All Forum Posts by: Nicholas Armstrong

@Hattie Dizmond Me, too!

Lack of attic divider is at most surprising. 

Finding a nest of rare animals is astonishing.

Finding human remains or similar situation is creepy. This situation is not 'creepy'.

Two thumbs down for misleading headline 

Nicholas,

More than anything it does create a safety issue. I would have a contractor go in and give you an estimate to put a wall up. It will depend on size and other factors.

Hope this helps, good luck!

Marc

I read the title of your post and immediately thought you had found a body! This isn't creepy. It sounds like a SFR that was converted to a duplex.

What is required is governed by your state and/or local building codes and rental requirements.  In some areas all units must have fire doors and other separation.  In other areas older units are grandfathered in, unless you open things up and start making changes. 

Here in Dallas, we have a historic district with a lot of huge old houses that have been converted to 4-plexes. There is no fire separation in those units, including no fire doors. So, check with your local code enforcement division. 

 Bit late for that I would think. Should have made it a clause of the contract.

Here's the problem though, they are paying under market rent and when they come out of the apartment, whether you like it or not, you will be repainting the apartment and doing a bunch of repairs. This will cost you a lot. 

You need to do some sums to decide whether the costs of getting him out, refurbish the apartment, is going to equal the amount you'll get out of the apartment when it's re-rented. And remember that for the two/three months it's empty, it'll cost you in unpaid rent that you could have had.

Or, when you have the number in hand to refurb and get him out, whether you can find a number that he is will to pay to keep him in the apartment? Remember, that he will have the same problem when he goes to rent somewhere new - he will have to pay a lot more than now.

I went to our longest term tenants house yesterday. He's been there 20 years. His house is cosy and warm and he likes it. I will never ever raise the rent on him because when he goes, I have a 5 figure refurb coming up.

Definitely get rid of him before closing. You don't want to start ownership with a problem. 

You are worried about him trashing the unit before closing? What if he trashes the unit after closing? Make the seller get rid of him and have the unit ready for a final walk-through inspection three days prior to closing. If the departing tenant leaves it a dump, the seller has a couple days to clean it up before handing it over to you.

I would do that before I would consider escrowed funds. You should not have to deal with the seller's mess.

@Nicholas Armstrong other investors have had success with doing the deal with a two-step closing. The escrow releases upon the tenant's departure.

The seller get a little money at close and the rest upon tenant surrendering the keys. It's an escrow matter.