All Forum Posts by: Nicolas Blish

@Peter Tverdov  The present value of my time is increasing, that's one of the main reasons I'm looking to outsource.  We have a baby on the way, our first, and I have been able to secure side work with my engineering degree that pays better than the fees would probably ever cost.  I just haven't seen a contract that makes me think I should sign on, it seems like I get nickel and dimed.  That's probably most people's concern when taking this step though, only to realize how much time it was actually taking out of their personal/work life to handle what seemed insignificant.

I think I'm going to sign on, at least one of my properties, and see how it goes.  I plan to redline a clause I saw though that states the contract is valid so long as any tenants they place are in the building.  I understand they are just trying to protect themselves from people cancelling after placing tenants but they also have a year long contract, it seems one or the other should be all that is needed.

Hello BP Community,

I have been self managing 2 rental buildings (fourplex and duplex) for the past few years. For the most part, the units are pretty easy to rent, and have minor issues here and there (mostly on Sundays of course!). Cash flow has really not been the problem, I've been able to make my payments no problem and put money back into the buildings. I'm getting busy with work and personal stuff though, and don't want to sell these properties but also not sure if I feel like holding onto them if I give away 10% of the rents.

Just a quick rundown:

4 Plex: Average rent is $625 = $2500/month in rents

2 Plex: Average rent is $475 = $950/month in rents

So between my two properties, I can expect rents of $3450. For the most part, rent is not hard to collect. I utilize Cozy for online payments, have a business bank account they can drop money into.

The simple question remains: Is property management worth it?

I find myself questioning giving away $345/month just to avoid a few phone calls and rent collection hassles.  But I also intend to own many more properties over the years, so is it better to accept the costs now and find someone I truly want to work with?

Looking for advice on if property management has been worth it for local investors and if so who would you recommend?  I have had 2 contracts to review, one at 9% fees and one at 10%. 

Any other questions, just ask below and I’ll do my best to answer!

Keywords: Hammond, New Orleans, Louisiana

We had come to $95K as a meeting point, had it listed for $110K.  Finished houses in the neighborhood have all been selling in the $150+ range.  I could bring it up to rent quality for $15K on the low end, wanted to treat it as a live-in flip though and go higher end so was estimating $25-30K.

Home owner is current on mortgage still.  Listing agent just informed me that the seller is weighing his options and considering fixing it himself for resale.  That's what I would do in his situation, flood was over a year ago though and it still hasn't been done...

Other question I had during this process, he had countered to $105K and I held at $95K.  If I had accepted the contract for $105K and the deal fell through, would he have been liable for the 10% penalty when the bank said no?  I thought about that option but didn't see any value in a penalty from someone who's fringing on bankrupt.  

So the listing agent should send my offer to the bank who holds the loan for review?  They were going to try and sell at a loss and pony up the difference but I think it was to much of a spread.  Thanks for the quick responses @JD Martin@Brett Goldsmith!  

How much would you think a bank would accept as a loss on the below:

Current Loan: $140K

Retail Value: $150-170K ARV

Current Value: <$100K AS IS

Is the 6-12 month time frame something typical of a short sale as well?

Hello Fellow Investors,

Share your similar stories below and help me figure out if I can continue chasing the house or if the deal is gone!

Background, flooded house has been gutted and treated.  Listed for sale as is.  We came to an agreeable price, well below his pay off left on the house due to not having flood insurance.  When the bank was brought into the equation the deal was shut down and I believe he will be pursuing a short sale instead now.

What does this mean for me and my offer?  It's all subject to bank approval now, right?  Does a local bank even deal with this thing or is this handled by the Feds?  I believe he used a rural development 100% financing loan.  

Anyway, just frustrated that another deal slipped through and looking to see what others have experienced and if I have any hope of getting this property at a decent price still.  I imagine that the bank will want more than I was willing to pay but I'm not sure how the appraisal would come back on a gutted house.

@Jim Adrian, agreed.  Rent is at $550 right now but just signed a new lease on next door unit for $600 so probably time to go.  I was trying to avoid rehab costs back to back but you can't win them all!

@Kim Meredith Hampton, the wife is already out and would like to come back if he's not there but he does not want to move.  It's a mess, I think avoiding the drama and finding some new tenants is the best option here.  

Had to google amenable, I'm an engineer so me not good with words!  He is quite the opposite though, confrontational and drunk.

Thanks for the input!

Thanks for the replies.

@Jim Adrian it's a coin flip because she makes enough money but it's solely from a disability check.

@Shaun Patterson, Agree with everything you said.  

@Ray Harrell, I have received complaints from other tenants for his behavior as well so it's not hard to imagine but I fully understand what you mean.

The husband coming back around is my main concern, no guarantee that she won't want him back around (who the hell can imagine why?!).  The lazy side of me wants to take the easy route and not have to deal with finding another tenant but I think that will bite me down the road.

Looks like it's time to serve some papers and get the eviction process rolling, the joy of grandfathered tenants.  Bought this 4plex in January and this is the second eviction.

Again, thank you for the responses!

Hello All,

Seeking a little advice on a messy situation one of my tenants has and therefore I have.  The short and sweet is that I have a married couple living in one of my units and the wife wants the husband out due to abusive behavior to her and their child.  Gave her some time to cool down and make sure that's the route she wants to proceed and she seems to be ready to cut ties.  She is the income provider for the family and wants to keep the unit but both names are on the lease.  My first thought is to go through the eviction process and then resign with just her.  Might be easier to just cut ties entirely and wish them well but she is a relatively good tenant.  I can evict on the grounds of smoking or damaged property easily.   Anyone been in a similar situation?  Any advice appreciated!

These tenants were acquired with the property and did not go through my screening process.

Reading your original post again, you don't have a property in mind to purchase already do you?  So by the time you find a place and go through the finance background search you'll have a good back history to prove your other property's value as a cash flowing asset as well as a paid off equity.  You should be able to use that payment history under your mother as well, the name change is just for legal reasons.

If you find the right deal you'll make the numbers work.