  Let me know if you there are additional details I should think of.

Hi, question for those of you investing in Modesto.  Any concerns with tenants refusing to move when a property is sold?  There is a moratorium on evictions so I don't know if some people see this as 'no need to pay rent or move'.  Any recent experiences?  The article below says moratorium ends June 1st but we are hearing otherwise from some people

Article on moratorium:
https://www.modbee.com/news/local/article241624411.html

Hello. We are investing with a contractor and we are fairly new to the loan holding world. There are two houses being built in Houston, TX and we funded a portion with the corresponding deed of trust and lean placed on the property. We also have a Guarantee document for this loan. The project needs additional funds and we are going to provide a second loan. These are the possible scenarios and questions:

1. For simplification, would it be ok/not unusual not to secure the second loan with a second deed of trust and instead add a 'clause' on the second Guarantee document. The clause added would be something along the lines of 'initial lean placed on property with the same loan provider will not be lifted until this second loan funds are payed'.

2. If the above is not possible/not recommended and we add a second lean. What is a reasonable cost range for a lawyer to handle this task?

3. Can someone recommend a law office in the Houston area for a second opinion? And, is a deed of trust something a paralegal can take care of or we should absolutely go with a lawyer?

Thank you!

Thank you for the advice.  I think it's a good compromise

Hello, we have a moderately complicated situation and in the process of seeking legal counsel.  I would love your advice as well. We are in CA, a tenant friendly state. For personal reasons, family crisis, etc, my husband rented a property in a city 2 hours away from where we are to the first family that was available to take it. To make it easy (I wasn't there at the time), he did not charge a deposit.  He also knew they had credit score issues.   Forward ten years later, he did a walk through a month ago.  The tenants moved their dad into an RV parked on the side of the house.  According to the neighbor, the dad has been there at least 2 years.  This was done without our consent. They have not missed a rent payment, but every 2-3 months the payment will be late with back and forth communication on when they'll be able to pay.  We received a letter from the city threatening fines if the situation is not fixed related to the RV.  This is for 'person may be occupying a recreational vehicle on our property and this is violation of municipal code (someone living in an RV for more than 72 hrs).  One idea is to continue 'to be nice' and try to work it out, or send a letter with formal tone about the situation.  We have also considered selling the house but I think that's just trying to run away from the problem.

Great info. Thank you everyone!!! We are deciding to hold off on the next purchase for several months  to see what the market does in the next year and likely getting two additional properties.  

My husband and I keep arguing about one point and we are putting this out for bigger pocket users to decide on.

He says that when looking at a property as a potential investment the only way to go about it is to put 20% down or less, get a loan and create positive cash flow.  He won't budge on this.

I say, this is useful for evaluating a property and it's a tool to decide whether to purchase or not but it's not the one and only way to look at financing.  We are relatively new in property investment btw.  We currently have two rental properties and have enough funds to put 50% down on a third.  One is payed already and the second we just bought with 20% down.  I want to find a 'good deal'.  I agree 100% with him that we use tools to evaluate options.  However, for me it makes sense on this third rental to put 50% down and realize the income to pay off the properties faster.  Instead, he wants to buy two additional properties.  We both have full time jobs, I'm in my late 30s and he's in his late 40s and not planning on quitting our jobs for at least 10 years.  We're managing the properties on our own.  Also, the market currently is fluctuating and I don't think it's smart to maximize our debt at the moment in case values drop dramatically or there's a lag in finding renters.  Although we are in the northern bay area and there's high demand for housing. Your thoughts? Hopefully my husband and I finally put this to rest. 

Thanks Joel!

This is really helpful.  I'm getting started and aim to close some deals by end of this year,